Equities on the charge as Fed-fuelled rally...>

FOREX: Equities on the charge as Fed-fuelled rally extends

- Continental equity markets surged sharply early Tuesday, with more indices up

well over 2% after the impressive US market recovery yesterday and a strong

Asia-Pac session (the Nikkei 225 finished higher by near 5%). As such,

currencies are trading with a mild risk-on tone, with JPY one of the weakest

while GBP, NOK advance - although FX moves are far more muted relative to

equities at this stage.

- Geopolitical tensions are rising across Asia following fatal clashes between

Indian and Chinese border forces (both sides have reported casualties) and the

destruction of the joint Korean Liaison office by North Korea. While the market

fallout has been relatively contained so far, this will likely remain a focus in

the coming hours.

- US retail sales data takes focus, with markets eyeing a record high reading of

over 8% - although this stops well short of erasing the 16% decline in the prior

month. Fed chair Powell appears in front of a Senate Panel but a speech from

Fed's Clarida discussing the economy may be of more interest later in the day.