It has been a fairly quiet European............>

STIR: It has been a fairly quiet European afternoon/US morning session in STIR

markets. The tone for the day was set in the Asian session following reports

that the US is stepping up efforts to extradite the Huawei CFO, with markets

concerned that US-Chinese trade talks will be strained.

- This led the Eurodollar strip to rise with the White area of the curve

flattening. Whites are flat to 3.5 ticks higher on the day while most Red, Green

and Blue contracts are 4 ticks higher on the day. In addition to the

geopolitical issues, poor existing home sales did little to lighten the mood in

the US.

- The Euribor strip has also flattened and moved higher today, helped by the

worst German ZEW current situation reading since January 2015. Whites are

largely unchanged on the day with Reds 0.5-1 tick higher, Greens 1-2 ticks

higher and Blues 2.5-3 ticks higher.

- The short sterling strip has bucked the trend, with most White, Red and Green

contracts 0.5 ticks lower on the day. The market seems to be suffering from

Brexit fatigue with headlines becoming less market moving.