JPY, CHF gains spurred by sinking stocks as...>

FOREX: JPY, CHF gains spurred by sinking stocks as US-China spat escalates

-The JPY and CHF are comfortably the best performers among G10 FX so far

Thursday, with trade tensions between the US and China spilling over into a

disagreement over the passage of US ships through the strait between Taiwan and

mainland China. Chinese currencies, however, have been somewhat stable, with the

PBoC governor clarifying that the country are able and confident in keeping the

CNY "basically" stable, reiterating that the central bank have ample policy

tools to cope with any fluctuations.

-Global equity futures are in the red across the board Thursday, with the e-mini

S&P already touching the week's worst levels ahead of the Wall Street opening

bell. This, twinned with lower than expected Eurozone and German PMI numbers,

has worked in favour of the USD, helping boost the USD index to the highest

level since late April. GBP remains offered as markets watch the clock for PM

May's likely resignation.

-Attention turns to weekly US jobless claims and new home sales data. Speeches

are due from ECB's Nowotny and Fed's Kaplan, Daly, Bostic and Barkin.