Light risk-off flows to start the.......>

MARKET TALK: Light risk-off flows to start the week, with focus on U.S. COVID-19

matters, issues surrounding COVID-19 in China (with another 2 regions of China's

capital moving to a state of high alert, the remaining 37 areas remain medium

risk) & fresh political headwinds for U.S. President Trump (low turnout Tulsa

rally & the situation surrounding the ousting of a top NY legal prosecutor).

- Elsewhere, the heavily watched r number (relating to COVID-19 transmission)

has surged to 2.88 in Germany, although the jump centres on localised cases, for

now. Germany's RKI has noted that the number "reacts sensitively to short-term

changes in case numbers, such as those caused by individual outbreaks. This can

lead to relatively large fluctuations, especially if the total number of new

cases is small... In light of the still low daily case numbers, both R values

should be interpreted with caution and in their course over several days."

- Cable hovers around unch., with the Times pointing to the potential for

temporary cuts to the VAT rate (maybe announced in July), while there is the

potential for the announcement of looser COVID-19 restrictions on Tuesday.

- E-minis edge lower, T-Notes lightly bid, NOK, AUD, NZD & CAD lag in G10 FX.