Light Risk Positive Flows As Blinken-Xi Meeting Confirmed

MNI (London) - The driver of the light risk-positive flows now becomes more explicit as news wires run headlines pointing to the confirmation of a meeting between U.S. Secretary of State Blinken and Chinese President Xi (after Chinese Foreign Ministry spokesperson Mao provided no comment when questioned on that front). Blinken already met with top level Chinese foreign affairs officials earlier in the day/over the weekend. The meeting will take place at 16:30 Beijing time, which equates to 09:30 London/04:30 NY.

• Bonds offered, equities firm and FX trade sees the JPY on the defensive after its outperformance overnight, while CAD finds itself at the top of the G10 FX pile.
• We don’t expect much in the way of meaningful advances in Sino-U.S. relations to come from the meeting, meaning that is probably as much about improving optics as anything else.