Pessimistic US-China report........>

EMERGING MARKETS: Pessimistic US-China report drags CNH from multi-month highs

-After both US and Chinese officials looked to play down the disruption to their

'phase 1' trade signatures from the cancellation of the Chilean APEC summit, CNH

managed to strike the strongest level against the USD since mid-August. This all

changed, however, after Bloomberg reported that Chinese officials are said to

doubt the prospects of a long-term trade deal and that they are unwilling to

budge on big structural changes that have been demanded by the US. As a result,

USD/CNH rallied back above the 7.05 mark.

-Following the Brazilian central bank decision late Wednesday, BRL gapped firmer

at the open, but this was swiftly reversed as global equity markets and

commodities resumed selling. A higher than expected unemployment rate (11.8% vs.

Exp. 11.6%) only added to the downside pressure.

-South Korean trade balance data, Asia-Pac manufacturing PMIs, Indonesian and

Thai inflation data and minutes from the Colombian central bank's latest rate

decision are the Friday highlights.