Risk appetite holds as China take.............>

FOREX: Risk appetite holds as China take preventative measures

- After a strong session for risk appetite Wednesday, much of the gains have

held so far Thursday as markets eye China's decision to half additional tariffs

on as much as $75bln of US imports from Feb14 onwards. Speculation that the

Chinese could request the US do the same has also helped. As a result, mainland

equities are firmer once again and US futures have hit fresh alltime highs

already.

- USD/JPY's upward trend persists, but Y110.00 has provided decent resistance so

far. GBP remains weak, but yesterday's lows in GBP/USD are in tact and act as

first support at $1.2956.

- ECB's Lagarde spoke in front of European parliament but said little of market

consequence. She did, however, warn that the central bank is running out of

policy space with which to fight economic threats.

- Weekly US jobless claims numbers are the sole data release due Thursday, which

may provide the final clues on the labour market ahead of tomorrow's Nonfarm

Payrolls. ECB's Villeroy and Fed's Kaplan are due to speak.