Market Recap: US equities hit record highs on Monday; sterling falls on Tuesday morning as Johnson seeks hard deadline for Brexit transition period
US equities made record highs on Monday thanks to the partial trade deal between the US and China and upbeat economic data from China. China's industrial production and retail sales in November beat economists’ expectations on Monday, likely boosted by the US-China phase one trade deal. Major indices in the US advanced on Monday, although reports that Boeing was considering whether to cut or halt production of its grounded 737 MAX aircraft dragged on the Dow's gains.
The greenback continued to fall against most major currencies on Monday, as the US-China phase one trade deal reduced risk of a global economic slowdown. But the sterling dived 0.38% as of 8.44am (GMT +8) on Tuesday morning after it was reported that British Prime Minister Boris Johnson was seeking a hard deadline on the UK's transition period after Brexit. The hard deadline would mean that there is still a possibility for a no-deal Brexit in 2020.
Safe haven assets fell on Monday as investors shift to riskier assets, gold and the yen both retreated on Monday. US Treasury yields gained as well.
Asian equities look set to track US gains on Tuesday, with the Nikkei starting Tuesday's trading session 0.32% higher.
The UK's labour market data will be released today, with ILO's unemployment rate and average earnings for October releasing at 5.30pm (GMT +8). US industrial production for November will be released at 10.15pm (GMT +8).