US equities reached record highs yesterday, 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 both beat economists’ expectations, likely boosted by confirmation of the partial trade deal. Major indices in the US gained, although reports that Boeing has considered cutting or halting production of its grounded 737 MAX aircraft dragged down the Dow's gains.
The greenback continued to fall against most major currencies at the start of the trading week, as the trade deal softens global risk caused by the trade tussle. But sterling dived 0.38% on Tuesday morning as of 4.44am (GMT +4), after it was reported that British Prime Minister Boris Johnson is seeking a hard deadline for the UK's transition period after Brexit. The hard deadline would mean that there is still a possibility of a no-deal Brexit.
Safe havens fell on Monday as investors shifted to riskier assets. Gold dropped and the yen weakened against the dollar. US Treasury yields gained as well, with benchmark 10-year yields falling 5bps to 1.87%.
Asian equities look set to track US gains on Tuesday, with the Nikkei opening Tuesday's trading session 0.32% higher.
Labour market data in the UK and industrial production data in the US will be released today. ILO's unemployment rate and average earnings for October in the UK are set to be announced at 1.30pm (GMT +4) while industrial production for November in the US will be released at 6.15pm (GMT +4).