Markets shaken by Huawei’s CFO arrest

• Massive day for US data

• EU court to rule on UK’s Article 50 arrangements

The equities markets had a bumpy ride overnight after Canada arrested the CFO of mobile phone maker, Huawei. The CFO, Meng Wanzhou, may well be extradited to the US on espionage charges. This is set against a backdrop of disquiet between the US and China over trade arrangements and a growing concern over Huawei’s involvement in 5G mobile technology. The Chinese authorities are not happy. They’re not bashful, either; can be grumpy, but most definitely not dopey. They tend to choose their battles very carefully. This may not be one worth fighting.

Pound treading water as UK parliament debates Brexit

Sterling starts the day largely unmoved as the UK prime minister prepares her next play on the Brexit proposal and the European Court plans to publish its decision over whether Article 50 can be rescinded unilaterally by the UK. It will make that announcement on the day before the UK parliament votes to reject the PM’s current proposal. (It looks like that is a fairly safe bet).

EU keeping quiet on Brexit – for now…

The Euro is buoyed a little by the recovery of German factory orders. That is one small win in a sea of mixed data but, for now, it is good news for the Eurozone. There is barely a soupcon of Eurozone data for the rest of the morning, so we will need to see what comments come from the European side on Brexit, but they are mostly keeping schtum on that until Tuesday’s vote.

A big day for US data – hold on to your hats!

Having taken a half day break for the funeral of the former President, the US markets come back this afternoon to salvo after salvo of data releases. Deep breath… import and export volumes, productivity, Trade Balance, the composite Purchasing Managers’ Index (PMI), service sector PMI, Factory Orders, two turtle doves and a partridge in a pear tree. It will hit us like a whirlwind and, as you might expect, the US Dollar is susceptible to some volatility as the afternoon progresses. 

Canada shares data spotlight with North American neighbours

The US doesn’t have the whole stage this afternoon, though. Canada will release its housing starts data, the Ivey PMI Index and their trade balance data (very interesting in the wake of the new trade agreement). We will also get a speech from the head of Canada’s central bank. The Sterling – Canadian Dollar rate has been bouncing between 1.67 and 1.73 of late and we are mid-range right now. So there is scope for volatility in either direction. Beware.

Lazin’ in the sun?

Oh.. and can I ask you to please spare a thought for the plight of all the poor dehydrated grapes in the world? Just raisin awareness.