· Hopes for an easing in Sino-U.S. tensions buoyed trade-exposed Asian currencies on Tuesday, while growing expectations the U.S. Federal Reserve could take a wait-and-see approach to further easing underpinned the dollar.
Most moves were modest, though, as caution tempered the mood. The Australian and New Zealand dollars each rose nearly 0.3%. The safe-haven currencies of the Japanese yen and Swiss franc each eased very slightly.
The dollar was a little softer against the euro at $1.1090 and a little stronger against of currencies at 97.813.
The British pound, meanwhile, nudged lower to $1.2855, with Brexit hanging in the balance.
· Lawmakers in the U.K. have rejected the government’s request to hold a general election on Dec. 12.
Under the rules, two-thirds of Parliament, or 434 MPs, needed to approve the motion for it to pass, but it got only 299 as opposition lawmakers declined the opportunity to take on Prime Minister Boris Johnson at the ballot box.
Johnson said the government will try again with a new route for a Dec. 12 election in a vote on Tuesday, saying it was time to “get Brexit done.”
· Singapore won’t be entering a recession for now and despite the risk of a more fragmented world and trade disruptions, the country remains “quietly confident,” its minister for trade and industry Chan Chun Sing said Tuesday.
Singapore’s economy — often seen as a bellwether for global growth — avoided a technical recession after growing by 0.6% in the third quarter, compared to the previous three months. On a year-on-year basis, Singapore’s economy grew 0.1% in the third quarter, below analyst expectations.
· The Bank of Canada is likely to keep interest rates steady on Wednesday in its first policy announcement since the federal election, despite signs that investors seeking higher-yielding currencies are shifting more money into Canadian dollars.
· Rural telecom carriers in the United States could lose access to an $8.5bn government fund to purchase equipment or services from China's Huawei Technologies and ZTE Corp, as the US telecommunications regulator plans to vote in November to designate them as national security risks.
The Federal Communications Commission (FCC) also plans to propose requiring those carriers to remove and replace equipment from such designated companies, its officials said on Monday.
At a meeting set for November 19, the FCC said it plans to vote to ask carriers how much it would cost to remove and replace Huawei and ZTE from existing networks and to establish a reimbursement programme to offset the costs of removing the equipment.
· House Democrats will hold a vote to push forward with the impeachment inquiry into President Donald Trump, House Speaker Nancy Pelosi confirmed Monday.
The vote is expected to come as soon as Thursday, a senior Democratic aide told CNBC. The House resolution will be put forward tomorrow by Rules Committee Chairman James McGovern, D-Mass., according to a spokesman for his office.
· Tensions between the United States and China have given new impetus to a China-backed trade pact and there is a chance of major progress, if not final agreement, when Southeast Asian leaders meet in Bangkok this week, analysts say.
The Regional Comprehensive Economic Partnership (RCEP) could become the world’s largest free trade zone, comprising 16 countries that account for a third of global gross domestic product and nearly half the world’s population.
Progress since talks began in 2012 has been slowed by disagreements between members, such as major Indian concerns over a possible deluge of imports from China. The pact also includes the Association of Southeast Asian Nations (ASEAN), Australia, Japan, New Zealand and South Korea.
· Oil prices fell for a second day on Tuesday as investors awaited U.S. crude inventory data for more insight into oil demand trends, while concerns about economic growth overshadowed signs of a thawing in the trade war between Washington and Beijing.
Brent LCOc1 futures were down 30 cents, or 0.5%, at $61.27 a barrel by 0733 GMT, having fallen 0.7% on Monday.
U.S. West Texas Intermediate (WTI) CLc1 crude was down 40 cents, or 0.7%, at $55.41, after falling 1.5% in the previous session.
Prices rose sharply last week amid a decline in U.S. inventories and signs of an easing in the U.S.-China trade war, but worries on Monday about weaker economic growth offset hopes of a rise in oil demand even if trade talks progress.
Reference: Reuters, CNBC
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