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LONDON OPEN

• LAST DAY SWITCH-AROUND IN RISK

• TRUMP RAMPS UP CRITICISM ON CHINA

It would have been a kick in the teeth to the 30 million American's who filed for unemployment since March for the month to end near the highs in equities. There is always one ideal time to buy and one ideal time to sell in every month and the 30th April fit the bill, with the major indices giving back much of their gains from the day before and the risk-off mood carrying in to today.

While there are a myriad of reasons for equities to be far lower & the USD a lot higher, there are still some smokescreens to get past - the promise of Gilead and/or any vaccine developments - so there may be one more risk-on move before the economic reality fully sets in.

Looking for a scapegoat, Trump is ramping up the rhetoric against China, with reports he is considering blocking a US investment fund from investing in Chinese equities. On COVID, he is labelling China either 'incompetent,' or as having deliberately let it spread. China is also responding, labelling US Secretary of State Mike Pompeo as an 'enemy of humankind.'

Kim Jong-un of North Korea has now not been seen for weeks. Most likely is that he is suffering from some kind of major illness and we are awaiting to see if he pulls through or not. As discussed, if he passes, this is one of the major flashpoints that Trump and Xi could choose to cross swords on.

It's a quiet session on the data front today, with limited data and US ISM Manufacturing PMI the highlight later at 1500 GMT.

#Fundamentals #Macro #News

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