Themes

· General mood is “risk off”

· Chinese Caixin Services PMI

· Chinese and HK equities hit on higher COVID numbers

What’s Moving

Another quiet session in Asia today, with China returning from a duo of public holidays to horror Chinese Covid numbers. This saw good selling on local stocks.

Currencies traded tight ranges but extended the late move out of the U.S. with the Dollar firming against the Euro, Yen and Swiss Franc. Flows in Sterling were more two-way.

RBA Governor is set to hit the tapes late this afternoon but is not expected to have a major impact on trading.

Data tonight sees:

· German Factory Orders (E: -0.2%)

· U.K. Construction PMI (E: 58.0)

· U.S. Crude Oil Inventories (E: -2.9mln)