Market tone has been generally positive overnight, with equities in Europe registering >1% gains, while commodities open +0.7% stronger, despite the overnight report by MNI that Moody’s could downgrade China if growth comes in below 6%. The comment regarding Moody’s appears to have come on the back of Premier Li Kequiang’s statement that the country faces important challenges to achieve 7% growth this decade. Despite the generally positive tone, LATAM overnight proxy MXN traded softer in the Asian session, but appeared to get a bounce on the back of chatter that an MXN focused Toshin fund would be launched.
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Scotiabank