The Euro pair is in recovery mode, trading in the 1.1600 price support line. The US dollar was down, for most of the day speeding up its decline ahead of Wall Street opening, as traders battle with the latest headlines coming from China. Evergrande, the troubled property giant, demanded trading to stop over the announcement of a major transaction. The news indicated that the company will sell a majority stake in its property management business of more than US$5 billion, a sign that the company is still trying to work on covering its US$305 billion debt.
Asian shares edged firmly lower, weighing on European indexes which anyway bounced from intraday lows. Wall Street is expected to open with moderate losses, as the initial risk-off sentiment seems to have cooled down. In the meantime, US Treasury yields remain at the lower end of their daily range. The yield on the 10-year US Treasury note is currently at around 1.47%, retreating from an intraday high of 1.50%.
On the data front, Europe released its October Sentix Investor Confidence, which surprisingly contracted to 16.9 from 19.6, much worse than anticipated. The US will publish August Factory Orders today, seen up 0.9% MoM.
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