FX Opening News:

• Asian equity markets began the week on a positive note with sentiment underpinned by encouraging reports from China
• China is to increase penalties related to IP theft and will examine lowering the threshold for violators according to fresh government guidelines
• Hong Kong Pro-democracy candidates achieved a landslide win following a record turnout in Hong Kong District Council elections
• US President Trump said the China trade deal is coming along very well, while he also commented that an announcement will come "very soon" regarding the Hong Kong bill
• Datapraxis analysis on YouGov data projected a Conservative majority of 48 seats with a total of 349 seats
• Looking ahead, German Ifo, ECB’s Mersch

FX Overnight Markets:

U.S.-China matters remained on the radar as the regional docket failed to provide fresh drivers. Beijing extended an olive branch by pledging to crackdown on IP theft, one of the key sticking points in trade talks with Washington. Participants paid less attention to a RTRS report suggesting that a "phase two" pact is nowhere near. They bought high beta currencies and shied away from safe havens. JPY cemented it under-performance on the back of around of sales into the Tokyo fix, with one source highlighting USD/JPY demand from Tokyo names.

GBP firmed up as the latest opinion polls still give the Conservatives a comfortable lead, while PM Johnson unveiled the Tory party's election manifesto, advertised as a mix of fiscal responsibility & improved public services.

Re: FX flows of note, Swiss drugmaker Novartis is buying U.S.biotech firm The Medicines Co. for $9.7bn, while LVMH is reportedly nearing the purchase of U.S. jewelry chain Tiffany & Co.

FX Overnight Volatility:

Interesting Stories of today:

Stocks Rise After China’s IP Move; Treasuries Slip: Markets Wrap

Stocks climbed globally along with U.S. equity futures as investors digested China’s decision to tighten intellectual property rules, a move that may boost the chances of a trade deal between the world’s largest economies. Treasuries and the yen both dipped.

Euro-Area Inflation May Finally Start to Pick Up Again

The first pickup in euro-area inflation in five months is on its way, with price growth forecast to have accelerated to 0.9% in November from 0.7%. But the headline rate is still well below the European Central Bank’s goal and highlights the big challenge facing President Christine Lagarde. In her first major speech on Friday, she noted the “relatively subdued performance of underlying inflation.”