Asian markets were mixed in Monday trading as markets wake up from last week’s Lunar New Year Holiday. Fresh selling is seen on news that White House senior counselor Kellyanne Conway said Trump may still meet Chinese President Xi Jinping in the near future stating that it looks like US and China are getting closer to a deal. Dollar also rides on the news and jumps broadly in early US session yesterday. Meanwhile, Sterling is generally weak after poor GDP data, which showed deep contraction in December, but loss in the pound is so far limited.
Looking ahead, this week’s talks come as the world’s two largest economies trying to hammer out a deal before March 1st deadline, after which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent. On the other hand, UK Prime Minister Theresa May will make her statement in the parliament today before the debate which will take place on 14th February. Attention would be on any motions that could shift the control of Brexit from the government to the parliament. And if so, that would open up the route for lawmakers to renegotiate, delay, or even block Brexit.