Deutsche Bank bets on Chilean peso versus the rand

It’s a trade you don’t often see: shorting South Africa’s rand versus Chile’s peso. That’s what Deutsche Bank AG recommends, based on the diverging economic outlook underpinning the two currencies.

Stocks futures drop with no US-China talks planned

Adam Haigh, Bloomberg

US and European stock futures fell after a mixed session in Asia, where Chinese and Hong Kong shares took another leg down, with no talks yet scheduled between China and the US to address rising trade tensions.

China’s equity gauge tumbled 2% after local media said the country may have no interest in continuing trade talks with the US for now.

Futures on the S&P 500 Index fell, as did those on the Euro Stoxx 50. The yuan, already trading at five-month lows, dropped further. Japanese shares still managed to close higher, though off the session’s highs. South Korean stocks gave up gains and closed down.

Elsewhere, crude oil was flat and 10-year Treasury yields remained near their lows of the year. The yen edged up.

The US has been talking about wanting to continue the negotiations, but in the meantime it has been playing “little tricks to disrupt the atmosphere,” Taoran Notes, a WeChat blog run by state-owned Economic Daily, said Friday.

With the yuan among the world’s worst performers this month and heading back toward the much-discussed level of 7 per dollar, analysts are assessing the impact of the trade conflict for potential responses in China.

“In the near term there may still be some downside pressure on the currency,” in China, Tai Hui, a strategist at JPMorgan Asset Management, told Bloomberg TV in Hong Kong. But “there is a good chance the authorities in China will come back in and support the economy.”

Elsewhere, the pound remained under pressure as UK Prime Minister Theresa May faced a new threat to oust her.

Bitcoin fell as much as 14%, before paring losses as this month’s surge for cryptocurrencies was tested.