US-CHINA: MOFCOM-'China Will Take All Necessary Countermeasures' Re: US Tariffs
(MNI) London - State-run Xinhua reports comments from the Chinese Ministry of Commerce (MOFCOM) regarding the imposition of additional tariffs on Chinese exports by the US on the grounds of fentanyl entering the US. MOFCOM "China has repeatedly stated that unilateral tariffs violate WTO rules and undermine the multilateral trading system. China firmly opposes this."
- MOFCOM: "...the United States has always ignored objective facts, previously imposed a 10% tariff on China on the grounds of fentanyl, and threatened to impose tariffs again this time."
- MOFCOM: "This behavior is purely 'shifting the blame', which is not conducive to solving its own problems, but will increase the burden on American companies and consumers and undermine the stability of the global industrial chain."
- MOFCOM: "China hopes that the US will not repeat its mistakes and return to the right track of properly resolving differences through equal dialogue as soon as possible. If the US insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests."
Separately, Xinhua reports the Ministry of Public Security calling the US' argument about fentanyl entering the country from/due to China as "an excuse", claiming that "The root cause of the fentanyl crisis in the United States lies in itself." Adds that the US' actions "will also have a serious impact on China-US drug control cooperation."
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EGB OPTIONS: OEH5 118.00/117.50/11.00 Put Fly Lifted
OEH5 118.00/117.50/117.00 put fly paper paid 11.5 on 8K.
OUTLOOK: Price Signal Summary - Bund Bull Cycle Remains In Play
- In the FI space, Bund futures remain in a bull cycle and the contract has traded higher today. Price has recently cleared resistance at 132.22, the Jan 22 high, and is through both the 20- and 50-day EMAs. The break higher confirms a resumption of the corrective bull cycle that started Jan 14. This signals scope for an extension towards 133.73, 50.0% of the Dec 2 - Jan 14 bear leg. Firm short-term support has been defined at 131.00, the Jan 16 / 24 low. First support is at 132.23, the 20-day EMA.
- A bullish corrective phase in Gilt futures remains in play, signalling scope for a continuation higher near-term. Last week’s high print and Monday’s climb, reinforce current conditions. The contract has traded through 93.09, the Dec 20 high. Sights are on 93.64, 61.8% of the Dec 3 - Jan 13 bear leg. First support is 92.17, the 20-day EMA.
OPTIONS: Larger FX Option Pipeline
- EUR/USD: Feb06 $1.0250(E1.5bln), $1.0300(E1.0bln), $1.0315-25(E2.2bln), $1.0350-55(E1.1bln), $1.0390-10(E2.8bln), $1.0430-50(E2.4bln); Feb07 $1.0400(E1.1bln); Feb10 $1.0400(E1.5bln)
- USD/JPY: Feb06 Y153.90($1.4bln); Feb10 Y154.00($1.9bln)
- GBP/USD: Feb06 $1.2455(Gbp1.2bln)
- EUR/GBP: Feb06 Gbp0.8465(E1.1bln)
- USD/CAD: Feb06 C$1.4200($1.8bln); Feb07 C$1.4090-10($1.1bln), C$1.4300-10($1.2bln), C$1.4355-75($2.5bln), C$1.4600($1.7bln); Feb10 C$1.4425($1.2bln)
