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America’s Roundup: Dollar slip as U.S.-China trade deadline looms,Wall Street ends flat, Gold firms, Oil rises but U.S.-China trade war weighs on demand outlook-December 11th,2019

Market Roundup

• U.S., China planning for delay of Dec 15 tariff – WSJ

• Focus on Fed decision on Wednesday

• Dow up 0.01%, S&P 500 down 0.01%, Nasdaq up 0.05%

• US Dollar trades weaker against most major currencies

• US Nonfarm Productivity (QoQ) (Q3) -0.2%,-0.1% forecast, -0.3% previous

• US Unit Labor Costs (QoQ) (Q3) 2.5%,3.3% forecast, 3.6% previous

• US Redbook (MoM) -3.6%,0.4% previous                  
• US Redbook (YoY) 5.0%,7.9% previous      

Looking Ahead - Economic Data (GMT)

• 21:45 New Zealand Nov Electronic Card Retail Sales (YoY) 1.5% forecast 1.6% previous

• 21:45 New Zealand Nov Electronic Card Retail Sales (MoM) 0.5% forecast, -0.6% previous

• 23:30 Australia Dec Westpac Consumer Sentiment 4.5% previous

• 23:50 Japan BSI Large Manufacturing Conditions (Q4) 0.2, -0.2 previous

• 23:50 Japan Nov PPI (MoM) 0.1%, 1.1% previous

• 23:50 Japan Nov PPI (YoY) -0.3%,-0.4% previous    

• 00:00 New Zealand Jul Budget Balance -2.785B previous     

• 00:00 New Zealand Jul Net Debt  forecast 20.10% previous 

• 00:00 New Zealand Jul economic forecast  3.465B previous

• 19:00 US Fed Interest Rate Decision 1.75%,1.75% previous 
                                                               
Looking Ahead - Events, Other Releases (GMT)         

• 19:00 US FOMC Statement           

Currency Summaries

EUR/USD: The euro rose against the dollar on Tuesday, as   better-than-expected German economic sentiment survey boosted single currency. The ZEW research institute’s monthly index on economic morale among German investors showed the mood improved far more than forecast in December, with an unexpected rise in October exports boosting hopes for an upturn in Europe’s biggest economy.The euro was up 0.90 percent at $1.1090.The dollar index, which measures the greenback against six major currencies, was 0.13 percent lower at 97.52. Immediate resistance can be seen at 1.1121 (Higher BB), an upside break can trigger rise towards 1.1156 (200 DMA).On the downside, immediate support is seen at 1.1050 (21 DMA), a break below could take the pair towards 1.1000 (Psychological Level).

GBP/USD: Sterling edged higher against dollar on Tuesday, cementing recent gains as traders awaited data on economic growth and industrial production and kept an eye on the final days of campaigning ahead of Britain’s general election on Thursday. The pound on Monday hit a new 7-month high against the dollar and a 2-1/2 year high versus the euro as investors ramp up their bets on a majority win for the governing Conservative Party in Thursday’s election. Immediate resistance can be seen at 1.3206 (Higher BB), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3072 (9 DMA), a break below could take the pair towards 1.2961 (21 DMA).

USD/CAD: The Canadian dollar edged higher against the greenback on Tuesday as Canada, the United States and Mexico tried to finalize a North American trade pact and as investors weighed prospects of additional U.S. tariffs on China being delayed Canada sends about 75% of its exports to the United States, including oil. Its commodity-linked economy could also benefit from an improved outlook for global trade. Immediate resistance can be seen at 1.3273 (Dec 6th high), an upside break can trigger rise towards 1.3352 (Higher BB).On the downside, immediate support is seen at 1.3190 (Nov 19th low), a break below could take the pair towards 1.3163(Lower BB).

USD/JPY: The dollar was little changed against the Japanese yen on Tuesday, as investors remained wary of a deadline for U.S. tariffs on China, the British election and upcoming Federal Reserve and ECB meetings. Investors are almost certain the Federal Reserve will leave rates unchanged when its two-day meeting ends on Wednesday, while the European Central Bank is likewise expected to keep interest rates steady on Thursday.Strong resistance can be seen at 109.00 (Psychological level), an upside break can trigger rise towards 109.45 (Higher BB).On the downside, immediate support is seen at 108.54 (50 DMA), a break below could take the pair towards 108.62 (100 DMA).

Equities Recap

European shares retreated for the second day in a row on Tuesday as investors stayed away from big bets in a week packed with global political and economic events, including a tariff deadline that threatens to aggravate a U.S.-China trade dispute.

The UK's benchmark FTSE 100 was last trade date down by 0.28 percent, Germany's Dax ended down by 0.21 percent, and France’s CAC finished the up by 0.18 percent.

Wall Street’s main stock indexes were little changed on Tuesday, hovering near record highs, as investors awaited concrete news on whether U.S. tariffs on Chinese imports would take effect on Dec. 15, a potential turning point in the two countries’ trade dispute that has convulsed markets.

Dow Jones closed down at 0.10 percent, S&P 500 ended down 0.11 percent, Nasdaq finished the day down by 0.07 percent.

Treasuries Recap

U.S. Treasury yields rose on Tuesday after trading lower for most of the overnight session, as risk appetite improved amid  optimism that the Trump administration could delay imposing tariffs on Chinese goods set to take effect on Sunday.

U.S. 10-year note yields rose to 1.839%, from 1.831% late on Monday. Yields on 30-year bonds were up at 2.268%, from 2.265% on Monday.                              

Commodities Recap

Gold rose on Tuesday on uncertainty over U.S.-China trade talks ahead of a Dec. 15 tariff deadline while investors looked to the U.S. Federal Reserve's policy meeting for cues on its 2020 monetary outlook.

Spot gold rose 0.4% to $1,467.00 an ounce at 1323 GMT while U.S. gold futures gained 0.5% to $1,471.50.

Oil prices inched up on Tuesday as OPEC’s deal with associated producers last week to deepen output cuts in 2020 continued to provide a floor for prices, but U.S.-China trade tensions clouded the demand outlook.

Brent crude settled up 9 cents at $64.34 a barrel, and West Texas Intermediate oil  rose 22 cents, or 0.4%, to $59.24 a barrel.

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