Market Roundup
• Trump blasts Fed again as 'only problem' in U.S. economy.
• Mnuchin to convene U.S. 'Plunge Protection Team', markets slide.
• U.S. Treasury was not concerned on liquidity ahead of call with bankers -CNBC.
• US Nov National Activity Index, 0.22, 0.24 previous.
• UAE: OPEC+ will hold extra meeting if output cuts "not enough".
• Greece to raise up to 7 bln euros from bond markets next year- debt agency.
• Oil at lowest in year following global stock market tumble.
Looking Ahead - Economic Data (GMT)
• No major economic data scheduled
Looking Ahead - Events, Other Releases (GMT)
• Dec 25 23:50 Bank of Japan releases Minutes of Monetary Policy Meeting held on Oct 30 and 31 in Tokyo
Currency Summaries
EUR/USD:The euro rose against US dollar on Monday, as concerns about a prolonged government shutdown and sharply lower equity markets reduced demand for the greenback.Global stocks continued their downward trend for the seventh straight session as possibilities of a prolonged U.S. government shutdown and a deteriorating global economy unnerved investors. The euro rose 0.37 percent at $1.1410. An index that tracks the dollar versus a basket of six major currencies was down 0.40 percent at 96.57. Immediate resistance can be seen at 1.1432 (23.6% retracement level), an upside break can trigger rise towards 1.1480 (100 DMA).On the downside, immediate support is seen at 1.1357 (21 DMA), a break below could take the pair towards 1.1288 (Lower Bollinger Bands).
GBP/USD: The pound strengthened against greenback on Monday, as a weaker dollar and optimism for a Brexit deal ahead of January Brexit vote supported British pound. Prime Minister Theresa May will try to convince lawmakers to back her Brexit withdrawal arrangement next month, and then seek parliamentary approval for her deal in what could be a make or break moment for the government's battle to avoid a disorderly exit from the European Union in March. The pound traded up 0.60 percent higher against greenback on Monday after earlier hitting low at 1.2634. Immediate resistance can be seen at 1.2690 (10 DMA), an upside break can trigger rise towards 1.2759 (Dec 10th High).On the downside, immediate support is seen at 1.2635 (9 DMA), a break below could take the pair towards 1.2505 (Lower Bollinger Bands).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday, as lower oil prices and falling stock markets weighed on Canadian dollar. Global stocks continued their downward trend for the seventh straight session as possibilities of a prolonged U.S. government shutdown and a deteriorating global economy unnerved investors. Oil prices, meanwhile, tumbled more than 6 percent on Monday to the lowest in over a year.The Canadian dollar was last trading at 1.3609 to the greenback. Immediate resistance can be seen at 1.3641 (23.6% retracement level), an upside break can trigger rise towards 1.3700 (Psychological level).On the downside, strong support is seen at 1.3532 (5 DMA), a break below could take the pair towards 1.3461 (9 DMA).
USD/JPY: The dollar weakened against the Japanese yen on Monday as political uncertainty in the United States at a time of heightened anxiety over a global economic slowdown curbed risk appetite. As a government shutdown in the world's largest economy looked likely to extend into the new year, most investors were reluctant to make any big bets. The dollar was 0.79 lower versus the Japanese yen at 110.33. Strong resistance can be seen at 110.92 (100 DMA), an upside break can trigger rise towards 111.36 (61.8% retracement level).On the downside, strong support is seen at 110.00 (Psychological), a break below could take the pair towards 109.32 (23.6% retracement level).
Equities Recap
European shares fell on Monday as worries over a prolonged government shutdown and the position of Federal Reserve Chairman Jerome Powell added to angst about slowing economic growth, keeping stocks set for their biggest yearly loss in a decade.
The UK's benchmark FTSE 100 closed down by 0.6 percent, FTSEurofirst 300 ended the day down by 0.41 percent, France’s CAC finished the down by 0.4 percent. Germany's Dax and Italy's FTSE MIB were shut.
A steep sell-off in U.S. stocks worsened in a pre-holiday shortened session on Monday, as a move by the U.S. Treasury secretary to convene a crisis group and other political developments rattled investors and pushed the S&P 500 to the brink of a bear market.
Dow Jones closed down by 2.90 percent, S&P 500 ended down 2.69 percent, Nasdaq finished the day up by 2.21 percent.
Treasuries Recap
Yields on 10-year U.S. Treasury notes slipped on Monday to eight-month lows as investors, unsettled by dramatic stock market losses and further U.S. interest rate increases, piled more money into low-risk government debt.
The benchmark 10-year Treasury yield was down more than 5 basis points at 2.7365 percent after touching 2.7330 percent, which was the lowest since April 2.
The two-year yield declined 8 basis points for its steepest daily fall since May 29. It hit 2.5470 percent, the lowest since July 9.
Commodities Recap
Oil prices plunged more than 6 percent to the lowest level in more than a year on Monday, pulling back sharply late in the session as fears of an economic slowdown rattled the market.
U.S. crude futures settled at $42.53 a barrel, down $3.06, or 6.7 percent. Brent crude futures settled down $3.35, or 6.2 percent, at $50.47 a barrel.
Gold rose 1 percent to scale a six-month peak on Monday as sliding stock markets and concerns about a global economic slowdown sapped risk sentiment, driving investors to seek safety in the precious metal.
Spot gold was trading at $1,268.49 per ounce at 1:57 p.m. EST (1857 GMT) in thin trade ahead of Tuesday's Christmas holiday. U.S. gold futures settled up 1.1 percent at $1,271.80 per ounce.
