Market Roundup
- U.S. plans more China tariffs if Trump-Xi meeting fails -Bloomberg
- U.S. restricts exports to Chinese semiconductor firm Fujian Jinhua
- UK austerity ending, as long as Brexit deal gets done - Hammond
- China factory growth seen cooling further as U.S. tariff impact mounts
- Major Chinese banks seen swapping yuan for dollars in forwards - traders
- China's securities regulator to enhance market liquidity, encourage share buybacks
- Brazil's far-right president-elect eyes close U.S. ties
- Mexican president-elect pulls plug on new airport; markets sink
- Japan Sep Jobs/Applicants Ratio, 1.64, 1.63 f’cast, 1.63 prev
- Japan Sep Unemployment Rate, 2.3%, 2.4% f’cast, 2.4% prev
- Australia Sep Building Approvals, 3.3%, 3.0% f’cast, -9.4% prev, -8.1% rvsd
Economic Data Ahead
- (0455 ET/0855 GMT) Germany Oct Unemployment Chg SA, -12k f’cast, -23k prev
- (0455 ET/0855 GMT) Germany Oct Unemployment Rate SA, 5.1% f’cast, 5.1% prev
- (0600 ET/1000 GMT) EZ Q3 GDP Flash Prelim YY, 1.8% f’cast, 2.1% prev
- (0600 ET/1000 GMT) EZ Q3 GDP Flash Prelim QQ, 0.4% f’cast, 0.4% prev
- (0600 ET/1000 GMT) EZ Oct Business Climate, 1.14 f’cast, 1.21 prev
- (0600 ET/1000 GMT) EZ Oct Economic Sentiment, 110.0 f’cast, 110.9 prev
- (0600 ET/1000 GMT) EZ Oct Industrial Sentiment, 3.8 f’cast, 4.7 prev
- (0600 ET/1000 GMT) EZ Oct Services Sentiment, 14.0 f’cast, 14.6 prev
- (0600 ET/1000 GMT) EZ Oct Consumer Confid. Final, -2.7 f’cast, -2.7 prev
Key Events Ahead
- (0415 ET/0815 GMT) Norway Central Bank Deputy Governor Jon Nicolaisen gives a speech at a conference in Oslo
- (0930 ET/1330 GMT) ECB Chief Economist Peter Praet to chair a policy panel at the ECB conference in Frankfurt
- (1530 ET/1930 GMT) Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins to appear before House of Commons Standing Committee on Finance in Ottawa
FX Beat
DXY: The dollar index gained on news that Trump and his Chinese counterpart are due to meet on the sidelines of the Group of 20 leaders summit in Argentina at the end of November. The greenback against a basket of currencies trades up at 96.69, having touched a high of 96.86 on Friday, its highest since August 15. FxWirePro's Hourly Dollar Strength Index stood at 59.86 (Bullish) by 0500 GMT.
EUR/USD: The euro edged up, recovering some of its previous session losses, on news that German Chancellor Angela Merkel would not seek re-election as head of her Christian Democrats (CDU) party. The European currency traded 0.1 percent up at 1.1378, having touched a low of 1.1335 on Friday, its lowest since August 1.6 FxWirePro's Hourly Euro Strength Index stood at 29.95 (Neutral) by 0500 GMT. Investors’ attention will remain on a series of data from the eurozone economies, and EZ economic sentiment indicator, ahead of the U.S. home price indices. Immediate resistance is located at 1.1432 (October 25 High), a break above targets 1.1493 (October 23 High). On the downside, support is seen at 1.1335 (October 26 Low), a break below could drag it till 1.1301 (August 15 Low),.
USD/JPY: The dollar surged to a near 1-week peak after data released yesterday showed U.S. consumer spending rose for a seventh straight month in September. The major was trading 0.3 percent up at 112.68, having hit a low of 111.37 on Friday, its lowest since September 13. FxWirePro's Hourly Yen Strength Index stood at -134.52 (Highly Bearish) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. home price indices. Immediate resistance is located at 112.98 (September 25 High), a break above targets 113.28 (October 10 High). On the downside, support is seen at 112.08 (October 24 Low), a break below could take it lower 111.62 (September 15 Low).
GBP/USD: Sterling consolidated near 2-month lows after UK Finance minister Philip Hammond held out the prospect of an end to Britain's long spending crunch provided the government secures a Brexit deal with the European Union. The major traded 0.1 percent up at 1.2802, having hit a low of 1.2777 on Friday; it’s lowest since August 20. FxWirePro's Hourly Sterling Strength Index stood at -100.41 (Highly Bearish) 0500 GMT. Investors attention will remain on UK CBI Distributive Trades Survey, ahead of U.S. fundamental drivers. Immediate resistance is located at 1.2876 (September 4 High), a break above could take it near 1.2933 (September 3 High). On the downside, support is seen at 1.2777 (October 6 Low), a break below targets 1.2729 (August 20 Low). Against the euro, the pound was trading flat at 88.88 pence, having hit a low of 89.00 on Monday, it’s lowest since October 3.
AUD/USD: The Australian dollar rebounded from recent lows after data showed domestic building permits surged 3.3 percent in September from previous months reading of -9.1 percent. The Aussie trades 0.5 percent up at 0.7087, having hit a high of 0.7108 on Monday; it’s highest since October 22. FxWirePro's Hourly Aussie Strength Index stood at 62.66 (Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7021 (October 4 Low), a break below targets 0.7000. On the upside, resistance is located at 0.7125 (October 22 High), a break above could take it near 7159 (September 17 High).
NZD/USD: The New Zealand dollar rallied to a near 1-week peak on hopes of a U.S.-China trade resolution ahead of a meeting of the two leaders next month. The Kiwi trades 0.4 percent up at 0.6549, having touched a high of 0.6555 on Monday, its highest level since October 24. FxWirePro's Hourly Kiwi Strength Index was at 159.38 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6628 (October 1 High), a break above could take it near 0.6696 (September 26 High). On the downside, support is seen at 0.6502 (October 25 Low), a break below could drag it below 6465 (October 26 Low).
Equities Recap
Asian shares gained after U.S President Donald Trump said he would want to make a deal with China, easing geopolitical tensions.
MSCI's broadest index of Asia-Pacific shares outside Japan surged 0.1 percent.
Tokyo's Nikkei surged 1.5 percent to 21,457.70 points, Australia's S&P/ASX 200 index rallied 1.3 percent to 5,805.10 points and South Korea's KOSPI gained 1.3 percent to 2,022.48 points.
Shanghai composite index rose 1.3 percent to 2,575.29 points, while CSI300 index traded 1.6 percent up at 3,125.87 points.
Hong Kong’s Hang Seng traded 0.4 percent lower at 24,714.97 points. Taiwan shares added 0.1 percent to 9,526.11 points.
Commodities Recap
Crude oil prices surged, ahead of looming sanctions on Iran's crude exports, while signs of rising global supply limited upside. International benchmark Brent crude was trading 0.4 percent up at $77.13 per barrel by 0529 GMT, having hit a low of $75.09 on Wednesday, its lowest since August 24. U.S. West Texas Intermediate was trading 0.7 percent up at $67.16 a barrel, after rising as high as $67.92 on Monday, its highest since October 23.
Gold prices edged down as the U.S. dollar gained on worries over slowing economic growth and concerns the U.S.-China trade war could intensify again. Spot gold was down 0.1 percent at $1,227.64 an ounce at 0531 GMT, having touched its highest since July 17 at $1,243.32 on Friday. U.S. gold futures were up 0.2 percent at $1,229.30 an ounce.
Treasuries Recap
The Australian government bonds suffered during Asian session as investors expect to see a slight rise in the country’s consumer price inflation (CPI) data for the third quarter of this year, scheduled to be released on October 31 by 00:30GMT. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 1-1/2 basis points to 2.585 percent, the yield on the long-term 30-year bond remained tad higher at 3.079 percent and the yield on short-term 2-year traded nearly flat at 1.976 percent.
The Canadian government bond prices were mixed across the yield curve, with the two-year up 0.5 Canadian cent to yield 2.264 percent and the 10-year falling 1 Canadian cent to yield 2.396 percent.
