Market Roundup
- Catalan separatists win election in rebuke to Spain and EU.
- U.S. Congress votes to avert shutdown, sends Trump stopgap spending bill.
- UK business confidence rises to 5-month high in December.
- U.N. Security Council to vote Friday on new North Korea sanctions.
- Bitcoin extends losses, slips below $14,000 on Bitstamp exchange.
- Japan Cabinet approves record Y97.7128 trln FY ‘18/19 budget.
- Japan FY ‘17/18 Y2.7073 trln supplementary budget approved also.
- Japan's record FY2018 budget puts fiscal discipline in doubt.
- Japan econ min - Next FY budget shows big reduction in new debt.
- Japan to reduce issuance of most JGB maturities in FY2018/19.
- Japan new bond issues to fall as tax revenues highest in 27-years.
- Trump tax cuts could mean a $3.5 bln boon for Japan Inc – Nikkei.
- U.S.-based equity funds post $22 bln of outflows, largest withdrawals in 2017 – Lipper.
- Foreign CB US debt holdings -11,996 bln to $3.372 trln Dec 20 week.
- Treasuries -11,094 bln to $3.03 trln, agencies -546 mln to +$263.60 bln.
Economic Data Ahead
- (0200 ET/0700 GMT) Germany Jan GFK Consumer Sentiment, forecast 10.8, 10.7 last.
- (0230 ET/0730 GMT) Germany Nov Import Prices YY, forecast 2.7%, 2.6% last.
- (0245 ET/0745 GMT) France Nov Consumer Spending MM, forecast 1.4%, -1.9% last.
- (0430 ET/0930 GMT) UK Q3 GDP QQ, forecast 0.4%, 0.4% last.
- (0430 ET/0930 GMT) UK Q3 GDP YY, forecast 1.5%, 1.5% last.
- (0430 ET/0930 GMT) UK Q3 Current Account GBP, forecast -21.20B, -23.18B last.
Key Events Ahead
- No major events scheduled for the day.
FX Recap
USD: The dollar index, which measures the U.S. currency against a basket of six major rivals, was up 0.2 percent at 93.450. For the week, it was down 0.5 percent
EUR/USD: The euro was down 0.3 percent at $1.1837 after dipping as low as $1.1817. It pared its weekly gain to 0.7 percent. Pair made intraday high at $1.1875 and low at $1.1817 levels. A sustained close above $1.1874 is requires for the upside rally. Alternatively, reversal from key resistance will take the parity down towards $1.1737.
USD/JPY: The yen held flat in early Asia and was currently trading around 113.32 mark. Pair made intraday high at 113.39 and low at 113.26 levels. A sustained close above 113.63 is required to take the parity higher towards key resistances around 114.17, 115.37 and 117.42 marks. Alternatively, a daily close below 113.32 will drag the parity down towards 112.84, 111.45, 109.23, 108.12 and 107.50 marks respectively.
GBP/USD: The pound was flat against the dollar at $1.338 after earlier slipping 0.1 percent. Against the euro the pound recovered and was flat at 0.88. The GFK consumer confidence index showed British consumer sentiment at its lowest level since December 2013 as inflation-squeezed households took a gloomier view of their finances.
AUD/USD: The Australian dollar climbed to a 1-1/2 month peak on Friday led by stronger prices for iron ore, the country's top export earner, while the New Zealand dollar stayed inside recent ranges. The Aussie, which has strengthened the past four days, was up another 0.2 percent to $0.7718. It was on track for a second weekly rise, being up 0.9 percent so far this week.
NZD/USD: The New Zealand dollar steadied at $0.7020 to stay within striking distance of a two-month high of $0.7034 set last week. The kiwi is up 0.4 percent so far this week, adding to last week's 2.3 percent rise. It is up 1 percent in 2017.
Equities Recap
Shanghai composite index to open down 0.1 pct at 3,297.69 points and China's CSI300 index to open down 0.1 pct at 4,064.91 points.
Australia’s S&P/ASX 200 was trading 0.21 pct higher at 6,073.80 points.
Japan’s Nikkei was trading around 0.04 pct higher at 22,875.25 points.
Taiwan stock was trading around 0.07 pct higher at 10,496.87 points.
Hong Kong’s Hang seng was trading 0.27 pct higher at 29,445.55 points.
South Korea’s Kospi was trading 0.25 percent higher at 2,435.32 points.
India’s NSE Nifty was trading around 0.21 percent higher at 10,462.95 points and BSE Sensex was trading at 0.06 percent lower 33,756.28 points.
Commodities Recap
Oil prices on Friday dipped away from 2015 highs reached the previous session, weighed down by rising U.S. output and the expected January re-opening of the Forties pipeline in the North Sea. Dealt volumes of crude futures were declining fast as traders closed positions ahead of upcoming Christmas and New Year breaks. U.S. West Texas Intermediate (WTI) crude futures were at $58.15 a barrel at 0130 GMT, down 21 cents, or 0.4 percent, from their last settlement.
Brent crude futures, the international benchmark for oil prices, were at $64.64 a barrel, down 26 cents, or 0.3 percent. Brent on Thursday closed at $64.90 a barrel, its highest since June, 2015.
Gold prices held below a two-week high in thin pre-holiday trade on Friday amid a firmer dollar, but were on track to log a second consecutive week of gains. Spot gold was down 0.1 percent at $1,265.65 an ounce at 0346 GMT, after hitting its highest since Dec. 6 at $1,268.91 in the previous session. It was up 0.8 percent for the week. U.S. gold futures slipped 0.1 percent to $1,269.10 an ounce.
Treasuries Recap
New Zealand government bonds were barely changed.
Australian government bond futures eased, with the three-year bond contract down 2.5 ticks at 97.805. The 10-year contract slipped 3 ticks to 97.2750.
10-year U.S. treasury yield held at 2.482 percent vs U.S. close of 2.483 percent on Thursday.
