Market Roundup
- Singapore Nov 2018 consumer price index yy decrease to 0.3 % (forecast 0.6 %) vs previous 0.7 %.
- Singapore Nov 2018 core CPI yy decrease to 1.7 % (forecast 1.9 %) vs previous 1.9 %.
- Top Trump official calls bankers, will convene "Plunge Protection Team".
- Top Trump aide says government shutdown may go into New Year.
- Trump, annoyed by resignation letter, pushes out Mattis early.
- Trump has discussed firing Fed Chairman Powell.
- OPEC will hold extra meeting if output cuts "not enough".
- China unveils tariff adjustments for 2019 to boost trade.
- Amid trade war, China issuers face bond payment squeeze in 2019.
- Yen, Swiss franc up on US political uncertainty, global growth woes.
Economic Data Ahead
- (0400 ET/0800 GMT) Taiwan industrial output.
Key Events Ahead
- No major events are scheduled for the day.
FX Recap
USD: The dollar index, a gauge of its value versus six major peers, held steady at 96.90, having risen 1 percent last week as investors shunned riskier assets.
EUR/USD: The euro was up a touch and last fetched $1.1369 on the dollar. The pair was currently trading around $1.1391 mark. A consistent close below $1.1369 will drag the parity down towards key supports around $1.1288, $1.1185 and $1.1080 levels respectively. Alternatively, reversal from key support will drag the parity higher towards key resistances around $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively.
USD/JPY: The yen gained 0.2 percent, changing hands at 111.03. The heightened fears over slowing global growth benefited the Japanese currency the most last week; it rose 2 percent on the U.S. dollar. Pair was currently trading around 111.12 marks. It made intraday high at 111.19 and low at 110.93 levels. A sustained close above 111.20 is required to take the parity higher towards key resistances around 112.60, 113.98, 114.55, 115.25 and 117.98 marks respectively. Alternatively, a daily close below 111.20 will drag the parity down towards key supports around 110.80, 110.27, 109.24, 108.72 and 107.90 marks respectively.
GBP/USD: The sterling edged up 0.1 percent to $1.2644. Traders are predicting a volatile period for sterling in January, when Prime Minister Theresa May will seek parliamentary approval for her much-criticized Brexit deal. Sentiment and positioning in the pound remains bearish on growing fears of a chaotic British exit from the European Union. A sustained close below $1.2486 requires for dragging the parity down towards key supports around $1.2150 mark. On the other side, key resistances are seen at $1.2758, $1.3047, $1.3187, $1.3215, $1.3362 and $1.3490 levels respectively.
AUD/USD: The Australian dollar, often considered a barometer of global risk appetite, changed hands at $0.7047, up slightly on its U.S. peer after sliding more than 2 percent last week. The pair made intraday high at $0.7067 and low at $0.7033 levels. Immediate support and resistance levels were seen at $0.7020 and $0.7303 mark respectively.
NZD/USD: The kiwi edged up to $0.6734, from a trough of $0.6704, to leave it off 0.1 percent for the week so far. Major support is down at $0.6632, with resistance around $0.6969. Pair made intraday high at $0.6743 and low at $0.6712 levels. A sustained close above $0.6708 is required to take the parity higher towards $0.6814 and $0.7050 mark respectively. Alternatively reversal from key resistance will take the parity down towards key supports around $0.6632 and $0.6402 levels respectively.
Equities Recap
Trading volumes were thinning out with most global markets set to shut for Christmas, while Japan was closed on Monday for a holiday.
Australia's S&P/ASX 200 index was down 0.97 pct at 5,414.60 points in early trade.
Shanghai composite index to open down 0.4 pct at 2,506.74 points and China's CSI300 index to open down 0.5 pct at 3,015.50 points.
Taiwanese stock was trading around 0.28 percent lower at 9,619.93 points.
HK’s hang seng index was open down 0.9 pct at 25,515.40 points.
India’s NSE Nifty was trading around 0.40 percent lower at 10,710.22 points while BSE Sensex was trading 0.27 points lower at 35,644.58 points.
South Korea’s Kospi was trading 0.30 percent lower at 2,055.44 points.
Commodities Recap
Oil prices dipped on Monday ahead of the Christmas holiday break, adding to last week's steep losses on concerns about a global oversupply. International benchmark Brent crude futures fell 27 cents, or 0.5 percent, to $53.55 a barrel at 0106 GMT. Brent touched $52.79 on Friday, its lowest since September 2017. U.S. West Texas Intermediate (WTI) crude futures eased 8 cents, or 0.1 percent, to $45.51 a barrel. WTI hit its lowest since July 2017 on Friday at $45.13.
Gold prices climbed on Monday, with investor appetite for risk curbed by worries over a partial U.S. government shutdown, Sino-U.S. trade tensions and faltering global economic growth. Spot gold had risen 0.4 percent to $1,261.47 per ounce by 0103 GMT. U.S. gold futures were up 0.5 percent at $1,264.1 per ounce.
Treasuries Recap
South Korea Central bank says sells 91-day monetary stabilisation bonds at yield of 1.770 pct.
