Market Roundup
- ANZ - Taiwan central bank likely to enter hiking cycle in 2017.
- India’s December Nikkei Markit manufacturing PMI decreases to 49.6 vs previous 52.3.
- South Korea’s December Nikkei Markit manufacturing PMI increase to 49.4 vs previous 48.0.
- South Korea’s December trade balance prelim decreases to 7 bln $ vs previous 8.20 bln $.
- Oman 2017 state budget projects revenues of 8.7 bln rials, spending of 11.7 bln rials.
- Oman plans to cover 2017 budget deficit with 2.1 bln rials from international borrowing, 400 mln rials from domestic borrowing, 500 mln rials from financial reserves.
- Economy minister says Spain aims to issue net debt of around 35 bln eur in 2017, similar to 2016 levels.
Economic Data Ahead
- (0230 ET/0730 GMT) Sweden manufacturing PMI.
- (0300 ET/0800 GMT) Norway manufacturing PMI.
- (0300 ET/0800 GMT) Poland manufacturing PMI.
- (0345 ET/0845 GMT) Italy Markit manufacturing PMI.
- (0350 ET/0850 GMT) France manufacturing PMI.
- (0355 ET/0855 GMT) Germany manufacturing PMI.
- (0400 ET/0900 GMT) Euro zone Markit manufacturing Final PMI.
- (0400 ET/0900 GMT) Greece manufacturing PMI.
Key Events Ahead
- No key events scheduled for the day.
FX Recap
USD: The dollar index was marginally up at 102.36.
EUR/USD: The euro was flat at 1.0510 mark in early hours of Asia. Pair made intraday high at 1.0526 and low at 1.0509 marks. Immediate resistance was seen at $1.0670 level. A daily close below 1.0408 will drag the parity down towards 1.0382 levels.
USD/JPY: The yen was marginally higher against the U.S. dollar in early hours of Asia and trading around 116.85 mark. The yen lost 3.3 percent for the year, but considerably pared its losses after the Nov. 8 U.S. presidential election. A sustained close above 117.24 is required to take the parity higher towards 118.66 and 120.00 marks. Alternatively, a daily close below 117.24 will drag the parity down towards 114.81 levels.
GBP/USD: The Sterling rose 0.1 percent to $1.2340, moving away from a two-month low of $1.2201 plumbed last week. It was down 16.6 percent in a year marked by Britain's June vote to exit the European Union. Short term bias remains bullish till the time pair holds key support at 1.2209 levels. On the other side, current upside movement will take the parity higher towards key resistance around 1.2378, 1.2417 levels respectively.
AUD/USD: The Aussie was up at $0.7210 and off a seven-month trough of $0.7160 hit last week. The Aussie is down nearly 2 percent in December and 0.6 percent for the year, its fourth straight annual loss. Pair made intraday high at 0.7219 and low at 0.7199. A consistent close below 0.7165 will drag the parity towards key supports around 0.7142 and 0.7058 marks respectively. On the top side, key resistances are seen at 0.7257, 0.7312 and 0.7369 marks.
NZD/USD: The New Zealand dollar barely moved on Monday to stay at $0.6925, not far from a seven-month low of $0.6863 touched last week. The Kiwi is set to end the last week 1.2 percent higher after two straight losses. For the year, it is on track for a gain of 2 percent following three consecutive years of negative returns.
Equities Recap
South Korea’s Kospi was trading 0.05 percent lower at 2,026.45 point.
India’s NSE Nifty was trading around 0.48 percent lower at 8,146.70 points and BSE Sensex was trading at 0.52 percent lower at 26,488 points.
Commodities Recap
U.S. crude oil prices drifted higher in Asia on Monday with most financial markets in the region closed to mark the New Year holiday. Crude for February delivery on the New York Mercantile Exchange rose 0.24% to $53.90 a barrel. Global benchmark Brent crude traded on London's Intercontinental Exchange was last quoted at $56.74 a barrel.
Spot gold was stabilizes around $1,150 mark.
Treasuries Recap
South Korea Central bank says sells 91-day monetary stabilisation bonds at yield of 1.34 pct.
