Market Roundup
- Singapore Nov 2018 manufacturing output mm increase to 2.8 % vs previous 2.4 % (revised from 2 %).
- Singapore Nov 2018 manufacturing output y/y increase to 7.6 % vs previous 5.5 % (revised from 4.3 %).
- Japan PM Abe - Want to further strengthen Japan's positive economic cycle through steps to boost productivity.
- Japan chief govt spokesman - Japan's economic fundamentals firm.
- Japan PM Abe - Japan will see sales tax hike rate raised to 10 pct next year, govt plans to take sufficient steps to mitigate pain on economy.
- Thai central bank - There is fragility in financial system stemming from property sector, search for yield.
- BOJ governor Kuroda - BOJ must seek most appropriate policy while balancing benefits, costs of its policy.
- BOJ governor Kuroda - Stock price moves somewhat unstable, which could be driven by various risks on global economy.
Economic Data Ahead
- No major data expected for the day.
Key Events Ahead
- No major economic events expected for the day.
FX Recap
USD: The dollar index, a gauge of its value versus six major peers, held marginally higher at 96.64 points.
EUR/USD: The euro trades flat at $1.1403 mark. A consistent close below $1.1399 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 $1.1474, $1.1550, $1.1620 and $1.1820 marks respectively.
USD/JPY: The Japanese yen remains almost unchanged against U.S. dollar and was currently trading around 110.44 marks. It made intraday high at 110.45 and low at 110.38 levels. Pair made fresh 4-month low at 110.26 mark on previous trading session. A sustained close above 110.33 is required to take the parity higher towards key resistances around 111.45, 112.60, 113.98, 114.55, 115.25 and 117.98 marks respectively. Alternatively, a daily close below 110.33 will drag the parity down towards key supports around 110.27, 109.24, 108.72 and 107.90 marks respectively.
GBP/USD: The sterling edged up to $1.2713. 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. A sustained close below $1.2700 requires for dragging the parity down towards key supports around $1.2486 and $1.2150 mark. On the other side, key resistances are seen at $1.2790, $1.3047, $1.3187, $1.3215, $1.3362 and $1.3490 levels respectively.
AUD/USD: The Aussie trades marginally higher against U.S. dollar. The pair made intraday high at $0.7053 and low at $0.7044 levels. Immediate support and resistance levels were seen at $0.7020 and $0.7303 mark respectively.
NZD/USD: The kiwi trades flat in early Asian hours. Major support is down at $0.6632, with resistance around $0.6969. Pair made intraday high at $0.6740 and low at $0.6732 levels. A sustained close above $0.6722 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
Japan's Nikkei extends decline, down more than 1 pct to hit lowest since April 2017.
Shanghai composite index to open down 0.2 pct at 2,501.12 points and China's CSI300 index to open down 0.2 pct at 3,012.87 points.
Taiwanese stock was trading around 0.45 percent lower at 9,484.93 points.
India’s NSE Nifty was trading around 0.80 percent lower at 10,578.22 points while BSE Sensex was trading 0.90 points lower at 35,146.58 points.
South Korea’s Kospi was trading 1.66 percent lower at 2,019.44 points.
Commodities Recap
Oil prices were mixed in thin trading on Wednesday as the U.S. benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market in the longer term. U.S. West Texas Intermediate (WTI) crude future, were up 29 cents, or 0.68 percent, at $42.82 per barrel, at 0355 GMT, having at one point risen as high as 2 percent from the last close. They had slumped 6.7 percent in the previous session to $42.53 a barrel - the lowest since June 2017. Meanwhile Brent crude oil futures were down 11 cents or 0.22 percent at $50.36 a barrel, having skidded 6.2 percent in the previous session to $50.47 a barrel, the weakest since August 2017.
Gold prices hit a six-month high on Wednesday as concerns over global growth and a partial government shutdown in the United States fuelled risk aversion, prompting investors to seek refuge in the metal. Spot gold climbed 0.3 percent to $1,271.85 per ounce as at 0429 GMT. The metal hit $1272.56 in early trade, its highest since June 20. U.S. gold futures were up 0.3 percent at $1,275.8 per ounce.
Treasuries Recap
U.S. 10-year treasuries yield hits low of 2.729 pct, lowest since April 2018.
Japan 2-year JGB auction lowest price 100.4500, average price 100.4540, bids accepted at lowest price 65.5555 pct.
