Market Roundup
- UK's May faces parliamentary showdown with Brexit rebels.
- EU readies "David Davis-proof" Brexit summit.
- Democrat Jones wins US Senate seat in Alabama in blow to Trump.
- Tillerson overture to N.Korea - US ready to talk without pre-conditions.
- US, EU, Japan slam market distortion in swipe at China.
- Crucial details of US Republican tax plan in flux as deal deadline looms.
- ADB puts Asia's growth at 6 pct this year, keeps 2018 forecast at 5.8 pct.
- Australia central bank gov - Bitcoin fascination is "speculative mania"
. - AU Dec Consumer Sentiment 3.6%, -1.7% last, 4-year high.
- New Zealand property sales jump in November, house prices rise.
- Japan to keep record-low interest rates in FY2018 budget draft.
- Japan Oct Machinery orders m/m, 5.0%, -8.1% last, f' cast 3.0%.
- Japan Oct Machinery Orders y/y, 2.3%, -3.5% last, f' cast -2.8%
. - South Korea to hold emergency meeting on cryptocurrencies, measures expected Friday.
Economic Data Ahead
- (0200 ET/0700 GMT) Germany Nov HICP Final y/y, f' cast 1.8%, 1.8% last.
- (0430 ET/0930 GMT) UK Nov Claimant Count Unem Chng f' cast 3.2k, 1.1k last.
- (0430 ET/0930 GMT) UK Oct ILO Unemployment Rate f' cast 4.2%, 4.3% last
- (0500 ET/1000 GMT) EZ Industrial Production m/m, y/y, f' cast 0.0%, 3.5%, -0.6%, 3.3% last.
Key Events Ahead
- (0400 ET/0900 GMT) BOJ's Kuroda speaks at an economists' gathering – Tokyo.
- (1400 ET/1900 GMT) Fed announces FOMC decision on rates – Washington.
- (1430 ET/1930 GMT) Fed's Yellen holds a news conference – Washington
. - (1800 ET/2300 GMT) NY Fed's Brainard speaks at a conference – Rochester.
FX Recap
USD: The dollar index, stood at 94.071, having risen to 94.219 on Tuesday, its highest level since Nov. 14.
EUR/USD: The euro trades marginally higher against U.S. dollar at $1.1758 mark. Pair made intraday high at $1.1761 and low at $1.1735 levels. A sustained close above $1.1792 is requires for the upside rally. Alternatively, a sustained close below $1.1717 will take the parity down towards key support around $1.1585 mark.
USD/JPY: The yen strengthens in early Asia on robust core machinery orders data. Pair made intraday high at 113.57 and low at 113.12 levels. A sustained close above 113.54 is required to take the parity higher towards 115.37 and 117.42 marks. Alternatively, a daily close below 113.54 will drag the parity down towards 112.21, 109.23, 108.12 and 107.50 marks respectively.
GBP/USD: The British pound hovered at $1.3315, near two-week lows of $1.3303 touched on Tuesday, although the currency was briefly propped up by data showing British inflation unexpectedly hit a near six-year high in November. The pound climbed to the day's high $1.3380 after the data, but later slipped to $1.3319 as the dollar strengthened ahead of Wednesday's expected U.S. interest rate hike, leaving sterling down 0.2 percent on the day.
AUD/USD: The Australian dollar on Wednesday rose further above a recent six-month trough, driven in part by talk of future flows related to multi-billion dollar M&A deals, while its New Zealand cousin made a new one-month top. The Australian dollar climbed as far as $0.7580 overnight, a level not seen since Dec. 6. It was last up 0.2 percent at $0.7573. The Aussie hit a six-month trough of $0.7501 last week but has since crept up steadily.
NZD/USD: The New Zealand dollar added 0.2 percent to $0.6944, the highest since early November. The kiwi has been on an uptrend since the appointment of Adrian Orr as the governor of the Reserve Bank of New Zealand.
Equities Recap
Shanghai composite index to open down 0.1 pct at 3,278.40 points and China's CSI300 index to open down 0.1 pct at 4,013.83 points.
Australia’s S&P/ASX 200 was trading 0.14 pct higher at 6,021.50 points.
Japan’s Nikkei was trading around 0.43 pct lower at 22,767.65 points.
Taiwan stock was trading around 0.18 pct higher at 10,461.87 points.
Hong Kong’s Hang seng was trading 0.49 pct higher at 28,936.55 points.
South Korea’s Kospi was trading 0.52 percent lower at 2,473.36 points.
India’s NSE Nifty was trading around 0.02 percent higher at 10,241.95 points and BSE Sensex was trading at 0.18 percent lower 33,168.65 points.
Commodities Recap
Oil prices rose on Wednesday as industry data showed a larger-than-expected drawdown in U.S. crude stockpiles, while expectations for an extended shutdown of a major North Sea crude pipeline also continued to bolster markets. Brent crude was up 64 cents, or 1 percent, at $63.98 a barrel by 0413 GMT. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015.
Gold traded within a range on Wednesday after hitting the lowest in nearly five months in the previous session, with investors in a holding pattern ahead of the outcome of a two-day meeting of the U.S. Federal Reserve. Spot gold was steady at $1,243.78 an ounce at 0427 GMT, after marking its lowest since July 20 at $1,235.92 in the previous session. U.S. gold futures were up 0.3 percent at $1,245.60.
Treasuries Recap
New Zealand government bonds rose, sending yields about 1 basis point lower.
Australian government bond futures eased, with the three-year bond contract down 3.5 ticks at 97.975. The 10-year contract YTCc1 slipped 1.75 ticks to 97.4425.
