Market Roundup
- Japan Nov CPI, Core Nationwide Y/Y, 0.9%, 1.0% forecast, 1.0% previous.
- U.S. House passes funds for Trump wall; government shutdown looms.
- U.S. defense chief Mattis quits after clashing with Trump on policies.
- Japan's Cabinet approves record $900 bln budget, aims to soften sale tax blow.
- China denies "slanderous" economic espionage charges from U.S., allies.
- UK consumers gloomiest since 2013, car production slumps.
- U.S. stock funds set for record monthly withdrawals –Lipper.
- U.S. muni bond funds post $255 mln in inflows-Lipper.
- Foreign CB US debt holdings +$18.665 bln to $3.403 tln Dec 19 week.
- Treasuries +$18.593 bln to $3.027 tln, agencies +$298 mln to $308.710 bln.
Economic Data Ahead
- (0200 ET/0700 GMT) Germany Jan GFK Consumer Sentiment, 10.3 forecast, 10.4 previous.
- (0200 ET/0700 GMT) Germany Nov Import Prices Y/Y, 3.6% forecast, 4.8% previous.
- (0245 ET/0745 GMT) France Q3 GDP QQ Final, 0.4% forecast, 0.4% previous.
- (0245 ET/0745 GMT) France Nov Consumer Spending M/M, 0.0% forecast, 0.8% previous.
- (0245 ET/0745 GMT) France Dec Business Climate Mfg, 103 forecast, 105 previous.
- (0245 ET/0745 GMT) France Nov Producer Prices M/M, 0.4% previous.
- (0430 ET/0930 GMT) UK Q3 GDP QQ, 0.6% forecast, 0.6% previous.
- (0430 ET/0930 GMT) UK Q3 GDP Y/Y, 1.5% forecast, 1.5% previous.
- (0430 ET/0930 GMT) UK Q3 Business invest Y/Y, -1.9% previous.
- (0430 ET/0930 GMT) UK Q3 Current Account GBP, -21.200B forecast, -20.317B previous.
- (1000 ET/1500 GMT) EZ Dec Consumer Confidence Flash, -4.3 forecast, -3.9 previous.
Key Events Ahead
- (0830 ET/1330 GMT) Federal Reserve Bank of Philadelphia issues 'Nonmanufacturing Business Outlook Survey for December' in Philadelphia.
- (1000 ET/1500 GMT) Bank of Canada releases its business outlook report based on a survey of about 100 companies in Ottawa.
FX Recap
USD: The dollar index against a basket of six major currencies stood near 96.30 after falling to 96.168 overnight, its lowest since Nov 20. The index has lost roughly 1.2 percent this week.
EUR/USD: The euro was 0.15 percent higher at $1.1460 after nudging up to a 1-1/2-month peak of $1.1486 the previous day. The single currency was headed for a 1.4 percent gain on the week. The pair was currently trading around $1.1443 mark. A consistent close below $1.1445 will drag the parity down towards key supports around $1.1370, $1.1288, $1.1185 and $1.1080 levels respectively. Alternatively, reversal from key support will drag the parity higher towards key resistances around $1.1550, $1.1620 and $1.1820 marks respectively.
USD/JPY: The Japanese yen trades marginally lower in early Asia after CPI as well as core CPI data release. Pair was currently trading around 111.42 marks. It made intraday high at 111.43 and low at 111.08 levels. A sustained close above 111.27 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 111.27 will drag the parity down towards key supports around 110.98, 110.27, 109.24, 108.72 and 107.90 marks respectively. The currency has lost nearly 2 percent against its Japanese peer this week.
GBP/USD: The pound inched up 0.1 percent to $1.2669. It had climbed to a 10-day peak of $1.2707 on Thursday but pulled back from the high after the Bank of England kept interest rates on hold, saying Brexit uncertainty had "intensified considerably" over the last month. A sustained close below $1.2654 requires for dragging the parity down towards key supports around $1.2498 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 was a shade higher at $0.7119, moving away from a near two-month trough of $0.7086 brushed the previous day following tumult in the global markets. That uncertainty helped the Aussie steady for the moment on the U.S. dollar at $0.7114, though it was still 0.8 percent lower on the week. The pair made intraday high at $0.7123 and low at $0.7102 levels. Immediate support and resistance levels were seen at $0.7020 and $0.7303 mark respectively.
NZD/USD: The kiwi edged up to $0.6788, from a trough of $0.6725, 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 $0.6790 and low at $0.6763 levels. A sustained close above $0.6773 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 $0.6402 levels.
Equities Recap
Japan’s Nikkei was trading 1.47 pct lower at 20,093.50 points.
Australia’s S&P/ASX 200 was trading 1.18 pct lower at 5,441.85 points.
Shanghai composite index to open down 0.4 pct at 2,526.55 points and China's CSI300 index to open down 0.4 pct at 3,055.33 points.
Taiwanese stock was trading around 0.18 percent lower at 9,656.93 points.
Hong Kong’s Hang seng was trading 0.22 pct lower at 25,568.55 points.
India’s NSE Nifty was trading around 0.62 percent lower at 10,887.22 points while BSE Sensex was trading 0.60 points lower at 36,202.58 points.
South Korea’s Kospi was trading 0.30 percent lower at 2,053.44 points.
Commodities Recap
Oil prices climbed on Friday after tumbling 5 percent in the last session, with OPEC production cuts that start next month seen being deeper than previously expected. Benchmark Brent crude futures were up 1.51 percent at $55.17 per barrel at 0112 GMT, recovering from losses of $2.89 per barrel the session before. U.S. West Texas Intermediate (WTI) crude futures rose 1.53 percent, or 70 cents, to $46.58 per barrel.
Gold prices held firm on Friday, having climbed to a near six-month high in the previous session, as investors shunned risky assets and the dollar lingered near one-month lows. Spot gold was steady at $1,260.16 per ounce at 0125 GMT, as of 0043 GMT, after jumping over 1 percent in the previous session. The precious metal hit a high of $1,266.4 on Thursday, a level last touched on June 26. U.S. gold futures declined 0.3 percent to $1,263.7 per ounce.
Treasuries Recap
10-year NZ bond yields to their lowest since October 2016 at 2.636 percent as they priced in a more dovish stance from the Reserve Bank of New Zealand.
Australian bonds also had a barnstormer of a week, with 10-year cash yields reaching their lowest since mid-2017 at 2.378 percent.
The 10-year bond future was up 9 ticks for the week at 97.6250, while the three-year contract added 14 ticks to 98.150.
