Market Roundup
- Japan housing starts Nov -0.6 y/y vs previous 0.3.
- In a first, Trump makes surprise visit to U.S. troops in Iraq.
- On shutdown, Trump vows to wait as long as it takes for wall funding.
- White House economic adviser - Fed chair’s job is not in jeopardy.
- In Japan, a scramble for new workers disrupts traditional hiring.
- China's industrial profits suffer first annual drop in 3 years, piles pressure on economy.
Economic Data Ahead
- (0300 ET/0800 GMT) Spain retail sales.
- (0300 ET/0800 GMT) Hungary unemployment rate.
- (0330 ET/0830 GMT) Hong Kong trade balance.
Key Events Ahead
- (1850 ET/2350 GMT) BOJ to release summary of opinions from board members at its Dec 19 - 20 policy meeting in Tokyo.
FX Recap
USD: The dollar index, a gauge of its value versus six major peers, was steady at 96.91, after gaining 0.5 percent on Wednesday.
EUR/USD: The euro fetched $1.1380, steadying in early Asian trade after losing 0.1 percent on the dollar on Wednesday. A consistent close below $1.1351 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 $1.1414, $1.1550, $1.1620 and $1.1820 marks respectively.
USD/JPY: The Japanese yen remains rises against U.S. dollar and was currently trading around 111.15 marks. It made intraday high at 111.36 and low at 110.85 levels. A sustained close above 111.36 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 111.36 will drag the parity down towards key supports around 110.27, 109.24, 108.72 and 107.90 marks respectively.
GBP/USD: The Sterling, which has been battered by Brexit woes in recent months, was firm at $1.2650, having lost 0.4 percent the previous session. A sustained close below $1.2583 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 $1.2760, $1.3047, $1.3187, $1.3215, $1.3362 and $1.3490 levels respectively.
AUD/USD: The Australian dollar, often considered a gauge of global risk appetite, tacked on 0.1 percent to build on its 0.4 percent gain in the previous session. The Aussie trades marginally lower against U.S. dollar. The pair made intraday high at $0.7077 and low at $0.7051 levels. Immediate support and resistance levels were seen at $0.7020 and $0.7303 mark respectively.
NZD/USD: The kiwi falls gradually against U.S. dollar. Major support is down at $0.6632, with resistance around $0.6969. Pair made intraday high at $0.6741 and low at $0.6712 levels. A sustained close above $0.6729 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 was trading 4.20 pct higher at 20,153.55 points.
Australia’s S&P/ASX 200 was trading 1.67 pct higher at 5,525.02 points.
Shanghai composite index to open up 1.2 pct at 2,527.72 points and China's CSI300 index to open up 1.4 pct at 3,042.95 points.
Taiwanese stock was trading around 1.93 percent higher at 9,662.93 points.
India’s NSE Nifty was trading around 0.50 percent higher at 10,783.22 points while BSE Sensex was trading 0.57 points higher at 35,864.58 points.
South Korea’s Kospi was trading 0.24 percent higher at 2,032.44 points.
Hong Kong’s Hang Seng was trading 0.66 pct higher at 25,820.55 points.
Commodities Recap
Oil fell on Thursday after soaring 8 percent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured prices even as a stock market surge offered support. Brent crude oil futures were down 8 cents, or 0.15 percent, at $54.39 a barrel by 0237 GMT. They rose 8 percent to $54.47 a barrel the day before. U.S. West Texas Intermediate (WTI) crude futures fell 0.19 percent to $46.13 per barrel. They jumped 8.7 percent to $46.22 per barrel in the previous session. Both crude benchmarks are down roughly 40 percent from highs touched in October.
Gold prices inched higher on Thursday amid concerns about global economic growth and a partial U.S. government shutdown, although a rebound in investor risk-appetite in the previous session limited gains. Spot gold rose 0.4 percent to $1,271.85 per ounce by 0102 GMT. In the previous session, the metal hit $1,279.06 an ounce, its highest since June 19. U.S. gold futures inched up 0.1 percent to $1,273.9 per ounce.
Treasuries Recap
U.S. 10-year yields rallied around 8 basis points to end at 2.8 percent.
U.S. 10-year treasury yield at 2.800 percent on Thursday vs U.S. close of 2.797 pct.
JGB 10-year futures open down 0.22 point.
