Market Roundup
- Trump says Saudis staged 'worst cover-up ever' on Khashoggi; U.S. revokes visas of some Saudis.
- Trump steps up attacks on Fed Chairman Jerome Powell.
- Fed's Bostic says comfortable with fourth rate hike following strong data.
- UK PM May's Brexit transition plan could last for years.
- Canada's Trudeau vows to impose carbon tax, opponents push back.
- China state planner says to step up support to stabilise jobs in regions most affected by U.S.-China trade frictions.
- Japan Oct Nikkei manufacturing PMI Flash, 53.1, 52.5 previous.
Economic Data Ahead
- (0245 ET/0645 GMT) France Oct Business Climate manufacturing, 107 forecast, 107 previous.
- (0315 ET/0715 GMT) France Oct Markit manufacturing Flash PMI, 52.4 forecast, 52.5 previous.
- (0315 ET/0715 GMT) France Oct Markit services Flash PMI, 54.7 forecast, 54.8 previous.
- (0315 ET/0715 GMT) France Oct Markit composite Flash PMI, 53.8 forecast, 54.0 previous.
- (0330 ET/0730 GMT) Germany Oct Markit manufacturing Flash PMI, 53.4 forecast, 53.7 previous.
- (0330 ET/0730 GMT) Germany Oct Markit Service Flash PMI, 55.5 forecast, 55.9 previous.
- (0330 ET/0730 GMT) Germany Oct Markit composite Flash PMI, 54.8 forecast, 55.0 previous.
- (0400 ET/0800 GMT) EZ Sep Money-M3 Annual Growth, 3.5% forecast, 3.5% previous.
- (0400 ET/0800 GMT) EZ Oct Markit manufacturing Flash PMI, 53.0 forecast, 53.2 previous.
- (0400 ET/0800 GMT) EZ Oct Markit services Flash PMI, 54.5 forecast, 54.7 previous.
- (0400 ET/0800 GMT) EZ Oct Markit composite Flash PMI, 53.9 forecast, 54.1 previous.
Key Events Ahead
- (0330 ET/0730 GMT) Swedish Central Bank announces interest rate decision in Stockholm.
- (0915 ET/1315 GMT) Fed Minneapolis President Neel Kashkari participates in Q&A session in Minneapolis.
- (1000 ET/1400 GMT) BoC key policy interest rate announcement and Monetary Policy Report in Ottawa.
- (1115 ET/1515 GMT) BoC Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins hold press conference on Monetary Policy Report in Ottawa.
- (1310 ET/1710 GMT) Cleveland President Loretta Mester participates in a moderated Q&A at Cornell Club in New York.
- (1400 ET/1800 GMT) Federal Reserve issues the Beige Book of economic condition Washington.
- (1900 ET/2300 GMT) Federal Reserve Board Governor Lael Brainard participates in a moderated Q&A session in New York.
FX Recap
USD: The U.S. dollar index, a gauge of its value against six major peers, was wobbly in early Asia trade. It was last slightly lower at 95.94.
EUR/USD: The euro was also steady at $1.1472, although bearish sentiment against the common currency amid Italy's budget woes has limited any chance of a rally. On Tuesday, the European Commission rejected Italy's draft 2019 budget, saying it brazenly broke EU rules on public spending and asked Rome to submit a new one within three weeks or face disciplinary action. A consistent close below $1.1452 will drag the parity down towards key supports around $1.1390, $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, $1.1738 and $1.1852 marks respectively.
USD/JPY: The Japanese yen trades marginally lower in early Asia despite robust manufacturing PMI data. It made intraday high at 112.61 and low at 112.32 levels. A sustained close above 112.81 is required to take the parity higher towards key resistances around 114.55 and 117.98 marks respectively. Alternatively, a daily close below 112.17 will drag the parity down towards key supports around 110.98, 110.27, 109.24, 108.72 and 107.90 marks respectively.
GBP/USD: The sterling was fetching $1.2983, down 0.05 percent. It has lost 2 percent versus the U.S. dollar in over a week amid concerns about Brexit and May's survival. Sterling briefly gained half a percent against the dollar and euro on Tuesday after a media report that the European Union could offer British Prime Minister Theresa May a UK-wide customs union to clinch a Brexit deal. A sustained close below $1.2935 requires for dragging the parity down towards key support around $1.2662 mark. On the other side, key resistances are seen at $1.3187, $1.3215, $1.3362 and $1.3490 levels respectively.
AUD/USD: The Australian dollar rises in early Asia and was currently trading above $0.7100 mark, after finding last-gasp support around $0.7055. That helped prevent a punishing break of the recent 32-month trough at $0.7041, which likely would have unleashed a wave of momentum selling. The pair made intraday high at $0.7106 and low at $0.7080 levels. Immediate support and resistance levels were seen at $0.7041 and $0.7160 mark respectively.
NZD/USD: The New Zealand dollars was fighting a rearguard action on Wednesday as a shakeout in world stock markets sent investors to the shelter of the Japanese yen and U.S. Treasuries. The New Zealand dollar was trading flat at $0.6552, sandwiched between support at $0.6535 and resistance around $0.6568. Pair made intraday high at $0.6567 and low at $0.6546 levels. A sustained close above $0.6591 is required to take the parity higher towards $0.7050 mark. Alternatively reversal key resistance will take the parity down towards key supports around $0.6424 levels.
Equities Recap
Japan’s Nikkei was trading 0.38 pct higher at 22,095.50 points.
Australia’s S&P/ASX 200 was trading 0.18 pct lower at 5,832.85 points.
Shanghai composite index to open down 0.6 pct at 2,579.97 points and China's CSI300 index to open down 0.4 pct at 3,169.46 points.
Taiwanese stock was trading around 0.09 percent higher at 9,783.93 points.
Hong Kong’s Hang seng was trading 0.94 pct higher at 25,585.55 points.
India’s NSE Nifty was trading around 0.70 percent higher at 10,216.22 points while BSE Sensex was trading 0.67 points higher at 34,075.55 points.
South Korea’s Kospi was trading 0.20 percent higher at 2,110.94 points.
Commodities Recap
Oil prices on Wednesday extended falls from the previous day, when crude slumped as much as 5 percent, after Saudi Arabia said it would make up for supply disruptions from U.S. sanctions targeting Iran's petroleum exports from next month. Front-month Brent crude oil futures were at $76.37 a barrel at 0031 GMT, 7 cents below their last close. U.S. West Texas Intermediate (WTI) crude futures were at $66.31 a barrel, 12 cents below their last settlement.
Gold prices nudged up on Wednesday after hitting their highest in over three months in the previous session, with international political and economic uncertainty underpinning safe-haven demand for the metal. Spot gold was up 0.1 percent at $1,231.27 an ounce at 0102 GMT. On Tuesday, it touched its highest since July 17 at $1,239.68. U.S. gold futures were down 0.2 percent at $1,234.20 an ounce.
Treasuries Recap
Australian government bond futures edged higher, with the three-year bond contract up half a tick at 97.910. The 10-year contract rose 1.5 ticks to 97.3250.
New Zealand government bond yields dipped 1 to 2 basis points.
