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Asia Roundup: Kiwi hits 1-week high on upbeat employment data, sterling off 2-week peak ahead of UK manufacturing PMI, Asian shares at decade high - Wednesday, November 1st, 2017

Market Roundup

  • Japan Oct Nikkei Mfg PMI 52.8 vs 52.5
     
  • China Oct Caixin Mfg PMI Final 51.0 vs 51.0, forecast 51.0
     
  • Release of U.S. House tax bill delayed until Thursday
     
  • Fed set to hold rates steady ahead of Trump's leadership decision
     
  • U.S. pursues direct diplomacy with North Korea despite Trump rejection
     
  • Suspected terrorist truck attack kills eight on New York bike path
     
  • CME to launch bitcoin futures in push for currency's wide adoption
     
  • Rookies and robots brace for first UK rate rise since 2007
     
  • UK's NIESR expects BoE rates to peak at 2 pct in 2021
     
  • Britain accelerates Brexit plans, divorce talks also to speed up
     
  • Ousted Catalan leader agrees to election, summoned to Madrid court
     
  • German FDP leader presses Greens to compromise on immigration
     
  • Australia home prices hamstrung in Oct as watchdog bites
     
  • Australian citizenship crisis threatens to engulf another lawmaker
     
  • New Zealand 4.6% unemployment lowest since Dec 08 vs 4.7% forecast, 2.2% jobs growth vs 0.8% forecast
     
  • New Zealand’s foreign home ownership ban won't cause price collapse - trade min
     
  • China's finance ministry sells 1-year, 10-year bonds below forecasts
     
  • S. Korea's Moon says cannot recognise N. Korea as nuclear state

Economic Data Ahead

  • (0300 ET/0700 GMT) Great Britain Oct Nationwide house price m/m, f'cast 0.2%, last 0.2%
     
  • (0300 ET/0700 GMT) Great Britain Oct Nationwide house price y/y, f'cast 2.2%, last 2.0%
     
  • (0530 ET/0930 GMT) Great Britain Oct Markit/CIPS Mfg PMI, f'cast 55.8, last 55.9

Key Events Ahead 

  • (0615 ET/1015 GMT) EU Financial Affairs hearing by BoE’s Cunliffe and Woods - London
     
  • (1400 ET/1800 GMT) US Fed's FOMC rate decision – Washington

FX Beat

DXY: The dollar index gained on the back of the US house tax committee Chairman Brady’s remarks. The greenback against a basket of currencies traded 0.2 percent up at 94.69, having touched a high of 95.15 on Friday, its highest since July. 20. FxWirePro's Hourly Dollar Strength Index stood at 70.75 (Bullish) by 0500 GMT.

EUR/USD: The euro eased, extending previous session losses, as the greenback edged higher, with investors awaiting the outcome of the U.S. Federal Reserve's two-day policy meeting later in the session for clues about future tightening. The European currency traded 0.1 percent down at 1.1631, having touched a low of 1.1574 on Friday, its lowest since Jul. 20. FxWirePro's Hourly Euro Strength Index stood at -21.23 (Neutral) by 0400 GMT. Investors’ attention will remain on U.S. ADP employment change, ISM manufacturing PMI and construction spending data, amid a lack of economic data from the Eurozone docket. Immediate resistance is located at 1.1676 (61.8% retracement of 1.1837 and 1.1674), a break above targets 1.1706 (50.0% retrace). On the downside, support is seen at 1.1593 (Oct. 10 Low), a break below could drag it lower 1.1550.

USD/JPY: The dollar rose, having rebounded from an 11-day low in the previous session, as the latest comments from the U.S. house tax committee Chairman Brady on the tax reforms bill boosted the Treasury yields. The major was trading 0.2 percent up at 113.85, having hit a low of 112.95 the day before, its lowest since Oct. 20. FxWirePro's Hourly Yen Strength Index stood at -29.26 (Neutral) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. ADP employment change, ISM manufacturing PMI and construction spending for further momentum. Immediate resistance is located at 114.00, a break above targets 114.40. On the downside, support is seen at 113.44 (10-DMA), a break below could take it near 112.92(21-DMA).

GBP/USD: Sterling declined after rising to an over 2-week high earlier in the session on the back of comments delivered by the UK’s Brexit Secretary Davis and increasing expectations of a BoE rate hike tomorrow. The major traded 0.1 percent down at 1.3271, having hit a high of 1.3293 earlier, its highest since Oct. 16. FxWirePro's Hourly Sterling Strength Index stood at 17.00 (Neutral) by 0400 GMT. Investors’ focus will remain on UK Markit manufacturing PMI and MPC member Cunliffe speech, ahead of U.S. fundamental drivers. Immediate resistance is located at 1.3300, a break above could take it near 1.3338. On the downside, support is seen at 1.3248, a break below targets 1.3210. Against the euro, the pound was trading 0.05 percent up at 87.64 pence, having hit a high of 87.61 pence earlier, its highest since Sept. 27.

AUD/USD: The Australian dollar steadied as investors’ awaited data on building approvals and trade on Thursday, and retail sales on Friday for insights on the strength of the economy and the policy outlook. The Aussie trades 0.05 percent up at 0.7659, having hit a low of 0.7624 on Friday; it’s lowest since Jul. 11 and posted its third straight month of losses in October. FxWirePro's Hourly Aussie Strength Index stood at -96.57 (Bearish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7639 (Previous Session Low), a break below targets 0.7600. On the upside, resistance is located at 0.7725 (61.8% retracement of 0.7883 and 0.7625), a break above could take it near 0.7749 (10-DMA).

NZD/USD: The New Zealand dollar rallied to a 1-week high above the 0.6900 handle after data showed the unemployment rate fell to a near nine-year low and jobs grew 2.2 percent in the third quarter, far better than expectations of a 0.8 percent rise. The Kiwi trades 0.9 percent up at 0.6906, having touched a high of 0.6913 earlier, its highest level since Oct. 24. FxWirePro's Hourly Kiwi Strength Index was at 105.07 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6922 (10-DMA), a break above could take it near 0.6968 (61.8% retracement of 0.7206 and 0.6818). On the downside, support is seen at 0.6800, a break below could drag it till 0.6780.

Equities Recap

Asian shares touched a 10-year high on the back of solid economic growth globally, while the greenback steadied as investors awaited the outcome of the U.S. Federal Reserve's two-day policy meeting.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent.

Tokyo's Nikkei rose 1.7 percent to 22,388.83 points, Australia's S&P/ASX 200 index rallied 0.5 percent to 5,937.80 points and South Korea's KOSPI advanced 1.05 percent to 2,550.53 points.

Shanghai composite index slumped 0.05 percent to 3,392.05 points, while CSI300 index was trading 0.3 percent down at 3,994.61 points.

Hong Kong’s Hang Seng was trading 0.5 percent higher at 28,399.78 points. Taiwan shares added 0.1 percent to 10,806.36 points.

Commodities Recap

Brent crude oil prices steadied near two-year highs as OPEC has significantly improved compliance with its pledged supply cuts and Russia is also seen abiding to the deal. International benchmark Brent crude was trading 0.05 percent up at $61.09 per barrel by 0409 GMT, having hit a high of $61.22 earlier, its highest since Jul. 2, 2015. U.S. West Texas Intermediate was trading flat at $54.59 a barrel, after rising as high as $54.82 the prior day, its highest since Feb. 23.

Gold prices edged lower, extending previous session losses, as the dollar firmed with investors awaiting hints on a U.S rate hike following the Federal Reserve's two-day policy meeting. Spot gold was 0.1 percent down at $1,269.95 per ounce at 0415 GMT, having touched its lowest since Oct. 6 at $1266.67 on Friday. U.S. gold futures for December delivery dipped 0.1 percent to $1,268.80.

Treasuries Recap

The 10-year U.S Treasury yield stood at 2.392 percent higher by 0.016 bps, while 5-year yield was 0.016 bps up at 2.026 percent.

The Japanese government bonds traded narrowly mixed as investors remain sidelined in any big deal ahead of the FOMC monetary policy decision later in the day. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, traded flat at 0.067 percent, the yield on long-term 30-year also slipped nearly 1 basis point to 0.863 percent and the yield on short-term 2-year traded steady at -0.158 percent.

The Australian government bond futures slipped following weakness in the U.S. Treasuries as investors booked profits ahead of the FOMC policy decision later in the day. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 3 basis points to 2.713 percent, the yield on the long-term 30-year note also jumped 3 basis points to 3.474 percent and the yield on short-term 2-year climbed 1-1/2 basis points to 1.848 percent.

The Canadian government bond prices were higher across the yield curve, with the two-year up 2.5 Canadian cents to yield 1.393 percent and the 10-year rising 6 Canadian cents to yield 1.951 percent. The gap between Canada's two-year yield and its U.S. counterpart widened by 3.2 basis points to a spread of -20.7 basis points, its widest since July 11.

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2017-11-23 16:31:32
0m
2017-11-23 16:30:58
0m

November 23 21:00 UTC Released

KRConsumer Sentiment Ind*

Actual

112.3 Bln USD

Forecast

Previous

112.3 Bln USD

November 23 19:00 UTC Released

AREconomic Activity YY*

Actual

955 %

Forecast

-800 %

Previous

1755 %

November 23 23:50 UTC 110110m

JPForeign Bond Investment

Actual

Forecast

Previous

-105 Bln JPY

November 23 23:50 UTC 110110m

JPForeign Invest JP Stock

Actual

Forecast

Previous

182.4 Bln JPY

November 24 00:30 UTC 150150m

JPNikkei Mfg PMI Flash

Actual

Forecast

Previous

52.8 bln $

November 24 09:00 UTC 660660m

DEIfo Business Climate*

Actual

Forecast

116.6 %

Previous

116.7 %

November 24 09:00 UTC 660660m

DEIfo Current Conditions*

Actual

Forecast

125 %

Previous

124.8 %

November 24 09:00 UTC 660660m

DEIfo Expectations*

Actual

Forecast

108.9 %

Previous

109.1 %

November 24 09:00 UTC 660660m

ITIndustrial Orders MM SA

Actual

Forecast

Previous

8.7 %

November 24 09:00 UTC 660660m

ITIndustrial Orders YY NSA

Actual

Forecast

Previous

12.2 %

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