Market Roundup
- Japan Nov flash manufacturing PMI 53.8 best since Mar ’14, Oct 52.8, new export orders up.
- ECB split over keeping bond buys open-ended: minutes.
- German Social Democrats under pressure to form grand coalition.
- Irish government on verge of collapse ahead of EU Brexit summit.
- Despite grim Brexit budget, UK's Hammond hushes critics for now.
- UK consumer confidence slumps to post-Brexit vote low - YouGov/Cebr.
- 'Macron effect' turns U.S. business bullish on France.
- BoJ trims purchases of 25-40 year JGBs to Y90 bln from Y100 bln.
- New Zealand trade deficit narrows despite imports at record high.
- NZ Oct Trade Balance YY -2.99 bln, -2.91 bln last.
- In Thanksgiving message, Trump hails military gains and 'big, beautiful, fat tax cuts'.
- Saudi to allow smaller foreign funds into stock market, ease other rules.
- Foreign CB US debt holdings -4.24 bln to $3.371 trln Nov 15 week.
Economic Data Ahead
- (0315 ET/0815 GMT) Switzerland industrial orders.
- (0400 ET/0900 GMT) Germany Nov IFO Business Climate f' cast 116.6, 116.7 last.
- (0400 ET/0900 GMT) Germany Nov IFO Current Conditions f' cast 125.0, 124.8 last.
- (0400 ET/0900 GMT) Germany Nov IFO Expectations f' cast 108.9, 109.1 last.
Key Events Ahead
- (0300 ET/0800 GMT) ECB's Coeure speaks at a conference – Paris.
- (0530 ET/1030 GMT) ECB's Nouy speaks at a regulation – Frankfurt.
- (0930 ET/1430 GMT) ECB's Galhau speaks at a conference – Paris.
FX Recap
USD: The dollar index, which tracks the U.S. unit against a basket of six major rival currencies, was down 0.1 percent.
EUR/USD: The euro was steady at $1.1849, not far from last week's one-month high of $1.1862. For the week, it was up 0.5 percent. Pair made intraday high at $1.1858 and low at $1.1836 levels. A sustained close above $1.1890 is requires for the upside rally. Alternatively, a sustained close below $1.1848 will take the parity down towards key support around $1.1732 mark. Immediate support was seen 1.1732 and resistance was seen at 1.2034 marks.
USD/JPY: The yen trades marginally lower in early Asia despite higher than expected manufacturing PMI data. Pair made intraday high at 111.50 and low at 111.19 levels. A sustained close above 119.19 is required to take the parity higher towards 112.45, 113.57, 115.37 and 117.42 marks. Alternatively, a daily close below 111.19 will drag the parity down towards 109.23, 108.12 and 107.50 marks respectively.
GBP/USD: The Sterling edged down 0.1 percent to $1.3298, though it was 0.7 percent higher for the week and remained close to Thursday's six-week high of $1.3337 ahead of British Prime Minister Theresa May's visit to Brussels later on Friday for Brexit talks. The pair was trading around $1.3289 marks.
AUD/USD: The Australian dollar paused after three days of gains and its New Zealand cousin hovered near 1-1/2-week highs as the greenback suffered losses on speculation the U.S. Federal Reserve will go slower on monetary tightening than previously thought. The Australian dollar held at $0.7624 from Thursday's high of $0.7638, the highest since Nov.14.
NZD/USD: The New Zealand dollar held at $0.6890, not far from Thursday's high of $0.6905, a level not seen since Nov.15.
Equities Recap
Shanghai composite index to open down 0.3 pct at 3,340.38 points and China's CSI300 index to open down 0.3 pct at 4,089.47 points.
Australia’s S&P/ASX 200 was trading 0.21 pct lower at 5,973.54 points.
Japan’s Nikkei was trading around 0.15 pct higher at 22,560.66 points.
Taiwan stock was trading around 0.05 pct higher at 10,860.06 points.
Hong Kong’s Hang seng was trading 0.41 pct higher at 29,829.50 points.
South Korea’s Kospi was trading 0.20 percent higher at 2,542.11 points.
India’s NSE Nifty was trading around 0.30 percent higher at 10,380.35 points and BSE Sensex was trading at 0.27 percent higher 33,678.22 points.
Commodities Recap
U.S. crude oil hit fresh two-year highs on Friday, as the shutdown of a major crude pipeline from Canada to the United States tightened North American markets. Trading activity is expected to be very low on Friday due to the U.S. Thanksgiving holiday. U.S. West Texas Intermediate (WTI) crude futures were at $58.37 a barrel at 0206 GMT, up 35 cents, or 0.6 percent from their last settlement. They reached a high of $58.58 a barrel early on Friday, the highest level since July 1, 2015. Brent crude futures were at $63.48, down 7 cents.
Gold prices inched up on Friday as the dollar remained under pressure after minutes of the U.S. Federal Reserve's meeting revealed that some policymakers were concerned over lower inflation. Spot gold was up 0.1 percent at $1,292.18 per ounce, as of 0134 GMT. Bullion was down about 0.2 percent for the week. U.S. gold futures for December delivery were unchanged at $1,291.80.
Treasuries Recap
New Zealand government bonds gained, sending yields 3.5 basis points lower at the long end of the curve.
Australian government bond futures were mixed with the three-year bond contract flat at 98.070. The 10-year contract rose 1.50 ticks at 97.490.
10-year U.S. treasury yield was at 2.334 percent vs U.S. close of 2.322 percent on Wednesday.
