Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Europe Roundup: Sterling declines as polls show Conservative lead narrowing, euro halts 4-day losing streak as German consumer sentiment improves, European shares tumble - Tuesday, November 26th, 2019

Market Roundup

  • German consumer sentiment rose unexpectedly in December
     
  • Gold eases on prospect of U.S.-China trade war truce
     
  • Oil rallies ahead of OPEC Dec. 5 meeting
     

Economic Data Ahead

  • (0830 ET/1330 GMT) The U.S. Census Bureau is likely to report that preliminary wholesale inventories eased 0.6 percent in October after posting a fall of 0.4 percent in September.
     
  • (0830 ET/1330 GMT) The United States releases goods trade balance data for the month of October. The economy recorded a trade deficit of $70.55 billion in the previous month.
     
  • (0900 ET/1400 GMT) The Federal Housing Finance Agency releases its housing price index for the month of September. The index gained 0.2 percent in October.
     
  • (0900 ET/1400 GMT) The S&P/Case-Shiller is expected to report that U.S. home price index of 20 metropolitan areas rose at an annualized rate of 2 percent in September, after posting similar gains in the previous month.
     
  • (1000 ET/1500 GMT) The U.S. new single-family home sales are expected to have increased 1.2 percent to a seasonally adjusted annual rate of 709,000 units in October. New home sales dropped 0.7 percent in September to a seasonally adjusted annual rate of 701,000 units.
     
  • (1000 ET/1500 GMT) Federal Reserve Bank of Richmond will publish its Manufacturing Index for November. The index rose to 8 in the prior month.
     
  • (1000 ET/1500 GMT) The U.S. Conference Board releases its consumer confidence index.
     
  • (1630 ET/2130 GMT) API reports its weekly crude oil stock.
     

Key Events Ahead

  • (1300 ET/1800 GMT) Federal Reserve Board of Governors member Lael Brainard's speech

FX Beat

DXY: The dollar index consolidated near a 1-1/2 week peak recorded in the previous session, as Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin discussed issues related to phase one of a trade agreement. The greenback against a basket of currencies traded flat at 98.27, having touched a high of 98.38 on Monday, its highest since November 14.

EUR/USD: The euro steadied, halting a 4-day losing streak after data showed the sentiment among German consumers rose unexpectedly heading into December, indicating that household spending will continue to boost growth in the German economy at the end of the year. The European currency traded up at 1.1018, having touched a low of 1.1003 on Monday, its lowest since November 14. Immediate resistance is located at 1.1039 (10-DMA), a break above targets 1.1068 (21-DMA). On the downside, support is seen at 1.0995, a break below could drag it below 1.0966.

USD/JPY: The dollar rose to a 2-week peak after China stated top trade negotiators from both countries had reached a consensus on resolving relevant problems on a phone call. However, no indication about the timing of a deal forced investors to trim their positions. The major was trading 0.1 percent up at 108.97, having hit a high of 109.20 earlier, its highest since November 12. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. prelim wholesale inventories, goods trade balance, hosing price index, Richmond Fed Manufacturing Index, new home sales, consumer confidence and Fed Brainard's speech. Immediate resistance is located at 109.25 (November 5 High), a break above targets 109.48 (November 7 High). On the downside, support is seen at 108.76 (21-DMA), a break below could take it near at 108.66 (5-DMA).

GBP/USD: Sterling plunged, reversing most of its previous session gains after a second poll showed the Conservative Party’s lead narrowing before the British election next month. The major traded 0.4 percent down at 1.2854, having hit a low of 1.2829 on Friday, it’s lowest since November 13. Investors’ attention will remain on the development surrounding the general elections, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2930 a break above could take it near 1.2985. On the downside, support is seen at 1.2841, a break below targets 1.2815. Against the euro, the pound was trading 0.4 percent down at 85.73 pence, having hit a low of 86.05 on Friday, it’s lowest since Nov. 12.

USD/CHF: The Swiss franc slumped to a 1-1/2 month trough as investor sentiment improved amid optimism over a U.S.-China trade agreement. The major trades at 0.05 percent up at 0.9970, having touched a high of 0.9986 earlier, it’s highest since October 16. On the higher side, near-term resistance is around 0.9995 and any break above will take the pair to the next level till 1.0027. The near-term support is around 0.9952, and any close below that level will drag it till 0.9935 (5-DMA).

Equities Recap

European shares eased as investors sought concrete signs of progress in U.S.-China trade talks.

The pan-European STOXX 600 index fell 0.1 percent at 407.64 points, while the FTSEurofirst 300 eased 0.2 percent to 1,595.29 points.

Britain's FTSE 100 trades 0.1 percent up at 7,401.36 points, while mid-cap FTSE 250 rose 0.3 to 20,772.65 points.

Germany's DAX declined 0.3 percent at 13,211.77 points; France's CAC 40 trades 0.1 percent lower at 5,918.19 points.

Commodities Recap

Crude oil prices surged amid hopes that the United States and China are soon to agree a preliminary deal to end their trade war. International benchmark Brent crude was trading 0.3 percent high at $63.80 per barrel by 1017 GMT, having hit a high of $64.25 on Friday, its highest since September 24. U.S. West Texas Intermediate was trading 0.6 percent higher at $58.24 a barrel, after rising as high as $58.71 on Friday, its highest since September 23.

Gold prices plunged to a 2-week low as talks between top negotiators from the United States and China boosted prospects that an interim trade deal could be reached soon. Spot gold was trading 0.2 percent up at $1,457.90 per ounce by 1023 GMT, h having touched a low of $1451.53 earlier, its lowest since Nov. U.S. gold futures inched 0.2 percent lower to $1,453.80.

Treasuries Recap

The Euro zone bond yields held steady as U.S. and Chinese officials appeared to make progress in agreeing the first phase of a trade deal. The benchmark German 10-year bund yields were at -0.34 percent, far off a 5-month high at -0.22 percent reached earlier in November.

The Japanese government bond prices edged higher, with the benchmark 10-year JGB futures rising 0.11 point to 153.32. The key 10-year cash JGB yield fell 1 basis point to minus 0.100 percent. In the super-long zone, the 40-year yield dropped 3 basis points to 0.440 percent, while the 30-year yield declined 2.5 basis points to 0.410 percent. The 20-year yields fell 2 basis points to 0.255 percent. Elsewhere, the five-year yield eased half a basis point to minus 0.200 percent, while the two-year JGB yield stood flat at minus 0.190 percent.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.