Market Roundup
- Eurozone Nov 2018 Markit Service flash PMI decrease to 53.1 diff.idx (forecast 53.5 diff.idx) vs previous 53.7 diff.idx
- Eurozone nov 2018 Markit Composite flash PMI decrease to 52.4 diff.idx (forecast 53 diff.idx) vs previous 53.1 diff.idx
- Eurozone Nov 2018 Markit manufacturing flash PMI decrease to 51.5 diff.idx (forecast 52 diff.idx) vs previous 52 diff.idx
- Germany Nov 2018 Markit Service flash PMI decrease to 53.3 diff.idx (forecast 54.5 diff.idx) vs previous 54.7 diff.idx
- Germany Nov 2018 Markit composite flash PMI decrease to 52.2 diff.idx (forecast 53.2 diff.idx) vs previous 53.4 diff.idx
- Germany Nov 2018 Markit manufacturing flash PMI decrease to 51.6 diff.idx (forecast 52.2 diff.idx) vs previous 52.2 diff.idx
- France Nov 2018 Markit composite flash PMI decrease to 54 diff.idx (forecast 53.9 diff.idx) vs previous 54.1 diff.idx
- France Nov 2018 Markit service flash PMI decrease to 55 diff.idx (forecast 55 diff.idx) vs previous 55.3 diff.idx
- France Nov 2018 Markit manufacturing flash PMI decrease to 50.7 diff.idx (forecast 51 diff.idx) vs previous 51.2 diff.idx
- Germany q3 2018 GDP detailed yy sa stays flat at 1.1 % (forecast 1.1 %) vs previous 1.1 %
- Germany q3 2018 GDP detailed yy nsa stays flat at 1.1 % (forecast 1.1 %) vs previous 1.1 %
- Germany q3 2018 GDP detailed qq sa stays flat at -0.2 % (forecast -0.2 %) vs previous -0.2 %
- Italy Oct 2018 flash trade balance non-EU increase to 3.05 eur vs previous 0.08 eur
Economic Data Ahead
- (0830 ET/1330 GMT) Statistics Canada is expected to report that retail sales gained 0.1 percent in September after falling 0.1 percent in August. While excluding autos, retail sales are likely to have risen 0.3 percent, after easing 0.4 percent in the previous month.
- (0830 ET/1330 GMT) The Statistics Canada is expected to report that annual inflation rate rose 2.2 percent in October after easing 2.2 percent in September.
- (0945 ET/1445 GMT) Financial firm Markit releases preliminary U.S. manufacturing PMI for the month of November. The index is likely to show a reading of 55.7 after posting similar gains in the previous month.
- (0945 ET/1445 GMT) Financial firm Markit releases preliminary U.S. composite PMI for the month of November. The index posted a final reading of 54.9 in the previous month.
- (0945 ET/1445 GMT) Markit Economics reports preliminary U.S. services PMI for the month of November. The index posted a final reading of 54.8 in October.
Key Events Ahead
- (0700 ET/1200 GMT) ECB Vice President Luis de Guindos delivers a speech on the occasion of the awarding of the German Bernacer Prize organized by Banco de Espana in Madrid, Spain
FX Beat
DXY: The dollar index rose, halting a 2-day losing streak on expectations that the Federal Reserve will deliver its fourth rate hike of 2018 in December. The greenback against a basket of currencies trades 0.3 percent up at 96.80, having touched a low of 96.04 on Tuesday, its lowest since Nov 7. FxWirePro's Hourly Dollar Strength Index stood at 21.89 (Neutral) by 1000 GMT.
EUR/USD: The euro plunged after data showed German private-sector growth slowed to its lowest level in nearly four years, stoking concerns that economic growth could be slowing across the Eurozone. Additionally, news that Italy's EU Affairs Minister Paolo Savona is considering resigning over the government's decision to challenge European Union budget rules weighed on investor sentiment. The European currency traded 0.3 percent down at 1.1369, having touched a high of 1.1472 on Tuesday, its highest since Nov. 7. FxWirePro's Hourly Euro Strength Index stood at -59.23 (Bearish) by 1000 GMT. Immediate resistance is located at 1.1446 (November 8 High), a break above targets 1.1499 (November 7 High). On the downside, support is seen at 1.1351 (November 8 Low), a break below could drag it till 1.1317 (November 9 Low).
USD/JPY: The dollar eased, extending previous session losses, as investors remained cautious ahead of a G20 summit next week where leaders of the United States and China are set to discuss their trade dispute. The major was trading 0.1 percent down at 112.83, having hit a high of 113.23 on Thursday, its highest since November 16. FxWirePro's Hourly Yen Strength Index stood at 1.09 (Neutral) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, as the U.S. preliminary Markit PMI's. Immediate resistance is located at 113.38 (October 31 High), a break above targets 113.81 (November 7 High). On the downside, support is seen at 112.64 (November 16 Low), a break below could take it lower 112.14 (October 19 Low).
GBP/USD: Sterling edged down, retreating from a 1-week peak touched in the previous session, as Spain objection over Gibraltar before a Sunday summit prompted some traders to take profits. Spain's Prime Minister Pedro Sanchez said he will veto the draft deal on Britain's exit from the European Union if no changes are made to the withdrawal treaty. The major traded 0.3 percent up at 1.2837, having hit a high of 1.2926 on Thursday; it’s highest since November 15. FxWirePro's Hourly Sterling Strength Index stood at 152.27 (Highly Bullish) 1000 GMT. Immediate resistance is located at 1.2946 (November 12 High), a break above could take it near 1.2990 (October 24 High). On the downside, support is seen at 1.2793 (November 19 Low), a break below targets 1.2723 (November 14 Low). Against the euro, the pound was trading 0.1 percent up at 88.44 pence, having hit a high of 88.40 on Thursday, it’s highest since Nov. 16
USD/CHF: The Swiss franc fell to a 4-day low as the greenback surged on Fed’s December interest rate hike expectations. The major trades 0.2 percent up at 0.9965, having touched a high of 0.9968; it’s highest since Nov. 19. FxWirePro's Hourly Swiss Franc Strength Index stood at 40.17 (Neutral) by 1000 GMT. On the higher side, near-term resistance is around 0.9980 (Oct. 22 High) and any break above will take the pair to next level till 1.0050 (Nov. 7 High). The near-term support is around 0.9897 (October 17 Low). and any close below that level will drag it till 0.9847 (October 15 Low).
Equities Recap
European shares surged, following a recovery in the Italian stocks, while euro slumped on eurozone economic growth worries.
The pan-European STOXX 600 index rallied 0.4 percent at 353.96 points, while the FTSEurofirst 300 index gained 0.4 percent to 1,394.57 points.
Britain's FTSE 100 trades 0.3 percent up at 6,984.20 points, while mid-cap FTSE 250 surged 0.2 percent to 18,565.20 points.
Germany's DAX rose 0.5 percent at 11,192.69 points; France's CAC 40 trades 0.5 percent higher at 4,962.19 points.
Commodities Recap
Crude oil prices slumped to their lowest since late 2017, dragged down by an emerging crude supply overhang and a worsening economic outlook. International benchmark Brent crude was trading 0.8 percent down at $62.00 per barrel by 0959 GMT, having hit a low of $61.57, its lowest since Dec. 7. U.S. West Texas Intermediate was trading 1.2 percent down at $53.19 a barrel, after falling as low as $52.80 on Tuesday, its lowest since the end of October 2017.
Gold prices declined as investors were cautious ahead of a G20 summit next week where leaders of the United States and China are set to discuss their trade dispute. Spot gold was 0.4 percent down at $1,222.57 per ounce by 1003 GMT but was about 0.2 percent firmer for the week. U.S. gold futures were 0.3 percent lower at $1,224.70 per ounce.
Treasuries Recap
The United Kingdom’s gilts rallied during the afternoon session ahead of tomorrow’s further meeting between Theresa May and Jean-Claude Juncker and Sunday’s special Summit. The yield on the benchmark 10-year gilts, slumped nearly 3 basis points to 1.401 percent, the super-long 30-year bond yields slipped 1 basis point to 1.947 percent and the yield on the short-term 2-year traded nearly 2-1/2 basis points lower at 0.747 percent.
The German bunds jumped on the trading day of the week after the country’s manufacturing PMI for the month of November missed market expectations and gross domestic product (GDP) for the third quarter of this year remained unchanged, meeting consensus estimates as well. The German 10-year bond yields, which move inversely to its price, fell nearly 1-1/2 basis points to 0.356 percent, the yield on 30-year note also slipped 1-1/2 basis points to 1.027 percent and the yield on short-term 2-year traded nearly 1 basis point lower at -0.647 percent.
The Australian government bonds traded flat across the curve during Asian session as investors remained on the sidelines in any big deal amid lack of any major domestic events and Thanksgiving holiday-thinned trading. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, traded nearly flat at 2.663 percent, the yield on the long-term 30-year bond also traded steady at 3.182 percent and the yield on short-term 2-year remained flat at 2.051 percent.
