Market Roundup
• Trade war headlines continue to hog market spotlight
• China invites top U.S. negotiators for more talks -WSJ
• US Continuing Jobless Claims 1,695K, 1,685K forecast, 1,692K previous
• US Initial Jobless Claims 227K, 219K forecast, 227K previous
• US Jobless Claims 4-Week Avg 221.00K, 217.50K previous
• US Nov Philadelphia Fed Manufacturing Index 10.4, 7.0 forecast, 5.6 previous
• US Nov Philly Fed Business Conditions 35.8, 33.8 previous
• US Nov Philly Fed CAPEX Index 19.40, 36.40 previous
• US Nov Philly Fed Employment 21.5, 32.9 previous
• US Nov Philly Fed New Orders 8.4, 26.2 previous
• US Nov Philly Fed Prices Paid 7.80, 16.80 previous
• Canada ADP Nonfarm Employment Change -22.6K, 25.7K previous
• US Oct Existing Home Sales 5.46M, 5.47M forecast, 5.36M previous
• US Oct Existing Home Sales (MoM) 1.9%,1.4% forecast, -2.5% previous
• Eurozone Nov Consumer Confidence -7.2, -7.3 forecast, -7.6 previous Looking Ahead - Economic Data (GMT)
• 22:00 Australia Manufacturing PMI 50.0 previous
• 22:00 Australia Services PMI 50.8 previous
• 23:30 Japan Oct CPI, n.s.a (MoM) 0.1% previous
• 23:30 Japan Oct National Core CPI (YoY) 0.4% forecast, 0.3% previous
• 23:30 Japan Oct National CPI (YoY) 0.3%,0.2% previous
• 00:30 Japan Nov Manufacturing PMI 48.4 previous
• 00:30 Japan Services PMI 49.7 previous
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Thursday, as efforts by China to smooth the path forward in U.S.-Sino trade talks boosted dollar. China announced it was willing to work with the United States to resolve core trade concerns, rekindling some hopes for a bilateral deal. The latest news on the trade deal came after a series of headlines earlier this week that suggested ongoing talks were unraveling.At (GMT 2224), the euro was down 0.01 percent at $1.1059.The dollar index, which measures the greenback against six major currencies, was 0.13 percent higher at 97.98. Immediate resistance can be seen at 1.1086 (100 DMA), an upside break can trigger rise towards 1.1171 (200 DMA).On the downside, immediate support is seen at 1.1042 (9 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: The pound edged lower against the dollar on Thursday, as financial markets awaited an election manifesto from the opposition Labour Party, with the ruling Conservatives appearing to still hold a hefty lead in opinion polls.With three weeks before Britain votes in its second election in just over two years, Labour leader Jeremy Corbyn will be hoping his manifesto will help his party narrow the gap with Prime Minister Boris Johnson’s Conservatives whose lead is currently estimated around 14 percentage points.The British currency was last trading at $1.2901, down 0.16 percent on the day. Immediate resistance can be seen at 1.2984 (Higher BB), an upside break can trigger rise towards 1.3000 (Psychological level).On the downside, immediate support is seen at 1.2874 (21 DMA), a break below could take the pair towards 1.2764 (300 DMA).
USD/CAD: The Canadian dollar strengthened on Thursday, coming off six-week lows against its U.S. counterpart after Bank of Canada Governor Stephen Poloz said he believed current monetary conditions were appropriate. In remarks at a fireside chat organized by the Ontario Securities Commission in Toronto, the central banker said he thought the central bank's policy fit the country's economic situation. The Canadian dollar was last trading 0.03% higher at 1.3153 to the greenback .Immediate resistance can be seen at 1.3300 (Psychological level), an upside break can trigger rise towards 1.3349 (Oct 3rd high).On the downside, immediate support is seen at 1.3248 (9 DMA), a break below could take the pair towards 1.3200 (Psychological level).
USD/JPY: The dollar strengthen against the Japanese yen on Thursday, as growing signs the United States and China are inching closer to a trade deal boosted risk appetite. China will strive to reach an initial trade agreement with the United States as both sides keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to allay fears talks might be unraveling.Reports on Wednesday that the two countries were unlikely to reach a "phase one" trade deal by the end of the year. At 1935 GMT, the dollar was 0.58 percent higher versus the Japanese yen at 109.64. Strong resistance can be seen at 108.97 (200 DMA), an upside break can trigger rise towards 109.85 (300 DMA).On the downside, immediate support is seen at 108.25 (50 DMA ), a break below could take the pair towards 107.67(100 DMA).
Equities Recap
European shares slid on Thursday after U.S. legislation on Hong Kong fueled more worries that a phase one trade deal between Washington and Beijing would not be formed anytime soon.
The UK's benchmark FTSE 100 closed down by 0.33 percent, Germany's Dax ended down by 0.16 percent, and France’s CAC finished the day down by 0.22 percent.
The three major U.S. indexes fell on Thursday after conflicting headlines on U.S-China trade relations and a row between the world’s top two economies over the Hong Kong protest led to uncertainty over the timing of a deal to end the dispute.
Dow Jones closed down by 0.20 percent, S&P 500 ended down by 0.16 percent, Nasdaq finished the down up by 0.24 percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday after falling for three straight sessions, bolstered by more positive news on trade negotiations with China and unwinding most of this week's safe-haven demand.
U.S. 10-year note yields rose to 1.758%, up from Wednesday's 1.738%.Yields on 30-year bonds were up at 2.22%, up from 2.203% on Wednesday.
Commodities Recap
Gold prices eased on Thursday as a report that China has invited top U.S. negotiators for a new round of talks rekindled some hopes regarding the U.S.-China trade deal, but mixed signals on the progress of talks limited bullion's losses.
Spot gold dipped 0.5% to $1,464.43 per ounce as of 1:49 p.m. EST (1849 GMT). Prices had notched a two-week high of $1,478.80 in the previous session before turning negative. U.S. gold futures fell 0.7% to settle at $1,463.60 per ounce.
Oil prices rose more than 2% on Thursday to the highest in nearly two months following a Reuters report that OPEC and its allies are likely to extend output cuts until mid-2020 and fresh signs that China had invited U.S. trade negotiators for a new round of talks.
Brent crude ended the session up $1.57, or 2.5%, at $63.97 a barrel, while West Texas Intermediate (WTI) crude settled up $1.57, or 2.8%, to $58.58.
WTI touched a session high of $58.67 a barrel, the highest since Sept. 23 and Brent climbed to a high of $64.03, the highest since Sept. 24.
