Market Roundup
- Oil falls from two-month high
- Gold steadies on U.S.-China trade uncertainty
Economic Data Ahead
- (0315 ET/0815 GMT) France Markit Manufacturing PMI prelim
- (0315 ET/0815 GMT) France Markit Service PMI prelim
- (0315 ET/0815 GMT) France Markit Composite PMI prelim
- (0330 ET/0830 GMT) Germany Markit Manufacturing PMI prelim
- (0330 ET/0830 GMT) Germany Markit Service PMI prelim
- (0330 ET/0830 GMT) Germany Markit Composite PMI prelim
- (0400 ET/0900 GMT) Eurozone Markit Manufacturing PMI prelim
- (0400 ET/0900 GMT) Eurozone Markit Service PMI prelim
- (0400 ET/0900 GMT) Eurozone Markit Composite PMI prelim
- (0430 ET/0930 GMT) United Kingdom Markit Manufacturing PMI prelim
- (0430 ET/0930 GMT) United Kingdom Markit Service PMI prelim
Key Events Ahead
- No significant event scheduled
FX Beat
DXY: The dollar index slightly eased as investors cautiously awaited a slew of global manufacturing surveys published later in the day for clues on how deeply the U.S.-China trade dispute is hurting the world’s economy. The greenback against a basket of currencies traded down at 97.90, having touched a low of 97.68 on Monday, its lowest since November 5.
EUR/USD: The euro gained after the European Commission stated that a flash estimate showed eurozone consumer morale improved by 0.4 points to -7.2 in November from -7.6 in October. The European currency traded 0.1 percent up at 1.1067, having touched a high of 1.1097 on Thursday, its highest since November 7. Investors’ attention will remain on a series of data out of Eurozone economies, Markit PMI's and ECB President Lagarde's speech, ahead of the U.S. Markit PMI's and Michigan consumer sentiment index. Immediate resistance is located at 1.1091, a break above targets 1.1123. On the downside, support is seen at 1.1041 (10-DMA), a break below could drag it below 1.1002.
USD/JPY: The dollar consolidated within narrow ranges, as investors awaited pending developments in U.S.-China trade negotiations. The major was trading flat at 108.62, having hit a low of 108.27 on Thursday, its lowest since November 14. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. Markit PMI's and Michigan consumer sentiment index. Immediate resistance is located at 108.85, a break above targets 109.15 (November 13 High). On the downside, support is seen at 108.36, a break below could take it near at 108.03.
GBP/USD: Sterling steadied above the 1.2900 handle as markets awaited an election manifesto from the opposition Labour Party, with the ruling Conservatives appearing to still hold their lead in opinion polls. The major traded at 0.1 percent up 1.2921, having hit a high of 1.2985 on Monday, it’s highest since November 4. Investors’ attention will remain on the development surrounding the general elections, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2949, a break above could take it near 1.3000 (October 22 High). On the downside, support is seen at 1.2876 (21-DMA), a break below targets 1.2859. Against the euro, the pound was trading 0.1 percent up at 85.62 pence, having hit a high of 85.21 on Monday, it’s highest since May 6.
AUD/USD: The Australian dollar held near 1-week low after Commerce ministry spokesman Gao Feng told reporters that China will try hard to resolve the dispute. The Aussie trades flat at 0.6785, having hit a low of 0.6783 on Thursday, it’s lowest since November 15. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6769, a break below targets 0.6742. On the upside, resistance is located at 0.6808 (5-DMA), a break above could take it near 0.6821 (10-DMA).
NZD/USD: The New Zealand dollar rose, halting a 2-day losing streak after the Wall Street Journal reported that top U.S. negotiators had been invited to Beijing for a new round of face-to-face talks. The Kiwi trades 0.1 percent up at 0.6412, having touched a high of 0.6437 on Thursday, its highest level since November 4. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6449, a break above could take it near 0.6465. On the downside, support is seen at 0.6385 (10-DMA), a break below could drag it below 0.6360.
Equities Recap
Asian shares rebounded from a 3-week low recorded in the prior session after China said it was willing to work with the United States to resolve core trade concerns.
MSCI's broadest index of Asia-Pacific shares outside Japan surged 0.1 percent.
Tokyo's Nikkei rose 0.3 percent to 23,112.88 points, Australia's S&P/ASX 200 index gained 0.6 percent to 6,609.80 points and South Korea's KOSPI rallied 0.2 percent to 2,100.40 points.
Shanghai composite index eased 0.6 percent to 2,886.85 points, while CSI 300 index traded 1.1 percent down at 3,849.72 points.
Hong Kong’s Hang Seng traded 0.2 percent higher at 26,529.77 points. Taiwan shares added 0.1 percent to 11,566.80 points
Commodities Recap
Crude oil prices declined from their highest level in nearly two months recorded in the previous session on doubts over future demand for crude as uncertainty continued to shroud a potential U.S.-China trade deal. International benchmark Brent crude was trading 0.2 percent down at $63.51 per barrel by 0602 GMT, having hit a high of $64.01 on Thursday, its highest since September 24. U.S. West Texas Intermediate was trading 0.3 percent lower at $58.11 a barrel, after rising as high as $58.64 on Thursday, its lowest since September 23.
Gold prices surged as doubts prevailed over an interim trade deal being reached between the United States and China this year. Spot gold was trading 0.1 percent up at $1,466.18 per ounce by 0607 GMT, having touched a high of $1,478.70 on Wednesday, its highest November 7. U.S. gold futures rose 0.1 percent to $1,465.10.
Treasuries Recap
The Japanese government bond prices eased, sending yields higher across the curve. The benchmark 10-year JGB futures fell 0.32 point to 153.1. The 10-year JGB yield rose 3 basis points to minus 0.085 percent. The 20-year JGB yield increased 2.5 bps to 0.265 percent. The 30-year JGB yield rose 2 bps to 0.410 percent. In the middle of the yield curve, the five-year yield increased 2.5 bps to minus 0.185 percent. At the short end of the curve, the two-year JGB yield rose 1.5 bps to minus 0.185 percent.
