Market Roundup
- China Central bank injects a net 375 bln yuan for the week via open market operations, versus a net 250 bln yuan injection last week.
- Indonesia Central bank deputy governor says Q4 GDP growth seen at 4.97 pct.
- Thailand central bank chief says economy may grow more than 3.2 pct next year.
- Thai baht moves in line with economic fundamentals – Central bank deputy governor.
- Fitch affirms Kenya at 'B+'; Negative outlook.
- Italian cabinet approves decree aimed at saving fragile banks -Prime Minister.
- Italian govt working on ways to help Monte Dei Paschi -Prime Minister.
- Italy economy minister expects Monte Dei Paschi to request help.
- Italy economy minister there will be an industrial plan for Monte Dei Paschi that will have to be approved by EU.
- Italy economy minister Monte Dei Paschi rescue will take form of preventative recapitalisation; junior bonds will be converted into shares.
- Italy economy minister Monte Dei Paschi rescue will include mechanism to protect retail junior bondholders.
Economic Data Ahead
- (0200 ET/0700 GMT) Germany GFK Consumer Sentiment Jan 9.90 eyed.
- (0245 ET/ 0745 GMT) France Consumer Spending MM % Nov -0.10 eyed.
- (0300 ET/ 0800 GMT) Switzerland KOF Indicator Dec 102.20 previous.
- (0400 ET/0900 GMT) Norway Unemployment December 102.00 previous.
- (0400 ET/0900 GMT) Norway Unemployment NSA % December 2.90 eyed.
- (0430 ET/0930 GMT) UK GDP YY % Q3 2.30 eyed.
- (0430 ET/0930 GMT) UK Business invest YY % Q3 -1.60 previous.
- (0430 ET/0930 GMT) UK Business Invest QQ % Q3 0.90 previous.
- (0430 ET/0930 GMT) UK Current Account GBP bln GB Q3 -27.45 eyed.
- (0430 ET/0930 GMT) UK GDP QQ % Q3 0.50 eyed.
Key Events Ahead
- No events scheduled for the day.
FX Recap
USD: The dollar index was marginally lower at 103.04 and within striking distance of the week's 103.65 peak. So far on Friday, the index had moved whole 9 ticks.
EUR/USD: The euro rebounded only modestly from a nearly 14-year low of $1.0350 set earlier in the week. Intraday bias remains slightly bullish till the time pair holds key support at 1.0423. Immediate support level is seen at $1.0352 and resistance was seen at $1.0451 level. A daily close above 1.0451 is required for the further upside rally.
USD/JPY: The yen trades almost flat at 117.50 against U.S. dollar as Japanese banks will be closed in observance of the Emperor's Birthday. A sustained close above 118.17 is required to take the parity higher towards 120.00 marks. Alternatively, a daily close below 116.98 will drag the parity down towards 114.81 levels. Intraday bias remains neutral for the moment.
GBP/USD: The sterling trades flat against U.S. dollar On Friday and stabilizes well below 1.23 marks. Sterling fell to a two-week low against the euro on Thursday after a survey of British consumers showing a gloomy view of the economy's prospects next year kept it on the defensive against a perky single currency. Short term bias remains bearish till the time pair holds key resistance at 1.2417 levels. On the other side, current downside movement will take the parity towards key supports around 1.2108 levels.
AUD/USD: The Australian dollar was down at $0.7197 in early hours of Asia, lowest level since May 31. Pair made intraday high at 0.7227 and low at 0.7197. A consistent close below 0.7197 will drag the parity towards key supports around 0.7142 and 0.7058 marks respectively. On the top side, key resistances are seen at 0.7260, 0.7312 and 0.7369 marks.
NZD/USD: The New Zealand dollar stood at $0.6902, edging up for a second day after six sessions of heavy losses. Intraday bias remains neutral for the moment. Initial support and resistance levels are seen at 0.6887 and 0.6933 levels respectively.
Equities Recap
Japanese banks will be closed in observance of the Emperor's Birthday.
South Korea’s Kospi was trading 0.09 percent lower at 2,034.72 points.
Shanghai composite index to open down 0.2 pct at 3,134.93 points and China's CSI300 index to open down 0.1 pct at 3,333.40 points.
Hong Kong's Hang Seng was trading 0.65 percent lower at 21,500.00 points.
Australia's S&P/ASX 200 was trading 0.28 percent lower at 5,627.90 points.
India’s NSE Nifty was trading around 0.04 percent lower at 7,974.70 points and BSE Sensex was trading at 0.08 percent lower at 25,959.05 points.
Commodities Recap
Brent futures for February delivery dropped 23 cents, or 0.4 percent, to $54.82 a barrel as of 0425 GMT after ending the previous session up 1.1 percent. U.S. West Texas Intermediate crude fell 26 cents, or 0.5 percent, to $52.69 a barrel after settling up 0.9 percent in the previous session.
Gold edged up slightly on Friday, but was on track for a seventh straight weekly decline amid expectations that the U.S. Federal Reserve will opt for more interest rate hikes in 2017. Spot gold edged up 0.2 percent to $1,131.19 an ounce by 0306 GMT. Bullion closed down 0.2 percent on Thursday. U.S. gold futures were steady at $1,132.2 per ounce.
Treasuries Recap
New Zealand government bonds eased, sending yields about 4 basis points higher on the short-end of the curve and 2 basis points higher on the long-end.
Australian government bond futures slipped too, with the three-year bond contract down 3 ticks at 97.87. The 10-year contract was off 4.5 ticks to 97.0850.
China finance ministry auctions 3 month bills at 2.7876 pct yield.
