Market Roundup
- Trump eases car tariff threat as U.S., EU launch talks to quell trade tensions.
- Trump says China is 'vicious,' using U.S. farmers as trade pawns.
- After criticism, Trump delays second Putin meeting to next year.
- Qualcomm investors cheer end of NXP deal doomed by China - U.S. tensions.
- Republican lawmakers launch move to impeach Justice Department's Rosenstein.
- BOJ to mull changing composition of ETF buying next week – Nikkei.
Economic Data Ahead
- (0245 ET/0645 GMT) France July Consumer Confidence, 98 forecast, 97 previous.
- (0745 ET/1145 GMT) ECB July Refinancing Rate, 0% forecast, 0% previous.
Key Events Ahead
- N/A ECB Governing Council meeting, followed by interest rate announcement.
- (0830 ET/1230 GMT) ECB President Mario Draghi holds a press conference in Frankfurt.
FX Recap
USD: The dollar index against a basket of six major currencies was down 0.25 percent at 94.134 after brushing 94.087; it’s lowest since July 10.
EUR/USD: The euro was up 0.1 percent at $1.1738, extending its rise after gaining 0.4 percent the previous day. Early on Wednesday, before the Trump-Juncker talks, the single currency slipped to a low of $1.1664 on media reports that Trump was considering imposing a 25 percent tariff on foreign-made cars. But it bounced back on comments of the two leaders that showed desire to find solutions to trade conflicts between the U.S. and European Union. A consistent close below $1.1638 will drag the parity down towards key supports around $1.1390 and $1.1185 levels respectively. Alternatively, reversal from key support will drag the parity higher towards key resistances around $1.1790, $1.1852, $1.1938 and $1.1996 marks respectively.
USD/JPY: The Japanese yen rises in early Asia and remains well supported below 111.00 marks. It made intraday high at 111.04 and low at 110.70 levels. A sustained close above 110.98 is required to take the parity higher towards key resistance around 112.62 and 114.72 marks respectively. Alternatively, a daily close below 110.98 will drag the parity down towards key supports around 110.27, 109.24, 108.72 and 107.90 marks respectively.
GBP/USD: The sterling rose on Wednesday to its highest in a week as traders bet that Prime Minister Theresa May's decision to take control of Brexit negotiations would make it easier to agree a divorce deal with Brussels. With less than nine months before Britain is due to leave the European Union and May's own Conservative Party still divided about what sort of trading relationship with Brussels to seek, Brexit talks remain a headwind for the pound. The pound rose to as high as $1.3178 against a broadly weaker dollar, its strongest level since July 17, before giving up some gains. It was trading up 0.1 percent at $1.3154 at 1405 GMT. Sterling, which has been much less volatile against the euro, was virtually unchanged versus the single currency at 88.891 pence. A sustained close below $1.3187 requires for dragging the parity down towards key support around $1.2957 mark. On the other side, key resistances are seen at $1.3292, $1.3362 and $1.3490 levels respectively.
AUD/USD: The Aussie dollar had clambered up to $0.7463, from a low of $0.7392 on Wednesday, but met stiff resistance around $0.7465. It also faces a daunting chart barrier at $0.7484 which marks a double top from earlier in the month. The pair made intraday high at $0.7463 and low at $0.7432 levels. A sustained close above $0.7465 requires for the upside rally. Alternatively, current downside movement will take the parity down towards $0.7336 marks.
NZD/USD: The New Zealand dollar was up at $0.6837, from Wednesday's trough of $0.6786, but again faced stiff resistance in the $0.6850/60 area. Pair made intraday high at $0.6850 and low at $0.6829 levels. A sustained close above $0.6864 is required to take the parity higher towards $0.7050 mark. Alternatively current downside movement will take the parity down towards key supports around $0.6687 levels.
Equities Recap
Japan’s Nikkei was trading 0.12 pct lower at 22,588.50 points.
Australia’s S&P/ASX 200 was trading 0.04 pct higher at 6,250.85 points.
Shanghai composite index to open up 0.1 pct at 2,905.79 points and China's CSI300 index to open up 0.2 pct at 3,583.32 points.
Taiwanese stock was trading around 0.16 percent higher at 10,983.93 points.
Hong Kong’s Hang seng was trading 0.70 pct lower at 28,713.55 points.
India’s NSE Nifty was trading around 0.32 percent higher at 11,167.22 points while BSE Sensex was trading 0.32 points higher at 36,974.82 points.
South Korea’s Kospi was trading 0.70 percent higher at 2,288.94 points.
Commodities Recap
Brent crude led oil prices higher, extending gains into a third day after Saudi Arabia suspended crude shipments through a strategic Red Sea shipping lane and as data showed U.S. inventories fell to a 3-1/2 year low. Brent crude futures had risen 47 cents, or 0.6 percent, to $74.40 a barrel by 0247 GMT, after gaining 0.7 percent on Wednesday. U.S. West Texas Intermediate crude futures were up 5 cents at $69.35 a barrel, after climbing more than 1 percent in the previous session.
Gold prices held steady on Thursday as the dollar eased after U.S. President Donald Trump and European Commission President Jean-Claude Juncker agreed to work towards eliminating trade barriers, easing immediate concerns about global trade tensions. Spot gold was little changed at $1,231.12 an ounce, as of 0412 GMT. Earlier in the session, the yellow metal hit $1,235.16, its highest in more than a week. U.S. gold futures for August delivery were 0.03 percent lower at $1,231.40 an ounce.
Treasuries Recap
The general easing in risk aversion trimmed prices for New Zealand government bonds, sending yields 2 basis points higher towards the long end of the curve.
Australian three-year bond futures were half a tick firmer at 97.870, while the 10-year contract fell 1.5 ticks to 97.3050.
10-year U.S. treasury yield held at 2.969 percent vs U.S. close of 2.936 percent on Wednesday.
