Global Markets:
- Asian stock markets: Nikkei down 0.50 %, Shanghai Composite fell 0.70 %, Hang Seng declined 1.15 %, ASX 200 lost 1.00 %
- Commodities: Gold at $1175 (+0.50 %), Silver at $16.61 (+0.60 %), WTI Oil at $50.65 (-0.80 %), Brent Oil at $53.30 (-1.20 %)
- Rates: US 10 year yield at 2.43, UK 10 year yield at 1.51, German 10 year yield at 0.37
News & Data:
- Australia Retail Sales (MoM) Oct: 0.5% (est 0.3% prev 0.6%)
- South Korea GDP (YoY) Q3, F: 2.6% (est 2.7% flash 2.7%)
- Japan Monetary Base (YoY) Nov: 21.5% (prev 22.1%)
- PBoC Fixes USDCNY Reference Rate At 6.8794 (prev 6.8958)
- Asia shares pare gains; Treasury yields, oil off highs – RTRS
Markets Update:
Oil prices pulled back following a sharp rally after the OPEC reached a deal on Wednesday. In Asia, WTI fell from $51.30 to $50.50, while Brent declined from $53.90 to $53.20.
Precious metals bounced slightly, as Gold was able to find support at $1160 and recovered to a $1178 in Asia. Nevertheless, selling interest remains high on any larger rally, and decent resistance can now be expected at $1180 and $1202. Silver consolidated in a $16.50-65 range overnight, and the key levels to watch are $16.85 and $16.12.
In FX, the Dollar weakened slightly. USD/JPY fell from 114.20 to a 113.60 in the early Asian session, but bounced from there at the Tokyo open and made it back above 114. EUR/USD rallied from 1.0655 to 1.0690, but gains are likely to be limited today, as markets are nervous ahead of the Italian referendum this weekend.
The key event today is the US NFP release. The market is expecting a 175k print (vs. 161k previously).
Upcoming Events:
- 09:30 GMT – UK Construction PMI
- 13:30 GMT – US NFP
- 13:30 GMT – US Average Hourly Earnings
- 13:30 GMT – US Unemployment Rate
- 13:30 GMT – Canadian Employment Change
- 13:30 GMT – Canadian Unemployment Rate
- 13:45 GMT – FOMC Member Brainard speaks
- 18:00 GMT – FOMC Member Tarullo speaks
