Global Markets:
- Asian stock markets: Nikkei down 0.06 %, Shanghai Composite gained 0.40 %, Hang Seng and ASX 200 closed for holiday
- Commodities: Gold at $1138 (+0.40 %), Silver at $15.87 (+0.76 %), WTI Oil at $53.15 (+0.25 %), Brent Oil at $55.90 (-0.05 %)
- Rates: US 10-year yield at 2.56, UK 10-year yield at 1.35, German 10-year yield at 0.22
News & Data:
- Japan National CPI 0.5 % (prev 0.1 %)
- Japan National Core CPI -0.4 % (exp -0.3 % prev -0.4 %)
- Japan Tokyo CPI 0.0 % (prev 0.5 %)
- Japan Tokyo Core CPI -0.6 % (exp -0.4 % prev -0.4 %)
- Japan Unemployment Rate 3.1 % (exp 3.0 % prev 3.0 %)
- Japan Household Spending m/m -0.6 % (exp 0.4 % prev -1.0 %)
- Japan Household Spending y/y -1.5 % (exp 0.2 % prev -0.4 %)
- Asia stocks mixed in muted session, dollar recovers some losses – RTRS
- Japan consumer prices slump in November, look for 2017 rebound – RTRS
Markets Update:
It was quiet in the Asian session, as Australia, Hong Kong and New Zealand markets were closed for a holiday. The US Dollar appreciated against most currencies overnight, while the Japanese Yen was the worst performing one following weaker than expected inflation data. Aside from a slowdown in CPI, Japanese household spending decreased and the unemployment rate increased to 3.1 %, adding further pressure on the Yen. The Bank of Japan has been trying to push inflation up through its QE programme, but the results have been weak so far. However, with Oil prices rising again, and the sharp decline in the Yen, inflation may accelerate in 2017.
The broad Dollar strength also increased pressure on the Chinese Yuan again. While the PBoC set its central rate at 6.9462 (vs. 6.9459 previously), the offshore Yuan weakened further, with USD/CNH rising from 6.95 to 6.9630.
Looking ahead, there will be no data releases or events in the upcoming EU session, so the focus will be on US data released at 14:00 and 15:00 GMT (see the calendar below for details).
Upcoming Events:
- 14:00 GMT – US S&P/CS HPI Composite
- 15:00 GMT – US CB Consumer Confidence
- 15:00 GMT – US Richmond Manufacturing Index
- 15:30 GMT – US Dallas Fed Manufacturing Business Index
