Global Markets:
- Asian stock markets: Nikkei up 0.10 %, Shanghai Composite rose 0.15 %, Hang Seng gained 1.00 %, ASX 200 lost 0.60 %
- Commodities: Gold at $1161 (+0.25 %), Silver at $16.27 (+0.35 %), WTI Oil at $53.95 (+0.30 %), Brent Oil at $57.10 (+0.45 %)
- Rates: US 10-year yield at 2.47, UK 10-year yield at 1.23, German 10-year yield at 0.17
News & Data:
- South Korea CPI m/m 0.1 % (exp 0.2 % prev -0.1 %)
- South Korea CPI y/y 1.3 % (exp 1.3 % prev 1.3 %)
- Australia Housing Credit 0.5 % (prev 0.6 %)
- Australia Private Sector Credit 0.5 % (exp 0.5 % prev 0.5 %)
- Asia stocks to end 2016 on buoyant note, euro calms after early spike – RTRS
- Euro soars in holiday-thinned trade, China basket move adds to yuan buzz – RTRS
- Oil prices on track for greatest yearly percentage gain since 2009 – RTRS
- Oil, metals, developed equities best performers of 2016; emerging markets struggle – RTRS
- U.S. goods trade deficit widens; labour market near full strength – RTRS
Markets Update:
Equity markets remained bid in the last trading day of 2016, with most of the major Asian equity indices up on the day. In the FX market, there was profit-taking from USD longs, which especially helped the Euro. Following the breakout above 1.05, EUR/USD traded as high as 1.0550 in Asia.
This also lifted the commodity currencies, with AUD/USD rising to 0.7250 and NZD/USD to 0.6980. Meanwhile, USD/CAD came under heavy pressure due to the rally in Oil prices. USD/CAD, which traded as high as 1.3580 earlier this week, fell to a low of 1.3460 in Asia.
Looking ahead, it will likely remain quiet today, as there are no notable events and German & UK markets will close earlier.
Upcoming Events:
- 08:00 GMT – Spanish CPI
- 09:00 GMT – Italian PPI
- 14:45 GMT – US Chicago PMI
- 20:30 GMT – US CFTC Positioning Data
