Global Markets:
- Asian stock markets: Nikkei down 0.90 %, Shanghai Composite down 1.40 %, Hang Seng lost 0.30 %, ASX 200 declined 0.70 %
- Commodities: Gold at $1178 (+0.05 %), Silver at $16.80 (-0.20 %), WTI Oil at $51.35 (-0.70 %), Brent Oil at $54.10 (-0.60 %)
- Rates: US 10-year yield at 2.35, UK 10-year yield at 1.38, German 10-year yield at 0.28
News & Data:
- China Caixin Services PMI Nov: 53.1 (prev 52.4)
- China Caixin Composite PMI Nov: 52.9 (prev 52.9)
- Japan Nikkei Services PMI Nov: 51.8 (prev 50.5)
- Japan Nikkei Composite PMI Nov: 52.0 (prev 51.3)
- Japan Consumer Confidence Nov: 40.9 (prev 42.3)
- Australian MI Inflation Gauge (MoM) Nov: 0.1% (prev 0.2%)
- Australian MI Inflation Gauge (YoY) Nov: 1.5% (prev 1.5%)
- Australian Inventories (QoQ) Q3: 0.8% (est 0.3%, prev 0.3%)
- Australian Company Operating Profits (QoQ) Q3: 1.0% (est 3.0%, prev 6.9%)
- Australian ANZ Job Advertisements (MoM) Nov: 1.7% (prev 1.0%)
- New Zealand ANZ Commodity Price (MoM) Nov: 2.7% (prev 0.7%)
- Singapore Nikkei PMI Nov: 52.8 (prev 50.5)
- Hong Kong Nikkei PMI Nov: 49.5 (prev 48.2)
- UK BRC Shop Price Index (YoY) Nov: -1.7% (prev -1.7%)
- PBOC Fixes Yuan Reference Rate At 6.8870 (prev 6.8794)
- OPEC to meet non-OPEC producers on December 10 in Vienna — RTRS
CFTC Positioning Data:
- EUR 119K short vs 119 short last week. Unchanged
- GBP 78K short vs 74K short last week. Shorts increased by 4K
- JPY 0K vs 11k long last week. Longs cut by 11k
- CHF 24K short vs. 23K short last week. Shorts increased by 1K
- CAD 19K short vs. 18K short last week. Shorts increase by 1K
- AUD 21K Long vs 31K long last week. A decline of 10K.
- NZD 2K short vs 0K last week. Short increased by 2K
Markets Update:
The Euro declined sharply overnight, after Italians rejected a constitutional overhaul, which led to the resignation of Prime Minister Renzi. EUR/USD opened around 1.0590 in Sydney, down 100 pips from Friday's close, and extended losses to 1.0505 later in the session.
The Pound also came under pressure, but managed to recover. GBP/USD opened at 1.2670 (down from 1.2720 from Friday's close) and declined to 1.2630. It found support there and rallied back to 1.2735 at the Tokyo open.
USD/JPY caught a bid in the early session and rallied from 112.90 to 113.85, while the commodity currencies are slightly down on the day. AUD/USD fell from 0.7460 to 0.7410, while NZD/USD declined from 0.7135 to 0.7070.
Upcoming Events:
- 07:45 BST – Italian Services PMI
- 07:50 BST – French Services PMI
- 07:55 BST – German Services PMI
- 08:00 BST – Euro Zone Services PMI
- 09:30 BST – UK Services PMI
- 10:00 BST – Euro Zone Retail Sales
- 13:30 BST – FOMC Member Dudley speaks
- 14:00 BST – ECB President Draghi speaks
- 14:45 BST – US Services PMI
- 15:00 BST – US ISM Non-Manufacturing PMI
- 17:00 BST – Bank of England Governor Carney speaks
The Week Ahead:
Tuesday, December 6th
- 00:30 BST – Australia Current Account
- 03:30 BST – RBA Rate Decision
- 10:00 BST – Euro Zone GDP
- 13:30 BST – US Trade Balance
- 13:30 BST – Canadian Trade Balance
- 15:00 BST – US Factory Orders
- 15:00 BST – Canadian Ivey PMI
- 22:00 BST – RBNZ Governor Wheeler speaks
Wednesday, December 7th
- 00:30 BST – Australia GDP
- 07:00 BST – German Industrial Production
- 09:30 BST – UK Manufacturing Production
- 09:30 BST – UK Industrial Production
- 15:00 BST – US JOLTs Job Openings
- 15:00 BST – Bank of Canada Rate Decision
- 15:30 BST – US Crude Oil Inventories
- 23:50 BST – Japan GDP
Thursday, December 8th
- 00:30 BST – Australia Trade Balance
- 02:30 BST – Chinese Trade Balance
- 12:45 BST – ECB Rate Decision
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – ECB Press Conference
Friday, December 9th
- 00:30 BST – Australia Home Loans
- 01:30 BST – Chinese CPI
- 01:30 BST – Chinese PPI
- 07:00 BST – German Trade Balance
- 09:30 BST – UK Trade Balance
- 15:00 BST – US Michigan Consumer Sentiment
