Global Markets:
- Asian stock markets: Nikkei up 1.15 %, Shanghai Composite gained 0.55 %, Hang Seng rose 0.70 %, ASX 200 rallied 1.10 %
- Commodities: Gold at $1175 (+0.10 %), Silver at $16.52 (+0.20 %), WTI Oil at $50.00 (+1.15 %), Brent Oil at $52.50 (+1.30 %)
- Rates: US 10-year yield at 2.39, UK 10-year yield at 1.42, German 10-year yield at 0.28
News & Data:
- China Official Manufacturing PMI (Nov): 51.7 (est 51.0 prev 51.2)
- China Official Non-Manufacturing PMI (Nov): 54.7 (prev 54.0)
- China Caixin Manufacturing PMI (Nov): 50.9 (est 50.8 prev 51.2)
- New Zealand Terms of Trade (QoQ) Q3: -1.8% (est 0.0% prev -2.1%)
- New Zealand QV House Price Index (YoY) Nov: 12.4%
- Japan Nikkei Manufacturing PMI (Nov, F): 51.3 (flash 51.1)
- Japan Capital Spending (YoY) Q3: -1.3% (est -0.4% prev 3.1%)
- Australia AiG PMI (Nov): 54.2 (prev 50.9)
- Australia Private Capex (QoQ) Q3: -4.0% (est -2.5% prev -5.4%)
- South Korea CPI (YoY) Nov: 1.3% (est 1.4% prev 1.3%)
- South Korea CPI (MoM) Nov: -0.1% (est 0.1% prev 0.1%)
- South Korea Trade Balance (Nov): USD 8003mln (est USD 8595mln prev USD 6967mln)
- PBoC Fixes USDCNY Reference Rate At 6.8958 (prev 6.8865)
- Brazilian central bank cuts benchmark interest rate by 25bps to 13.75%
- Oil prices surge, smash trading volume records as OPEC, Russia agree output cut – RTRS
- Oil, dollar, energy shares, bond yields leap on OPEC deal – RTRS
- China manufacturing heats up in November, inflation pressure builds – RTRS
Markets Update:
OPEC managed to reach a deal to cut oil output, which boosted oil prices and increased risk appetite in global markets. All the major Asian stock indices are up on the day, while WTI oil rallied from $45 to $50.
In FX, the reaction was mixed. USD/JPY benefited the most, as it rallied from 112 to almost 115 following the announcement. However, the commodity currencies failed to rally, and even the Canadian Dollar (which usually has a strong, positive correlation to Oil) stayed rather weak. USD/CAD fell from 1.3450 to 1.3360 following OPEC's announcement, but quickly retraced the losses later in the session. Overnight, it fell again from 1.3440 to 1.3390.
EUR/USD ran again into strong resistance ahead of the 1.0680 level, and came under pressure in the late NY session. After founding support at 1.0550, it bounced in Asia and made it back above 1.06. Meanwhile, GBP/USD rallied from 1.2420 to 1.2510 and extended gains to 1.2540 in Asia.
Upcoming Events:
- 08:45 GMT – Italian Manufacturing PMI
- 08:50 GMT – French Manufacturing PMI
- 08:55 GMT – German Manufacturing PMI
- 09:00 GMT – Euro Zone Manufacturing PMI
- 09:30 GMT – UK Manufacturing PMI
- 10:00 GMT – Euro Zone Unemployment Rate
- 13:30 GMT – US Initial Jobless Claims
- 13:30 GMT – FOMC Member Mester speaks
- 14:45 GMT – US Manufacturing PMI
- 15:00 GMT – US ISM Manufacturing PMI
