Global Markets:
- Asian stock markets: Nikkei up 1.10 %, Shanghai Composite gained 0.40 %, Hang Seng declined 0.40 %, ASX 200 rose 0.05 %
- Commodities: Gold at $1186 (-0.15 %), Silver at $16.30 (-0.30 %), WTI Oil at $48.00 (+0.20 %), Brent Oil at $49.00 (+0.10 %)
- Rates: US 10-year yield at 2.36, UK 10-year yield at 1.45, German 10-year yield at 0.26
News & Data:
- Japan Nikkei Manufacturing PMI Nov P: 51.1 (est. 51.7, prev. 51.4)
- Japan Leading Index Sep F: 100.3 (est. 100.5, prev. 100.5)
- Japan Coincident Indicator (MoM) Sep F: 112.7 (prev. 112.1)
- PBOC set USDCNY mid-point at 6.9085 (prev. fix 6.8904, prev. close 6.9190)
- USDCNY mid-point (6.9085) is the weakest since June 2008 – RTRS
- Fed policymakers confident of need for rate hikes on eve of Trump win – RTRS
- Asia stocks slip on spectre of higher U.S. rates, dollar 'a freight train' – RTRS
Markets Update:
The Dollar extended gains yesterday against most major currencies, following stronger than expected US economic data and hawkish Federal Reserve meeting minutes. Durable goods orders rose 1.0 % m/m vs. 0.2 % expected, the house price index increased 0.6 % vs 0.5 % expected, manufacturing PMI arrived at 53.9 vs. 53.4 % expected and the Michigan consumer sentiment index grew from 91.6 to 93.8.
Later that day, the Fed released the minutes of its November 1-2 meeting. Most of the members saw the economy as strong enough to hike rates soon.
USD/JPY broke above 111.40 resistance yesterday and extended highs to almost 113 later in the session. In Asia, it was consolidating between 112.35 and 112.90. EUR/USD bounced off 1.0525 again, and recovered to 1.0555. Flows in Cable were very light, and it was stuck in a 1.2420-40 range in Asia.
As a reminder, US markets are closed today for the Thanksgiving holiday, and trading tomorrow will be limited.
Upcoming Events:
- US Public Holiday – Thanksgiving
- 07:00 GMT – German GDP
- 09:00 GMT – German IFO Business Climate
- 12:00 GMT – German GfK Consumer Climate
- 21:45 GMT – New Zealand Trade Balance
- 23:30 GMT – Japan CPI
