Volatility was relatively light during the Asian session as traders prepare for the closely-watched NFP report from the U.S.
- Japan’s average cash earnings (y/y) jumps from 0.8% to 1.5% in October
- Japan’s leading indicators lower from 104.3% to 100.5% in October
- Powell: Economy is performing very well overall, with “strong job creation and gradually rising wages”
Improvement in risk sentiment
Positive market sentiment that reigned in the late New York trading translated to small gains for the Asian bourses today.
If you recall, traders were shook over an arrest of Huawei’s global CFO as it pointed to possible escalation in the U.S.-China trade war.
Well, the Donald saved the markets some today after he tweeted his agreement that an agreement can be reached within the next 90 days:
Statement from China: “The teams of both sides are now having smooth communications and good cooperation with each other. We are full of confidence that an agreement can be reached within the next 90 days.” I agree!
— Donald J. Trump (@realDonaldTrump) December 7, 2018
- Nikkei is up by 0.46% to 21,599.7
- A SX 200 is up by 0.70% to 5,680.0
- Shanghai index is up by 0.08% to 2,607.139
- Hang Seng is up by 0.27% to 26,226.8
Commodity prices were a little more mixed. Gold prices were pushed higher by flatter U.S. yield curves and speculations of a less hawkish Fed in 2019 weighed on the dollar.
Crude oil benchmarks, on the other hand, continued to slide as OPEC still waits for Russia before releasing deets of its oil production cut extension.
- Gold is up by 0.19% to $1,239.78 per troy ounce
- Brent crude oil is down by 1.06% to $59.61 per barrel
- U.S. WTI is down by 0.95% to $51.20 per barrel
Major Market Mover(s):
The high-yielding Kiwi took back some of its losses from earlier this week to end the session higher against its major counterparts.
NZD/USD is up by 7 pips (+0.10%) to .6883; NZD/JPY is up by 19 pips (+0.24%) to 77.66; NZD/CAD is up by 16 pips (+0.18%) to .9217; NZD/CHF is up by 7 pips (+0.10%) to .6831; GBP/NZD is down by 32 pips (-0.17%) to 1.8551, and AUD/NZD is down by 11 pips (-0.10%) to 1.0508.
Not surprisingly, the low-yielding yen took hits across the board on overall risk appetite and a bit of profit-taking ahead of the monster NFP report.
USD/JPY is up by 17 pips (+0.15%) to 112.82; GBP/JPY is up by 5 pips (+0.03%) to 144.07; EUR/JPY is up by 20 pips (+0.15%) to 128.34; and AUD/JPY is up by 10 pips (+0.12%) to 81.60, and CHF/JPY is up by 21 pips (+0.19%) to 113.67.
Watch Out For:
- OPEC meetings still ongoing
- 7:00 am GMT: Germany’s industrial production (0.3% expected, 0.2% previous)
- 7:45 am GMT: France’s industrial production (0.8% expected, -1.8% previous)
- 7:45 am GMT: France’s trade balance (-5.9B EUR expected, -5.7B EUR previous)
- 8:00 am GMT: Switzerland’s foreign currency reserves
- 8:30 am GMT: U.K.’s Halifax house price index (0.3% expected, 0.7% previous)
- 9:00 am GMT: Italy’s retail sales (-0.2% expected, -0.8% previous)