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Markets Update: APAC Stocks Mixed on Soft US Data and Oil Tumble, European Futures Higher, DXY Rangebound, Bunds Pull Back, Crude Contained.
Economic Calendar
Global Markets Roundup: 17 Nov 2023
Asia-Pacific stocks traded mixed on Friday, with sentiment clouded by the recent soft US economic data and a tumble in oil prices. European equity futures are indicative of a higher open, with the Euro Stoxx 50 up 0.4% after the cash market closed -0.3% yesterday. In FX, the US Dollar Index (DXY) is contained within a tight range, while EUR/USD oscillates around 1.0850 and USD/JPY has slipped further below 151. Bunds have pulled back from recent highs, and crude oil is contained following yesterday's heavy selling.
The ASX 200 index marginally declined on Friday, with the energy sector notably underperforming as oil prices slumped to their lowest since July. The index's downside was cushioned by resilience in miners and defensive stocks. The Nikkei 225 index was indecisive before moving higher amid a lack of fresh catalysts and after balanced comments from BoJ Governor Ueda. The Hang Seng and Shanghai Composite indexes were pressured by heavy losses in Alibaba shares after the company scrapped its cloud business spinoff due to US chip restrictions. Energy names also reeled from the tumble in oil prices.
FX
The US Dollar Index (DXY) traded rangebound on Friday, with price action stuck to an extremely tight range between 104.31 and 104.40. The recent bout of Fed rhetoric provided little to shift the dial on the dollar, and yesterday's intraday recovery following support at 104.00 further supported the rangebound trading.
EUR/USD quieted after the prior day's whipsawing, with price action uneventful near the 1.0850 focal point. GBP/USD looks to test 1.2400 to the downside after the impulse from recent hawkish BoE commentary waned. USD/JPY trickled further beneath the 151.00 handle after the recent soft data stateside pressured US yields. The AUD/USD and NZD/USD, languished firmly beneath the 0.6500 and 0.6000 handles, respectively, owing to the subdued risk tone and recent commodity pressure. The PBoC set the USD/CNY mid-point at 7.1728 vs exp. 7.2473 (prev. 7.1724).
COMMODITIES Crude oil futures were contained after the prior day's heavy selling, which dragged oil into a bear market with WTI crude briefly below USD 73/bbl. The pressure was attributed to weak US data, rising inventories, and healthy supply. Iran set the December Iranian light crude price to Asia at Oman/Dubai + USD 4.00/bbl. The US extended authorization for certain transactions with PDVSA through to May 16th, 2024. Chevron (CVX) started delivering fuel to Venezuela's PDVSA after the easing of US sanctions and is to send a cargo of gasoline blend stock for November delivery, following the Naphtha cargo to PDVSA. Libya's NOC announced the export of the first shipment from the Erawan oil field through the port of Zawiya. Spot gold held on to recent gains but with upside capped by resistance at yesterday's peak near USD 1988/oz. Copper futures were rangebound amid the overall mixed overnight risk tone and subdued mood in China.
Key takeaways:
APAC stocks mixed on soft US data and oil tumble
European futures point higher
DXY rangebound
EUR/USD oscillates around 1.0850
USD/JPY slips further below 151
Bunds pull back from recent highs
Crude contained
ASX 200 edges lower on oil slump
Nikkei flat
Hang Seng and Shanghai Comp sag on Alibaba slide
Energy sector underperforms
Miners and defensives provide support
Lack of fresh catalysts keeps Nikkei indecisive
Alibaba slide weighs on Hang Seng and Shanghai Comp
Oil price tumble hits energy names
Chevron delivers fuel to PDVSA
Libya exports first Erawan oil shipment
Spot gold holds recent gains
Copper futures rangebound
Looking ahead:
Highlights include UK Retail Sales, EZ CPI (Final), US Housing Starts, and speeches from ECB's Lagarde, BoE's Ramsden, Fed's Collins, Barr, Goolsbee, and Daly.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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