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Markets Update: Asia-Pacific Stocks Gain, ASX 200 Hindered by Energy and Mining, Nikkei 225 Hits Fresh Highs.
Economic Calendar
Global Markets Roundup: 06 Nov 2023
Asia-Pacific stocks traded higher across the board on Monday, following the post-Nonfarm Payrolls (NFP) tailwinds from Wall Street on Friday. South Korea outperformed after a stock short-selling ban. The US Dollar Index (DXY) had a softer bias throughout the session, while G10 currencies were largely flat. US Treasury (UST) and Bund futures were subdued, while Japanese Government Bond (JGB) futures gapped higher. European equity futures are indicative of a flat open, with the Euro Stoxx 50 future -0.1% after cash markets closed +0.2% on Friday.
Key takeaways:
APAC stocks gain on post-NFP tailwinds
DXY softer, G10s flat, UST and Bund futures subdued, JGB futures gap higher
European equity futures point to flat open
Israeli PM Netanyahu says no ceasefire until hostages are returned
APAC stocks gained on Monday, with the Nikkei 225 hitting fresh highs. The ASX 200 was hindered by losses in heavyweight Energy and Mining sectors, but gold names outperformed and Financials were boosted by Westpac post earnings. Participants are also looking ahead to tomorrow's RBA decision, in which 35/39 analysts polled by Reuters expect a 25bps rate hike.
The Hang Seng and Shanghai Comp conformed to the gains in the region, with sentiment supported by weekend comments from the Chinese Premier, who stated that China will soon release a plan to promote high-standard institutional opening up in the Shanghai Free Trade Zone. The Finance Minister also said that China will accelerate the issuance and use of government bonds. Traders are also cognizant of the Chinese Trade Balance data due for release tomorrow.
FX
The US Dollar Index (DXY) traded within a narrow range on Monday after plummeting from a 106.22 high to a 104.93 low post-NFP on Friday. The Euro (EUR/USD) and British Pound (GBP/USD) were flat against the Dollar, with the former holding onto a 1.07 handle and the latter hovering around 1.2375. The Japanese Yen (USD/JPY) was modestly firmer and failed to sustain a breach under 149.50 after BoJ Governor Ueda reiterated the central bank will patiently maintain monetary easing to support economic activity. The Antipodean currencies saw a slight divergence, with the AUD holding a positive bias as it awaits tomorrow's RBA decision, while the NZD was on a slightly softer footing.
Fixed Income
10-year US Treasury (UST) futures were modestly softer after Friday's significant bull-steepening on the back of the soft US jobs report. Bund futures were subdued to a similar extent as their US counterparts. 10-year Japanese Government Bond (JGB) futures gapped higher at the open as the contracts played catch-up to post-NFP action in the complex.
Commodities
Crude oil futures consolidated after Friday's heavy losses, with Saudi and Russia reaffirming their voluntary cuts over the weekend. Spot gold remained within recent ranges amid quiet newsflow and a stable Dollar. Copper futures edged higher overnight amid the broader APAC risk appetite.
Looking ahead:
Highlights include German Industrial Orders, EZ and UK Final Services and Composite PMIs, EZ Sentix Index, Canadian PMI, FOMC Senior Loan Officer Opinion Survey and BoC Market Participants Survey, Speech from BoE's Pill
US clocks moved back an hour on Sunday to EST, as such the London-New York time gap is back to five hours.
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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