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Markets Update: APAC Stocks Mixed as Data and Events Weigh, DXY Edges Up, Crude Rebounds, Bitcoin Tumbles.
Economic Calendar
Global Markets Roundup: 11 Dec 2023
Asia-Pacific stocks traded mixed on Monday, with data releases and upcoming events keeping investors cautious. Stronger-than-expected US jobs data supported sentiment, while worsening deflation in China weighed. This week's key events, including US CPI data and central bank updates, further added to the hesitant mood. The 10-year UST futures saw little change, offering some relief from post-Nonfarm Payroll selling pressure. Bitcoin tumbled by over 5% in early trading, briefly dipping below $42,000. Ethereum also experienced a significant intraday drop despite the absence of immediate news catalysts, continuing its recent price correction. Geopolitical tensions remain elevated, as Israel's national security advisor declared the country's refusal to tolerate Hezbollah's presence on the northern border. In response, Hezbollah lawmaker Fadallah condemned recent Israeli air strikes in south Lebanon, calling them a new escalation.
The Australian ASX 200 index managed to stay afloat on Monday, with gains in the energy sector offsetting weakness in metals and technology. The Nikkei 225 index in Japan gained after a source clarified recent speculation about the Bank of Japan's policy stance, stating that comments by Governor Ueda were taken out of context and did not signal a change in timing for future monetary policy decisions. In contrast, the Hang Seng and Shanghai Composite indexes in China were pressured by weakness in the technology and property sectors. Weekend data revealed a larger-than-expected decline in Chinese consumer inflation and factory gate prices, suggesting weak domestic demand and contributing to the bearish sentiment. European equity futures indicated a flat or slightly firmer open, with the Euro Stoxx 50 future up 0.1% after the cash market closed 1.1% higher on Friday.
FX
The US Dollar Index (DXY) eked out slight gains on Monday, albeit confined to a tight range. The quiet weekend lacked news flow from the US, with investors awaiting tomorrow's US inflation data and Wednesday's FOMC meeting. EUR/USD traded uneventfully, remaining below the 1.0800 level ahead of this week's ECB meeting. GBP/USD fluctuated around 1.2550, facing a crucial week as UK PM Sunak grapples with the divisive Rwanda Bill and the BoE's policy decision on Thursday. USD/JPY reclaimed the 145.00 level, supported by gains in Japanese stocks and the recent pushback against BoJ speculation. AUD and NZD remained subdued alongside the mixed risk appetite and continued deflation in China.
FIXED INCOME
10-year UST futures saw little change, offering some respite from post-NFP selling pressure. Bund futures lacked direction but found support near the 134.50 level, recovering from Friday's lows. 10-year JGB futures remained firmly below 146.00 due to subdued demand in the absence of additional BoJ purchases.
COMMODITIES
Crude oil futures extended Friday's recovery but were limited by the bearish mood and lack of catalysts. OPEC Secretary General Al-Ghais emphasized the need for an "all-energies and all-technologies" approach to tackling emissions at COP28, according to Reuters. Venezuela contacted energy firms involved in a stalled offshore gas project near its border with Guyana, pushing them to begin operations. Spot gold dipped below the $2,000/oz level due to the slightly stronger dollar and anticipation of the Fed meeting. Copper futures remained subdued due to regional caution and deflationary concerns in China.
Looking ahead, key highlights include:
US Employment Trends
US NY Fed Survey of Consumer Expectations
Chinese M2 Money Supply, FDI
Speech from RBA's Bullock
US Supply
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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