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Markets Update: APAC Stocks Subdued, Wall Street Rally Fizzles, Moody's Downgrades US Outlook, ASX 200 Subdued on ANZ Earnings, Nikkei Turns Lower on Yields, Hang Seng and Shanghai Comp Cautious.
Economic Calendar
Global Markets Roundup: 13 Nov 2023
Asia-Pacific stocks were mostly subdued on Monday, failing to sustain the early momentum from last Friday's rally on Wall Street. The US House Speaker unveiled a GOP stopgap funding bill, but the proposal was criticized by the White House. Moody's affirmed the US credit rating at AAA but downgraded the outlook to negative from stable.
In FX markets, the DXY is steady around the 105 handle, with JPY lagging behind other G10 currencies. Most other majors are broadly stable. Hamas has suspended hostage negotiations with Israel over the handling of the Al-Shifa Hospital. European equity futures are indicative of a marginally higher open, with the Euro Stoxx 50 up 0.2% after the cash market closed -0.8% on Friday.
The ASX 200 index was lackluster on Friday, weighed down by weakness in the top-weighted financial sector. This followed the release of ANZ Bank's earnings, which posted a record FY cash profit but missed analysts' forecasts. The bank also noted that the external environment is likely to remain challenging.
The Nikkei 225 index initially gained ground after the release of softer-than-expected PPI data. However, the index eventually reversed its gains amid rising yields and a slew of earnings reports. The Hang Seng and Shanghai Composite indexes traded cautiously. Optimism from Alibaba and JD.com's higher Singles Day sales was offset by cautiousness ahead of the approaching Chinese data and Biden-Xi summit.
FX
The US Dollar Index (DXY) was kept afloat in rangebound trade on Friday, with participants tentative ahead of tomorrow's CPI data and as the threat of a government shutdown lingered. EUR/USD was uneventful and remained contained at sub-1.0700 amid quiet newsflow from the bloc. GBP/USD struggled for direction and largely ignored the fall seen in UK Rightmove House Prices. USD/JPY gradually edged higher following the softer-than-expected PPI data from Japan, which showed that core CPI rose just 3.7% year-on-year in October, below expectations for a 3.8% increase. The A lacked conviction as risk sentiment waned and with the hawkish-leaning RBA comments counterbalanced by a subdued commodities complex. The PBoC set USD/CNY mid-point at 7.1769 vs exp. 7.2889 (prev. 7.1771).
10yr JGB futures
10yr JGB futures failed to benefit from the soft PPI data and instead tracked the declines in global peers amid the absence of BoJ purchases.
Commodities Crude oil futures faded some of Friday's advances as risk sentiment gradually waned and amid prospects of a looming agreement to resume oil output from oil fields in Iraq's Kurdistan region. Iraq's Oil Minister Abdel-Ghani said on Sunday that he expects to reach an agreement with the Kurdistan Regional Government and foreign oil companies to resume oil production from the Kurdish region's oilfields within three days. Iraq and ExxonMobil (XOM) signed a settlement agreement allowing PetroChina (857 HK) to become a lead contractor at the West Qurna 1 oil field.
Kuwait Integrated Petroleum Industries Company said there was a sudden interruption of fuel supplies at Kuwait's Al Zour Refinery due to a defect in one of the main valves which almost halted production, according to state media. Spot gold traded indecisively amid a quiet dollar and as participants await the latest US inflation numbers. Copper futures were rangebound owing to the flimsy risk appetite and ahead of incoming Chinese activity data.
Key takeaways:
APAC stocks subdued after Wall Street rally fizzles
Moody's downgrades US outlook to negative
DXY steady around 105 handle
JPY lags behind other G10 currencies
Hamas suspends hostage negotiations with Israel
European equity futures point to marginally higher open
ASX 200 subdued on ANZ earnings
Nikkei turns lower on yields
Hang Seng and Shanghai Comp cautious
Financial sector weighs on ASX 200
DXY was kept afloat in rangebound trade ahead of tomorrow's CPI data
EUR/USD was uneventful and remained contained at sub-1.0700
GBP/USD struggled for direction
USD/JPY edged higher following softer-than-expected PPI data
AUD and NZD lacked conviction
10yr JGB futures tracked declines in global peers
Crude futures faded some of Friday's advances
Spot gold traded indecisively
Copper futures were rangebound
Softer-than-expected PPI data supports Nikkei initially
Alibaba and JD.com's higher Singles Day sales boost Hang Seng and Shanghai Comp
Cautiousness ahead of Chinese data and Biden-Xi summit
Looking ahead:
Highlights include US NY Fed Survey of Consumer Expectations, Speeches from ECB's de Guindos & BoE's Mann
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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