
Markets Update: APAC Stocks Slide Amid Geopolitical Uncertainties, and Shadow Banking Concerns; Black Friday Sales Rise; European Futures Signal Lower Open.
Economic Calendar
Global Markets Roundup: 27 Nov 2023
Asia-Pacific stocks declined on Monday as investors expressed caution ahead of the month-end and as geopolitical headlines dominated the news cycle. Concerns over the extension of the Israel-Hamas truce weighed on sentiment. Meanwhile, Black Friday sales in the US rose 7.5% year-over-year to USD 9.8 billion, driven by strong demand for electronics, smartwatches, TVs, and audio equipment.
The ASX 200 closed lower as weakness in defensive and mining-related sectors overshadowed gains in tech. The Nikkei 225 erased its early gains after hitting resistance just above the 33,800 level, as investors digested Japanese Services PPI data. The Hang Seng and Shanghai Composite indexes declined following soft Chinese Industrial Profits data and amid shadow banking concerns. Chinese authorities opened a probe into struggling shadow bank Zhongzhi, while the PBoC's notice to strengthen financial support for private companies did little to bolster risk sentiment. US equity futures trickled lower amid a lack of fresh catalysts and the risk-averse mood across Asia-Pacific counterparts. European equity futures are indicative of a lower open, with the Euro Stoxx 50 index down 0.3%.
FX
The US Dollar Index (DXY) remained flat within a tight range, lacking any significant catalysts from the US.
EUR/USD traded sideways with choppy price action, with upside capped by resistance at the 1.0950 level.
GBP/USD paused near the 1.2600 level, consolidating its recent gains to its highest level in over two months.
USD/JPY declined amid the downbeat market mood and firmer services PPI, briefly dipping below the 149.00 handle.
AUD and NZD failed to sustain their early gains due to their high-beta nature and the mixed performance of commodities.
COMMODITIES
Crude oil futures extended their losses from Friday, with Brent Crude and WTI Crude falling below $80/bbl and $75/bbl, respectively, in the absence of any energy-related catalysts.
Iraq's Oil Ministry awarded oil exploration rights to UAE-based Crescent Petroleum for two oil fields in the country's 5th oil and gas leasing round, while another company secured rights to the Howaiza oil field, according to Reuters.
The OPEC+ meeting is scheduled for November 30th.
Spot gold extended its gains above $2,000/oz, with notable increases seen as Shanghai Commodities trade commenced.
Copper futures faced pressure amid the negative risk appetite and concerns among Chinese property developers.
Looking ahead, key highlights include US Building Permits, Dallas Fed Manufacturing Business Index, and Supply from the US.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team