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Markets Update: Asia-Pacific Stocks Follow Wall Street, ASX 200 Gains on Health, Financials Support, Nikkei Lifted by Exporters' Boost DXY Flat, European Futures Point to Contained Open.
Economic Calendar
Global Markets Roundup: 09 Nov 2023
Asia-Pacific stocks traded mostly firmer on Thursday, following a similar lead from Wall Street. Chinese markets saw a more muted performance. The US Dollar Index (DXY) traded flat within a tight range on either side of 105.50. USD/JPY remained just under 151.00, and the Antipodeans outperformed. European equity futures are indicative of a contained open with the Euro Stoxx 50 down 0.1% after the cash market closed +0.6% yesterday.
The ASX 200 index gained ground on Thursday, supported by the Health and Financials sectors. The latter sector was bolstered by NAB's rise after the bank released its earnings report. The IT and Energy sectors, on the other hand, lagged behind. The Nikkei 225 index was firmer from the start, as the recent weakness in the Japanese yen (JPY) benefited exporters. The index eventually topped 32,500. The Hang Seng and Shanghai Composite indexes were mixed, with Mainland China's markets showing a flat to firmer trend. The latest Chinese inflation metrics painted a picture of a fragile economy, as the nation fell back into deflation. Hong Kong's market underperformed, with the Property sector dragging the index lower.
FX The US Dollar Index (DXY) traded flat within a tight range on either side of 105.50. EUR/USD managed to find overnight support at 1.0700, but also found resistance near yesterday's high of 1.0716. GBP/USD traded within yesterday's 1.2238-2302 range and on either side of its 50 DMA (1.2275). USD/JPY remained under 151.00 throughout the session after briefly topping the level in US trade yesterday. The Antipodeans saw cautious gains amid the mixed mood across the market. The PBoC set USD/CNY mid-point at 7.1772 vs exp. 7.2723 (prev. 7.1773).
Fixed Income 10-year US Treasury (UST) futures are flat despite an initial mild upside bias after Treasuries bull-flattened on Wednesday amid the decline in oil prices and after a satisfactory US 10-year auction. Bund futures initially tilted upward, but eventually came off best levels. 10-year JGB futures were uneventful and conformed to the price action seen across peers. US sold USD 40bln of 10yr notes at 4.519%; tails by 0.8bps.
Commodities Crude oil futures were once again consolidating following the prior day's decline, although price action was seemingly underpinned at the resumption of electronic trade after US military forces confirmed it conducted a self-defence strike on a facility in eastern Syria in response to attacks against US personnel. Spot gold was flat, but eventually found mild resistance at USD 1,950/oz. Copper futures gradually edged modestly lower against the backdrop of a cautious market mood.
Key takeaways:
DXY traded flat within a tight range
EUR/USD found support at 1.0700
GBP/USD traded within yesterday's range
USD/JPY remained under 151.00
Antipodeans saw cautious gains
10-year UST futures are flat
Bund futures tilted upward
10-year JGB futures were uneventful
Crude futures consolidated
Spot gold was flat
Copper futures edged lower
Looking ahead:
Highlights include US IJC, NZ Manufacturing PMI, speeches from central bank officials, Banxico policy announcement, supply from US
Earnings: Deutsche Telekom, Hannover Re, AstraZeneca, Taylor Wimpey, National Grid
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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