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Markets Update: APAC Stocks Edge Higher in Holiday-Thinned Trading, DXY Softens, Antipodeans Firm, Israel Ceasefire Timing Uncertain, German Inflation-Linked Bonds Discontinued.
Economic Calendar
Global Markets Roundup: 23 Nov 2023
Asia-Pacific stocks traded in a subdued manner for most of the session before edging higher in holiday-quietened conditions owing to market closures in the US and Japan. The US Dollar Index (DXY) marginally softened, while EUR/USD nursed the prior day's losses. AUD and USD were firmer, with NZD/USD the outperformer. In a significant development, Israel's military stated that they do not know when the ceasefire between Israel and Hamas will take effect. Iran's Foreign Minister warned that if the truce does not continue, the war will spread. The German Federal government has decided to discontinue its program for inflation-linked bonds. No further inflation-linked Federal securities will be issued from 2024.
The Australian ASX 200 index was dragged lower on Thursday by losses in the commodity-related sectors. Sentiment was dampened by weak Australian flash PMIs, which showed deeper contractions in manufacturing and services activity.
The Hang Seng and Shanghai Composite indexes were lackluster, but the downside was limited as developers benefited from recent support pledges. Country Garden Holdings, one of China's largest property developers, was placed on the draft list of firms to be supported by the government.
European equity futures are indicative of a marginally softer open, with the Euro Stoxx 50 index down 0.1%. This cautious sentiment comes ahead of key data releases, including French, German, EZ, and UK PMI (Flash) data, and Japanese CPI.
FX
The US Dollar Index (DXY) marginally softened on Thursday, with participants stateside now away for the Thanksgiving holiday. However, losses were limited amid the lack of fresh catalysts and after recent notable declines in jobless claims data.
EUR/USD nursed the prior day's losses but just about reclaimed the 1.0900 level after recent ECB commentary. Attention also remains on the German fiscal situation, including the decision to discontinue issuing inflation-linked bonds from next year.
GBP/USD recovered from the prior day's trough near the 1.2450 level and returned to the 1.2500 territory in otherwise tepid trade following the Autumn Statement.
USD/JPY was subdued and briefly tested support around 149.00 amid the absence of Japanese participants.
AUD and NZD were firmer, with NZD/USD the outperformer on cross-related flows. It was later reported that coalition talks have concluded with New Zealand's incoming PM Luxon hoping to be sworn in on Monday.
The PBoC set the USD/CNY mid-point at 7.1212 vs exp. 7.1512 (prev. 7.1254).
COMMODITIES
Crude oil futures were mildly pressured overnight, with WTI briefly dipping below USD 76/bbl. This decline was attributed to residual headwinds from the delay of the OPEC+ meeting due to disagreement over some members' oil production figures and associated quotas. The issues are linked to African countries.
In other energy news, Saudi September oil exports fell by SAR 17.2bln or 17.1% Y/Y, according to government data. Additionally, Baker Hughes reported that the US Rig Count for the week ending November 22nd showed oil rigs flat at 500, natural gas rigs up 3 at 117, and total rigs up 4 at 622.
Spot gold eked out marginal gains on the back of a softer dollar but stalled just shy of the USD 2,000/oz level.
Copper futures were uneventful, with prices flat alongside the mixed risk sentiment and holiday conditions.
In base metals news, Chile's Codelco noted that it has reached a production 'turning point' after declines and is making progress on key projects. Meanwhile, China's NDRC will step up regulation on iron ore futures and spot trading, urging iron ore firms not to hoard and hype up prices.
Looking ahead, key highlights include French, German, EZ, and UK PMI (Flash) data, Japanese CPI, policy announcements from the Riksbank, SARB, and CBRT, ECB and Banxico minutes, and speeches from Riksbank's Thedeen, ECB's Schnabel and Cipollone. The US Thanksgiving holiday will also observe market closures.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team