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Markets Update: APAC Stocks Capped Off Monthly Gains Amid Mixed Sentiment, OPEC+ Considers Oil Output Cuts.
Economic Calendar
Global Markets Roundup: 30 Nov 2023
Asia-Pacific stocks closed mixed on Thursday, with gains this month capped off by mixed sentiment and a slew of key data releases, including disappointing Chinese official PMI figures that showed a steeper contraction in China's factory activity.
OPEC+ is reportedly considering new oil production cuts, with Saudi Arabia favoring a curb of up to 1 million barrels per day (BPD), while other members oppose downgrading quotas.
German Finance Minister Christian Lindner warned that Germany faces a EUR 17 billion gap in its 2024 budget.
The ASX 200 exhibited choppy behavior following mixed data releases. Building Approvals exceeded expectations, while Private Capital Expenditure fell short of estimates. The Nikkei 225 index swung between gains and losses, influenced by recent currency strength and contrasting economic data. Better-than-expected Industrial Production data was offset by softer Retail Sales figures. The Hang Seng and Shanghai Composite indexes remained indecisive, experiencing only brief pressure after the release of PMI data indicating a steeper contraction in China's factory activity. This raises the possibility of further supportive measures from the government. European equity futures are pointing towards a higher open, with the Euro Stoxx 50 index futures up 0.3%. This follows a positive close in the cash market yesterday.
FX
The US Dollar Index (DXY) traded rangebound below the 103.00 level but held onto its prior-day gains, supported by an upward revision to US GDP and hawkish comments from Fed's Barkin. Attention now turns to the upcoming Core PCE data, the Fed's preferred measure of inflation.
EUR/USD remained flat, with the single currency contained after its recent failure to sustain the 1.1000 level.
GBP/USD traded steadily around the 1.2700 focal point in the absence of significant drivers.
USD/JPY hovered near support at 147.00 following mixed data from Japan and recent declines in US yields.
AUD and NZD strengthened as CNH gradually shrugged off initial pressure from weak Chinese data.
The People's Bank of China (PBoC) set the USD/CNY mid-point at 7.1018 vs exp. 7.1273 (prev. 7.1031).
Banxico Governor Rodriguez indicated that a rate cut is unlikely in December but discussions could begin early next year.
FIXED INCOME
10-year UST futures paused around the 110.00 level after their recent advance, with the bond market unfazed by recent upward GDP revisions and hawkish remarks from Fed's Barkin.
Bund futures maintained a firm footing above 132.00 following the recent softer German CPI, ahead of incoming EU inflation data.
10-year JGB futures faded initial gains after hitting resistance at 147.00, with prices also impacted by a weaker 2-year auction.
COMMODITIES
Crude oil futures remained in a holding pattern amid OPEC+ uncertainty ahead of today's virtual meeting. Recent reports suggest that Saudi Arabia favors deeper output cuts, while other members oppose downgrading their quotas. A rollover of most existing output curbs is considered the most likely outcome.
OPEC+ reportedly mulls new oil production cuts amid the Middle East conflict, with Saudi Arabia favoring a curb of up to 1mln BPD. However, other members, including Nigeria, Angola, and the UAE, are reluctant to cut output.
Kazakhstan's Energy Ministry reported a 34% decline in oil output at the Karachaganak oilfield on November 29th due to a Black Sea storm.
Oil loadings from Novorossiysk and CPC terminals remained shut on Wednesday due to a storm, with the November plan for Novorossiysk delayed by over 1mln tons.
Spot gold traded sideways, with recent buying momentum losing steam after hitting resistance near USD 2,050/oz.
Copper futures gained marginally, with the upside limited by the mixed risk tone and weak Chinese PMIs.
Looking ahead, key highlights include data releases on German trade, retail sales, French GDP, CPI, producer prices, German unemployment, EZ CPI, Italian CPI, and US personal consumption, PCE price index, IJC, Dallas Fed PCE, Canadian GDP, average weekly earnings, Australian PMI (final), Japanese unemployment rate, BoE's Monthly Decision Panel, OPEC+ meeting, and speeches from Fed's Williams, BoE's Greene, and ECB's Lagarde.
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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