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Markets Update: Asia-Pacific Stocks Gain Momentum, European Futures Point to Upward Open.
Economic Calendar
Global Markets Roundup: 12 Dec 2023
Asia-Pacific stock markets were mostly higher on Tuesday, taking cues from the overnight gains on Wall Street. European equity futures are pointing to a slightly higher open, with the Euro Stoxx 50 futures up 0.1%, mirroring the positive sentiment seen in Asia. Government bond yields are firmer across the board, with both Bunds and USTs rising despite weak demand at recent US auctions.
The ASX 200 lifted by outperformance in tech but capped by mixed data. The Nikkei 225 surged at the open and briefly reclaimed the 33,000 level before reversing most of its gains, while the Hang Seng and Shanghai Composite were both initially underpinned by China's Central Economic Work Conference and the State Council's measures on integrated development of domestic and foreign trade, but ultimately lagged and were contained beneath the psychological 3,000 level. The Hang Seng closed down 0.7%, while the Shanghai Composite closed down 0.2%.
FX
The US Dollar Index (DXY) traded uneventfully within a narrow range ahead of the US inflation data scheduled for release today and the FOMC announcement tomorrow. EUR/USD remained range-bound around 1.0700 ahead of the ECB meeting on Thursday.
GBP/USD edged up slightly above 1.2550, as investors awaited the UK jobs and wages data. USD/JPY retreated below 146.00, paring back gains triggered by dovish BoJ sources. AUD and NZD currencies were firmer, benefiting from the generally risk-positive mood. RBNZ's annual review of the TWI saw the weighting of the yuan reduced while the weighting of the USD and AUD increased. The PBoC set the USD/CNY midpoint at 7.1174 compared to the expected 7.1772 and the previous 7.1163.
FIXED INCOME
10-year UST futures extended their gains, extending the rebound from support at 110.00 despite mixed auction results. Bund futures broke through resistance at Monday's peak, climbing above the 135.00 level. 10-year JGB futures saw two-way trade, pressured by weak PPI data but finding support after a mixed 5-year JGB auction.
COMMODITIES
Crude oil futures edged higher, continuing the intraday rebound from Monday and amid reports of an attack on a Norwegian-flagged tanker. OPEC+'s planned production cuts may not be enough to prevent a surplus, according to analysts and traders. Guyana said oil producers are moving ahead despite Venezuelan threats and will defend its territory. Spot gold traded sideways around USD 1,985/oz ahead of the US risk events. Copper futures were steady, contained amid cautious gains in other risk assets.
Key highlights for the day include:
UK Employment:Â The UK's unemployment rate is expected to remain unchanged at 3.9%.
EZ & German ZEW:Â The ZEW Economic Sentiment index is expected to remain negative for both the Eurozone and Germany.
US CPI:Â The US Consumer Price Index is expected to show continued inflation pressures.
Japanese Tankan:Â The Japanese Business Confidence survey is expected to show a slight improvement.
Supply from UK & US:Â Supply data from the UK and US is expected to show some moderation in the pace of growth.
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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