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Markets Update: Asia-Pacific Stocks Mixed Ahead of US CPI Data; ASX 200 Lifted by Commodity-Related Sectors; Nikkei Advances on Earnings; Hang Seng and Shanghai Comp Rangebound; European Futures Point to Flat Open.
Economic Calendar
Global Markets Roundup: 14 Nov 2023
Asia-Pacific stocks traded somewhat mixed on Tuesday, with gains capped as markets awaited the release of key US inflation data. The US House Speaker's plan to prevent a government shutdown will be considered by the House today. Hamas has expressed its willingness to release prisoners in exchange for a five-day truce. European equity futures pointed to a relatively flat open, with the Euro Stoxx 50 down 0.1% after the cash market closed +0.8% yesterday. The DXY is steady, EUR/USD is eyeing 1.07 to the upside, and USD/JPY is flat after recent jawboning.
The ASX 200 index was led higher by strength in the commodity-related sectors, with energy stocks outperforming following the recent rebound in oil prices. This helped participants shrug off weak Consumer and Business Confidence data. Financials, however, lacked conviction after Australia's largest lender CBA posted flat cash profit for Q1. The Nikkei 225 index advanced amid earnings releases and with Japan's government said to consider corporate tax breaks as an incentive for companies that implement an 8% wage increase. The Hang Seng and Shanghai Composite indexes were indecisive following mixed New Yuan Loans and Aggregate Financing data, which both weakened from the prior month. Price action was also kept rangebound ahead of the Biden-Xi meeting, with the leaders expected to announce a deal on a fentanyl crackdown by China.
FX The US Dollar Index (DXY) traded rangebound on Tuesday, after pulling back from resistance near the 106.00 level the previous day. The pullback was attributed to an improvement in risk appetite and a decline in consumer inflation expectations. Investors are now turning their attention to the release of US CPI data later today. EUR/USD remained stuck near the 1.0700 level following the prior day's whipsawing and ECB rhetoric. GBP/USD took a breather but held on to the gains seen in the aftermath of the UK cabinet reshuffle. USD/JPY traded sideways following recent intervention speculation and familiar government jawboning. The AUD and NZD were indecisive, with soft data offsetting the tailwinds from the risk tone and rebound in commodities. The PBoC set USD/CNY mid-point at 7.1768 vs exp. 7.2885 (prev. 7.1769).
Commodities
Crude oil futures were slightly firmer on Tuesday, amid the mostly positive mood and higher demand growth forecasts. The US is planning to purchase 1.2 million barrels of oil for the Strategic Petroleum Reserve, according to Reuters. The EIA sees US total shale regions oil production for December down about 1,200 BPD at 9.865 million BPD (vs 4,100 BPD fall in November), while Permian production is seen at the highest on record. Spot gold traded sideways amid an uneventful dollar as participants lacked conviction ahead of US CPI data. Copper futures took a breather after the prior day's rally, which was spurred by reports of reduced processing operations at First Quantum's Panama mine due to port blockades by protestors.
Key takeaways:
APAC stocks traded mixed ahead of US CPI data
European futures point to flat open
US House Speaker's plan to prevent shutdown to be considered today
Hamas willing to release prisoners for five-day truce
, EUR/USD eyes 1.07, USD/JPY flat
ASX 200 lifted by commodity-related sectors
Nikkei 225 advances on earnings
Hang Seng and Shanghai Comp rangebound
ASX 200 shrugs off weak Consumer and Business Confidence data
Financials lack conviction after CBA posts flat cash profit
Nikkei 225 boosted by earnings releases and government tax break proposal
Hang Seng and Shanghai Comp cautious ahead of Biden-Xi meeting
DXY steady
EUR/USD remained stuck near 1.0700
GBP/USD took a breather
USD/JPY traded sideways
AUD and NZD were indecisive
Crude futures were slightly firmer
Spot gold traded sideways
Copper futures took a breather
Looking ahead:
Key events include UK Jobs Data, Spanish CPI (Final), Employment, GDP, German ZEW, US CPI, Cleveland Fed CPI, Japanese GDP, Speeches from Fed's Jefferson, Mester, Goolsbee, Williams & Barr, ECB's Lane, Centeno & Elderson, German Supply
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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