_edited_edited.png)
Markets Update: APAC Stocks Rise on Tech-Led US Gains and Property Support in China, USD/JPY Breaches 148.00, RBA Minutes Highlight Inflation Focus, BoE Governor Bailey Rejects Rate Cut Talk, Hamas Nears Ceasefire Agreement.
Economic Calendar
Global Markets Roundup: 21 Nov 2023
Asia-Pacific stocks traded mostly higher on Tuesday, following the tech-led gains in the US. Microsoft shares climbed to a record high in otherwise quiet trade. Chinese markets were underpinned by property sector support. USD/JPY continued to trickle lower and breached the 148.00 level to the downside despite softening JGB yields. DXY remained pressured firmly beneath the 104.00 level, and the Antipodeans were underpinned. The RBA's November minutes stated that staff projections for inflation at the meeting assumed one or two more rate hikes. The Board noted that the Cash Rate remained below rates in many other countries and that rising house prices could indicate that policy was not especially restrictive. BoE Governor Bailey said it is far too early to be thinking about rate cuts and that returning inflation to the target is an "absolute priority." He added that they will take no chances when inflation is high. Hamas chief said that they are close to reaching an agreement on a temporary ceasefire, arrangements for the entry of aid into Gaza, and a hostages-prisoners swap deal.
The Australian ASX 200 index managed to stay afloat on Tuesday, with strength in the mining and materials sectors offsetting weakness in tech and defensive stocks. However, gains were limited following the hawkish undertones from the RBA's November minutes. The Japanese Nikkei 225 index lacked firm direction, as headwinds from the recent strengthening of the Japanese yen were counterbalanced by the decline in Japanese government bond (JGB) yields. The Hong Kong Hang Seng index and the Chinese Shanghai Composite index were underpinned by support-related optimism. The Hang Seng benchmark was led by property stocks, briefly rising above the 18,000 level following reports that China is drafting a "whitelist" of 50 developers for a financing boost. China also asked government officials to increase financial support for the economy and is looking to further bolster major strategies.
FX
The US Dollar Index (DXY) remained pressured firmly beneath the 104.00 level, closer to 103.00, owing to the strength in the dollar’s major counterparts, including outperformance in Asia-Pacific currencies. Recent “data-dependent” rhetoric from Fed’s Barkin had little effect on price action, with the focus now turning to the approaching FOMC Minutes.
EUR/USD extended on the prior day’s advances after breaching through resistance at the 1.0950 level. GBP/USD made further headway north of 1.2500 following comments from BoE Governor Bailey that it is too early to be thinking about rate cuts, while he added that returning inflation to the target is an absolute priority and will not take any chances when inflation is high. USD/JPY continued to trickle lower and breached the 148.00 level to the downside despite softening JGB yields. AUD and NZD were underpinned by hawkish-leaning RBA Minutes, stronger New Zealand Exports, and a firmer PBoC reference rate. The PBoC set the USD/CNY mid-point at 7.1406 vs exp. 7.1677 (prev. 7.1612).
COMMODITIES
Crude oil futures marginally pulled back, with WTI crude futures below the USD 78/bbl level, although the downside was stemmed by the mostly positive risk tone, China stimulus hopes, and prospects for deeper OPEC+ production cuts. Goldman Sachs said its statistical model of OPEC decisions suggests that deeper cuts should not be ruled out given the fall in speculative positioning and time spreads, as well as higher-than-expected inventories.
Spot gold steadily advanced throughout the session to above USD 1992/oz as the greenback remained pressured. Copper futures sat at the prior day’s best levels above USD 3.80/lb amid supply disruptions as First Quantum Minerals considers putting the Panama copper mine in maintenance mode and with the union at the Las Bambas mine in Peru to go on an indefinite strike.
Looking ahead, key highlights include UK PSNB, US National Activity Index, US Fed Non-Manufacturing Business Outlook Survey, Canadian CPI, NBH Policy Announcement, Fed Minutes, Canadian Fall Economic Update, BoE Treasury Select Hearing, speeches from ECB's Lagarde and Schnabel, supply from Germany and the US, and earnings from Lowe's, NVIDIA Corp, Analog Devices, Best Buy, and Autodesk.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comments