Tuesday 10th October: European Open Briefing

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Tuesday 10th October: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei up 0.50 %, Shanghai Composite down 0.33 %, Hang Seng gained 0.07 %, ASX 200 down 0.09 %
  • Commodities: Gold at $1289.79 (0.37 %), Silver at $17.07 (0.58 %), WTI Oil at $49.66 (0.16 %), Brent Oil at $55.81 (0.14 %)
  • Rates: US 10-year yield at 2.36, UK 10-year yield at 1.36, German 10-year yield at 0.44

News & Data:

  • (AUD) NAB Business Confidence 7 vs 5 previous
  • (JPY) Current Account 2.27 T vs 1.98 T expected
  • (GBP) BRC Retail Sales Monitor y/y 1.9 % vs 1.3 % previous
  • (EUR) Sentix Investor Confidence 29.7 vs 28.6 expected
  • (EUR) German Industrial Production m/m 2.6 % vs 0.9 % expected
  • Prospects for China, South Korea central bank FX swap renewal look positive
  • China says will have no problem meeting 2017 growth target, may beat it- RTRS

Markets Update:

In spite of the weakness in Wall street on Monday, Equity markets across the Asia-Pacific region were mixed on Tuesday as Japan and South Korea markets reopened with investors there catching up with the global market strength following a holiday.

USDJPY traded a little higher in the early Tokyo morning reaching highs of 112.825 and has since dropped close to 25 pips and is currently seen trading at 112.590. The Nikkei Stock Average NIKKEI 225 gained 0.5% to 20,795.00 following Monday’s market holiday. The index is closing in on a 21-year high: A move above the 20,952.71 level touched in late June 2015 would mark its highest since 1996.

EURUSD had a healthy movement earlier in the session is currently seen trading around 1.1771 as the Euro gained 0.3 percent against the US Dollar. The dollar index, which tracks the dollar against a basket of currencies lost 0.1 % is currently valued at 93.55, heading lower for a third day. However, Harumi Taguchi, principal economist at IHS Markit in Tokyo mentioned in his statement “We are expecting a December Fed rate hike, so we are expecting the trend to be dollar strength and yen depreciation….”

AUDUSD is currently seen trading around 0.7785 after rising from session lows of 0.7750 on back of Strong business conditions and confidence reported earlier today. The NAB Business confidence rose to 7 against the previous 5. The NZDUSD seemed to continue its trend, printing fresh lows of 0.7055 earlier in the session and recovering to current levels of 0.7072.

Upcoming Events:

  • All Day – (EUR) ECOFIN Meetings
  • 08:30 GMT – (AUD) Manufacturing Production m/m
  • 08:30 GMT – (GBP) Goods Trade Balance
  • 12:30 GMT – (CAD) Building Permits m/m
  • 04:00 GMT – (USD) FOMC Member Kashkari Speaks
  • 04:00 GMT – (CAD) Gov Council Member Wilkins Speaks

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