Tuesday 28th November: European Open Briefing

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Global Markets:

  • Asian stock markets: Nikkei flat at 22,477.00, Shanghai Composite fell 0.10 %, Hang Seng down 0.70 %, ASX 200 lost 0.10 %
  • Commodities: Gold at $1294.06 (-0.02 %), Silver at $17.01 (-0.06 %), WTI Oil at $57.80 (-0.53 %), Brent Oil at $63.21 (-0.27 %)
  • Rates: US 10-year yield at 2.33, UK 10-year yield at 1.26 German 10-year yield at 0.34

News & Data:

  • U.S. new home sales hit 10-year high in October
  • (USD) New Home Sales m/m 6.2 % vs -6.0 % expected
  • (USD) New Home Sales (Oct) 685 K vs 627 K expected
  • (CHF) Employment Level (Q3) 4.96 M vs 4.91 M expected
  • Dollar weak as U.S. tax plan, Powell confirmation eyed
  • Asian shares fall from decade peak as China falters
  • Trump's tax bill faces potential Senate Republican opposition- RTRS

CFTC Positioning Data (Week ending Nov 21, 2017)

  • EUR long 95K vs 84K long last week.
  • GBP short 1K vs 4K short last week.
  • JPY short 123K vs 147K short last week
  • CHF short 30K vs 28K short last week.
  • CAD long 45K vs 47K long last week
  • AUD long 40k vs 44K long last week. 
  • NZD short 14K vs 12K short last week

Markets Update:

Asia-pacific equities markets declined on Tuesday following a narrowly mixed close on Wall Street overnight. Declines in energy and mining stocks led Asian shares lower from decade highs after oil and metal prices extended a drop. Chinese stocks stumbled for a second straight day and Investor confidence in China has been dented by rising bond yields as Beijing steps up its crackdown on shadow banking and other risky forms of financing.

EURUSD was mostly unchanged trading flat around 1.1905.  The dollar got a brief boost overnight when U.S President Donald Trump tweeted that the tax cut bill was “coming along very well”. The dollar index, which tracks the dollar against a basket of currencies was flat and is currently valued at 92.87. The yield on 10-year Treasuries held at 2.33 percent.

AUDUSD had a rather quiet session on Tuesday trading within a 10 pip range, currently the Aussie is valued at .7610 against the US Dollar down from session lows of 0.7600. Australia’s 10-year bond yield fell three basis points to 2.50 percent. Meanwhile, The New Zealand dollar gained close to 0.30 percent against the US Dollar, currently the Kiwi is trading around 0.6935 up from session lows of around 0.6900.

USDJPY was seen trading higher around 111.20 as the Yen lost 0.1 percent against the US Dollar following a 0.4 percent climb on Monday. Nikkei Stock average Nikkei 225 had a slow start due to overnight yen gains and is net unchanged at 22,477. Major exporters, including automakers and tech names, were mixed…

Upcoming Events:

  • 07:00 GMT – (GBP) Bank Stress Test Results
  • 07:30 GMT – (GBP) BOE Gov Carney Speaks
  • 09:00 GMT – (EUR) M3 Money Supply y/y
  • 15:00 GMT – (USD) CB Consumer Confidence
  • 16:30 GMT – (CAD) BOC Gov Poloz Speaks
  • 20:00 GMT – (NZD) RBNZ Financial Stability Report
  • 20:45 GMT – (USD) Treasury Sec Mnuchin Speaks
  • & More…

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