Wednesday 11th October: European Open Briefing

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Global Markets:

  • Asian stock markets: Nikkei up 0.31 %, Shanghai Composite up 0.33 %, Hang Seng down 0.05 %, ASX 200 up 0.52 %
  • Commodities: Gold at $1290.09 (-0.29 %), Silver at $17.14 (-0.38 %), WTI Oil at $51.06 (0.27 %), Brent Oil at $56.69 (0.14 %)
  • Rates: US 10-year yield at 2.36, UK 10-year yield at 1.37, German 10-year yield at 0.45

News & Data:

  • (CAD) Building Permits m/m -5.5 % vs -0.9 % expected
  • (CAD) Housing Starts 217 k vs 211 k expected
  • (GBP) Manufacturing Production m/m 0.4 % vs 0.2 % expected
  • (GBP) Goods Trade Balance -14.2 B vs -11.4 B expected
  • (USD) NFIB Small Business Index 103.0 vs 105.1 expected
  • (USD) IBD/TIPP Economic Optimism 50.3 vs 54.2 expected

Markets Update:

Japan’s Nikkei 225 index rose during Wednesday’s trading (a touch short of 20,807.39), tracking Wall Street’s rally to all-time highs. Aussie stocks rallied 0.6% and New Zealand’s index climbed to a record. South Korea’s KOSPI added 0.3%.

The euro rose as high as 1.1825 after Catalonia’s president struck a conciliatory tone in a speech about the region’s independence referendum. Support currently stands at the 1.18 handle, while overhead resistance is seen at Aug’s opening level drawn from 1.1830.

On the US dollar, focus rested on comments from FOMC member Kaplan who said, ‘the 10-year Treasury had fallen despite Fed rate hikes this year’ – dollar currently trading off lows of 93.12.

Australian data came in upbeat.  The first positive reading on the monthly Westpac Consumer Sentiment indicator since November of 2016, which helped bolster the Aussie. In addition to this, the commodity currency was helped by a weaker dollar. Au. price currently trading from the 0.78 handle. The NZD traded in a similar pattern to other currencies against the USD today.

The USD/JPY is currently seen bid above the 112 handle and recently tapped highs of 112.58

Upcoming Events:

  • 06:00 GMT – (JPY) Prelim Machine Tool Orders y/y
  • 14:00 GMT – (JPY) Jolts Job Openings
  • 18:00 GMT – (USD) FOMC Meeting Minutes
  • 21:45 GMT – (NZD) FPI m/m
  • 23:01 GMT – (GBP) RICS House Price Balance
  • 23:50 GMT – (JPY) Bank Lending y/y


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