Thursday 5th December: Markets return to their happy place on Trump’s mixed signals

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.71%, Shanghai Composite up 0.75%, Hang Seng up 0.36%, ASX up 1.16%
  • Commodities : Gold at $1482.65 (+0.17%), Silver at $16.97 (+0.34%), Brent Oil at $62.88 (-0.19%), WTI Oil at $58.26 (-0.29%)
  • Rates : US 10-year yield at 1.764, UK 10-year yield at 0.739, Germany 10-year yield at -0.324

News & Data:

  • (AUD) Trade Balance 4.50B vs 6.50B expected
  • (AUD) Retail Sales m/m 0.00% vs 0.30% expected
  • (USD) Crude Oil Inventories -4.9M vs -1.6M expected
  • (USD) ISM Non-Manufacturing PMI 53.9 vs 54.5 expected
  • (CAD) Overnight Rate 1.75% vs 1.75% expected
  • (USD) ADP Non-Farm Employment Change 67K vs 137K expected
  • (GBP) Final Services PMI 49.3 vs 48.6 expected

Markets Update:

Asian stock markets are in positive territory on Thursday amid renewed optimism about a U.S.-China trade deal. Citing people familiar with the talks, Bloomberg reported that U.S. negotiators expect a phase one deal to be completed before U.S. tariffs against China are set to rise on December 15.

The Australian market is rebounding after two days of steep losses following the positive cues overnight from Wall Street amid renewed optimism about a U.S.-China trade deal. Tech and mining stocks are among the major gainers.

Mainland Chinese stocks edged higher by the afternoon, with the Shanghai composite up 0.7% and the Shenzhen component gaining 0.9%.In Japan, the Nikkei 225 gained 0.7% in afternoon trade as shares of index heavyweight and robot maker Fanuc jumped more than 2%.

The Topix index added 0.5%. Meanwhile, shares in Australia also advanced after leading losses among regional markets on Wednesday, with the S&P/ASX 200 gaining 1.2%. On the economic front, the Reserve Bank of India kept the repo rate unchanged at 5.15%

The yield on benchmark 10-year Treasury notes  fell slightly to 1.7603% in Asia, retracing some of the gains made in the previous session. The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.549 after seeing highs above 97.7 yesterday. Oil prices dipped in the afternoon of Asian trading hours.

Upcoming Events:

  • 07:00 AM GMT – (EUR) German Factory Orders m/m
  • All Day – (All) OPEC Meetings
  • 10:00 AM GMT – (EUR) Final Employment Change q/q
  • 10:00 AM GMT – (EUR) Retail Sales m/m
  • 10:00 AM GMT – (EUR) Revised GDP q/q
  • Tentative – (EUR) Spanish 10-y Bond Auction
  • All Day – (EUR) ECOFIN Meetings
  • Tentative – (EUR) French 10-y Bond Auction
  • 12:30 PM GMT – (USD) Challenger Job Cuts y/y
  • 12:45 PM GMT – (CAD) Gov Council Member Lane Speaks
  • 01:30 PM GMT – (CAD) Trade Balance
  • 01:30 PM GMT – (USD) Trade Balance
  • 01:30 PM GMT – (USD) Unemployment Claims
  • 03:00 PM GMT – (CAD) Ivey PMI
  • 03:00 PM GMT – (USD) FOMC Member Quarles Speaks
  • &more…