Market Movers
With the US market closed due to Thanksgiving, today is set to be a relatively quiet day on the data front.
At 10:00 CET, EU money supply figures (M3) for October are due to be released. We generally expect the recent strong growth to continue but are also waiting to see if the decline in growth in loans to non-financial corporations in September continues. This is one of the transmission mechanisms of the ECB’s QE purchases and if the upward trend has reversed, this will be a concern for the ECB.
Swedish trade balance data and financial market statistics are the highlights in Scandi space today. See Scandi Markets.
Selected Market News
Reports emerge on ECB easing options. European fixed income markets rallied and the EUR weakened yesterday amid reports on potential ECB measures to be announced at the key meeting on 3 December. The ECB seems likely to expand the scope of its QE programme by including a wider range of assets, potentially purchasing bonds issued by towns or regions, while even buying non-performing loans of banks’ balances are said to have been considered, according to Reuters (link). Furthermore, a two-tiered deposit rate system is being discussed, whereby banks would be charged a different deposit rate depending on the level of excess liquidity deposited. This could allow a bigger deposit rate cut, while cushioning the impact on banks’ profits. See the Fixed Income and FX sections on page 2 for further comments.
Quiet day in the US. Trading volume was low and the major stock indices were broadly unchanged, amid a flood of data which seemed to confirm the picture of a US economy growing at moderate pace and leaving expectations for a December Fed hike unchanged. Durable goods orders rose a healthy 3.0% in October, though much of the increase appeared driven by a rebound in aircraft orders. Initial jobless claims fell 12k to 260k, i.e. close to the cycle-low of 255k reached in July. New home sales rebounded by 10.7% in October, while the University of Michigan sentiment indicator was revised lower to 91.3 from the 93.1 flash estimate, presumably due to the impact of the Paris terrorist attack.
Asia stocks push higher amid signs of easing geopolitical tensions. Nato officials yesterday called for ‘calm and de-escalation’, while US President Obama agreed with Turkish President Erdogan on the importance of such an event not being repeated. This morning, the key Asia stock indices are all trading in green.
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
Recommended Content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold dips on falling US yields as traders shrug off hawkish Fed remarks
Gold prices retreated from close to weekly highs during the North American session on Wednesday amid an improvement in risk appetite. The bullish impulse arrived despite hawkish commentary by US Federal Reserve officials.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin price is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
Australia unemployment rate expected to rise back to 3.9% in March as February boost fades
Australia will publish its monthly employment report first thing Thursday. The Australian Bureau of Statistics is expected to announce the country added measly 7.2K new positions in March after the outstanding 116.5K jobs created in February.