Market Movers for 30 December to 1 January
Today, Spanish preliminary inflation data for December as well as M3 money supply data for November are due to be released. Later in the afternoon, US pending home sales data for November is also due. This data should not have much impact on the markets.
Focus will continue to be on the movements in the oil price as well as the final government bond auctions of 2015. Yesterday, there was a small rebound in the oil prices and we saw a sharp correction in the European rates as well as US yields.
Italy is selling up to 4.5bn in 5Y and 10Y BTPS. Looking at yesterday’s 2Y zerocoupon auction, where the Tesoro sold EUR 1.5bn at -11bp (a record low level), there should be ample demand for the BTPS auction today.
The US Treasury is tapping in 7Y Treasuries – demand is likely to be lacklustre as we saw with the 5Y auction yesterday, where the bid-to-cover was the lowest since 2009 given the lack of liquidity ahead of the year-end.
In Scandinavia, Norway is due to release retail sales for November – not a market mover.
Selected Market News
It has been a mixed bag on the Asian stock markets this morning with Nikkei up 0.3%, while Hang Seng and other Chinese stocks are seeing modest losses. But trading is light and there have been no significant key economic data releases from Asian economies.
There have been no major moves in the currency markets this morning. The US dollar remains range bound versus both the euro and the yen.
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
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.