Good Morning,
- Asian markets and Euro trade thin and calm, as Tokyo on holiday mode…
- A holiday mood over Asian markets on Tuesday after Wall Street closed at historic highs while oil prices recouped just a little of the losses suffered when Saudi Arabia quashed all thought of curbing supply.
- The attraction of U.S. yields lifted the dollar back to 120-yen level, leaving far last week's 115.56 low. The dollar index reached its highest since April 2006.
- Expectations the ECB will act again on January saw the euro touch a 2-1/2 year trough at $1.2215 yesterday and it was last not far from the lows.
- IMF: They estimated the boost to world growth would be between 0.3 and 0.7 percentage points above the Fund's baseline forecast of 3.8 percent in 2015, with the gain to China ranging from 0.4 to 0.7 percentage points. "Overall, we see this as a shot in the arm for the global economy," Olivier Blanchard, chief economist at the IMF, and Rabah Arezki, head of the commodities research team, wrote in their blog on Monday.
- JP Morgan on EUR/USD: The big picture in EUR/USD is clearly favoring the bear scenario, which assumes that we are dealing with a broad double-zigzag consolidation pattern, notes JP Morgan. "Within the latter we would have started the completing wave down at 1.3993, which has a projected target at 1.1091, " JPM projects. We remain bearish for EUR/USD despite the losses already suffered, but remain on alert for signs of trend exhaustion. As long as key resistance at 1.2871/88 is not taken out though, we see the bears in control and former lows between 1.2042, 1.1876 and 1.1641 at risk," JPM advisees.
- Purchases of previously owned U.S. homes dropped more than forecast in November as residential real estate struggles to sustain its recovery even as borrowing costs remain low. Sales fell 6.1 percent to a 4.93 million annual rate last month, the weakest reading since May, from 5.25 million pace in October, figures showed yesterday. The median forecast of 73 economists surveyed by Bloomberg projected sales would decline to a 5.2 million rate.
- The Australian dollar is set for its first annual gain versus its major peers in three years as it outperforms the euro and the yen, frustrating central bank efforts to stimulate the economy with a weaker currency. A correlation-weighted gauge against nine developed-nation counterparts has risen 1.2 percent this year, even as an iron-ore glut halved prices of the nation’s key export. The Aussie climbed 3.9 percent versus the yen and 2.4 percent to the euro. Reserve Bank of Australia Governor Glenn Stevens said this month the local dollar “remains above most estimates of its fundamental value” as he kept interest rates at a record low.
- Oil bulls also suffered a cruel blow when Saudi Arabia's powerful oil minister said OPEC would not cut production at any price. Ali al-Naimi said the Saudis might instead boost output to grow market share and that oil "may not" trade at $100 again.
- Oil prices edged up in expectation of firm U.S. economic data later on Tuesday, with trading thin due to a public holiday in Japan and as traders begin closing their 2014 positions ahead of Christmas and the New Year. Front-month U.S. WTI crude CLc1 futures rose over a dollar to a session high of $56.85 a barrel before dipping back to $56.11. Brent crude LCOc1 was up 46 cents at $60.57 a barrel. Analysts said expectations of firm U.S. economic data later in the day had pushed prices higher.
- NZ Total goods exports fell 9.5 percent to $4.0 billion in November 2014 compared with November 2013, Statistics New Zealand said today. Imported goods fell 1.3 percent to $4.2 billion.
- Watch today: French spending hopes, US durables, US GDP revision
Have a day!
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