Market Brief
The Usd was range bound in the Asian session, as tentative optimism has swept over the markets. The US equity markets have recorded its 4th straight increase, the Fed pledges to purchase agency debt and MBS, the EU has moved in with eur200bn stimulus package and the PBoC cut rates by 108bp yesterday, all help steady investors' confidence.. China's aggressive rate cuts clearly has helped sentiment, but markets are cautiously monitoring the terrorist situation in India .While it's to early to say the downside risk to the global economy has been neutralized, we are cautiously optimistic. The EurUsd traded between 1.2938 to 1.2870, while UsdJpy slipped from 95.96 to 95.01. Asian regional indexes are currently higher and European futures are pointing to a higher open. US markets are closed for the Thanksgiving Holiday. Commodities are moderately higher, with crude wti trading at $52.90bll, while spot gold is trading at $513.26oz. Volatility continued to decline with the VIX down to 54.92.
In New Zealand, November's National Bank Business Outlook survey highlighted the dreadful growth expectations from -11..4 to -14.1. The inability of the survey to rebound from a collapse in October, when financial markets were in a phase of significant distress, suggest the domestic economy is indeed in a grim space. In addition, the trade deficit of $942m continues to deteriorate and the outlook is bleak, considering the downside risk to imports due to domestic weakness and exports due to the global recession. Australia's data didn't fair much better. While private sector Capex increased 0.6% as expected, the underlying quality of growth was very weak. Capex on machinery and equipment printed its largest drop since 2006, and it is this portion of the report that typically points most directly to GDP changes (next week).
With a light calender in Europe and markets closed in the US, we expect trading to be subdued.
| Global indexes | Current level | % Change |
| Nikkei 225 Index | 8,373.39 | 1.95 |
| Hang Seng Index | 13,552.06 | 1.36 |
| Shanghai Index | 1,917.86 | 1.05 |
| FTSE 100 Index | 4,184.63 | 0.76 |
| CAC 40 Index | 3,223.44 | 1.69 |
| SMI Futures | 5,553.33 | 0.99 |
| DJIA futures | 8,667.00 | -0.35 |
| World markets | Current level | % Change |
| Gold | 814.79 | 0.23 |
| Silver | 10.24 | -0.73 |
| Crude wti | 53.19 | -2.43 |
| VIX | 54.92 | -9.81 |
| USD Index | 85.52 | -0.16 |
| Todays calender | Estimates | Previous | Country / GMT |
| M3 Money Supply (Oct) | 8.10% | 8.60% | EZ / 8.00 |
| EC Economic Sentiment (Nov) | 78 | 80.4 | EZ / 9.00 |
Currency Tech
AUDUSD
R 3: 0.6758
R 2: 0.6696
R 1: 0.6618
CURRENT: 0.6518
S 1: 0.6333
S 2: 0.6232
S 3: 0.6076
EURJPY
R 3: 131.04
R 2: 128.43
R 1: 126.21
CURRENT: 122.86
S 1: 122.07
S 2: 119.54
S 3: 116.44
USDSGD
R 3: 1.5436
R 2: 1.5345
R 1: 1.5191
CURRENT: 1.5116
S 1: 1.5055
S 2: 1.4965
S 3: 1.4875
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
