Market Review - 27/11/2015 18:31GMT
The greenback turns higher in subdued trade on Friday
U.S. dollar turned higher against other major currencies in subdued trade on Friday as hopes for an upcoming U.S. rate hike in December continued to support.
Versus the Japanese yen, although the greenback came under renewed selling pressure after a brief rise to 122.73 shortly after Asian open and then fell to 122.31 in European morning as slide in Asian major stocks markets triggered buying of yen for risk aversion, renewed broad-based demand for the greenback lifted price from there and the pair later ratcheted higher to a fresh intra-day high of 122.88 in subdued New York session.
Reuters news reported, 'Chinese shares slumped on Friday, weighing on other Asian stock markets, as a fresh regulatory crackdown and falling industrial profits weighed on market sentiment.
China's securities regulator has urged domestic brokerages to cease financing clients' stocks purchases through swaps and other over-the-counter contracts, two sources with direct knowledge told Reuters, its latest move to reduce leveraged financing risk in its stock markets after a summer plunge.
Further weighing on sentiment was data on Friday showing that profits earned by Chinese industrial companies fell 4.6 percent in October, declining for the fifth consecutive month.
The Chinese yuan also came under pressure, weakening to its lowest level in almost three months as investors braced for a decision on Monday by the International Monetary Fund on whether to include the currency in its reserve basket.
Some market watchers fears Beijing's commitment to market reforms and liberalisation may cool if the yuan is added to the reserve basket.'
The single currency surrendered its gains against the greenback and fell from European morning high of 1.0638 to as low as 1.0569 in New York morning before buying interest above Tuesday's fresh 7-month trough at 1.0665 lifted price. Later, euro rebounded and then settle around 1.0600 lvl.
On Friday, European Commission said that euro zone consumer confidence improved to -5.9 this month, from -7.5 in October whose figure was revised up from -7.7. Meanwhile, research group Gfk said that its index of Germany's consumer climate for December fell to 9.3, from 9.4 in the preceding month.
Elsewhere, the British pound tracked euro's intra-day swing closely and turned lower after a brief rise to 1.5110 in European morning and then fell to a fresh 2-week trough at 1.5032 before moving sideways in quiet New York session.
On the data front, the U.K. Office for National Statistics showed with preliminary data on Fri that GDP rose to 0.5%, from 0.5% in the preceding quarter. Year-over-year, GDP rose to 2.3%, from 2.3% in the preceding quarter. Market had expected U.K.'s gross domestic product to rise 0.5% Q/Q n 2.3 Y/Y in the last quarter.
Data to be released:
Japan industrial production, retail sales, construction orders, housing start, New Zealand business outlook, Australia new home sales, business inventories, housing credit, Swiss KOF indicator, U.K. mortgage approvals, Italy CPI, producer price, consumer price, Germany CPI, HICP, Canada current account, U.S. Chicago PMI, pending homes index, pending sales change and Fed mfg bus index on Monday.
New Zealand terms of trade, Australia manufacturing index, building approvals, private house approvals, current account, net export, Japan business Capex, mfg PMI, China mfg PMI, non-mfg PMI, Swiss GDP, retail sales, mfg PMI, Italy mfg PMI, unemployment rate, GDP, France mfg PMI, Germany mfg PMI, unemployment rate, EU unemployment rate, mfg PMI, U.K. mfg PMI, Canada GDP, mfg PMI, U.S. Redbook, mfg PMI, construction spending, services revenues and service sector outlook on Tuesday.
Australia GDP, U.K. construction PMI, EU inflation, producer prices, U.S. purchase index, national employment, labour cost, productivity, New York Index and Canada rate decision on Wednesday.
Australia service index, exports, imports, trade balance, China service PMI, France unemployment rate and service PMI, Italy service PMI, Germany service PMI, EU service PMI, retail sales, refinancing rate, U.K. service PMI, U.S. initial jobless claims, mfg PMI, non-defense capital ex-air, durable goods and factory orders on Thursday.
Australia retail sales, Japan consumer confidence, Germany industrial orders, Swiss CPI, Canada labour productivity, participation rate, unemployment rate, employment change, trade balance, exports, imports, Ivey PMI, U.S. non-farm payrolls, average earning, international trade, and unemployment rate on Friday.
The greenback turns higher in subdued trade on Friday
U.S. dollar turned higher against other major currencies in subdued trade on Friday as hopes for an upcoming U.S. rate hike in December continued to support.
Versus the Japanese yen, although the greenback came under renewed selling pressure after a brief rise to 122.73 shortly after Asian open and then fell to 122.31 in European morning as slide in Asian major stocks markets triggered buying of yen for risk aversion, renewed broad-based demand for the greenback lifted price from there and the pair later ratcheted higher to a fresh intra-day high of 122.88 in subdued New York session.
Reuters news reported, 'Chinese shares slumped on Friday, weighing on other Asian stock markets, as a fresh regulatory crackdown and falling industrial profits weighed on market sentiment.
China's securities regulator has urged domestic brokerages to cease financing clients' stocks purchases through swaps and other over-the-counter contracts, two sources with direct knowledge told Reuters, its latest move to reduce leveraged financing risk in its stock markets after a summer plunge.
Further weighing on sentiment was data on Friday showing that profits earned by Chinese industrial companies fell 4.6 percent in October, declining for the fifth consecutive month.
The Chinese yuan also came under pressure, weakening to its lowest level in almost three months as investors braced for a decision on Monday by the International Monetary Fund on whether to include the currency in its reserve basket.
Some market watchers fears Beijing's commitment to market reforms and liberalisation may cool if the yuan is added to the reserve basket.'
The single currency surrendered its gains against the greenback and fell from European morning high of 1.0638 to as low as 1.0569 in New York morning before buying interest above Tuesday's fresh 7-month trough at 1.0665 lifted price. Later, euro rebounded and then settle around 1.0600 lvl.
On Friday, European Commission said that euro zone consumer confidence improved to -5.9 this month, from -7.5 in October whose figure was revised up from -7.7. Meanwhile, research group Gfk said that its index of Germany's consumer climate for December fell to 9.3, from 9.4 in the preceding month.
Elsewhere, the British pound tracked euro's intra-day swing closely and turned lower after a brief rise to 1.5110 in European morning and then fell to a fresh 2-week trough at 1.5032 before moving sideways in quiet New York session.
On the data front, the U.K. Office for National Statistics showed with preliminary data on Fri that GDP rose to 0.5%, from 0.5% in the preceding quarter. Year-over-year, GDP rose to 2.3%, from 2.3% in the preceding quarter. Market had expected U.K.'s gross domestic product to rise 0.5% Q/Q n 2.3 Y/Y in the last quarter.
Data to be released:
Japan industrial production, retail sales, construction orders, housing start, New Zealand business outlook, Australia new home sales, business inventories, housing credit, Swiss KOF indicator, U.K. mortgage approvals, Italy CPI, producer price, consumer price, Germany CPI, HICP, Canada current account, U.S. Chicago PMI, pending homes index, pending sales change and Fed mfg bus index on Monday.
New Zealand terms of trade, Australia manufacturing index, building approvals, private house approvals, current account, net export, Japan business Capex, mfg PMI, China mfg PMI, non-mfg PMI, Swiss GDP, retail sales, mfg PMI, Italy mfg PMI, unemployment rate, GDP, France mfg PMI, Germany mfg PMI, unemployment rate, EU unemployment rate, mfg PMI, U.K. mfg PMI, Canada GDP, mfg PMI, U.S. Redbook, mfg PMI, construction spending, services revenues and service sector outlook on Tuesday.
Australia GDP, U.K. construction PMI, EU inflation, producer prices, U.S. purchase index, national employment, labour cost, productivity, New York Index and Canada rate decision on Wednesday.
Australia service index, exports, imports, trade balance, China service PMI, France unemployment rate and service PMI, Italy service PMI, Germany service PMI, EU service PMI, retail sales, refinancing rate, U.K. service PMI, U.S. initial jobless claims, mfg PMI, non-defense capital ex-air, durable goods and factory orders on Thursday.
Australia retail sales, Japan consumer confidence, Germany industrial orders, Swiss CPI, Canada labour productivity, participation rate, unemployment rate, employment change, trade balance, exports, imports, Ivey PMI, U.S. non-farm payrolls, average earning, international trade, and unemployment rate on Friday.
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