FX News Today
- 10-year Treasury yields are up 0.7 bp at 2.773%, 10-year JGB rates down -2.0 bp at -0.012%.
- Japanese stock markets underperformed with Topix and Nikkei losing 0.50% and 0.31% respectively, while most other equity markets managed to move higher after Wall Street closed with further gains. Hang Seng and CSI 300 are up 0.14% and 0.53% respectively, with the ASX managing to rise 1.02%.
- Weak data, which included a drop in headline inflation, weaker than expected retail sales and an unexpected slump in November production numbers underpinned JGBs and put pressure on local stock markets.
- USD declined on worse than expected Consumer Confidence and mixed Jobless Claims data, as well as due to rumours regarding an executive order banning US companies from using Huawei products.
- The Yen and the Swissy gained thanks to their safe haven status.
- US markets managed to recoup losses and close broadly higher.
- Oil prices are up from yesterday’s close and the front end WTI future is trading at USD 45.77 per barrel.
Charts of the Day
Main Macro Events Today
- KOF Leading Indicator – The Composite Index of the Swiss economy is expected to show some signs of improvement and should stand at 99.5 in December, compared to 99.1 in November, still below the 100 mark indicating growth.
- Chicago PMI – While still remaining above 50, the December Chicago PMI is expected to come out worse than the November one, at 62, compared to 66.4 a month ago.
- Pending Home Sales – In conjunction with the mixed picture presented by the US economy, Pending Home Sales growth in November is expected to come out at -0.7%, compared to -2.6% in October.
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Dr Nektarios Michail
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