FX News Today
- The Aussie Dollar strengthened on expectations of progress in trade talks between China and the US. President Trump said that he had a “long and very good call” with his Chinese counterpart Xi Jinping and a possible trade deal between the United States and China was progressing well.
- Still, market sentiment remains fragile over looming concerns of slowing global growth and a partial US government shutdown.
- Bourses remained closed in Japan and mainland China, while markets in Australia closed early.
- The Hang Seng rallied 1.34%, compared to a -0.14% loss in the ASX and US futures are moving higher as traders put their hope in US-Sino trade talks.
- The broad MSCI ex-Japan index managed a 0.6% gain, and US futures are also moving higher, suggesting a somewhat more mellow mood in markets on the last trading day of the year.
- The broad MSCI ex-Japan till lost 16% this year, while the Nikkei shed 12% in 2018 and the CSI 300 lost around a quarter of its value, highlighting that investors are taking a very gloomy view on the outlook for the world economy.
- Oil prices are moving higher and the front end WTI future is trading at USD 45.90 per barrel.
Charts of the Day
Main Macro Events Today
- A holiday across the majority of markets (including Japan, Germany, Italy, China, and Brazil), while the UK, New Zealand, Australia, France and Hong Kong markets will close early.
- Dallas Fed Manufacturing – This monthly survey aims to obtain a timely assessment of the state of Texas factory activity. The indicator is expected to stand at 17.6, the same as last month, still indicating growth given that it is higher than 0.
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Dr Nektarios Michail
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