Axi | Nov 28, 2017 09:18
Originally published by AxiTrader
Welcome to my daily Markets Musings.
This is essentially my little black book, the diary of market moves I’ve been writing for myself since April 1988.
It’s not supposed to catch everything – just the things that help me build the fundamental narrative I need around what’s happening in the markets I watch, and which then readies me to take the technical signals when they come.
Feedback always welcome
Greg
h2 Market Summary/h2As we kick off our Tuesday here in AustralAsia it’s been a mixed night for global markets.
The weakness we saw in Chinese and Asian stocks yesterday hurt sentiment in Europe with the FTSE 100, DAX, CAC, and FTSE MIB (Milan) all lower at the close. US stocks haven’t exactly shaken that off completely and have been trading either side of flat since I got to my desk. Falls in the basic materials and energy sectors are outweighing other gains. So at 6.50am AEDT the S&P 500 has a fall of just 0.01% at 2602, The Dow Jones Industrial Average is up 0.13% to 23, 585 and the Nasdaq is down 0.07% at 6405.
On bond markets the US curve is still at or near 10-year lows with the 2-10 at 57.90 points with the 2's at 1.75% and the 10's just under 2.33%. Chinese 10's, the ones everyone is watching, are at 3.98% - just below the crucial 4% level the PBoC appears to be set on defending.
In many ways though its forex and oil markets where the most interest lies this morning.
After surging last week oil drifted back as press, and it seems traders, worry that the Saudi/Russia compact which is the strength behind the production cut agreement is faltering with prices where they are. That and an inkling more US tight oil will be coming down the pipe has left WTI down 1.29% at $58.19 and Brent at $63.77 only marginally lower given it missed the big part of the surge last week.
On forex markets the yen is strongest sitting back at 111.00 this morning for a gain of 0.4%. The euro dipped about a quarter of a percent to 1.1900 and sterling is at 1.3320. US housing starts at 10-year highs and comments from Fed officials over the tightness in the labour market haven’t hurt. In the commodity bloc it’s been a mixed day. The Aussie is down a fraction at 0.7608 – it still can’t best resistance. The Canadian dollar came under pressure and is back at 1.2762 while the kiwi is the winner of the three having gained 0.35% to 0.6904.
In other markets Bitcoin is still fascinating everyone as it nears USD10,000 a coin. Gold is up $6 at $1294 as its mildly volatile range continues. Copper dipped back to $3.13 in what was a mixed to down night for metals. Iron ore looks like its lower on the Dalian but a little higher in New York.
It’s another relatively quiet day of data in our timezone although Korean business confidence might be interesting after the KOSPI's big fall yesterday. We also have speeches from Bill Dudley and Neel Kashkari from the Fed this morning our time.
Tonight it’s German import prices and Gfk consumer confidence, UK house prices, Canadian PPI, and then US goods trade balance, wholesale inventories, and Case Shiller house prices.
h2 Here's What I Picked Up (with a little more detail and a few charts) Pretty quiet really/h2 h2 International/h2h2 Forex/h2
h2 Commodities/h2
Have a great day's trading.
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