Market News & Blog
The major Asian equity indices are mostly lower this morning, led by Australia’s ASX, which fell 0.60 % on the day. Precious metals have come under renewed pressure amid broad USD strength. Gold broke below the $1052 support level and reached a low of $1046 so far. Keep an eye on $1044, as it is a significant support level (2010 low). Silver also made new lows and there is little support now until 12.66, which is the July 2009 low.
Big news this afternoon with reports that the Saudi's are going to propose production cuts of up to 1 million barrels a day at tomorrow's OPEC meeting. Of course, the hard part is gaining agreement but prices are starting to rise in Asia.
Sterling has been under pressure over the past two days falling to a low around 1.4880 as a combination of weak data and a relatively strong US dollar has weighed on sentiment.
That move took GBPUSD to the lowest level since April this year. But what does the future hold?
Wednesday had something for everyone. The US$ finished the session mixed against the majors, after comments from Janet Yellen sent the Euro and Cable to new multi month lows ahead of a late recovery. Gold headed to another 6 year low while WTI headed back under $40pb as stories emerged that OPEC will resist production cuts at tomorrow’s meeting
Stocks came under heavy selling pressure as traders reappraised what the Fed might do in the wake of a speech by Fed chair Janet Yellen last night. That helped the US dollar initially, but the Euro clawed back its losses. The Aussie dollar managed to hold onto 73 cents even though iron ore and copper fell and oil was absolutely hammered down 4%.
Asian equity markets are mixed this morning, with the Nikkei & Australia’s ASX down on the day and the Hang Seng & CSI 300 higher. In the commodities market, Oil has come under renewed pressure following yesterday’s API data, which showed an unexpected rise in US stockpiles.
It was a mixed session in Asia with a mildly stronger US dollar, a mixed stock performance and commodity prices drifting a little lower.
Australian GDP beat upwardly revised expectations today with a print of 0.9% for the third quarter. That took year on year growth to 2.5%. But it seems that Australian dollar traders and stock traders on the ASX were hoping for a little more oomph in the data.
The ASX SPI had a good session in heading higher on Tuesday and briefly breaking through the topside of the 7 month descending trend resistance (5270) by trading up to 5289 before coming back to settle just below it. The technicals look positive though, wit the hourly charts appearing to be building a bull flag formation, and a good GDP figure today could see the SPI take out the resistance levels and head towards a flag objective, roughly at 5380.
Rich Barry the floor governor of the NYSE reckons the Santa Claus rally is here. That's dragged the S&P 500 up and through the 2100 region overnight and set up the preconditions for a rally in the ASX today.
But the market is still down slightly even though the ABS released solid Q3 GDP today. The data showed Australia had economic growth of 0.9% during the quarter.
The US dollar is generally a little lower today after the soft US ISM manufacturing data caused traders to question how the Fed may react as we head towards the December FOMC Meeting.