Euro Drops as Draghi Said Growth Momentum Has Weakened. The euro falls againts dollar after posted
first weekly gains in four weeks as European Central Bank (ECB) President Mario
Draghi told European lawmakers Monday that euro zone's economic growth has
weakened over the summer months, but
stressed that he was willing to do more to stimulate the economy if required.
The bank's governing council remained "unanimous in its commitment to
using additional unconventional instruments if needed", Draghi added.
Pound Falls as Carney Signals Disinflation Risks. The pound fell for a fourth day against the
dollar, approaching a 14-month low, as Bank of England Governor Mark Carney and
Chief Economist Andy Haldane signaled they’re concerned that inflation is
slowing. Carney said that the U.K. has “huge disinflationary forces coming”
from its trade partners. Haldane said in a speech published yesterday he’s
watching economic developments “like a dove.” Carney and Haldane’s comments
came days after the BOE lowered its U.K. growth and inflation forecast because
of “moribund” global expansion and stagnation in Europe.
Yen Steadies Near Seven-Years-Low after GDP Shock. The Japanese yen steadied near seven-years-low
against the U.S. dollar on Monday, after Japan's economy unexpectedly slipped
into recession in the third quarter. Japan's economic shock sets the stage for
Prime Minister Shinzo Abe to delay sales tax hike and call a snap election two
years before he has to go to the polls. Uncertainty around these events is
likely to keep the Japanese currency volatile, though the yen may gain if
stocks decline. The yen normally tends to rise as Tokyo's stock market falls.
Indonesia
Raises Fuel Price to Free Funds for Economy Revamp. Indonesian President Joko Widodo raised fuel
prices to free up funds for ports and programs for the poor, fulfilling an
election pledge to curtail a decades-old subsidy that has weighed on government
finances. The price of subsidized gasoline will increase to 8,500 rupiah a
liter from 6,500 rupiah effective tomorrow, Widodo told reporters in Jakarta
today. Diesel will rise to 7,500 rupiah a liter from 5,500 rupiah, he said. “The country needs a budget to build
infrastructure and for education and health,” Jokowi said at a press conference
today at which the increases were announced. “Hopefully, the decision to shift
the subsidy to the productive sector will open the door for a budget that will
be more beneficial for the Indonesian people.”
Asia Markets Finished in
Red; Japan Recession Hits Nikkei. Most Asian markets ends lower on the
first trading day of the week, hit by unexpected news that Japan had slipped
into recession zone, within amid as mainland markets reacted to the launch of
the Shanghai-Hong Kong stock connect. Data on Monday showed Japan's gross
domestic product (GDP) contracted an annualized 1.6 percent, compared with a
Reuters forecast for a 2.1 percent gain. Related to the data front, investors
booked profits from the out-sized gains of the last two weeks. The Nikkei
benchmark closed down 2.96 percent, its lowest since Nov 10. South Korea's
benchmark KOSPI index closed slightly lower 0.08 percent and finished near a
session low of 1,935 on Monday.
Meanwhile Hong Kong shares swinging between gains and losses, but
finally finished down on Monday, the first day of trading for the landmark
Shanghai-Hong Kong stock connect scheme. Profit-taking tone pulled down the
Hang Seng, which bring the Hang Seng index closed down 1.21 percent.
European Stocks Rise Most in
a Week After Draghi Comments. European stocks rose the most in a week,
reversing earlier losses, after Mario Draghi said the European Central Bank’s
expanded purchase program could include government bonds. The Stoxx Europe 600
Index added 0.5 percent to 337.25 at the close of trading in London, after
earlier falling as much as 0.8 percent as Japan unexpectedly slipped into a
recession. The Stoxx 600 has rebounded 8.8 percent from this year’s low on Oct.
16 as the Bank of Japan unexpectedly boosted its stimulus and most lenders in
Europe passed capital-strength tests.
S&P 500 Scores Record
High on M&A Activity. U.S. stocks were little
changed, with the Standard & Poor’s Index 500 Index at an all-time high, as
a slump in small-cap shares and concern over Japan’s recession offset corporate
deals. The S&P 500 ended 1.5 points higher at 2,041.32. The Dow Jones
Industrial Average added 13 points, or 0.1%, to 17,647.75. The Nasdaq Composite
closed 17.5 points, or 0.4%, lower at 4,671. “I think the central theme for the
day is overriding concern that global growth is continuing to decelerate,” Chad
Morganlander, a money manager at St. Louis-based Stifel Nicolaus & Co.,
which oversees about $160 billion, said by phone. “There’s a hope that monetary
policy will stay accommodative across the board, which has emboldened
risk-taking.”
Gold Falls From Two-Week High
as Dollar Rallies. Gold futures fell from
this month’s high as the dollar’s rebound crimped demand for precious metals as
alternative investments. Silver dropped the most in a week.
Gold is heading for the second
straight annual loss. Today, the dollar approached a five-year high against a
basket of 10 major currencies. The Federal Reserve moved closer to its first
U.S. interest-rate increase in eight years, while other economies announced
more stimulus. European Central Bank Mario Draghi cited an “urgent need to
agree on concrete short-term commitments for the euro area.” Gold futures for
December delivery fell 0.2 percent to settle at $1,183.50 an ounce on the Comex
in New York.
Oil Falls as Japan Recession
Reduces Fuel Demand Outlook. West Texas Intermediate
and Brent crudes dropped after Japan, the world’s third-largest oil consuming
country, unexpectedly slipped into a recession. “The new Japanese data
certainly doesn’t help the demand perception,” Bob Yawger, director of the
futures division at Mizuho Securities USA Inc. in New York, said by phone.
“OPEC will remain in the foreground, putting downward pressure on the market
for the foreseeable future, until we get definitive word that they are going to
cut output.” WTI for December delivery fell 18 cents to settle at $75.64 a
barrel on the New York Mercantile Exchange.
Apple
Adds China’s Most Popular Card as App Store Option. Apple Inc. (AAPL) said
customers in China can now use the country’s most popular payment card for
transactions on the App Store, as the iPhone maker seeks to woo users in the
world’s largest smartphone market. App Store users in China can link their
China UnionPay Co. debit or credit cards to their Apple ID accounts to make
one-tap purchases, the company said in a statement. The App Store lets
customers download programs to run on Apple devices such as iPhones and iPads. UnionPay has a monopoly on bank-card clearing in
China, and has issued more than 4.5 billion payment cards in China and abroad,
according to the statement. Apple said the new payment option has been sought
by customers in China, where the new iPhone 6 and 6 Plus debuted last month to
heavy demand. Cupertino, California-based Apple sold more than 10 million
iPhones in their first weekend when they were rolled out in other countries in
September.
Ford
Expands Ranger Pickup Recall for Takata Air Bags. A recall of Ford Motor Co. Ranger pickup trucks
in the U.S. was expanded to include more vehicles and more flawed Takata Corp.
air bags after a fatal accident in Malaysia exposed a defect in the safety
device that wasn’t previously known. Ford will replace driver’s-side and
passenger air bags in certain 2004 and 2005 model year Rangers, according to a
National Highway Traffic Safety Administration statement yesterday. Ford added
an unspecified additional number of the trucks to a recall it announced in June,
which included only passenger air bags. The action followed a NHTSA review to identify which
U.S. cars have air bags similar to one in a Honda Motor Co. vehicle that
crashed in Malaysia four months ago -- the first fatality from a ruptured
Takata product outside the U.S
Technical Outlook
EUR/USD. The bias is bearish in nearest term especially if price able
to make a clear break back below 1.2400 area to trigger further bearish
momentum aiming 1.2340 region. On the upside, only a clear break back above 1.2490
area would trigger further bullish correction scenario retesting 1.2530 region.
GBP/USD. The bias is bearish in nearest term but we need a clear break
back below 1.5580 area to trigger further bearish pressure targeting 1.5540
support area. On the upside, only a consistent break above 1.5675 area would
trigger further bullish correction scenario perhaps retesting 1.5770 area as
price getting oversold.
USD/JPY. The bias is bullish in nearest term especially if price able
to make a clear break above 116.90 area to trigger further bullish pressure
aiming 117.80 region. On the downside, only a consistent breakdown below 115.70
area would trigger further bearish correction scenario retesting 115.20 support
area.
USD/CHF. The bias is bullish in nearest term especially if price able to make a
clear break above 0.9680 area to trigger further bullish momentum aiming 0.9730
area. Immediate support is seen around 0.9620 area, another consistent break
below that area would bring the price to neutral zone as direction would become
unclear in nearest term perhaps retesting 0.9570 region.
AUD/USD. The bias is bearish in nearest term but we need a clear break
below 0.8670 area to trigger further bearish momentum aiming 0.8640 area.
Immediate resistance is seen around 0.8730 area, another consistent break above
that area would bring the price to neutral zone as direction would become
unclear in nearest term perhaps retesting 0.8780 region.
XAU/USD. Bias is sideways in
nearest term with potential trading is seen between 1180 - 1200 area, needed to
break out one of that area to get further direction. For upside immediate
resistance is found at 1200 area, a clear break above that area should strength
bullish trend aiming 1210 region. For downside, a clear break below 1180 could
change bias become bearish targeting 1160 for next support level.
Hang Seng
Futures. The bias is neutral in the nearest term, immediate
support is seen around 23720, and resistance 23960 area. A clear break below
23720 should trigger bearish pressure to test 23550 area. On the other side, a
consistent break above 23960 area would bring the price up to test 24180 area.
Nikkei Futures. The bias is neutral in the nearest term potentially move
lower testing 16980 area. A clear break below that area should trigger bearish
pressure to test 16830 area. On the up side, immediate resistance is seen
around 17310, a consistent break and movement above that area would bring the
price up aiming 17480 area.
No comments:
Post a Comment