The global stock rally continued in Asia overnight

26 January, 2017

FX News

European Outlook: The global stock rally continued in Asia overnight and the Nikkei closed with a 1.81% gain. The fact that the DOW managed to finally pass the 20000 mark has boosted investor confidence and banks, insurers and brokers led the Toix higher. Rising long term yields are creating a better climate also in Europe where the DAX managed to close above the 11800 mark Wednesday. U.K. and U.S. stock futures are still moving higher and further gains on bourses will likely keep upward pressure on yields and support a further steepening of the yield curve. The FTSE 100 is likely to continue to underperform as Sterling moves higher. OIl prices are also picking up and the front end WTI future is trading above USD 53 per barrel.

BOE Carney Risk in Fintech Boom: Reuters reported, the fast-growing financial technology (Fintech) sector could hold big “systemic risks” for the banking sector and the broader economy which need to be addressed by bank regulators around the world, Bank of England Governor Mark Carney said on Wednesday. “The challenge for policymakers is to ensure that Fintech develops in a way that maximises the opportunities and minimizes the risks for society,” Carney said in his speech. ” After all, the history of financial innovation is littered with examples that led to early booms, growing unintended consequences, and eventual busts.”

New Zealand:  The dollar rose to a 2 ½ high after inflation climbed back into the Reserve Bank’s target band, effectively scrapping the prospect of further rate cuts. Government figures yesterday showed that CPI rose 0.4 per cent in the December quarter for an annual increase of 1.3 per cent as the recovery in global oil prices pushed up local petrol costs and as the rampant housing market continues to drive rapid house price gains. The local currency climbed as high as 73.12 US cents, the highest since November 9, and recently traded at 73.07 cents from 72.70 cents immediately before the release, while two-year swaps rose 4 basis points to 2.42 per cent.

German IFO: Unexpectedly drops in January. The headline reading fell to just 109.8 from 111.0 in the previous month, the lowest number since September. The decline was driven largely by a huge drop in expectations reading, which fell back to 103.2, the lowest since August and down from 105.5 in December. The current conditions indicator improved slightly to 116.9 from 116.7 in December. The breakdown showed that contrary to the improvement in the manufacturing PMI yesterday, the manufacturing reading in the Ifo declined, although this was in a broader down move across all sectors. The overall reading remains at high levels, consistent with ongoing growth, but at least the Ifo suggests that growth dynamics have slowed down somewhat at the start of the year.

Main Macro Events Today                     

UK GDP – Quarterly GDP figures expected to fall to 0.5% from 0.6% last time.

USD Home Sales – December new home sales data expected to show a 2.0% headline decrease to a 580k pace from 592k in November and 563k in October. Other housing measures have been mixed. The NAHB jumped to 69 from 63 in November and starts improved on the month but existing home sales slowed to 5.490 mln from 5.650 mln in November.


Source link  
Gold falls at Friday close to 1275

The key commodity was pivoting around $1285 with support at $1282 and resistance around 1286. The London close, put pay to that as a raft of futures...

Stock market recovery continued

Still, U.K. and U.S. futures are also moving higher, indicating that abating fears over North Korea are keeping markets underpinned, while earnings optimism...

NZDJPY beneficiary of Asian session

With a the NZD is overvalued on one side and Sabre rattling between North Korea and the US continuing overnight there was really only...


Euro above 1.18 against the dollar

Asian stock markets moved higher, with a rally in banks underpinned by earnings reports and helping to offset pressure on exporters and automakers...

Gold support at 1258 but rolled over 15m

Gold remains bullish having posted at high over 1265 yesterday. My bias remains long and I entered again at 1258 last night. However, the intraday...

FOMC held rates steady

The Fed’s reluctance to commit to a time for QT beyond “relatively soon” and the fact that the Fed appeared to be moderately more concerned...


FOMC decision to outline its balance

U.S. markets will have a lot on their plates this week as they continue to assess the June jobs data, global developments in the aftermath of the G20 meeting...

Dollar majors have been challenged

EURUSD has settled around 1.1350, modestly above the five-session low posted yesterday at 1.1336. USDJPY has been trading on either side of 113.00...

Yen crosses keep ascending

The yen is coming under pressure across-the-board, with the 0% yielding yen converting back to the funding currency of choice in the forex market...

  


Share: