Daily Market Update 23rd November 2016
ECONOMIC DATA OF THE DAY
| Time | CY | Indicator | Forecast | Actual | Previous |
|---|---|---|---|---|---|
| 13:00 | SI | CPI YoY | 0.00% | -- | -0.20% |
| 15:00 | MA | BNM Overnight Policy Rate | 3.00% | -- | 3.00% |
| 16:00 | FR | Markit France Manufacturing PMI | 51.5 | -- | 51.8 |
| 20:00 | US | MBA Mortgage Applications | -- | -- | -9.20% |
| 21:30 | US | Initial Jobless Claims | 250k | -- | 235k |
| 21:30 | US | Durable Goods Orders | 1.70% | -- | -0.30% |
| 23:00 | US | U. of Mich. Sentiment | 91.6 | -- | 91.6 |
| 23:00 | US | New Home Sales | 590k | -- | 593k |
SPEECHES
- 15:00 – MA - BNM Overnight Policy Rate
- 19:30 – UK - BOE Policy Maker Kristin Forbes Speaks in London
- 20:30 – PO - Bank of Portugal Governor Speaks in Lisbon
OVERNIGHT NEWS
US:
- Despite initial USD weakness in Europe sessions the USD found support in the US.
- Overnight US Existing home sales data saw an unexpected boost rising m/m by 2% versus an expected -0.6% decline
- Dow Jones traded at 19,000 for the first time as the positive momentum in stocks continued despite strength in the USD and the upward trajectory on US yields. The move driven largely by expectations of positive growth momentum in the US in the wake of Trump’s policies.
- Consumer confidence in Europe improved m/m and beat expectations however, remained in negative territory.
- UK Chancellor Hammonds budget speech to parliament will be closely watched today as he is set to but the budget to work helping ordinary families. His budget will pledge 1.4 Billion GBP to build new homes as well as raising the minimum wage.
FOREIGN EXCHANGE (INDICATIVE RATES)
| Currency | Last | % Change | Overnight Range |
|---|---|---|---|
| DXY | 101.05 | -0.01 | 100.65 - 101.32 |
| EURUSD | 1.0637 | -0.03 | 1.0584 - 1.0658 |
| USDJPY | 110.58 | 0.29 | 110.27 - 111.36 |
| AUDUSD | 0.7376 | 0.45 | 0.7364 - 0.7414 |
| GBPUSD | 1.2493 | -0.57 | 1.2385 - 1.2513 |
COMMODITIES (INDICATIVE RATES)
| Currency | Price USD | % Change | Overnight Range |
|---|---|---|---|
| Gold | 1212.32 | -0.16 | 1206.21 - 1221.16 |
| Silver | 16.65 | 0.34 | 16.54 - 16.90 |
| Oil (BRENT) | 49.12 | 0.45 | 48.14 - 49.96 |
| Oil (WTI) | 48.03 | 1.14 | 47.17 - 49.20 |
COMMODITIES
Precious Metals: Spot gold slid and continued to seek support around $1,200 level, while silver climbed together on demand for industrial metals. Gold holdings ETP declined for an eighth consecutive session, the longest run in almost a year as Dec rate hike is almost a certainty.
Oil: Oil price retreated from recent rally as OPEC talks in Vienna Tuesday didn’t resolve whether Iraq and Iran will join any production cuts, instead deferring the crucial matter to ministers who will meet Nov. 30. On charts, WTI struggled to break above the upward trendline resistance formed since Feb-Sep around $48.40.
FOREX NEWS
- U.S. stocks post a second day of all-time record highs in spite of softer crude prices, as strong housing data and retail earnings were posted. The Dow closed above 19000 and the S&P pushed beyond 2,200 for the first time, amid dollar consolidation and the bond market’s temporary reprieve. The S&P 500 edged up 4.76 points to 2,202.94, with telecoms post the best win with 2.1% increase in prices.
- DSW Inc. surged by 7.9% after the discount shoe retailer reported adjusted Q3 EPS of $0.51 better than Mkt est: $0.49, and the company also raised its forecast in FY adjusted EPS.
- European stocks edged higher on the back of a rally in metal prices boosting commodity producers. The Stoxx Europe 600 crept up by 0.2%, to 341.02. In London the FTSE 100 gained 0.6%, to 6,819.72.
- Swiss watch makers generally suffered from data confirmed the largest monthly drop for Swiss watch exports for seven years. Swatch Group slid 3.6% and Cie Financiere Richemont dropped by 3%.
U.S. Stocks Rise, Dow Tops 19,000 as Post-Election Rally Extends
- Industrial average tops round number for first time, at record
- Small caps climb 13th day for longest rally since 1996
U.S. stocks extended all-time highs, with the Dow Jones Industrial Average topping 19,000 for the first time and small caps clocking the longest rally in 20 years, as investors poured into riskier assets on speculation growth will accelerate.
The Dow rose 0.4 percent to 19,023.6 at 4 p.m. in New York, adding to an all-time high. The S&P 500 Index climbed 0.2 percent to 2,202.91, a fresh record. The Russell 2000 Index pushed its 13-day rally to 15 percent and the Nasdaq Composite extended its highest level ever.
The rally in equities that took four stock benchmarks to simultaneous records Monday continued as Donald Trump’s presidential win has fueled optimism that his pledge to cut taxes and increase fiscal spending will benefit industries more geared to the economic cycle. The fresh equity records also came as American companies ended a five-quarter profit slump.
Read the full article at bloomberg.com
