Here are the latest developments in global markets:
FOREX: A strong rally in metal and oil prices on Tuesday continued to support the loonie, the aussie and the kiwi against the dollar during early European trading hours on Wednesday. The aussie and the kiwi hit fresh two-month highs at $0.7768 (+0.53%) and $0.7073 (0.50%) respectively, while dollar/loonie extended its downleg towards a three-week low at 1.2650 (-0.30%). The euro rose to an intra-day high of $1.1890 (0.25%) and the pound reached a one-week high of $1.3413 (+0.25%). The dollar was flat versus the yen at 113.27, while the dollar index was weaker overall, trading at 93.11 (-0.16%).
STOCKS: Losses in tech shares drove European stocks lower on Wednesday, following comments stating that iPhone X demand in the first quarter could come below expectations. The pan-European STOXX 600 and the blue-chip Euro STOXX 50 were down by 0.05% at 1000 GMT. The Spanish IBEX 35 declined by 0.20%, falling for the second consecutive session. The German DAX 30 and the French CAC 40 were steady, whereas the British FTSE 100 was up by 0.12%.
COMMODITIES: Oil prices retreated from more than two-year peaks reached on news of a pipeline blast in Libya. Moreover, the UK’s most important Forties pipeline returned to operation but will fully resume its activities in early January. WTI crude lost 0.70% on the day, falling to $59.55 per barrel and Brent slipped by 1.13% to $66.26. Gold increased by 0.20% to $1,285.60 per ounce.
Day ahead: US consumer confidence & housing data due; Japan reports on retails sales and IP later in the session
Wednesday is anticipated to be a relatively quiet day for trading in a holiday-shortened week.
Looking at the calendar, US data on consumer confidence and pending home sales are expected to come out at 1500 GMT, while the American Petroleum Institute will report on the US crude oil inventories for the week ending Friday 22 at 2145 GMT.
According to forecasts, consumer confidence is projected to drop to 128.1 in December after reaching a 17-year high in the previous month, while pending home sales are anticipated to slow down by 0.5% m/m in November, following October’s growth by 3.5%. The dollar, which is on track to finish the year in the red as it has already lost 9.0% versus its major counterparts in the year to date period, could weaken in the wake of worse-than-expected stats.
At 2350 GMT, Japan will publish figures on retail sales and flash estimates on industrial production. Growth in industrial output is projected to stand flat at 0.5% m/m in November but retail sales are said to surge by 1.1% y/y in November. However, the safe-haven yen is likely to show a moderate reaction to the data as increasingly as of late the currency has been more sensitive to monetary policy announcements rather than to economic releases.
