Article / 27 November 2017 at 8:00 GMT

Morning Markets: Bitcoin on a run to 10k?

Head of Editorial Content / Saxo Bank
Denmark

Morning Markets


Watchlist

  • US: New residential sales (1500 GMT)
  • US: FOMC's Neel Kashkari speaks (2230 GMT)

Friday’s record highs in the US equity market did not translate into Asian outperformance today, with stocks slumping in Hong Kong, mainland China, and South Korea.

The Japanese Nikkei 225 was 0.24% lower on the day, closing at 22,495.99.

The dollar index remains flat near two-month lows with EURUSD trading north of the 1.19 Big Figure into Monday’s European bell while crude oil prices are in the spotlight ahead of Thursday's Opec meeting. The cartel is expected to extend its price-supportive production cut deal, and WTI is trading around $58.50/barrel ahead of the European open (Brent sits at $63.63/b, with both variants just off their overnight highs).

Finally, Bitcoin prices are now nearly 900% higher than they were at the start of this year with the cryptocurrency surging to new highs above $9,600.

Today sees the US out with new residential sales at 1500 GMT and the Fed's Kashkari speaking at 2230 GMT.

Market signals

Asian session

  • Asian markets headed broadly lower on Monday
  • Korean stocks fell 1.4% on declines in technology stocks
  • The S&P/ASX200 bucked the trend; it closed up six points at 5,988
  • Strong Black Friday sales boosted retail stocks on Wall Street, including Macy's
  • The Dow Jones, S&P500 and Nasdaq all rose on Friday, but volumes were very thin
  • WTI has soared to a two-year high
  • Opec meets in Vienna on Thursday; Russia is likely to join a new production curbs deal
  • The Social Democrats are open to talks on forming a government with Angela Merkel
  • Pakistan has called in paramilitary forces to quell deadly protests in Islamabad
  • Bitcoin prices surged to a new record above $9,600 
  • Dublin says it won't accept a hard border with Northern Ireland; it may veto Brexit talks

Forex ahead

  • ZAR edged higher against USD, clawing back some of its 2% tumble on Friday
  • The Australian dollar reached $0.7603 in late trading
  • The euro hit a two-month high versus the dollar and held firm against major currencies 

From the Floor

Taxing times. The prospects for US tax reform don’t look good,” says Hardy

Great expectations. An extension to the Opec/Russia output cuts is fully priced in,” says Hansen

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion

Iron ore hopes
Iron ore has risen slightly, as traders continue to bet on a rebound in demand after the end of winter production curbs on steel mills around Beijing, says Saxo Capital Markets Australia.

Key inflation update
The release of Personal Consumption Expenditure numbers in the US on Thursday could have important implications for markets, predicts Max McKegg.

Data watch
Chinese manufacturing PMIs are the big data package this week, but also the second print of US Q3 GDP, says Saxo APAC Sales Trading.

Good calls
Despite a quiet week due to Thanksgiving, there's room to short fed funds futures, and good ideas around calls and call spreads for gold, silver and the VIX, says Kay Van-Petersen.


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Black Friday shoppers gave a boost to listed retailers such as Amazon, JCPenney and Macy's (pictured above) during Friday's shortened Wall Street session. Photo: Shutterstock.
 

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