Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 08 January 2018 at 8:00 GMT

Morning Markets: Equities rally falters in Hong Kong

Head of Editorial Content / Saxo Bank

Morning Markets


  • Switzerland: CPI (08:15 GMT)
  • EU: Business and Consumer Surveys (10:00 GMT)
  • EU: Retail Trade (10:00 GMT)
  • US: Consumer Credit (20:00 GMT)

Australian and mainland Chinese shares maintained last week's bid tone overnight but the Hang Seng index largely failed to follow suit, eking out a 0.17% gain on the back of property shares while financials faltered; Chinese H-shares listed in Hong Kong fell 0.14% to 12,194.77. 

FX and fixed income market activity was muted overnight with the largest major-currency move occurring in AUD, which dropped by 0.3% versus the greenback. 

In in the commodities sector, crude oil prices rose overnight following a slump from last Thursday's highs with Brent crude rising to $67.83/barrel before retracing very slightly into the European open. 

Today's data calendar sees Swiss CPI figures out at 08:15 GMT with EU business climate indicator, economic sentiment, and retail sales readings out at 10:00 GMT.

Market signals

Asian session

  • Sentiment was upbeat in most Asian markets following solid gains on Wall Street Friday
  • The Dow Jones and the Nasdaq had their best start to a year since 2006
  • The lower US rig count buoyed oil prices; WTI was priced at $61.57/b at 0624 GMT
  • The Tokyo Stock Exchange was closed for a public holiday today
  • The Nikkei Asia Sector PMI saw  growth in 15 of its total 19 sectors in December
  • The Asia-wide PMI draws on surveys of 6,700 companies in 10 economies
  • Australia's benchmark S&P/ASX200 closed higher for the fourth trading day in a row
  • Australia's AiG Construction Index fell to 52.8 in December from 57.5 in November
  • The UK Prime Minister is expected to sack or move about a quarter of her cabinet today
  • President Donald Trump said he is willing to speak with the North Korean leader

Forex ahead

  • The US dollar edged higher against the yen; it was worth ¥113.32 at 07:50 GMT
  • The Australian dollar lost ground against USD; it was worth 0.7832 at 07:50 GMT

From the Floor

Dark horse dollar. "This week's pain trade is a resilient USD," says Hardy.

Steady as she goes. "Gold looks healthy above $1,300/oz but don't chase it," says Hansen.

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

In opinion

Quick acceleration
The automotive sector is hot, and Ferrari shares are up over 10% since January 2. Peter Garnry discusses the impressive fundamentals at the iconic carmaker.

Brexit snapshot
Brexit is proving a political nightmare for Theresa May's Conservatives. Here the SaxoStrats team looks at the status of talks, the key factors, and London's options as Brexit unfolds.


Top team relaunch... Prime Minister Theresa May hopes to reinvigorate her management of the challenges facing the UK with a cabinet reshuffle today. Photo: Shutterstock

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