Article / 04 January 2018 at 8:00 GMT

Morning Markets: Equity bull run roars onwards

Senior Editor / Saxo Bank
Denmark

chart

 

Watchlist

  • Japan: Manufacturing PMI (already published)
  • France: Services PMI (0850 GMT)
  • Germany: Services PMI (0855 GMT)
  • EU: Eurozone Services PMI (0900 GMT)
  • UK: CIPS/Markit Services PMI (0930 GMT)

The equity bull run continues to roar across markets, helped by upbeat US and Japanese data that triggered a solid Wednesday performance on Wall St and record-breaking advances in Asia.

The Nikkei 225 was a standout performer, helped by Japan's upbeat manufacturing PMI data for December, it closed an astonishing 3.25% ahead, its highest level since 1992. 


The rally has extended into crude oil too with market worries about a large drawdown in US inventories as well as fears that the ongoing Iranian protests might disrupt supply, sending WTI, the US benchmark, above $62 a barrel and Brent beyond $68.


A rather full economic calendar today may cause further strong moves across markets with the key data points from Europe being a raft of services PMIs, with a particularly strong gain forecast for Germany. Later, from the US, we'll have ADP unemployment weekly claims, followed by EIA natural gas and petroleum storage statistics.

Market signals

Asian session

  • The Dow Jones and the Nasdaq surged to record highs on Wednesday
  • The hefty gains on Wall St gave sentiment a lift in Asian markets
  • Japan's Manufacturing PMI was a robust 54.0 in December, a three-year high
  • An editorial in China's People's Daily calls the rise of Bitcoin as a bubble
  • JPMorgan Chase lifted  China's 2018 growth forecast from 6.5% to 6.7%
  • Beijing has threatened to retaliate against any Trump's protectionist moves
  • The UK may join the Trans-Pacific Partnership free trade group after Brexit is finalised
  • Japan's Nikkei 225 jumped 3.25% on its first trading day of the year
  • The broader Topix hit its highest level since 1991
  • Chinese stocks rose after services industries indicated a pick-up in growth last month
  • China’s Shanghai Composite was up 0.4% in late trading 
  • Australia’s S&P/ASX 200 was unchanged while the Kospi fell 0.5%
  • WTI has hit its highest in three years, on falling inventories, Iran unrest concerns
  • West Texas Intermediate crude  approached $62/barrel 
  • Gold dropped 0.4% to $1,307.93/oz.

Forex ahead

  • EURUSD was little changed at $1.2017. 
  • In afternoon trade, GBPUSD was at $1.3520.
  • The Japanese yen traded at 112.65 per dollar
  • AUDUSD was at 78.34, close to its October high

From the Floor


Economic strength. "US ISM manufacturing data was very strong but we only saw a 15 pip reaction in EURUSD," says Hardy.


Japanese cheer. "Sentiment continues to be extremely strong, with gains driven by automation and robotics stocks," says Garnry.


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

In opinion

Crude fears

Oil prices have risen on news of a large US drawdown in inventories, as well as fears that unrest in Opec-member Iran could disrupt crude supplies, said Michael O'Neill.


nnn
















Britain's handover of Hong Kong may not have signalled its exit from Asia after all, given talk of the post-Brexit UK joining the Trans-Pacific Partnership trade pact. Photo: Shutterstock

Morning Markets goes out on the TradingFloor platform at 0800 GMT, Monday to Friday.
Click here
to make sure you're up to date with the latest developments.

08 April
Anatoly Vyacheslav Anatoly Vyacheslav
This comment has been redacted

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail