Article / 12 January 2018 at 8:00 GMT

Morning Markets: Equity bulls push back, EUR in focus ahead of US CPI

Head of Editorial Content / Saxo Bank

Morning Markets


  • Japan: Balance of payments (published)
  • Spain: CPI (0800 GMT)
  • Sweden: CPI (0830 GMT)
  • Greece: CPI (1000 GMT)
  • US: Advance monthly sales for retail and food services (1330 GMT)
  • US: CPI (1330 GMT)

A return to form in Thursday's US session saw the S&P 500 rise 0.7% to a new record, and bourses in Hong Kong, Australia, and Shanghai followed suit. Japanese shares were not able to join the trend, however, and the Nikkei 225 closed 0.24% lower at 23,653.82. 

The euro is in focus today after a more-hawkish-than-expected signal from the European Central Bank sent the common currency more than 120 pips higher against the dollar.

According to Saxo head of FX strategy John J Hardy, the pair's holding of its 1.20-plus gains means that bulls have taken firm control.

In commodities, Brent crude's surge past the $70/barrel mark has boosted energy stocks with today's decision by US president Trump on the Iranian sanctions a key driver for crude.

Today's key calendar release is US CPI at 1330 GMT.

Market signals

Asian session

  • Brent crude has soared to $70/barrel for the first time since late 2014
  • Opec's curbs and concerns about disruptions in Iran are driving oil higher
  • Hong Kong's Hang Seng headed higher; it was up 0.60% to 31,306.02 at 0633 GMT
  • The Shanghai Composite was up by a slim 0.13% to 3,429.64 at 0644 GMT
  • South Korea's Kospi Composite gained ground; it was up 0.40% to 2,497.88 at 0615 GMT
  • Miners helped Australia's S&P/ASX200 edge higher; it closed up 0.041% at 6,070.10
  • Japan's Nikkei 225 retreated again; it was down 0.29% to 23,641.06 at 0536 GMT
  • Japan's current account surplus was just ¥1.347 trillion in November, below expectations
  • China’s export growth came in at 10.8% for December in yuan terms
  • China's trade surplus for 2017 was $422.5 billion, lower than in 2016
  • China's retail sector may make $5.8 trillion this year, says Japanese bank Mizuho
  • Beijing has committed to spending $12bn on regional projects at the Mekong river summit
  • The infrastructure splurge extends China's influence over southeast Asia

Forex ahead

  • AUD gave up some of its recent gains and dropped south of the 0.79 handle
  • Hawkish ECB minutes drove EUR higher Thursday; currency broadly holding its gains

From the Floor

Euro flying high. "It may have boosted the euro, but the ECB's latest statement is not something that should concern equity investors," says Garnry.

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

In opinion

Euro optimism
The optimism coming out of Europe, and mediocre PPI numbers for the US, gave the US dollar a bashing overnight, says Michael O'Neill.

Fits and starts
Good commodities numbers might propel the ASX higher, but it's always liable to find an excuse not to perform, says Saxo Capital Markets.

Asia steadies
There was movement in Asia in early trading - the EURUSD was the pair most talked about and acted on, says the Saxo team in Singapore.

Euro surges
The release of the minutes of the ECB's most recent policy meeting sparked a surge in the euro on Thursday, and the EURUSD bulls seem to be back in command, says John Hardy

 With Thursday's surge, the EURUSD bulls seem to be back in charge. Photo: Shutterstock

Morning Markets goes out on the TradingFloor platform at 08:00 GMT, Monday to Friday.
Click here
to make sure you're up to date with the latest developments.


The Saxo Bank Group entities each provide execution-only service and access to 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 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 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 or as a result of the use of the 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 your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. 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

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