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 / 12 September 2017 at 7:00 GMT

Morning Markets: Irma cannot shake markets



Shares in Asia hit another high after stocks in the US surged Monday. Market participants say the expected damage of hurricane Irma in the US is now seen smaller than earlier, which supported indices. 

On a global level, trade with North Korea is to be restricted further as the UN Security Council has unanimously decided to impose further sanctions on the dictator state. It can now longer export textiles and the supply of fuel to North Korea has been reduced. 

In Norway conservative prime minister Erna Solberg can stay in office after yesterday's election. Though the social democrats remained the largest party, their result was the weakest in more than 15 years. 

In Germany the automobile fair IAA will open its doors in Frankfurt today. Based in the country that houses some of the world's largest and most prestigious car makers such as Porsche, Volkswagen and BMW the show has always been one of the most important of its kind. This year it special, though. The so called Diesel scandal with car producers cheating on emissions tests has shed a dark light on big players, which are also under pressure to present alternative fuel solutions. Tesla, the most famous of the electric car makers, will not be present with a booth at the fair.  

Another important company event, obviously, is the upcoming Apple keynote at 1000 PDT.

Market signals

Asian session

  • Tensions with North Korea eased and Hurricane Irma caused less destruction than feared
  • UN Security Council approved new North Korea sanctions after US dropped key demands
  • Australian business conditions rose to their highest since early 2008
  • But NAB's monthly survey also showed confidence took a big hit to two-year lows
  • UBS says Australian banks are vastly underestimating the risks of a housing collapse
  • The yield on 10-year Treasuries held at 2.13% after rising by 8bps on Monday.
  • Gold fell 0.3% to $1,323.96/oz after sinking 1.4% on Monday
  • WTI crude lost 0.2% to $48 following a 1.2% gain on Monday
  • The MSCI's Asia-Pacific shares outside Japan were at highest level since 2007
  • The Nikkei was the strongest bourse in Asia, up 1.2% at 0520 GMT
  • The Hang Seng was flat, and the ASX staged a relief rally, up 0.61% at 0547 GMT

Forex ahead

  • As the USD recovered overnight, the EUR fell back below $1.20
  • EURUSD was steady in Asia trading at around $1.1953.
  • AUD lost ground against the stronger US dollar but is still above 0.80
  • The USD lost some of its overnight gain against the yen
  • JPY was at 109.38 to the USD after sinking 1.4% on Monday

From the Floor

Heading. “The ECB is clearly going nowhere in policy,” says Hardy

Chances. “We expect continued risk-on,” says Garnry

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

In opinion

Silver lining?
Some of the destruction wrought by hurricanes Harvey and Irma could turn out to be creative destruction, writes Kay Van-Petersen.

Relief rally
Asian markets climbed as global fears receded over Hurricane Irma and North Korea, writes the Saxo APAC Sales Trading team.

Mood lifts
The local market was up 0.4% in early trade and the Australian dollar was down against the USD but still above 0.80, writes the team at Saxo Capital Markets (Australia).




Morning Markets goes out on the TradingFloor platform at 0700 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