Article / 10 January 2018 at 8:00 GMT

Morning Markets: Is the equities rally starting to stumble?

Head of Editorial Content / Saxo Bank

Morning Markets


  • China: PPI (published)
  • Norway: CPI (published)
  • France: Industrial production index (published)
  • UK: Trade (0930 GMT)
  • UK: Index of production (0930 GMT)
  • Greece: CPI (0959 GMT)
  • Poland: Interest rate decision (1059 GMT)
  • US: EIA weekly petroleum status report, incl. crude oil stocks (1530 GMT)

US yields rallied overnight, lending the greenback a bid tone following a strong US equities session Tuesday. The Wall Street strength was not enough to keep the rally going in Asia, however, and the declines seen in Japan and Australia are expected to be matched in London and Frankfurt this morning.

The Japanese yen continues its bull run with EURJPY tumbling to 133.59 ahead of the European bell and USDJPY falling below 112.

Crude oil prices are in focus today ahead of the latest inventories data from the US Energy Information Administration with Brent crude sitting north of $69/barrel post- the Asian session.

Beyond the EIA, today sees a Norwegian CPI release at 07:00 GMT as well as UK trade data at 09:30 GMT.

Market signals

Asian session

  • The 10-year US Treasury yield hit its highest level in nine months overnight
  • The Asian equities rally ran out of steam, despite gains on Wall Street
  • Japan's Nikkei 225 took a tumble after hitting a 26-year high on Tuesday
  • Global growth will soar to an upbeat 3.1% this year: World Bank
  • US crude has risen again; it has now soared 50% from its June 2017 lows
  • Global growth optimism, Opec caps and cold weather in the US have buoyed oil
  • China's CPI came in at just 1.8% for December; 1.9% had been expected
  • China's PPI reached 4.9% in December, beating expectations of 4.8%
  • A deal between China's Huawei and US carrier AT&T collapsed due to political pressure
  • The collapse heightens US-China trade friction, and may spark retaliation from Beijing
  • Miners and industrials weighed on Australia's S&P/ASX200

Forex ahead

  • A change in the PBoC's methodology looks designed to slow appreciation of the yuan
  • AUD retreated following the release of China's inflation data

From the Floor

Oil bubble? "Crude oil is now trading at its highest level since 2014," says Hansen.

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

In opinion

Spotlight on sterling

Sterling will be in the spotlight today, amid ongoing Brexit concerns, as well as UK releases for industrial production, manufacturing and trade, says Michael O'Neill

Ore price fears

Rising iron ore prices have been lifting miners' share prices, but the rise may be premature, given the scope for volatility in China, warns the team at Saxo Capital Markets Australia

Commodities action
Gold has retreated, base metals have lost ground, while oil has surged higher, and grains are attracting buying interest, says the team at Saxo APAC Sales Trading

Polish zloty note

 Poland's central bank is scheduled to decide on interest rates today.

Morning Markets goes out on the TradingFloor platform at 08:00 GMT, Monday to Friday.
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Anatoly Vyacheslav Anatoly Vyacheslav
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