China's trade data posted overnight showed scant evidence of the Sino-US trade war with exports steady and imports on the rise. It is likely too early for the US tariffs to skew the data much yet, however, and another drop in Chinese equities shows that the situation is far from resolved.
Article / 03 January 2018 at 8:54 GMT

Morning Markets: Oil rally and weak dollar boost equities

Head of Editorial Content / Saxo Bank




  • DE: Labour market statistics (0900 GMT)
  • US: ISM Manufacturing report (1500 GMT)
  • US: FOMC meeting minutes and economic forecasts (1900 GMT)

Commodity shares, in line with crude oil and metals prices, gained ground overnight on the back of Tuesday's strong Caixin numbers as well as bullish signals from the US manufacturing sector.

All this is happening on the back of a weak US dollar, which remains depressed by the fiscal implications of Trump's tax reform. 

Looking ahead, the most important items on the economic calendar are minutes from the FOMC meeting and an ISM manufacturing index, but neither is expected to provide any surprises.

Market signals

Asian session

  • Strong manufacturing data and overnight gains on Wall Street gave Asian markets a boost 
  • It's a bank holiday in Japan today
  • US markets started the year with a strong start; the S&P and Nasdaq hit closing highs
  • A proposed merger between MoneyGram International and Ant Financial fell through 
  • In a tweet, US President Donald Trump threatened to withhold funding to Palestinians
  • The US warned North Korea against another missile test
  • The Shanghai Composite Index had risen 0.6% in mid afternoon trading
  • The ASX/S&P 200 closed slightly up at 6070, and New Zealand was also up 0.3%
  • WTI crude was steady in later trading at around $60.40/barrel.
  • Brent crude futures were trading 3 cents lower at $66.54/b
  • Gold fell slightly to $1,315.35/oz, its first decline in just over a week

Forex ahead

  • EURUSD traded at $1.2058, near a three-year high. 
  • The yen was steady at 112.28 per dollar 
  • AUDUSD declined 0.1% to 78.21 U.S. cents
  • GBPUSD rose slightly to 1.3608 per dollar 

From the Floor

Greenback blues. "EURUSD is poised just below cycle highs and cable is also near cycle highs despite a lack of news" says Hardy

Equity strength. "The market is still gaining but we still expect it to weaken towards end of Q1" says Garnry

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

In opinion

Fuelling concerns
Oil prices continued to be supported by concerns about Iran demonstrations and the freezing cold temperatures across northern US and Canada, writes Michael O'Neill.


A clash between Seoul and Tokyo over the issue of comfort women could
throw Asian geopolitics into disarray. Photo: Shutterstock

Morning Markets goes out on the TradingFloor platform at 07:00 GMT, Monday to Friday.
Click here
to make sure you're up to date with the latest developments.

03 January
Daniel CN Daniel CN
Do you keep the 25USD/barrel target for 2018?
03 January
Dance like nobody's watching Dance like nobody's watching
Daniel, Do you really have confidence in this calls? It comes to me hyper good contrarian trades, especially if the trades are recommended by respected economists.


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