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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 / 09 January 2018 at 8:00 GMT

Morning Markets: Wall Street gains stoke Asian rally

Consulting editor / TradingFloor
Norway






Morning Markets


Watchlist

  • Germany: Industrial production index (0700 GMT)
  • Switzerland: SNB foreign currency reserves (0800 GMT)
  • EU: Unemployment (1000 GMT)
  • US: API weekly statistical bulletin (2130 GMT)

Monday's record-high closings for the S&P500 and Nasdaq lifted sentiment in Asian equity markets on Tuesday, helping Japanese stocks to a fresh 26-year high in Tokyo's first trading session of the week after a long weekend. The Dow had ended slightly lower on Monday.

The Nikkei 225 index gained despite a firmer yen, which strengthened on news that the Bank of Japan would trim its purchases of long-dated Japanese government bonds.

The picture in Asian stock markets was mixed, however. Tech giant Samsung missed a profit forecast and weighed on Korea's Kospi index.

Market signals

Asian session

  • Gains on Wall St on Monday lifted sentiment in Asian markets
  • Samsung fell after it missed a profit forecast, weighing on Korea's Kospi Composite
  • China's PPI release on Wednesday will give clues to the health of Asia's largest economy
  • Russia reportedly signed a major gas pipeline deal with Pakistan last month
  • The deal is part of Moscow's push to find new gas markets after EU sanctions
  • Gold futures stayed on par in late trading at $1,319.72/oz 
  • WTI crude oil rose 0.8% to $62.19/barrel on Iran unrest worries and a lower US rig count
  • Japanese shares pared their gains after the yen’s advance after BoJ news
  • Hong Kong’s Hang Seng Index rose 0.3% for its 11th straight gain
  • South Korea’s Kospi reversed gains from the previous session
  • Shares in top Aussie miners BHP and Rio Tinto soared on firmer iron ore prices

Forex ahead

  • CAD rose on expectations of an impending rate hike
  • JPY rose 0.4% against the dollar after BoJ cut its purchases of government bonds
  • JPY rose 0.4% to 112.68 to the dollar
  • Germany's slow progress in forming a coalition is weighing on the euro
  • EURUSD was at 1.1966 after sinking 0.5% Monday.
  • The USD fell 0.1% against most major currencies after jumping 0.3% Monday
  • GBPUSD traded at 1.3573

From the Floor

Crude health. "Oil is trading higher again on inventories and the Iranian compliance focus," says Hansen.

Q4 EBITDA hopes too high? "Equity investors may be chasing an illusion," says Garnry

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

In opinion

Euro in focus
Data releases due out from Germany and the wider European Union could have an impact on the single currency today, predicts Michael O'Neill.

Ore market strength
The seaborne iron ore market is strong, with some Chinese steel mills stocking up for the Lunar New Year break that starts on February 16, says Saxo Capital Markets Australia.

China lending crackdown
Beijing is targeting the online cash micro-lending industry, which has drawn criticism for charging exorbitant interest and underhand practices, says Saxo APAC Sales Trading.

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Germany's Angela Merkel has made slow progress in talks aimed at forming a coalition government, giving rise to uncertainty that is weighing on the euro. Photo: Shutterstock

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