Video

#SaxoStrats
​The Trump administration has not yet formally deployed the long-awaited latest $200 billion in tariffs against China, but a new Wall Street Journal report indicates that Japan might be next on the agenda.
Article / 18 December 2017 at 8:00 GMT

Morning Markets: Will protectionism trump tax reform?

Head of Editorial Content / Saxo Bank
Denmark

Morning Markets

 

Watchlist

  • EU: EU Harmonised CPI (1059 GMT)
The on-again, off-again tide of bullish sentiment regarding Washington's tax reform bill received another shot in the arm Friday on reports of a Republican deal, pushing US stocks to fresh record highs and boosting Asian equities overnight.

Hong Kong's Hang Seng index rose 1% to 29,137.60 while the Nikkei 225 gained 1.55% to 22,901.77. Australia's S&P/ASX 200 rose 0.7% to 6.038,90.

One major caveat, however, continues to surround President Trump's protectionist leanings regarding China with the president widely expected to accuse Beijing of "economic aggression" in today's national security strategy.

The greenback trades largely flat into the European bell with the Antipodean currencies gaining ground led by the kiwi.

Industrial and precious metals retain a bid tone into Monday's European session with crude oil prices on the rise as well. Today sees the launch of Bitcoin futures on the Chicago Mercantile Exchange with traders looking for signs that the astonishing cryptocurrency rally remains in good health.

Market signals

Asian session

  • Asian markets were trading largely up on US confidence the tax bill will be passed
  • The US Republicans released their final version of the tax bill on Friday
  • Oracle will buy ASX-listed construction software group Aconex in a $A1.6 billion deal
  • An underlying cash deficit of $A23.6 billion is now expected in 2017-18 for Australia
  • New Zealand consumer confidence dipped in December, the third consecutive decline
  • South Africa’s rand fluctuated ahead of the ruling party’s leadership vote
  • Bitcoin traded at around $19,000 as futures trading debuted on the CME 
  • Japan’s Topix index closed up 1.4%, with the Nikkei 225 rising 1.55%.
  • Hong Kong’s Hang Seng Index advanced 1%, with Shanghai down 0.2%

Forex ahead

  • The JPY was treading water, worth 112.69 per USD in late trade.
  • EURUSD was trading at around $1.1771
  • GBPUSD was at $1.3348 after slumping 0.8% Friday.

From the Floor

ZAR surge. "A Ramaphosa win would be very good news for South Africa," says Hardy

Santa Claus is coming to town. "We are getting ready for a final leg up in equities," says Garnry

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

In opinion

Tax effect
Asian markets were higher early Monday on Wall Street leads, which reached record highs on expectations the US tax bill will be passed this week, write Saxo's Singapore trading team

EURUSD action
A possible one-month Head & Shoulders is forming for EURUSD with key support at 1.1715, writes Max McKegg in this trade view.

Metals lead the way

The recent surge in industrial metals offset the dip seen in agricultural and energy commodities last week, writes Saxo Bank head of commodity strategy Ole Hansen.

;;;

 The launch of bitcoin futures on the CME exchange on Monday supports expectations the cryptocurrency’s red-hot rally in the cash market could continue. 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.

2y
Saxo user tired of spam Saxo user tired of spam
I got spammed with this post inside notifications inside my saxo trading account.

SaXO BANK, can you please stop it?

Disclaimer

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