Article / 16 November 2017 at 1:41 GMT

Morning Report APAC: Asia opens mixed on US data

APAC Sales Trading Desk / Saxo Capital Markets
Singapore

 

  • US inflation data did little to alter the likelihood of Fed lifting rates
  • The Topix index swung between gains and losses in early trading
  • Hong Kong’s Hang Seng Index futures climbed 0.4%
  • USDJPY was at 112.93 early today, close to the strongest in about a month

By Saxo APAC Sales Trading


Economic data of the day (Singapore Time)
xxx

 

























Speeches (Singapore Time - GMT +8)

1645: EC – ECB’s Mersch speaks in Brussels
2000: UK – BOE’s Carney,  Braodbent, Cunliffe, Place, Ramsden, Woods speak
2210: US – Fed’s Mester delivers keynote address at Cato Conference
2230: EC – ECB’s Vileroy De Galhau speaks in Amsterdam
0210: US – Fed’s Kaplan speaks to CFA Society in Houston
0400: EC – ECB’s Constancio speaks in Ottawa


Overnight news

US: CPI came in at 0.1% MoM and 2.0% YoY but most importantly, Core CPI rose 0.2% following a 0.1% increase in September, as expected and 1.8% YoY (Exp. 1.7%).

The probability of rate hike in December has now moved up to 97%. Retail Sales dropped from 1.6% to 0.2% (Exp. 0.0%) MoM and 0.1% ex Autos (Exp. 0.2%).

UK:
The jobless rate averaged 4.3 percent between July and September but employment fell by 14,000, the first decline since October last year and the biggest drop since June 2015.

Basic wage growth stayed at just above 2 percent, well below the rate of inflation, and the number people neither in work nor looking for a job rose by the most in more than seven years.


Foreign exchange

xxx

 














It was a very volatile day for the USD which started to sell off aggressively as soon as London came in on a continuation of the previous day and it moved broadly to all the currencies.

A stronger core CPI in the US reversed the course of the night and USD managed to find some good bids during NY time.

DXY is managing to hold at the 100d MA at 93.683 but below the 94.00 H&S line. We should see some bids back today in DXY following the good CPI numbers last night in the US.

The  EURUSD stop fest continued overnight pushing the pair to 1.1860 before reversing and finding good selling interest after the CPI numbers. In any case, there will be a good resistance level ahead of 1.2000.

Emerging Markets: USDKRW was the story of the night breaking the lows of the year on an unexpected day on stops from macro funds.

As soon as 1110 broke, the market gapped lower in New York to 1106. On another note on KRW, South Korea and Canada form a bilateral currency swap. 

Foreign exchange movements
xxx
There was volatility in the spot market, moving higher first on the USD selling, especially against EUR but reversing at the end of the day.

USDJPY risk reversal are very bid with 112.50 and 112.00 strikes in demand.

Rates
xxx

US Treasuries advance for another day as risk off feel lingers, however the curve was flattened with CPI data overbeat prompting almost certainty of December rate hike.

Bunds climbed on risk off buying, peripherals underperformed while gilts yield dropped for a third day after it was reported that the number of people in work falling for the first time in almost a year, adding on to support from Brexit uncertainties. 

Commodities

xxx


































 



Equities

xxx

 















US: Target Corp slumped 9.9% after the retailer reported adjusted quarterly profit of 91cps, 5cps above estimates, but the company offered a downbeat profit outlook for the current quarter and said it expected a “highly competitive” environment for holiday sales.

Boeing rose 0.4% after the aircraft maker announced a deal to sell Dubai-based Flydubai up to 225 more of its 737 Max 8 planes at a list price value of $27 billion, while rival Airbus SE (+2.4%) secured one of the largest aircraft deals in history with US private equity group Indigo Partners LLC agreeing to pay roughly $49.5 billion for a fleet of Jetliners.

Cisco shares jumped 4% in after-hours trading Wednesday after the company expects to snap a two-year streak of revenue declines. While revenue is still down 2% from the year before, investors were comforted by the promise of 1% to 3% year-over-year growth in the upcoming second quarter.

Europe: Lanxess  dropped 3.1% after the German specialty chemicals company said third-quarter net profit fell to 55 million euros on a 25% rise in sales to €2.40 billion vs consensus forecast of €2.42 billion.

Hong Kong: Tencent likely outperform today after the Chinese internet giant posted a 69% jump in its quarterly net profit, blowing past estimates on the back of its popular mobile games and social media apps. Earnings leapt to Rmb22.75bn ($3.43bn), while monthly active users on its WeChat and Weixin platforms hit 980m.

There are trading debuts for Bestway Global Holding (3358) and Yixin Group (2858) – Yixin Group, China’s largest online car retailer backed by Tencent, is likely to be in focus today as deemed as one of the tenth hottest HK IPO, with grey market indicating price as high as HK$11.5, a 49% above IPO offer price of HK$7.7 apiece.


xxx
 Making a difference: hot new IPOS in HK today might lift the market. Photo: Shutterstock
 


– Edited by Adam Courtenay


This report was compiled by the Saxo APAC Sales trading team in Singapore – the home of social trading. Follow the team on @SaxoStrats or post your comment below to engage with Saxo Bank's social trading platform. Follow us on @SaxoStrats on Twitter

All material contained herein is provided for your general information. The information and commentaries are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Saxo Capital Markets Pte. Ltd. (“SCM SG”). Any expression of opinion (which may be subject to change without notice) is personal to the presenter and/or author; they do not reflect the view or opinion of SCM SG or its affiliates, neither do they constitute an endorsement of SCM SG’s view or analysis of the same.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. SCM SG does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment based on any commentaries or information provided here.
For further information, please click here.  


Saxo Capital Markets Pte Ltd ("Saxo Capital Markets") is a licensed subsidiary of Saxo Bank A/S, an online trading and investment specialist. Saxo Capital Markets serves as the APAC headquarters and holds a capital markets services licence under the Monetary Authority of Singapore; and a commodity broker licence issued by the International Enterprise Singapore. Clients can trade Forex, CFDs, Stocks, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, the leading multi-asset online trading platforms.
Trading risks are magnified by leverage - losses can exceed your deposits. Trade only after you have acknowledged and accepted the risks. You should carefully consider whether trading in leveraged products is appropriate for you based on your financial circumstances. Please consider our Risk Warning and General Business Terms before trading with us. Please see full General Disclaimer.

Thousands of serious traders receive free news and analysis from Saxo Capital Markets each day. Saxo Capital Markets never sends these emails unsolicited; they are sent following acceptance of your membership and subscription request by Saxo Capital Markets at saxomarkets.com.sg. If you do not wish to receive any emails from Saxo Capital Markets in the future, please reply to this email with the word "UNSUBSCRIBE" in the subject header.

Copyright | Disclaimer | Risk Warning | Privacy Policy | Contact Us
Samsung Hub | 3 Church Street | # 30-01 | Singapore 049483
Company No. 200601141M

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