Morning Wrap (01.12.2023)

• The session in the Asia-Pacific region is proceeding with moderate sentiments. Indices are mostly noted with a slight decrease. The Korean KOSPI index loses the most, down 1.20%.

• Chinese indices are down by 0.40-0.70%, and the Japanese Nikkei225 also drops by 0.20%. Meanwhile, the Indian Nifty 50 registers modest gains of 0.70%, and the Australian SP ASX 200 is up by 0.30%.

• In the first part of the day, movements in the forex market are limited. However, at the time of publication, the dollar is pulling back after yesterday's gains and remains among the weakest of the G10 currencies. EURUSD gains 0.15% to 1.0908.

• Today, there are many final PMI reports scheduled for November. We have already learned the PMI for these countries in the first part of the day:

  • China, Caixin Manufacturing PMI: Actual 50.7 (Forecast 49.6, Previous 49.5)
  • South Korea, Manufacturing PMI: Actual 50 (Previous 49.8)
  • Japan, Jibun Manufacturing PMI: Actual 48.3 (Forecast 48.1, Previous 48.1)
  • Australia, Manufacturing PMI: Actual 47.7 (Previous 47.7)

• Report from the Japanese labor market:

  • Unemployment Rate: Actual 2.5% (Forecast 2.6%, Previous 2.6%)
  • Job-to-Applicant Ratio: Actual 1.3 (Forecast 1.29, Previous 1.29)

• The Israeli military stated on Friday that it resumed fighting with Hamas in the Gaza Strip and accused the Palestinian group of violating the ceasefire terms and shelling Israeli territory. Despite a hard-won break in the fighting, Israel has now announced plans to resume shelling if the Palestinian militant group does not agree to release more hostages.

• Goldman Sachs has revised its forecasts for the European Central Bank, expecting a cut in interest rates in the second quarter of next year. Previously, GS predicted a cut in ECB rates in the third quarter.

• Precious metals continue to rise. Gold gains 0.30% and returns to the level of 2041 USD per ounce. Meanwhile, silver records a modest increase of 0.10% to the level of 25.26 USD.

• In cryptocurrencies, we observe a significant rebound in the first part of the day. Bitcoin gains 1.10% and returns to the level of 38100 USD. Interestingly, we see bigger increases in Ethereum, which gains 2.0% to 2095 USD.

• The rises in the cryptocurrency market are likely driven by further progress in the work on a spot Bitcoin ETF and the submission of another application for a spot Ethereum ETF, this time by Fidelity.

• Fidelity's new application signifies the official start of the verification period by the SEC, which can last up to a maximum of 240 days.

Bitcoin is rising again in an attempt to break through the upper limit of the current consolidation channel at $38,000. The increases are fueled by hopes of a potentially upcoming SEC approval of applications. The next window of opportunity for more applications to be accepted is expected in early January. Source: xStation 5