Morning wrap (05.12.2023)

9:27 am 5 December 2023

  • Stock indices in the Asia-Pacific region traded lower during Tuesday's session. Korea's KOSPI lost nearly 0.82% intraday, and Japan's Nikkei was down 1.33%. The Hang Seng is currently performing poorly, trading down 1.69% intraday.
  • The Reserve Bank of Australia leaves the cash rate unchanged at 4.35%, as expected.
  • The AUD/USD pair is seeing declines after the RBA decision and less hawkish rhetoric from bankers.
  • Macro data from China - Caixin Services PMI for November 51.5 (expected 50.8).
  • Macro data from Japan - Final November services PMI 50.8 (previously 51.6). Core CPI data from Tokyo came in at 2.3% YoY, below the expected 2.4% YoY and the previous reading of 2.7% YoY. 
  • Moody's affirms China's a1 rating, changes outlook to negative from stable.
  • Relative to other currencies, the Australian dollar and the New Zealand dollar are currently performing poorly. Slightly better sentiment is seen on the Japanese yen and the euro, among others. The EURUSD pair is currently trading slightly below the 1.085 barrier.
  • The ECB's Schnabel commented that the current process of fighting inflation is going well, and the decline in base prices is sizable. The banker added that further interest rate hikes are "rather unlikely" after the November inflation reading.
  • Today's energy commodity price momentum is somewhat subdued. On an intraday basis during European morning trading, Brent crude oil is losing 0.15%, and WTI oil is losing 0.10%. Natural gas is doing better, gaining 0.37%.
  • Bitcoin loses close to 0.11% intraday, but remains close to the $42,000 barrier. Other cryptocurrencies (altcoins) are seeing slightly larger increases. Metaverse-related projects such as Decentraland (+6.3%) and Sandbox (+7.9%) are doing particularly well.
  • Precious metals are trading near yesterday's closing levels, with gold gaining 0.14% and silver gaining 0.04%.
  • On Tuesday's macro calendar we can find, among others: services PMI data for major European economies and the US, ISM PMI data for services from the US, the JOLTS report from the US, and API survey data on crude oil inventories. 

The AUDUSD pair is losing nearly 0.58% during today's session and is trading near the support zones set by the daily low of the last session of November. Source: xStation

 

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.