Daily Market Update 10th November 2016
ECONOMIC DATA OF THE DAY
| Time | CY | Indicator | Forecast | Actual | Previous |
|---|---|---|---|---|---|
| 04:00 | NZ | RBNZ Official Cash Rate | 1.75% | 1.75% | 2.00% |
| 07:50 | JN | Machine Orders MoM | -1.50% | -3.3% | -2.20% |
| 15:45 | FR | Industrial Production MoM | -0.30% | -- | 2.10% |
| 16:00 | PH | BSP Overnight Borrowing Rate | 3.00% | -- | 3.00% |
| 21:30 | US | Initial Jobless Claims | 260k | -- | 265k |
| 21:30 | US | Continuing Claims | 2025k | -- | 2026k |
| 04:00 | NZ | RBNZ Official Cash Rate | 1.75% | -- | 2.00% |
SPEECHES
- 10:00 – USD – Fed’s Williams speaks on Economic Outlook in San Francisco
- 18:00 – EUR – Bank of Italy publishes monthly report
- 22:15 – USD – Fed’s Bullard speaks on US Economic outlook in St Louis
OVERNIGHT NEWS
US ELECTIONS:- As you all know very well, Donald Trump has been elected the 45th American President. This is a clear vote against the Washington establishment similar to the Brexit vote.
- Hillary Clinton conceded to Trump and called on her supporters to give him a chance to lead. Obama invited the president-elect to the White House, noting: "We are now all rooting for his success. “
- House Speaker Paul Ryan credited Trump with helping Republicans keep both houses of Congress and said his victory will let the party be bold in using its clout to enact legislation and confirm appointments that could touch every facet of American life.
- Next thing to watch is if Trump will declare that China is a currency manipulator as he promised in his campaign and what are the impacts on the world trades and Asia in particular
- RBNZ Cut the official Cash Rate to 1.75% from 2.00%.
- Governor Wheeler: “Our current projections and assumptions indicate that policy settings, including today’s easing, will see growth strong enough to have inflation settle near the middle of the target range. Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly”
FOREIGN EXCHANGE (INDICATIVE RATES)
| Currency | Last | % Change | Overnight Range |
|---|---|---|---|
| DXY | 98.50 | 0.66 | 95.89 - 98.70 |
| EURUSD | 1.0916 | -1.05 | 1.0907 - 1.1300 |
| USDJPY | 105.88 | 0.49 | 101.20 - 105.89 |
| AUDUSD | 0.7641 | -1.64 | 0.7580 - 0.7772 |
| GBPUSD | 1.2412 | 0.22 | 1.2354 - 12547 |
COMMODITIES (INDICATIVE RATES)
| Currency | Price USD | % Change | Overnight Range |
|---|---|---|---|
| Gold | 1277.98 | 0.18 | 1268.30 - 1337.38 |
| Silver | 18.49 | 0.62 | 18.28 - 19.01 |
| Oil (BRENT) | 46.36 | 0.70 | 44.40 - 46.95 |
| Oil (WTI) | 45.27 | 0.64 | 43.07 - 45.95 |
COMMODITIES
Precious Metals: Gold initially reacted to the election victory of the Republican candidate Donald Trump and first surged by 5%, ito just shy of $1,340 per troy ounce. It then shed almost all of its gain in later session, moving in tandem with a recovering US dollar. High volatilities are still expected for precious metals. Wednesday was the heaviest trading day ever for gold. More than 780,000 contracts had changed hands by 2:30 p.m. in New York, surpassing the volume on June 24 post-Brexit. That’s more than five times the 100-day average volume.
Oil: Oil prices initially responded to the confirmed election victory of Donald Trump by falling significantly and Energy Information Administration (EIA) indicate an oil market that is still amply supplied. However, it then managed to recouped all losses and bounce into green zone again, could be due to speculation of Trump’s decision on revoke the nuclear agreement with Iran.
GAINERS
- BANKS: rallied as Trump has vowed to reduce regulation
- DRUGMAKERS: surged as Democratic threats of price controls are no longer a concern with Republicans retaining both houses of Congress
- DEFENSE & INFRASTRUCTURE: Lockheed Martin Corp. and Caterpillar Inc. climbed on Trump’s pledge to boost spending in both industries
- PRISON OPERATORS: Corrections Corp. soared on speculation the new administration will rescind a government contract phase-out
LOSERS
- INTERNATIONAL TRADE: Coca-Cola Co. and Procter & Gamble Co. retreated
- GUNMAKERS: Sturm Ruger & Co. sank on speculation that fewer people would rush out to stock up on pistols and rifles with the threat of stronger gun control laws fading
- HOSPITAL OPERATORS: Community Health Systems Inc. sank on speculation Trump will move to repeal Obamacare
- CLEAN ENERGY: SunPower Corp. fell on concern Trump will weaken demand for renewable energy
Asian Shares Join Global Rebound After Trump Win; Bonds Plunge
- Yen falls with gold after U.S. stocks rose to one-month high
- Australian 10-year debt yield jumps more than 20 basis points
Stocks in Asia rebounded from their steepest slide since Brexit and regional bonds tumbled after Donald Trump’s election victory and pledges to boost spending spurred gains in U.S. shares. The yen and gold declined.
The MSCI Asia Pacific Index rose by the most in three weeks, led by gains in raw-materials producers. Futures on the S&P 500 Index declined after swinging wildly in the last session, when they briefly sank by their 5 percent daily limit as the results of the presidential vote were announced. Ten-year government bond yields in Australia and New Zealand soared by more than 20 basis points amid speculation Trump’s spending plans will fuel inflation. U.S. oil held above $45 a barrel.
Read the full article at bloomberg.com
