The re-opening rotation in markets paused overnight as US data disappointed and traders locked in recent gains ahead of tonight’s Thanksgiving holiday. Asia Pacific markets are looking at a muted and negative trading day, potentially dominated by regional data releases.
US GDP reads were broadly in line with expectations, and durable goods orders beat estimates. However surprising weakness in jobless claims, personal income and new home sales raised questions about the health of household budgets, and reversed the recent re-opening inspired trading. Tech shares gained as value stocks were hit by profit taking ahead of thinner trading for the next few sessions.
Commodity markets diverged again. Both crude oil and copper added to recent gains, suggesting optimism about the economic outlook is intact. Forex markets reflected similar themes, with good support for higher beta currencies and pressure on havens such as the US dollar, Japanese yen and Swiss franc. This action could underpin regional markets today.
New Zealand trade data this morning dropped directly in line with forecasts. This leaves traders looking forward to Singapore industrial production for October (forecast -11.5%, previous 10.1%) and the Japanese leading index (previous 92.9), both due later this afternoon.