Copper rally, US Dollar strength and Black Friday in focus
As is common on days when the US is closed for a holiday, markets in Canada and Europe finished up slightly in light trading. Copper had another huge day rallying over 2.2% which lit a fire under base metal miners, but this was offset by ongoing weakness in gold miners after gold’s big plunge under $1,200 earlier in the week.
USD levelled off as its latest surge upward ran its course. USD continues to perform well against the Japanese Yen plus emerging market currencies with the Turkish Lira getting hit particularly hard even after an interest rate increase. On the other hand, the strong performance of metals has been helping AUD to outperform other majors.
Today’s Asia Pacific trading could see some interest in NZD, JPY and SGD on trade, inflation and industrial production data for New Zealand, Japan and Singapore. Oil could become active again later in the day with all kinds of countries making statements and rumours swirling around negotiations heading into next week’s OPEC meeting with talks likely to go right down to the wire as usual.
US markets resume trading during Asia Pacific hours trading near all-time highs but facing headwinds from a higher US Dollar. Friday’s exchange trading features a shortened and likely quiet session with most of the heavy hitters out at the malls. Retailing and consumer spending are likely to be in focus as traders look for anecdotal reports on Black Friday shopping traffic and results. In particular, recent market gains suggest traders are expecting shoppers to be relieved the long election campaign is over and ready to open their wallets.
There have been no major announcements after the US close today.
Significant announcements released overnight include:
Germany GDP 1.5% as expected
Germany exports 0.2% vs street (0.3%)
Germany imports 0.2% vs street 0.3%
Germany IFO Business Climate 110.4 vs street 110.5
Germany IFO current assessment 115.6 vs street 115.0
Germany IFO expectations 107.9 vs street 106.0
Upcoming significant economic announcements include:
(Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore)
8:45 am AEDT NZ Trade Balance street ($971M)
10:30 am AEDT Japan consumer prices street 0.0% vs previous (0.5%)
10:30 am AEDT Japan core CPI street 0.1%
4:00 pm AEDT Singapore industrial production street 1.0% vs previous 6.7%
9:30 am GMT UK GDP update street 2.3%
11:00 am GMT UK CBI retailer sales street 12 vs previous 21
11:00 am GMT UK CBI distributor sales street 11 vs previous 26
TBA Black Friday Sales Reports
8:30 am EST US advance goods trade bal street ($59.0B)
9:45 am EST US flash service PMI street 54.8
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