Global markets had started the week on a rebound and it had appeared as though this year’s Santa Claus rally had finally arrived. Election results in Spain however, that saw PM Rajoy’s party win but fail to capture a majority of seats caused enough uncertainty (particularly after indecisive Portuguese results nearly created a constitutional crisis) to drag Spain’s IBEX down 3.6% and other continental indices down 1-2% while the FTSE
fell only 0.2%.
US markets spent most of the day moderately in the green. Atlanta Fed President Lockhart indicated he expects the fed to raise rates four times in 2016 suggesting gradually could be interpreted as every second meeting rather than the every meeting hikes of previous cycles. US stocks strengthened into the close, sending positive momentum into today’s Asia Pacific trading.
While continental indices have been falling, continental currencies have been rallying with SEK and EUT taking advantage of a sliding USD along with gold plus AUD and NZD. CAD and NOK have been underperforming with Brent and WTI crude oil still flirting with their 2008 lows trying to decide whether to fall off the table or bounce back.
It’s relatively quiet for Asia Pacific news but tomorrow’s Turkey interest rate decision could have an influence on emerging markets while the latest US GDP update probably won’t have a big impact unless there’s a big surprise.
There have been no major corporate announcements after the US close today.
Significant announcements released overnight include:
UK CBI sales 21 vs street 19 and previous 7
Germany producer prices (2.5%) vs street (2.4%)
Sweden economic tendency 110.1 vs street 106.9
Sweden manufacturing confidence 114.3 vs street 106.1
Sweden consumer confidence 98.7 vs street 95.6
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)
1:00 pm AEDT China leading index
8:30 am GMT Sweden producer prices previous (1.8%)
8:30 am GMT Sweden retail sales street 4.0%
12:00 pm GMT Turkey repurchase rate 0.50% increase to 8.00% expected
12:00 pm GMT Turkey overnight lending 10.75% no change expected
12:00 pm GMT Turkey overnight borrowing 0.25% increase to 7.50% expected
8:30 am EDT US Q3 GDP Update street 1.9% vs previous 2.1%
8:30 am EDT US Q3 personal consumption street 2.9%
8:30 am EDT US Q3 core PCE inflation street 1.3%
9:00 am EDT US FHFA house prices street 0.5%
10:00 am EDT US existing home sales street 5.35M
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