Asian indices extended losses for one more day after President Trump said yesterday in London that a trade deal with China might be better to wait until after the elections in November 2020.
In a move that escalates trade tensions, President Donald Trump announced that he will restore the tariffs on steel products from Argentina and Brazil, and also threatened to impose tariffs on French imports in retaliation for taxes imposed by the French government on US tech companies. The Nikkei 225 ended 1.05% lower at 23,135. The Hang Seng index is 1.03% lower at 26,117.
The Singapore FTSE Straits Times Index ended 0.21% lower at 3,166 while the Shanghai Composite is 0.36% lower at 2,876. The ASX 200 is 1.60% lower at 6,606.
European indices started lower mirroring Asian indices, DAX trading 0.37% lower at 13,238, CAC40 is 0.21 per cent lower at 5,914, while the FTSE MIB in Milan is 0.69 per cent lower at 23,323. In London, FTSE 100 is trading 0.38% lower at 7,401.
In commodities, crude oil trades 0.78 per cent higher at $56.54 ahead of the OPEC meeting in Vienna on speculation that OPEC may cut crude oil output until June 2020. Brent oil is trading 0.85% higher at $61.34 per barrel as crude oil world demand will be affected by the global growth slowdown. Gold price trades higher at 1,481, as the short term improves after the gold price trades above the 20-day moving average but below the 50 and 100-day moving averages. On the upside, resistance stands at 1,555.13 YTD high while support is at 1,448 the recent low.
In cryptocurrencies, Bitcoin (BTCUSD) continues the correction from recent highs at 7,137, hitting the daily low at 7,083 and the daily high at 7,338. BTCUSD momentum is still bearish as the cryptocurrency trades below the 50 and 200-day moving averages. First support for bitcoin stands now at $6,510 recent low, while the next support stands at 6,000 round figure.
On the upside, resistance stands at 9,925 recent high and then at 10,000 round figure. ETHUSD trades lower at 143.49 with capitalisation now to 15.82 billion. Immediate resistance for Ethereum stands at 200 recent high while the support stands at 139.71 daily low. Litecoin also trades lower at 43.94. The crypto market capitalization stands at $195.26 billion.
In the Lookout: S&P Ratings reaffirmed India’s rating at BBB- with a stable outlook.
The China Caixin Services PMI came in at 53.5 above forecasts (52.7) in November. Caixin Services PMI came in at 53.5 above forecasts of 52.7 vs the prior 51.1
The Australia Gross Domestic Product (QoQ) came in at 0.4%, below forecasts of 0.5% in the third quarter. Australia Gross Domestic Product (YoY) came in line with expectations at 1.7% in 3Q.
Australia Commonwealth Bank Services PMI registered at 49.7 beating expectations of 49.5 in November while the Australia AiG Performance of Services Index down to 53.7 in November from previous 54.2
The New Zealand ANZ Commodity Price came in at 4.3% beating expectations of 1.6% in November.
The Japan Jibun Bank Services PMI came in at 50.3 below forecasts of 50.4 in November.
A Reuters report showed that capital investment made by the Chinese firms is at its lowest in three years amid trade tensions.
Yesterday, the RBA kept interest rates unchanged at 0.75%, meeting expectations.
The central bank of China (PBOC) set the Yuan rate (USDCNH) at 7.0382 versus yesterday’s settlement at 7.0223.
Trading Perspective: In fx markets, USD index trades 0.03 per cent higher at 97.75, the AUDUSD trades 0.33 per cent lower at 0.6824, while NZDUSD trades 0.21% lower at 0.6504. USDCHF is 0.18% higher at 0.9886.
GBPUSD trades 0.35% higher at 1.3040 as we are getting closer to the general election and the Brexit deadline on January 31st, 2020. Support for the pair now stands at 1.2578 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance will be met at 1.3010 recent high while more offers will emerge at 1.3050 round figure.
In Pound futures contracts markets, open interest increased by 11,800 contracts, while the volume increased by around 26.300 contracts.
EURUSD trades 0.07% lower at 1.1074 as the pair’s momentum has turned bullish for the short term. First resistance for the euro stands at 1.1172 recent high. On the downside, the first support stands at 1.1066 today’s low and then at 1.1003.
In euro futures markets, open interest decreased by 363 contracts, the volume decreased by around 82.500 futures contracts.
USDJPY is trading 0.08% higher at 109.01 having hit the daily low at 108.42 and the daily high at 108.78. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, resistance for the USDJPY now stands at 109.06 recent high.
In Yen futures markets, open interest decreased by 1,200 contracts, volume increased by around 34,600 futures contracts.
USDCAD is trading 0.10% lower at 1.3281 the pair will find support at 1.3017 the yearly low while extra support stands at 1.30 round figure. On the upside, resistance will be met at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.