Here are the top things you need to be aware of, prior to your trading in the US markets on Monday, December 10:
1. Brexit vote in UK parliament reportedly delayed; PM May to make address at 15:30 GMT
There is speculation that the parliamentary vote has been postponed, according to UK media, while Bloomberg has cited sources confirming that is the case. This comes with UK Prime Minister May presently in talks with her cabinet. May will be making a statement at 15:30 GMT in London. What the plan will be if the vote is delayed is uncertain, especially as a renegotiation would look unlikely to achieve anything better, particularly on the contentious Irish border backstop issue.
2. US Equities climbed back into the green
After a broad sell-off in Asian markets overnight and as European stock markets are up from early lows, US Equities are moving higher after reversing overnight losses, but are only in shallow positive territory after recent losses. The China spat hardened a bit with USTR’s Lighthizer confirming the 90-day trade truce was a firm one, while China mulled retaliation steps for the Huawei CFO arrest and summoned the US Ambassador over the incident.
Market Reaction: The USA30 is 19 points firmer, USA500 gained 3-points and USA100 is up 17 points in pre-open trade. This followed fresh losses in Asia, with the JP225 2.1% lower and the China CSI 300 off 1.1%. In Europe, the major bourses are 0.3-0.5% lower outside of the perverse 0.3% uptick on the UK100 (given drop in Sterling). The WTI crude is off 1.6% to $51.77 bbl. Downgrades on Apple suppliers Skyworks and Qorvo weighed amid slackening iPhone demand.
3. WTI crude down over 1.5% despite OPEC’s 1.2 mln bpd output cut
Market Reaction: USoil is currently at $51.83, earlier posting a low at $51.62. Friday’s low is at $50.60. Crude prices have remained buoyant despite Friday’s news that OPEC agreed on lowing output quotas by 1.2 mln barrels a day. Bullish sentiment is being curtailed by concerns about flagging global demand in the face of slowing major economies and weaker emerging economies.
4. October JOLTS job openings data
October JOLTS job openings is the only data on tap and expected to improve slightly in November at 7.22M, following rthe 7.01M in October.
Market Reaction: The release of JOLTS data is likely to leave the Dollar indifferent. The USDIndex is relatively steady near 96.75. EURUSD posted a three-week high at 1.1442, while the Dollar lost ground to the Dollar bloc currencies as equity markets in Europe and USA500 futures pared intraday (or intranight, in the case of the latter) losses. The pair has been in a bear trend since April, although downside momentum has abated in recent weeks, gaining amid a soft Dollar profile as Fed policy expectations are recalibrated.
Click here to access the HotForex Economic calendar
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
