Asia Summary and Highlights 16 Dec
Risk sentiment stays poor
Asia Session
The sell off in equities continues on Tuesday as we see major equity indexes all heads south. Tech stocks lead the losses as risk off sentiment gain further momentum. JPY is gaining as market participants seek haven and see USD/JPY trading 0.33% lower at 154.7 with both U.S. Treasury and JGB yields fall.
As the session progress, risk sentiment remains poor even after a minor rebound from session low. The Aussie sunk along the broader risk sentiment. However, certain large firms tilt in RBA rate pricing in favor of a February hike seems to have breathed an air of life for it. AUD/USD is trading 0.01% lower at 0.6640 after touching a se session low of 0.6618, NZD/USD is trading 0.08% lower while USD/CAD is unchanged. Else, EUR/USD is down 0.02% and GBP/USD is down 0.05%.
European and North American sessions
The USD slipped in Europe and early North America but ended little changed. USD/JPY found support below 155 and recovered to 155.25. EUR/USD rallied from 1.1730 to 1.1770 before slipping back to 1.1750. EUR/GBP was slightly firmer at .8785 as was EUR/CHF at .9360. AUD and CAD saw modest losses.
November Canadian CPI was slightly softer than expected at 2.2% yr/yr. unchanged from October, with CPI-Median and CPI-Trim slipping to 2.8% from 3.0%. December’s Empire State manufacturing index slipped to -3.9 from 18.7 but December’s NAHB homebuilders’ index rose to 39 from 38. Fed’s Miran was dovish and Williams moderate, in line with reputation. Trump said he would choose a new Fed Chair soon, with Kevin Warsh and Kevin Hassett now the front runners.