 Risk aversion dominates the global markets today and is intensifying. Major European indices are trading broadly lower with sign of downside acceleration. US futures also point to lower open, with DOW having triple-digit loss. In the currency markets, Australian Dollar is the weakest one for today. Euro follows as the second worst performing as German-Italian spread widens again. Swiss Franc and Japan Yen are the strongest one naturally. Sterling is mixed as UK Prime Minister Theresa May survived another day with no leadership challenge triggered yet. Technically, there is no clear new development yet. Dollar could remain mixed as it's pressured by Swiss Franc and Yen. However, the greenback could pick up some strength against Euro and Canadian, and even Sterling and Aussie. Euro also seem to be losing upside momentum against both Dollar and Sterling. But most importantly, EUR/JPY is starting to feel heavy and could have a take on 127.49 minor support shortly. In Europe, at the time of writing, FTSE is trading down -0.49%, DAX is down -1.17%, CAC is down -1.13%. German 10 year yield is down -0.021 at 0.355. Italian 10 year yield is up 0.004 at 3.605. Spread widens to 325. Earlier in Asia, Nikkei dropped -1.09%, Hong Kong HSI dropped -2.02%, China Shanghai SSE dropped -2.13%, Singapore Strait Times dropped -1.24%. From the US, housing starts dropped to 1.23M annualized rate in October. Building permits dropped to 1.26M. Both matched expectations. Released earlier, UK CBI trends total orders rose to 10 in November, much better than expectation of -5. German PPI rose 0.3% mom, 3.3% yoy in October, matched expectations. Swiss trade surplus widened to CHF 3.75B in October. |
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