FTSE +10 points at 7078
DAX +6 points at 11478
CAC +2 points at 4850
Eurostoxx +2 points at 3280
November has been a good month for Japan, as yen depreciated circa 12% against the US dollar. Japanese industrial production improved 4.6% on year to November, approaching the consensus of 4.7%, the retail sales expanded 0.2% month-on-month and the vehicle production soared 6.6% year-on-year. Government revised up the sector assessment. The yen has been the only loser against the US dollar in Tokyo. The USD/JPY traded in the tight range of 117.37/117.74, still shy of the 118.00/118.65 offers that need to be drilled before another leg up toward the 120.00 handle. The Nikkei (+0.02%) and Topix (-0.0%) were flat.
Australian ASX 200 gained 1.01% in Sydney, as basic materials (+2.43%) lead gains. BP (NYSE:BP) said to buy 500 gas stations across the continent from Woolworths (AX:WOW) (+1.93%). The deal will help Woolworths consolidating its balance sheet, while BP will become one of the leading oil providers in Australia.
Australian stocks hit the highest levels of this year and are set for a strong close on the back of higher commodity prices and firm appetite in stock markets since Donald Trump’s victory in the US presidential election. The Aussie appreciated 0.38% against the US dollar, yet remains relatively soft due to a significant lack of carry inflows. AUD/USD offers are eyed at 0.7246 (minor 23.6% retracement on Dec 14th to 23rd fall) before 0.7299 (major 38.2% retrace). On the downside, support is seen at 0.7145 (May’16 low). Stops are eyed below.
Gold traders rapidly sold into yesterday’s spike to $1150, yet buyers were back in charge since early trading hours in Asia. The formation of a golden cross (50-hour moving average crossing above 200-hour moving average) could encourage a re-test of $1150. Although the US yields remain firm, short-term stagnation or correction, could give a further boost to the yellow metal. The key mid-term resistance is eyed at $1175 (major 61.8% retracement on Dec’15 to Jul’16 rise).
US and European stock futures traded in the green. German DAX (+0.24%) and Swiss SMI (+0.50%) outperformed; Eurostoxx gained 0.21%. FTSE futures (+0.06%) were slightly softer, yet firmer oil and commodity prices and the BP-Woolworths deal could give a boost to the UK stocks at the open.
Europe is set for a mixed open. FTSE is called 10 points higher at 7078 pence; the DAX is seen 6 points firmer at 11478, while the CAC and Eurostoxx could be softer at the open.