Daily Market Review – November 27,2018

Asia

Coming on the back of news that Jack Ma is a book carrying member of the Communist party, Chinese indexes this morning are all down between a ¼ and a ½%, with the Nikkei up point 8, and australia’s S&P a full percent on energy gains. Buut perhaps the biggest news is Beijing’s opening up of its finance sector with the approval of German insurer Allianz SE for business on the mainland. This comes on the heels of similar decisions vis-à-vis American express, United technologies and aircraft parts maker Rockwell Collins.  

Europe

The pound yesterday expressed some short-term optimism after the EU approved its Brexit deal with Britain. Holland’s mark Rutte warned the UK parliament not to vote against the deal, as the union had no intention of reopening negotiations. Meanwhile, the Euro also seemed to be shrugging off weak german confidence data in which all 3 measures fell about a point each. Still, European benchmarks managed to eke out impressive results yesterday, the DAX adding nearly a percent and a ½, and Italy’s FTSE nearly 3. ECB president Draghi told the European parliament that his bank would begin phasing out quantitative easing in December, come what may.

US

He USD continues on its 2-month upward trend despite what seems to be difficulty breaking the $97 mark. Indexes finally broke into positive territory, with the Nasdaq leading on a 2% increase followed closely by the dow and S&P. Trump meets China’s Xi on Friday, but not before expressing pessimism in the form of more tariffs expected on January 1st. Yesterday’s dallas manufacturing business index dropped by nearly half to 17.6 on October’s 29.4. And coming on the heels of last week’s weak data, an additional interest rate hike in December seems to be getting more and more distant.

Commodities

With OPEC members meeting in Vienna this week, oil yesterday interrupted its downward trend, hitting the 52 mark before erasing half those gains. And in cryptos, we’re seeing about700,000 bitcoin miners closing down in the past couple of weeks due to a decline in value and hashrate.

Events

Following French confidence and producer price measures, we have business confidence from Italy at 9 am GMT, followed by the Redbook index from the US at 5 to 2. House prices will be in 5 minutes later, and fed members Evans, George and Bostic speak tonight. The API is in at 9:30, and UK shop prices and Australian construction at a half past midnight.

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