Morning Wrap (25.11.2024)

• We are starting a new week of trading in international financial markets. The Asian session brought more than 1.3% gains in Japan’s Nikkei and 1.4% gains in Korea’s Kospi. However, Chinese markets are under downward pressure today, with the Hang Seng slipping 0.5% and mainland Chinese indices losing as much as 1%.

• The dollar halted its recent gains this morning as bond yields fell following the nomination of former George Soros fund director Scott Bessent as head of the US Treasury. The announcement sent the dollar into a nosedive early in Asian trading. However, the scale of these moves has since been limited.

• In his first post-election interview, Bessent said his top priority would be to deliver on Trump’s various promises of tax cuts, tariffs and spending cuts, as well as maintaining the dollar’s ​​status as the world’s reserve currency.

• The contacts suggest that the bullish side is currently dominating sentiment ahead of Monday’s opening trade. Futures on the German DAX and the US Nasdaq are currently up 0.5%.

• China has held its annual MLF rate for a second month in a row as it awaits the effects of its stimulus measures.

• The NZIER shadow monetary policy board is recommending that the Reserve Bank of New Zealand (RBNZ) cut its official interest rate by 50 basis points to 4.25 percent in its upcoming monetary policy statement on Wednesday.

• Today’s report showed that New Zealand retail sales fell further in Q3, at -0.1 percent q/q. However, it wasn’t as bad as the -1.2% drop in Q2, nor was it as bad as the -0.5% expected.

• This morning, we’re also seeing a pullback in precious metals. Gold is down 1.4% at the time of writing this post, while silver is down 1.7%.

• Crypto market sentiment is subdued at the moment. The most popular cryptocurrency is holding in the $98,000 zone.

Volatility currently visible in the FX market. Source: xStation