Posted at 15 March 2023 / Categories Market Roundups
Market Roundup
•Canada Feb Housing Starts 244.0K,220.0K forecast, 215.4K previous
•US Feb PPI (MoM) -0.1%, 0.3% forecast,0.7% previous
•US Feb Retail Sales Ex Gas/Autos (MoM) 0.0%, 2.6% previous
•US Feb Retail Sales (MoM ) -0.4%, -0.3% forecast, 3.0% previous
•US Feb Core PPI (YoY) 4.4%,5.2% forecast,5.4% previous
•US Feb Core Retail Sales (MoM) -0.1%,-0.1% forecast,2.3% previous
•US Feb PPI (YoY) 4.6%, 5.4% forecast,6.0% previous
•US Feb PPI ex. Food/Energy/Transport (MoM) 0.2%, 0.6% previous
•US Feb Core PPI (MoM) 0.0%, 0.4% forecast,0.5% previous
•US Feb PPI ex. Food/Energy/Transport (YoY) 4.4%,4.5% previous
•US Mar NY Empire State Manufacturing Index -24.60 ,-8.00 forecast,-5.80 previous
•US Feb Retail Sales (YoY) 5.39%,1.76% previous
•US Feb Retail Control (MoM) 0.5%, -0.3% forecast,-1.7% previous
•US Jan Retail Inventories Ex Auto 0.1%, 0.2% forecast, 0.2% previous
•US Mar NAHB Housing Market Index 44, 40 forecast,42 previous
•US Jan Business Inventories (MoM) -0.1%,0.1% forecast, 0.3% previous
•US Crude Oil Inventories 1.550M, 1.188M forecast,-1.694M previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Feb Trade Balance -1,069.4B forecast,-3,498.6B previous
•23:30 Japan Feb Imports (YoY) 12.2% forecast,17.5% previous
•23:30 Japan Core Machinery Orders (MoM) 1.8% forecast,1.6% previous
•23:30 Japan Feb Exports (YoY) 7.1% forecast,3.5% previous
•23:30 Japan Foreign Bonds Buying -168.6B previous
•23:30 Japan Foreign Investments in Japanese Stocks -595.4B previous
•23:30 Japan Adjusted Trade Balance -1.82T previous
•00:30 Australia Feb Unemployment Rate 3.6% forecast,3.7% previous
•00:30 Australia Feb Participation Rate 66.6% forecast,66.5% previous
•00:30 Australia Feb Employment Change 48.5K forecast,-11.5K previous
•00:30 Australia Feb Full Employment Change -43.3K previous
•01:30 China Feb House Prices (YoY) -1.5% previous
•04:30 Japan Jan Capacity Utilization (MoM) -1.1% previous
•04:30 Japan Industrial Production (MoM) -4.6% forecast,-4.6% previous
Looking Ahead Events and Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined against the dollar on Wednesday after Credit Suisse's tumble to new low renewed worries about the European banking sector following Silicon Valley Bank's collapse. Credit Suisse shares fell around 20% after its biggest investors said it could not provide more backing. All eyes will now be on the European Central Bank, which is still leaning towards a half-percentage-point rate hike on Thursday, despite turmoil in the banking sector, as they expect inflation will remain too high in coming years. The dollar index , which measures the U.S. currency against six others, rose 0.925% and the euro fell 1.42% to $1.058. Immediate resistance can be seen at 1.0561(5DMA), an upside break can trigger rise towards 1.0744(23.6%fib).On the downside, immediate support is seen at 1.0574(50%fib), a break below could take the pair towards 1.0519(Lower BB).
GBP/USD: The British pound declined against the dollar on Wednesday as markets fretted about the state of the European banking system as the fallout from the collapse of U.S. tech lender Silicon Valley Bank gathered pace. Shares in Swiss lender Credit Suisse plummeted more than 30% at one stage after its largest investor said it could not provide more financial assistance to the bank. The slide led the wider European banking index lower, triggering demand for the safe-haven dollar and away from high-beta currencies such as the pound. The pound was last down 0.7% against a broadly stronger dollar at $1.2066, having hit a one-month high of $1.2203 on Tuesday. Immediate resistance can be seen at 1.2136 (50DMA), an upside break can trigger rise towards 1.2202(Higher BB).On the downside, immediate support is seen at 1.2003(38.2%fib), a break below could take the pair towards 1.1934(March 3rd low).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as lower oil prices and stronger dollar weighed on commodity lined Canadian dollar. U.S. April crude futures fell $3.72 to settle at $67.61 a barrel on Wednesday. Canadian housing starts in February rose more than expected to 244,000 units from a revised 216,500 units the previous month, the Canadian Mortgage and Housing Corporation (CMHC) said. A survey of 14 economists polled had forecast February housing starts rising to 220,000 units. The loonie was trading 0.5% lower at C$1.3746 to the greenback, after trading in a range of 1.3661 to 1.3814. Immediate resistance can be seen at 1.3800(23.6%fib), an upside break can trigger rise towards 1.3855(Higher BB).On the downside, immediate support is seen at 1.3756(9DMA), a break below could take the pair towards 1.3723 (38.2%fib).
USD/JPY: The dollar declined against yen on Wednesday as investors rushed back into safe-haven yen as renewed unease gripped world markets as news that Credit Suisse's largest investor said it could not provide the Swiss bank with more financial assistance sent its shares and broader European shares sliding once more. Signs of calm and stability in banking stocks, that have tanked in the past week, following the collapse of Silicon Valley Bank (SVB), soon paved way for renewed selling as Credit Suisse shares fell to fresh record lows. The dollar dipped 0.72% at 133.02 against Japanese yen .Strong resistance can be seen at 134.30(5DMA), an upside break can trigger rise towards 134.94(50%fib).On the downside, immediate support is seen at 132.93(38.2%fib), a break below could take the pair towards 132.06(Lower BB).
Equities Recap
European shares on Wednesday had their worst day in over a year as a selloff in bank stocks resumed on renewed investor concerns about stresses within the sector, with Credit Suisse plunging to a fresh record low.
UK's benchmark FTSE 100 closed down by 3.83 percent, Germany's Dax ended down by 3.27 percent, France’s CAC finished the day down by 3.58 percent.
U.S. stocks pared losses late on Wednesday but the Dow and S&P 500 still closed lower, as problems at Credit Suisse revived fears of a banking crisis, eclipsing bets on a smaller U.S. rate hike this month.
Dow Jones closed down by 0.87 percent, S&P 500 closed down by 0.70 percent, Nasdaq settled up by 0.05 % percent.
Commodities Recap
Gold prices climbed over 1% to their highest since early February on Wednesday as a fresh crisis in the banking sector turned investors away from seemingly riskier assets and drove them to the safety of bullion.
Spot gold jumped 1.2% to $1,924.63 per ounce by 11:56 a.m. EDT (1556 GMT). U.S. gold futures gained 1.1% to settle at $1,931.30.
Oil prices plunged more than $5 a barrel on Wednesday to their lowest in more than a year as unease over Credit Suisse spooked world markets and offset hopes of a Chinese oil demand recovery.
Brent crude was down $3.76, or 4.9%, to $73.69 a barrel. U.S. West Texas Intermediate crude (WTI) was down $3.72, or 5.2%, at $67.61, breaking through technical levels of $70 and $68 and extending the sell-off.