Market Brief: Amazon Earnings & Brexit Limbo Cap Risk Appetite


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FX Brief:

  • Lack of economic data, market-moving headlines or, pretty much anything made for a quiet session in Asia. Traders will now be focussed on next week’s Fed meetings, so we may well find trading ranges to be below average and in a ‘wait and see’ holding pattern.
  • Brexit uncertainty weighed slightly on risk, seeing NZD and AUD weaken with NZD currently the weakest currency and largest mover of the session. NZD/JPY has broken yesterday’s low to suggest a reversal could be underway and ZD/USD has touched a 5-day low.
  • As you’d expect, FX majors trade in narrow ranges and, across the 20 FX pairs we track, the daily ranges have averaged just 30% of their ATR. Still, this leaves potential meat on the bone should any headlines see volatility stir throughout the European or US session.
  • Equity Brief:

  • Key Asian stock markets are trading in a mix fashion as at today’s Asia mid-session. Dismal earnings result from U.S. bellwether technology/consumer discretionary stock, Amazon and the latest Brexit fiasco where U.K PM Boris Johnson is now seeking parliament approval for a snap election on 12 Dec have sucked out some “bullish optimism” from the markets.
  • Singapore’s Straits Times Index has continued to surge with a gain of 0.45% and its now on sight for a weekly gain of 2.3%, the best performance since Jun 2019 led by a stellar rally of 7% seen in Singapore Exchange where the local bourse has reported the biggest quarterly net profit increase in 12 years; $114.2 million in Q1 ending Sep 2019, up 25.5% y/y.
  • Also, Singapore property market has continued to show signs of resilient despite a global economic slowdown. Private residential prices have increased to 1.3% in the past 3 months ended Sep 2019, up from the preliminary estimate of 0.9% gain.
  • Australia’s ASX 200 is the best performer so far today with a gain of 0.67% led by the healthcare sector which has rallied by 2.66%.
  • Up Next

  • A quiet session overall for economic data. German IFO warrants a look though, as the business sentiment indicator showed minor signs of a revival with its first rise in 6-month (from multi-year, pessimistic lows….). EUR/USD closed below 1.1100 yet it remains a key level going forward, so if the rebound continues we could expect Euro to break back above this level. If extend its retracement lower if sentiment sours once more.

  • Matt Simpson and Kelvin Wong contributed to this article
    Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.

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