Asian stock markets rebounded on Thursday based on the global selloff in the past few days with Japan’s benchmark Nikkei 225 breaking ground. Learn more from the 16 November Market moving fundamental events
16 November, HotForex – Stock markets bounced back during the Asian session, and the Nikkei gained nearly 1.5% as technology and telecom stocks led the way and a weaker Yen added support. Profit taking seems to have run its course and traders are leaving concerns about the progress of U.S. tax reforms and China’s slowdown and credit burden behind and refocus on positive corporate earnings. U.K. and U.S. futures are also higher, suggesting that global markets are set to recover some of the losses from earlier in the week.
European Market Outlook
Yields still dropped in Asia overnight and Bund futures climbed higher in after-hour trade, with Eurozone peripherals in particular likely to benefit from the return in risk appetite. The EUR is down from recent highs, but still hovering around the 1.18 mark against the Dollar. The local calendar has U.K. retail sales data and the final reading of Eurozone HICP inflation for October.
USDJPY has traded firmer so far today, rising concomitantly with stock markets in Asia. U.S. equity index futures are also up after the USA500 posted its biggest daily loss yesterday in two months. The yen has been correlating inversely with global stock markets this week, as it is apt to do during phases of pronounced swings in investor risk appetite.
The weakness in the currency today has, in turn, injected extra buoyancy into Japanese stock markets, with the Topix index outperforming most of its regional peers with a gain of just over 1%. News that two U.S. senators (Ron Johnson and Susan Collins) have publicly criticised the tax reform bill may limit the rebound potential of stock markets, at least on Wall Street.
Main Macro 16 November Market moving fundamental events
- UK Retail Sales – Expectations – pick up to 0.1% for October, from -0.8% seen in September.
- EU Final CPI – Expectations – unchanged at 1.4% and core at 0.9%.
- Canadian ADP Non-Farm Employment Change & Manuf. Sales – Expectations – Manufacturing Sales expected to fall down to -0.4% from 1.6% last month, while Canadian ADP Non-Farm Employment Change will be released for the first time.
- US Jobless Claims, Production & Philly Fed index – Expectations – Jobless claims expected to dip to 235K, while Philly index expected ay 25.0 from 27.9 seen in October.
- BoE and FOMC – BoE Governor Carney is due to speak along with MPC members Broadbent, Cunliffe, and Ramsden about economics at various public schools, in Liverpool. FOMC members Kaplan and Brainard are due to give a speech in Houston and Michigan respectively.
Support and Resistance Levels
This article about 16 November Market moving fundamental events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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