EUR/USD
Google
GBP/USD
Amazon

December 8, 2016

 

Time (GMT) Currency Event Previous Forecast
00:50 JPY Current Account 1.48T 1.57T
00:50 JPY Final GDP q/q 0.5% 0.6%
01:30 AUD Trade Balance -1.23B -0.72B
Tentative CNY Trade Balance 325B 307B
All Day EUR Italian Bank Holiday
13:45 EUR Minimum Bid Rate 0.00% 0.00%
14:30 EUR ECB Press Conference
14:30 USD Unemployment Claims 268K 272K

 

Global Commentary

Asian markets ended broadly higher on Wednesday in response to the overnight strength from global equity markets.  Australia’s S&P/ASX 200 led the way higher, gaining 0.91% despite the fact that Australian GDP for the third quarter posted a loss for the first time since 2011.  A weaker Yen helped to lift the Nikkei in Japan, giving it a 0.47% gain for the day.  Mainland China’s Shanghai Composite rallied in the afternoon to finish the day 0.71% higher, while over in Hong Kong the Hang Seng gained 0.55%.  Singapore’s Straits Times Index was up by 0.36% at the close, while the Kospi in South Korea had a more modest 0.10% gain.  European markets surged higher on the back of banking stocks, scoring a third consecutive winning session and hitting a more than two month high.  The broad based Stoxx Europe 600 finished the day 0.91% higher, with the DAX in Germany adding 1.96% and the CAC 40 in France 1.36% higher.  London’s FTSE also scored its best session in three months with a solid gain of 1.81% as mining shares continued to rally.  Markets in the U.S. opened slightly lower Wednesday as losses from the health care sector weighed on the broader market.  The major indices moved into positive territory later however, and a late day rally sent the S&P 500 and Dow to new record closing highs.  At the close the S&P 500 was higher by 1.32%, the Dow advanced 1.55%, and the Nasdaq gained 1.14%.

 

FOREX

EUR – The Euro finished broadly firmer on Wednesday as traders were optimistic about the shared currency ahead of the European Central Bank monetary policy meeting scheduled for Thursday.

GBP – The Pound softened broadly for a second consecutive session Wednesday as some Brexit related concerns remain in traders’ minds.

USD – The USD was mostly weaker on Wednesday, falling against the Yen and Euro, but gaining on the Pound as traders begin to turn cautious ahead of next week’s meeting of the Federal Reserve and lower Treasury yields for the day weighed on the greenback.

JPY – The Yen was mostly stronger Wednesday, firming against the Pound and USD, but ending softer versus the shared Euro currency.

TRY – The Lira firmed broadly for a second consecutive session on Wednesday as Turkish citizens and institutions continued responding to President Recep Tayyip Erdoğan’s call to protect the currency by exchanging dollars for liras.

RUB – The Ruble firmed substantially and broadly late Wednesday after Moscow announced that Glencore and Qatar’s sovereign wealth fund have together acquired a 19.5 percent stake in Russia’s top state-controlled oil company, Rosneft, in a deal worth 10.5 billion euros ($11.3 billion).  The deal is expected to help Russia balance its budget after two years of Western sanctions and falling crude prices.

 

Commodities

Metals – Precious metals gained on Wednesday, spurred higher by weakness from the U.S. dollar and a drop in Treasury yields ahead of next week’s Federal Reserve meeting.  Gold futures for February delivery rose $8.80, or 0.8%, to finish $1,178.90 an ounce.  March silver changed hands at $17.205 an ounce, up $0.395, or 2.4% for the session.

Oil – Crude fell for a second consecutive day and settled below $50 a barrel after the U.S. reported rising gasoline and distillate inventory levels.  January West Texas Intermediate crude lost $1.16, or 2.3%, to settle at $49.77 a barrel.

 

Indices

S&P500 – The S&P began the day slightly in the red, but soon moved into positive territory.  The index continued to rise throughout the day, gaining momentum as it moved into the afternoon.  Late session strength sent the S&P to a new record closing high as it gained 1.32% for the day on broad based strength across all but the health care sector.

DAX – The DAX powered higher on the back of gains from banking and mining stocks Wednesday, closing at its highest level in more than a year.  After surging higher at the open the index continued to edge higher throughout the day, finishing with a gain of 1.96% to lead European markets higher.

Nikkei – The Nikkei opened to gains thanks to a weaker Yen and continued to rise to mid-morning before dropping back to opening levels just before the lunch break.  The rally resumed after lunch, with the Nikkei rising steadily throughout the afternoon to finish at its session high with a gain of 0.47%.


Stocks

Amazon – While Amazon shares bounced somewhat following the presidential election in conjunction with the rally in the broader market, for the most part the trend for the stock has been lower since late October.  The pullback comes after seeing the stock rally by more than 60% since hitting its February lows, so is probably healthy for the stock anyway.  The $800 level is likely to be resistant once the stock begins to rally again, which it might not do until all of the holiday sales figures are in, although the company has seen increasing profits from its cloud computing business that could more than offset some holiday weakness this year.  That said, the U.S. holiday shopping season looks to be shaping up to be quite strong, and we think shares of Amazon will benefit strongly in the first quarter of 2017 when they report revenues for the final quarter of 2016.

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GENERAL RISK WARNING: TRADING IN BINARY OPTIONS AND CFDS CARRIES A HIGH LEVEL OF RISK AND MAY NOT BE APPROPRIATE FOR ALL INVESTORS.  IT IS POSSIBLE TO LOSE OF ALL OF YOUR INVESTED CAPITAL SO YOU SHOULD NOT INVEST MONEY THAT YOU CANNOT AFFORD TO LOSE. FOR MORE INFORMATION ABOUT THE RISKS INVOLVED, PLEASE CLICK HERE .

COMPANY/WEBSITE INFORMATION: 24OPTION.COM/EU IS OWNED AND OPERATED BY RODELER LIMITED FOR THE PROVISION OF INVESTMENT SERVICES AND/OR ACTIVITIES WITHIN THE EUROPEAN ECONOMIC AREA. RODELER LIMITED DOES NOT PROVIDE SERVICES TO RESIDENTS OUTSIDE THE EUROPEAN ECONOMIC AREA.  RODELER LIMITED IS A CYPRUS INVESTMENT FIRM REGISTERED IN CYPRUS (HE 312820) AND AUTHORIZED AND REGULATED BY THE CYPRUS SECURITIES AND EXCHANGE COMMISSION UNDER LICENSE NUMBER 207/13. RODELER LIMITED IS LOCATED AT 39 KOLONAKIOU ST., AYIOS ANTHANASIOS, CY-4103 LIMASSOL, CYPRUS. FOR MORE INFORMATION, PLEASE CLICK HERE  OR CONTACT US AT [email protected].

RODELER LIMITED BELONGS TO THE SAME GROUP OF COMPANIES WITH RICHFIELD CAPITAL LIMITED. RICHFIELD CAPITAL LIMITED IS A COMPANY REGULATED BY THE INTERNATIONAL FINANCIAL SERVICES COMMISSION OF BELIZE (NUMBER IFSC/60/440/TS/15-16). 24OPTION.COM IS OWNED AND OPERATED BY RICHFIELD CAPITAL LIMITED. THE TWO ENTITIES ARE SHARING THE 24OPTION BRAND. RICHFIELD CAPITAL LIMITED DOES NOT PROVIDE SERVICES TO RESIDENTS OF THE EUROPEAN ECONOMIC AREA.