The Morning Hark - 7 Dec 2023
Today’s focus... China trade lifts the gloom. USDJPY getting excited. Offers starting to appear in Bitcoin.
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Overnight Highlights
Prices are at 7.05 GMT/2.05 EST, with changes reflecting movement from midnight GMT
Oil - Oil regaining a modicum of composure in the Asian session with Brent and Crude February futures currently up smalls at 74.60 and 69.80 respectively. Oil took a kicking yesterday falling to a near 6 month low on the back of EIA stats that showed a much larger than expected ( 4x) build in inventories of gasoline in the US putting more pressure on the, already beleaguered, demand side of the sector. A firmer USD did little to lighten the tone.
Meanwhile Russia’s Deputy Prime Minister Novak said that OPEC+ could take further steps if last week’s measures weren’t enough to balance the oil market which after last week’s market reaction to the voluntary oil cuts seems like a desperate call.
EQ - Asian equity markets back in their usual stride with another down day as the Hang Seng and Nikkei futures both down close to one percent at 16,310 and 32,750 respectively as they play catch up with the US stock market’s losses from yesterday.
The US indices flat in Asia with the S&P currently at 4555 whilst the Nasdaq is at 15,800. Yesterday’s declines were on the back of steep losses in the energy sector with oil under pressure.
Gold - Gold, as we said yesterday, is back to its nailed to the wall status. Feb futures at 2045, as we opened yesterday. Play the range until we see a decisive move back below 2000 or 2085.