This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The attention overnight had been with the US dollar. The lack of news and events have allowed economic indicators to take the lead in prices though thin markets have kept reactions mild. US Q3 GDP was revised higher than expected to 3.5% quarter-on-quarter (QoQ) in the third reading from 3.2% QoQ earlier and the initial 2.8% QoQ, marking the highest growth rate in two years. This had briefly pushed up the USD index before prices see-sawed on the release of a series of data including durable goods orders, personal income and spending data. The USD index had entered Friday with a net higher position, flat lining around 103.10 when last checked (08:30am Singapore time).
Asian currencies are expected to remain pressured in the day with KRW dipping to the lowest level against the USD since March. When compared to levels since the US elections, KRW had shed approximately 5.7%, making it the third worst hit Asian currency in terms of percentage following the safe haven JPY and MYR. Indeed with the domestic growth concerns and political unrest, it is no surprise to find the won up on the list. Sustained concern over capital outflow in the region could keep the dark clouds over Asian markets for an extended period, until reassessment is due in the New Year.
Meanwhile on equities, traders have been closing their position into the end of the year and have brought down most of the sectors on the S&P 500 index with the exception of energy and defensives – telecommunications and utilities. Asian indices could remain depressed into the end of the year and thin volumes have even seen the ASX revert to a moderate red this morning after touching fresh highs since August 2015 from the Santa rally.
The final day of the week sees Singapore’s November inflation data and industrial production from both Singapore and Taiwan. The market is expecting improvements for the set of the data from the previous month.
Yesterday: S&P 500 -0.19%; DJIA -0.12%; DAX -0.11%; FTSE +0.32%