Prashant Newnaha, Asia-Pacific Macro Strategist at TD Securities, shares the market performance in the Asian trade, noting that USD’s G10 peers moved up, led by the AUD.
Key Quotes
“Antipodean bonds were bid from the open following news overnight that the ECB would refuse Greek government bonds as collateral, as terms of the Greek bailout remain unresolved and re-fuels Grexit fears.”
“Yields hit lows for the session close to the open, but then drifted higher by around 3bps. NZGB yields were bid too, but lost steam to end 2bps lower in yield , Dec 17s 3.11% and the Apr 23s 3.17%.”
“The PBoC RRR cut in London hours failed to ignite a risk rally overnight, and Chinese stocks tacked on just +1%. In contrast Australian equities are up for 10 straight days on hopes for further cuts, adding 9% over that period, the longest successive period of positive closes since 2003. Meanwhile Japanese stocks are down 0.8% and the 30yr JGB auction went poorly (btc 2.67 vs 3.56 prior with a wide tail).”
“In FX, the USD slept while G10 peers perked up, led by the AUD, +0.3% to US$0.7775, near the session highs and the NZD +0.25% to US$0.7380 also near the highs. The ¥ is little changed at ¥117.20.”
“Across commodities, gold is up US$3, copper futures are down -0.7%, iron ore is flat , and Brent futures are weaker, off 0.5%, but were up as much as 1.4% early in Asian trade.”
Key Quotes
“Antipodean bonds were bid from the open following news overnight that the ECB would refuse Greek government bonds as collateral, as terms of the Greek bailout remain unresolved and re-fuels Grexit fears.”
“Yields hit lows for the session close to the open, but then drifted higher by around 3bps. NZGB yields were bid too, but lost steam to end 2bps lower in yield , Dec 17s 3.11% and the Apr 23s 3.17%.”
“The PBoC RRR cut in London hours failed to ignite a risk rally overnight, and Chinese stocks tacked on just +1%. In contrast Australian equities are up for 10 straight days on hopes for further cuts, adding 9% over that period, the longest successive period of positive closes since 2003. Meanwhile Japanese stocks are down 0.8% and the 30yr JGB auction went poorly (btc 2.67 vs 3.56 prior with a wide tail).”
“In FX, the USD slept while G10 peers perked up, led by the AUD, +0.3% to US$0.7775, near the session highs and the NZD +0.25% to US$0.7380 also near the highs. The ¥ is little changed at ¥117.20.”
“Across commodities, gold is up US$3, copper futures are down -0.7%, iron ore is flat , and Brent futures are weaker, off 0.5%, but were up as much as 1.4% early in Asian trade.”
