European Open Market Briefing – 21/11/2017 – by Arjun Lakhanpal

In Asian Equity Markets Japanese stocks rose on Tuesday after large cap stocks such as automakers and manufacturers of factory automation equipment rallied, while North Korean tensions supported defence-related shares. The benchmark Nikkei ended 0.7 percent higher to 22,416.48, while the broader Topix added 0.7 percent to 1,771.13. Gains on Wall Street overnight helped MSCI’s broadest index of Asia-Pacific stocks outside Japan rise 0.8 percent to a fresh decade-high. South Korea’s KOSPI rose 0.1 percent and Australian stocks climbed 0.3 percent. Shanghai added 0.5 percent and Hong Kong’s Hang Seng was 1.3 percent higher.

In Currency Markets the dollar gave back some of its gains in Asian trading on Tuesday but stuck close to a one-week high against a basket of currencies as a German political deadlock continued to pressure the euro. The euro edged up 0.1 percent to $1.1739, nursing losses after falling to $1.1722 in the previous session after German coalition government talks collapsed. Against the yen, the dollar was slightly lower on the day at 112.59, holding above its overnight low of 111.89 yen, which was its lowest since mid-October. The Australian dollar was down 0.2 percent at $0.7536 after falling as low as $0.7529 earlier, its deepest nadir since mid-June. The dollar index fell 0.1 percent to 94.029.

In Commodities Markets oil prices were little changed on Tuesday as the impact from expectations of an extended OPEC-led production cut was canceled out by rising output in the United States.  Brent crude futures were at $62.20 per barrel, 8 cents above their last close. U.S. West Texas Intermediate crude futures were at $56.50 a barrel, also up 8 cent from their last settlement. Spot gold was up 0.2 percent at $1,279.21 per ounce. The metal fell about 1.4 percent on Monday in its biggest one-day percentage decline since Sept. 11. Silver rose 0.2 percent to $16.95 an ounce and platinum was up 0.5 percent at $928.50. Palladium gained 0.3 percent to $991.50 an ounce.

In US Equity Markets stocks rose on Monday, with Verizon boosting the telecoms sector after the stock got an upgrade, while a deal in semiconductors lifted high-performing tech shares. The Dow Jones Industrial Average rose 0.31 percent, to 23,430.33, the S&P 500 gained 0.13 percent, to 2,582.14 and the Nasdaq Composite added 0.12 percent, to 6,790.71. Verizon boosted the telecom services sector of the S&P 500 with a 1.7 percent advance after a Wells Fargo note highlighted the stock’s valuation and said it is “an attractive yield play.” Time Warner Inc shares slid after reports the U.S. Justice Department will sue to prevent AT&T from buying Time Warner. Time Warner ended down 1.1 percent.

In Bond Markets U.S. Treasury yields rose on Monday as investors awaited minutes on Wednesday from the Fed’s last meeting, with no major economic releases due this week and trading expected to be subdued before the Thanksgiving holiday on Thursday. Benchmark 10-year notes fell 5/32 in price to yield 2.37 percent, up from 2.35 percent on Friday. The yield curve between two-year and 10-year notes also continued to flatten to 61 basis points, the lowest level since late 2007.

Economic Calendar

• 10:05 GMT+0 AUD RBA Gov Lowe Speaks
• 11:00 GMT+0 UK Inflation Report Hearings