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Daily Briefing –Wednesday, November 29, 2017

Europe

Wide ranging economic data out today in Europe. This morning saw Swiss UBS Consumption Indicator for October out at 7:00 AM GMT followed by the French Consumer Spending data at 7:45 AM GMT, British Mortgage Approvals at 9:30 AM GMT and the European Economic Sentiment Indicator at 10:00 AM GMT. Yesterday the EURUSD pair gained strength. What will happen today?

 

US

Uncertainty in the US regarding the proposed tax cuts, in addition to the expectancy of a new Federal Reserve Chair, to replace Janet Yellen whose term expires in February next year, is having its effects on the USD which has fallen against the EUR, despite the political unknown in Germany.

 

 

Asia

The Asia markets largely ignored the North Korean missile test yesterday with most markets creeping higher. The Tokyo NIKKEI 225 rose by 0.31% as did the Korean KOSPI which went up by 0.01% and Australia’s S&P/ASX 200 by 0.43%.

 

 

Commodities

Bitcoin has been climbing dramatically, breaking the $10,000 milestone on Tuesday. It has surged by 900 percent so far in 2017, as mainstream financial institutions such as JP Morgan have considered offering clients access to Bitcoin futures. Traders will recall that less than a month, JP Morgan CEO Dimon said that “any JPM trader caught trading bitcoin” would be “fired for being stupid.” On the other side of the coin however, experts do warn that the Bitcoin bubble will burst.

 

Shares

US stocks were optimistic yesterday with comments by Fed Reserve Chair nominee Jerome Powell’s comments in favor of an interest rate rise and the likelihood of tax cuts, rallying US equities. At the end of the day, the DOW was up by 1.09% at 23826.71, the S&P 500 rose by 0.98% to 2627.04 and NASDAQ gained 0.49%, going up to 6912.36. It remains to be seen how the tax cut vote on the floor of the Senate on Thursday affects the markets.

 

Today’s Events

10:00 PM GMT EU: Economic Sentiment
13:00 PM GMT Germany: Harmonized Index of Consumer Prices (Nov)
14:00 PM GMT UK: BOE’s Governor Carney speech

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