Original insights into market moving news

RANsquawk EU Open Rundown 10.03.17

  • Asian equities traded mixed overnight, failing to find direction amid light newsflow
  • The USD-index was rangebound just below the 102.00 level as participants await the key risk US jobs data
  • Highlights include US nonfarm payrolls, UK industrial and manufacturing production and German trade balance


Asia trades mixed following the lacklustre gains on Wall St. where strength in healthcare and financials kept indices afloat. ASX 200 (+0.6%) was led higher by similar outperformance seen in the aforementioned sectors, considering financials account for almost 50% weighting in the index, while Nikkei 225 (+1.5%) was underpinned by a broadly weaker JPY. Elsewhere, Shanghai Comp. (Unch.) and Hang Seng (+0.2%) were choppy amid a lack of conviction following mixed lending data and after the PBoC refrained from liquidity operations for a 2nd day, while KOSPI was supported after President Park’s impeachment was upheld as expected which was viewed as the more politically-stable outcome. Finally, 10yr JGBs sspanugged off the selling in its global counterparts and positive risk appetite in Japan, to trade with mild gains amid the BoJ in the market for a total of JPY 1tln in government debt.

PBoC Governor Zhou stated that monetary policy is currently neutral and prudent, while he added the PBoC has plenty of tools. Governor Zhou also stated that chaos is seen in China's asset management sector and talked about raising financial sector regulation. (Newswires)

PBoC refrained from conducting market operations today, for a net weekly drain of CNY 110bln vs. net weekly drain CNY280bln in the prior week. (Newswires)

PBoC set CNY mid-point at 6.9123 (Prev. 6.9125)

South Korean court justices unanimously upheld President Park’s impeachment judgement, which means Park will permanently be removed from position and will lose her immunity against criminal prosecution, while the nation has to conduct presidential elections within 60 days. (Newswires)


German Chancellor Merkel said that ECB President Draghi stressed to EU leaders that structural reforms are necessary. (Newswires)


UK PM May reiterated that she will trigger article 50 by the end of March. (Newswires)


In FX markets, the USD-index was rangebound just below the 102.00 level as participants await the key risk US jobs data. JPY weakened across the board in which USD/JPY reclaimed the 115.00 handle and JPY crosses edged fresh session highs as GBP/JPY and EUR/JPY advanced above the 140.00 and 122.00 levels respectively. Elsewhere, commodity linked currencies benefited as oil nursed losses, while KRW strengthened after the Constitutional Court upheld President Park’s impeachment.

Riksbank's Jochnick said the SEK ought to strengthen and the Riksbank should continue with expansionary monetary policy. (Newswires)


WTI crude futures attempted to nurse some of the 7% losses seen in the prior 2 days, although prices still remain below USD 50/bbl. Elsewhere, gold (-0.2%) continued its steady decline dropping below the USD 1,200/oz level as the greenback remained firm on the prospects of a Fed hike next week, while copper prices remain subdued amid indecisive risk sentiment ahead of the looming NFPs.

Saudi Arabia have told US firms not to assume OPEC will extend supply cuts to offset shale output growth, according to sources. (Newswires)

World's leading gold mining companies expect Indian gold demand to increase this year, according to World Gold Council report. (Newswires)


North Korea are said to show activity at nuclear test site in possible preparation for a new test. (Yonhap)


US markets followed from Draghi’s and the ECB’s optimism, shown in the increased 2017 CPI forecast to 1.7% (Prev. 1.3%), lifts 2018 forecast to 1.6% (Prev. 1.5%), maintains 2019 forecast at 1.7%. This led to selling in the Bund, falling close to 100 ticks on the day, proving to be the catalyst in the 10y T-note, breaking out of the range we have become so familiar with and breaking tspanough year lows, with the 10y Jun’17 future settling at 122.23 down 10 ticks, resulting in the 10y yield looking at 2.6%. Heading into European hours, T-Notes trade 122.22+.

US Treasury Secretary Mnuchin sent a letter to House leaders today asking they vote to increase federal debt ceiling. (Newswires)