China Exports Rise in November

News Event

From Trading Economics: Exports from China unexpectedly increased by 0.1 percent from a year earlier to USD 196.81 billion in November of 2016, following a 7.3 percent drop in the preceding month and beating market estimates of a 5.0 percent fall. It was the first gain since March. In yuan-denominated terms, exports rose 5.9 percent from a year ago, following a 3.2 percent drop in a month earlier. It was the first increase in three months. Considering the first eleven months of 2016, exports dropped by 7.5 percent from the same period in the preceding month.

Market Opening Wrap

In Asian Equity Markets Japan's Nikkei index closed at the highest level since last December on Thursday as upbeat Chinese trade data boosted sentiment, while Tepco shares rose on news Japan will increase an interest-free loan related to its Fukushima costs. The Nikkei ended 1.5 percent higher at 18,765.47, the highest level since December 2015. The broader Topix gained 1.5 percent to 1,512.69, while the JPX-Nikkei Index 400 also added 1.5 percent to 13,545.11.  The resource-heavy Australian market jumped 1.2 percent, as did MSCI's broadest index of Asia-Pacific stocks outside Japan. An all time-peak for Samsung Electronics helped lift South Korea 1.2 percent.

In Currency Markets the euro edged up and traded near a three-week high against the dollar on Thursday ahead of a ECB policy decision, as the greenback lost momentum from the recent pull-back in U.S. bond yields. The euro edged up 0.2 percent to $1.0776, trading within sight of Monday's peak of $1.0797. The dollar fell 0.3 percent to 113.41 yen. Gains in equities and an improvement in risk appetite helped lift the New Zealand dollar, bolstered by upbeat comments on the economic outlook from the Reserve Bank of New Zealand. The New Zealand dollar rose 0.6 percent to $0.7207 and the Australian dollar was up 0.2 percent on the day at $0.7495. The dollar index stood at 100.02, back near a three-week low of 99.85 set on Monday.

In Commodities Markets oil prices edged up in thin trading on Thursday after steep falls in the previous session, supported by a weaker dollar, positive economic data and a drawdown in U.S. crude stocks. International Brent crude futures were trading up 4 cents at $53.04 a barrel after closing the previous session down 93 cents. U.S. benchmark West Texas Intermediate crude oil prices gained 14 cents to $49.90 a barrel after ending down $1.16. Gold futures for February rose 0.11 percent to $1,178.85 a troy ounce. Silver futures for March delivery fell 0.22 percent to $17.237 a troy ounce, while copper futures for March delivery edged up 0.04 percent to $2.648 a pound.

In US Equity Markets stocks rose on Wednesday, with the Dow industrials and S&P 500 hitting fresh records, as equities continued their march upward after the election of Donald Trump as U.S. president, and a new high for transportation stocks added to the bullish tone. The Dow Jones industrial average rose 1.55 percent, to 19,549.62, the S&P 500 gained 29.12 points, or 1.32 percent, to 2,241.35 and the Nasdaq Composite added 1.14 percent, to 5,393.76. Telecommunications and real estate, which are high dividend payers, posted the strongest sector gains. The S&P healthcare fell 0.8 percent. The Nasdaq Biotechnology index lost 2.9 percent, recovering from steeper losses initially after Trump's comments were publicized.

In Bond Markets the Japanese government bond yield curve flattened a touch on Thursday on relief after an auction of 30-year debt managed to attract some demand after early indications had suggested a weaker outcome. The benchmark 10-year yield was up half a basis point at 0.035 percent, but off an earlier high of 0.040 percent. The 20-year yield was down 0.5 basis point at 0.500 percent. The 800 billion yen ($7.06 billion) 30-year auction results were not particularly strong, with the bid-to-cover ratio, a gauge of demand, falling to 2.85 from 3.50 at the previous auction.

Source: Institute of Trading and Portfolio Management