18 Dec: Stocks, oil hit gain as traders focus on slowing growth concerns. RBA Minutes ahead. US housing data later.

By | December 18, 2018

Stocks are once again sharply lower, -2%, led down by health-care and technology sectors, while the US$ has also been sold as traders consider the combined impact of the outcome of Wednesday’s FOMC meeting, as well as on growth in an economy already jittery over trade, political tensions and a possible US government shutdown. The Euro led the EU majors higher as traders noted some progress on the Italian budget issue, after the PM, Conte, struck a deal with the populist leaders to submit a revised budget proposal to the EU. The commodity currencies are steady against the dollar but have lost ground on the crosses, while the Jpy has also made some gains on the back of safe haven demand as stocks headed lower. Elsewhere, WTI is down another 3.5% due to higher inventory figures – as well as the slowing growth concerns – while the metals are up by around 0.5%.

In terms of data, the EU CPI was finalised at 1.9% yy in November, slightly lower than the expected 2.0% and down from 2.2% yy in October, while the Core CPI was finalised at 1.0% yy, in line with expectations.

Tuesday will be busy, beginning in NZ with the Activity Outlook and Business Confidence figures for December, to be followed by the Australian New Home Sales, RBA Minutes. Europe will look to the German IFO Business Climate/Expectations while the US will see the housing data through the November Building Permits (exp 1.265 mio), and Housing Starts (exp 1.234 mio). Have a good day.

Economic data highlights will include:

Tue: NZ ANZ Activity Outlook, Business Confidence, Australian New Home Sales, RBA Minutes, German IFO Business Climate/Expectations, US Housing Starts, Building Permits, Global Dairy Trade Index, API Weekly Crude Oil Stock Inventory

CURRENCIES
EURUSD: 1.1350
Res  1.1370  1.1400  1.1440
Sup  1.1325  1.1300  1.1265
USDJPY: 112.75
Res  113.00  113.25  113.50
Sup  112.55  112.25  112.00
GBPUSD: 1.2628
Res  1.2635  1.2655  1.2675
Sup  1.2610  1.2590  1.2565
USDCHF: 0.9926
Res  0.9950  0.9985  1.0010
Sup  0.9890  0.9860  0.9825
AUDUSD: 0.7176
Res  0.7195  0.7210  0.7225
Sup  0.7165  0.7150  0.7130
NZDUSD: 0.6805
Res  0.6815  0.6835  0.6860
Sup  0.6785  0.6770  0.6750
INDICES / COMMODITIES
S&P.fs: 2538
Res  2570  2580  2590
Sup  2550  2535  2520
DJ30.fs: 23659
Res  23775  23895  24035
Sup  23600  23450  23300
SPI200.fs: 5586
Res  5605  5625  5640
Sup  5575  5550  5520
XAUUSD: 1245
Res  1250  1255  1260
Sup  1240  1235  1230
XAGUSD: 14.67
Res  14.70  14.85  15.00
Sup  14.50  14.35  14.20
WTI.fs: 49.19
Res  49.65  50.30  50.90
Sup  49.00  48.50  47.75