Asian equity markets mostly lacked firm direction as bourses took their cue from the rangebound session in the US where tech losses were offset by cyclicals.
Major currencies mostly little changed on the session
2020-11-26 • Updated
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAU/USD: Gold after a remarkable sell off is trading significantly lower and bears still struggling to keep price above the 23.6% retracement area.
US Market View
US markets are closed for Thanksgiving on Thursday. Biden urged Americans to avoid big family gatherings and to wear protective masks and maintain social distancing as COVID-19 cases soar. Wednesday's economic data showed that US jobless claims increased for a second consecutive week suggesting more pain ahead as business restrictions and partial lockdowns continue to hurt employment. In Europe, a survey showed that German consumer morale fell further heading into December, as a partial lockdown in Europe's largest economy hit households' income and willingness to spend money. Markets participants are closely watching trade talks between Britain and the European Union, with little more than a month until the status-quo transition period ends on Dec. 31. Britain's finance minister said on Thursday that "it's clear what the shape of the deal looks like" but that the United Kingdom should not be stretching for a deal at any cost.
Eurozone government bonds were little changed, with Germany's benchmark Bund yield at -0.571%, as investors waited for the European Central Bank's October meeting minutes. Merkel told parliament that lockdown measures will be in place until at least the end of December and possibly much longer.
Oil slipped from seven-month highs on Thursday as signs of growing supplies helped to halt a rally driven by optimism after three major pharmaceutical companies announced progress on vaccines that could start to be rolled out before the year-end. European shares were mixed on Thursday and world shares held near all-time highs after a strong Asian session in which market euphoria around COVID-19 vaccines, Joe Biden's US presidential election win, and hopes for further stimulus outweighed worsening US data.
World shares are having their best month on record this November, boosted by a slew of positive vaccine announcements and hopes that Biden's administration will deliver more economic stimulus and political stability.
USA Key Point
- Major currencies mostly little changed on the session
- Ireland's Coveney supports that Brexit talks are at a 'sensitive point'
- ECB's Holzmann supports that cannot rule out the possibility that ECB could implement new policy tools
- Merkel supports that easing virus curbs would not be responsible
The dollar was down on Wednesday morning in Asia, despite caution over the new B.1.1.7 strain of the COVID-19 virus pushing investors turn toward safe-haven assets.
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