Asian stocks edge higher on upbeat data out of China and Japan
- China's industrial production rose 16.1% from a year ago in October, the most since March 2008. While Retail sales gained 16.2% in October. The data out of China drove Asian currencies higher and the nation's growth will encourage demand for higher-yielding assets.
- Japanese machinery orders, an indicator of business investment intentions, climbed 10.5% in September versus forecasts of a 4.1% increase. The yen gained against the greenback and the euro for a second day following stronger than expected data out of Japan.
- The greenback reached a 15-month low against its major counterparts. The Dollar Index, which is used to track the greenback against the currencies of six major US trading partners including the euro, yen and the pound, dropped to as low as 74.889, the weakest level since August 2008.
- Gold prices rallied for an eighth-straight session, rising over 0.5% to $1109.53 an ounce. Crude oil breached the $80-mark, however, increase in oil inventory pressured price and the benchmark contract settled lower. The US Energy Department is scheduled to report oil inventory data Thursday due to US public holiday today. Crude oil inventory probably increased 0.6 million barrels last week.
Currency to watch out for: EURGBP & EURJPY
- The EURGBP pivot point is at 0.9000 with a preference to enter into short positions below 0.9000
- The EURJPY pivot point is at 133.75 with a preference to enter into long positions at 133.82
Today's calendar and market movers:
- UK Claimant Count Change expected to drop to 20,000
- UK Unemployment rate expected to rise to 8%
- Bank of England Governor Mervyn King is due to hold a press conference about the Inflation Report to be release today at 10:30 GMT.
- U.S. and Canadian banks will be closed in observance of Veterans and Remembrance Day
- U.S. stocks closed mostly lower on Tuesday and at the closing bell the Dow closed up 0.2%, the S&P's six day gains stalled as it closed 0.1% down and the NASDAQ closed down 0.1%.
- As of 06:30 GMT the Nikkei is trading at 0.01% and the Hang Seng at 0.70%