APAC Global Macro Morning Brief – Happy Macro Tue 3 Dec 2019: Is this really risk-off, or a speed bump during Santa Rally? APAC Global Macro Morning Brief – Happy Macro Tue 3 Dec 2019: Is this really risk-off, or a speed bump during Santa Rally? APAC Global Macro Morning Brief – Happy Macro Tue 3 Dec 2019: Is this really risk-off, or a speed bump during Santa Rally?

APAC Global Macro Morning Brief – Happy Macro Tue 3 Dec 2019: Is this really risk-off, or a speed bump during Santa Rally?

Macro 1 minute to read
Kay Van-Petersen

Global Macro Strategist

Summary:  Morning APAC Global Macro & Cross-Asset Snapshot

(Note that these are solely the views & opinions, they do not constitute any trade or investment advice of any kind.)

To see this wk’s Macro Monday click here

APAC Global Macro Morning Brief


Happy Macro Tue 3 Dec 2019: Is this really risk-off, or a speed bump during Santa Rally?

So KVP turned tactically bearish on Thu Asia morning, post Trump signing the HK bill – as we awaited a response from China. Which to be fair, if this is it… it’s a bit of a yawn… looks like some NGOs will be under sanctions & US Warships cannot park in HK… not forceful measures imho

When the news came out, the bullish moves that we initially saw during the day were broadly unchecked, i.e. equities were still well bid as Europe got in, bond yields had big moves with UST getting to 1.8570 before reversing to 1.8189 – above the key pivotal point of 1.80%... this was post a c. 1.77 close last wk…

Gold & silver still closed down, yet off the initial lows of the session yest.

So is this really the start of risk-off or this a speed bump during the Santa Rally? As always… very hard to know… we do know momentum is to the upside & if this is the only response coming out of Beijing, then we are likely to lift up further from here – as it likely means that Phase One is still on the table

Now if Beijing were to top this “Symbolic” move with some more potency, then we could get Santa losing a limb or two

Still lets see, as we start Asia Tues mrn, we are dwn c. -14bp to -22bp on US equity futures, ASX futures are down -1.7% (as Asia catches up with the positive close yest.). KVP would expect gold & silver to be a bit more bid today as they closed down c. -0.11% & -0.69%

Oil also had a rollercoaster session, after Friday sell-off, we initially rallied hard on Monday, before reversing & closing lower on Brent 60.87 -2.5%. Yet WTI which was dwn more than -5% on Fri, still mnged to hold onto gains for a +1.43% lift

Still interesting to see DollarYen already poking it head back above 109 this Tue Asia Mrn, after a -0.47% to 108.98 o/n

Look out for the RBA rate decision later today, which is likely going to be a wash

The market is expecting rates to be on hold, yet the risk is to the downside for a surprise cut… with that said, there is a lot of expectations in the market, so we could get a bid AUDUSD 0.6819 +0.83% o/n, if they are not as dovish in their statement as expected


Econ Data O/N:

Pretty big misses in the key Aussie building approvals -8.1%a -1.0%e 7.2%p & Company Operating Profits -0.8%a 1.0%e 4.8%r

We then continued to get the mfg. PMI beats - post the big beats that we had gotten out of China over weekend – as Japan came in at 48.9a 48.6e/p. China Caixin Mfg. PMI beat at 51.8a 51.5e 51.7p

Then GER mfg. rose for 2nd month at 44.1a 43.8e, whilst overall EZ mfg. came in stronger at 46.9a 46.6e. UK figures also had a bounce on the final (had missed on flash) at 48.9a 48.3e

Then the focus yesterday was the US ISM manufacturing miss at 48.1a 49.2e 48.3p. This likely makes the ISM Non-Manufacturing numbers due on Weds, that more key – especially as the service economy of the US is +70% of the economy

Interesting thing is we continue to see this divergence between US ISM mfg. & Markit Mfg., with the latter beating at 52.6a 52.2e.

Lets see how the services data come out tomorrow


Wishing everyone a brilliant day ahead




  • JP: Monetary Base Y/Y, 10yr bond auction
  • NZ: Milk auction
  • AU: RBA rate decision, AU Current Account
  • UK: Construction PMI, 10yr bond auction, BRC Retail Sales Monitor
  • US: Wards Total Vehicle Sales
  • EZ: PPI, French Gov. Budget Balance, Spanish Unemployment Change



Some Pieces From the Rest of the SaxoStrats Squad


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.