TradeTheNews.com Staff
TradeTheNews.com
Notes/Observations
- Asian equities decline led by Shanghai (China 10-yr bond yield declines by over 5bps); China HSBC Manufacturing PMI due Monday night
- Some partially attribute weakness in Shanghai to IPO concerns
- NZD pares election induced gains; Commodity currencies track weakness in commodity prices
- ECB's Visco suggested that the current easing measures have been effective vs Euro
- Euro Zone government bond yields open generally lower ahead of Draghi testimony and amid declines in Asian gov't bond yields; Peripherals later underperform led by Spain (amid Catalonia concerns)
- Commodities led lower by copper as China continues to play down any large scale stimulus
- Tesco declines weigh on FTSE 100
- (EU) ECB's Liikanen: Reiterates growth will happen but it will be slower; prolonged periods of low inflation has a negative impact
- Italy PM office: Have freed ~€30B to pay debts owed by public sector bodies to suppliers - Italian press
- Poland Central Bank Official Osiatynski (dovish): Reiterates 50bps rate cut in Oct would be very justified - Polish press
- CEQ.NO: Confirms Mitsubishi has offered NOK96/shr (14.3% premium to Friday close); total deal worth NOK8.88B
Key Economic Data in session
- (TW) TAIWAN AUG EXPORT ORDERS: 5.2% V 7.4%E; Export orders from China Y/Y: 2.9% v +9.2% prior
- (CH) Swiss Aug M3 Money Supply Y/Y: 3.4% v 3.5% prior
Fixed Income
- (FR) On Friday Sept 19th, Moody's affirmed France at Aa1; maintained negative outlook [contrary to press report this week that said it would downgrade to Aa2]
Equities
Indices [Stoxx50 -0.1%, FTSE 100 -0.6% at 6,795, DAX -0.2% at 9,778, CAC-40 -0.1% at 4,458, IBEX-35 0.1% at 11,009, FTSE MIB -0.1% at 20,960, SMI -0.3% at 8,812, S&P 500 Futures -0.5% at 1,994]
Market Focal Points/Key Themes: Equity markets open lower following negative leads from Shanghai, M&A (Siemens confirms bid for Dresser-Rand, Cermaq rises on bid from Mitsubishi Corp), Weaker commodity prices weigh on mining sector, Total cut 2015 production forecast
By Sector
Consumer Discretionary [Tesco TSCO.UK -8% (possible restatements), Air France AF.FR -3% (extended strike)] Industrials [Sulzer SUN.CH -4% (ended talks with Dresser-Rand)] Stoxx50 sectors [Consumer Cyclical -1%, Basic Materials -0.7%, Industrials -0.6%, Basic Materials -0.6%, Energy -0.5%, Financials -0.1%; Utilities +0.7%, Telecom flat, Technology flat, Consumer Non-Cyclical flat]
FIXED INCOME/FX/COMMODITIES
Currencies/Fixed Income:
- Dollar came off its highs in the Asian session, weakness carried into early European morning. USD/CHF weakened slightly while the Swissie remained unchanged against euro. Sterling rose ahead of the open. Long term Treasuries rose on traders looking for a deal. AUD/USD headed to a multi-month low with nothing in sight to reverse its course, breaking 0.8900 level. Yen remained mixed through the session finding some strength in commodity currencies.
Looking Ahead
- 06:00 (TR) Turkey to sell 2019 Fixed Bonds
- 06:00 (RO) Romania to sell 2025 Bonds
- 06:45 (US) Daily Libor Fixing
- 07:30 (BR) Brazil Central Bank Weekly Economists Survey
- 08:00 (ES) Spain Debt Agency (Tesoro) announces size of upcoming 3-Month and 9-Month Bill auction
- 08:15 Baltic Dry Bulk Index
- 08:30 (US) Aug Chicago Fed Nat Activity Index: No est v 0.39 prior
- 08:50 (FR) France Debt Agency (AFT) to sell combined € in 3-month, 6-month and 12-month Bills
- 09:00 (EU) ECB President Draghi Testifies Before Euro Parliament Economic and Monetary Committee (Brussels)
- 09:00 (IL) Israel Central Bank Interest Rate Decision; Expected to leave Base Rate 0.25%
- 09:00 (MX) Mexico Aug Unemployment Rate (unadj): : No est v 5.5% prior; Unemployment Rate (Seasonally Adj): No est v 4.8% prior (revised from 5.2%)
- 09:35 (EU) ECB calls for bids in 7-Day Main Refinancing Tender
- 09:45 (UK) BOE reverse auction; to purchase £1.6B in 3-7 year Gilts (residual)
- 10:00 (US) Aug Existing Home Sales: No est v 5.15M prior
- 10:00 (EU) Euro Zone Sept Advance Consumer Confidence: No est v -10.0 prior
- 10:05 (US) Fed's Dudley speaks in New York
- 11:30 (US) Treasury to sell $ in 3-Month and 6-Month Bills
- 12:40 (CA) BOC Dep Gov Wilkins speaks at CFA Society
- 16:00 (US) Crop Condition Report
- 21:45 (CN) China HSBC Sept Preliminary Manufacturing PMI: No est v 50.2 prior
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.