Economic Data
- (US) Weekly ICSC Chain Store Sales w/e Sept 12th: w/w: -2.6%; y/y: +3.0%- (US) Aug PPI Final Demand M/M: 0.0% v 0.1%e; Y/Y: 1.8% v 1.8%e
- (US) Aug PPI Ex Food and Energy M/M: 0.1% v 0.1%e; Y/Y: 1.8% v 1.8%e
- (CA) Canada July Manufacturing Sales M/M: 2.5% v 1.0%e
Futures dipped even lower this morning after yesterday's big sell-off. In the first hour of trade value buyers stepped in and bought risk assets and pushed the three leading indices back into positive territory, although momentum has stalled out mid morning. The DJIA is down 0.04%, the S&P is up 0.08% and the Nasdaq is down 0.19%.
The Ukraine Parliament passed a new law granting rebel-controlled regions of eastern Ukraine self-rule and offering amnesty to anti-government fighters. The measures are in line with the ceasefire agreement signed by President Poroshenko in early September. There is a degree of domestic opposition to the measures, and there were reports of moderate protests against the measures in Kiev.
Crude futures are ticking higher off of the lows seen on Sunday and Monday. Front-month WTI broke above $94 after some resistance. Brent has topped $99. Earlier this morning, OPEC Sec General El-Badri said that OPEC may lower production levels in 2015, and asserted that OPEC was not worried by a slump in oil prices.
CALPERS, the California state pension fund, said it would drop all hedge fund managed positions to reduce complexity and costs in its investment program. Back in August CALPERS warned it would be repositioning some riskier investments, including ones in hedge funds.
Shares of Apple slumped 1.5% this morning on reports that the new iPhone 6 may not be sold in China this year. The story said Apple failed to reach an agreement with the country's Ministry of Industry and Information Technology this month, which might push back an agreement until next year.
Bill Barrett Corp entered a deal with Vanguard Natural Resources to exchange most of its acreage in Wyoming's Powder River Basin for oil-producing assets in Colorado, and also sell some natural gas assets in the state. The transactions, valued at $757 million, will transform Bill Barrett into an oil-focused producer as natural gas prices remain stubbornly low. Shares of BBG are up 8%.
Looking Ahead
- 12:00 (CO) Colombia Q2 GDP Q/Q: 0.8%e v 2.3% prior; Y/Y: 4.7%e v 6.4% prior- 12:30 (CA) Bank of Canada Gov Poloz speaks in Drummondville
- 16:00 (US) July Net Long-term TIC Flows: No est v -$18.7B prior; Total Net TIC Flows: No est v -$153.5B prior
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Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.