European Open Market Briefing – 14/09/2017 – by Arjun Lakhanpal
September 14, 2017In Asian Equity Markets Japanese stocks were steady in choppy trade on Thursday morning, as weak Chinese economic data offset early gains when the broader Topix index hit the highest level in more than two years. The Nikkei was flat at 19,873.62. MSCI’s broadest index of Asia-Pacific stocks outside Japan edged down 0.1 percent after rising to its highest since 2007 the day before. China’s fixed-asset investment, factory output and retail sales all grew less than expected, reinforcing views that the world’s second-largest economy is gradually beginning to lose steam in the face of rising borrowing costs. China stocks fell into the red after the data, giving up modest early gains. Australian stocks lost 0.2 percent while South Korea’s KOSPI edged up 0.1 percent.
In Currency Markets the U.S. dollar’s rally paused on Thursday as traders waited for consumer inflation data later in the day for clues on whether the Federal Reserve will maintain its gradual pace of credit tightening. The U.S. dollar was at 110.47 yen, steady from the late trade in the U.S. on Wednesday. It earlier rose to 110.735 yen, the highest since Aug. 16. The euro held steady at $1.1878, having pulled back from a 2-1/2 year high of $1.2092 set on Friday. Sterling held steady at $1.3201. On Wednesday it faltered after setting a one-year high of $1.3329, as investors took profits before the BoE policy decision on Thursday. The Aussie last traded at 0.8004 after having risen to $0.8017.
In Commodities Markets oil prices eased on Thursday, but held on to most of their gains in the previous session when the market was buoyed by a forecast for firmer global oil demand by the International Energy Agency. London Brent crude for November delivery was down 0.2 percent, at $55.03 a barrel, after rising 1.6 percent on Wednesday. NYMEX crude for October delivery was down 0.2 percent, at $49.21, after a 2.2 percent gain in the previous session. U.S. Energy Information Administration (EIA) data showed a build in U.S. crude inventories last week of 5.9 million barrels, exceeding expectations. Spot gold was down 0.2 percent at $1,320.21 an ounce, after earlier falling to its lowest since Sept. 1 at $1,318.96.
In US Equity Markets stocks edged up to a record high on Wednesday as gains in consumer discretionary and energy stocks offset losses in technology heavyweight Apple Inc. The Dow Jones Industrial Average rose rose 0.18 percent, to 22,158.18. The S&P 500 edged upgained 0.08 percent, to 2,498.37, and the Nasdaq Composite added 0.09 percent, to 6,460.19. Shares of Apple fell 0.8 percent on concerns that the company’s newly launched iPhone X is too expensive and because its availability starting in November was later than expected. Target Corp rose 2.8 percent after the retailer said it would hire 100,000 workers for the holiday season, 43 percent more than last year.
In Bond Markets U.S. Treasury yields rose on Wednesday with 10-year yield reaching a 2-1/2 week high as investors reduced their bond holdings to make room for this week’s government and corporate debt supply. The 10-year yield was at a 2-1/2 week peak of 2.195 percent, up more than 2 basis points on the day. The 30-year bond yield hovered near a three-week high at 2.792 percent, up nearly 2 basis points, following a $12 billion auction of long bond supply.
Economic Calendar
- 08:30 GMT+1 CHF Libor Rate
- 08:30 GMT+1 CHF SNB Monetary Policy Assessment
- 12:00 GMT+1 UK MPC Official Bank Rate Votes
- 12:00 GMT+1 UK Official Bank Rate
- 13:30 GMT+1 US CPI m/m
- 13:30 GMT+1 US Core CPI m/m
- 13:30 GMT+1 US Unemployment Claims
