Daily Market Update 21st September 2016
ECONOMIC DATA OF THE DAY
| Time | CY | Indicator | Forecast | Actual | Previous |
|---|---|---|---|---|---|
| 07:50 | JN | Trade Balance | ¥191.0b | -¥18.7b | ¥513.5b |
| 08:30 | AU | Westpac Leading Index MoM | -- | 0.00% | 0.05% |
| 12:00 | MA | CPI YoY | 1.30% | -- | |
| 19:00 | US | MBA Mortgage Application | -- | -- | 4.20% |
SPEECHES
- BOJ Kuroda holds post BoJ press conference at 14:30 SG/HK time.
- FED press conference kicks off around 2:00 am tonight SG/HK time.
OVERNIGHT NEWS
- US:
- After the strong NAHB housing data the previous day, yesterday’s housing starts number saw a surprise to the downside with a -5.8% contraction m/m, much more than the -1.7% expected. Building permits also missed and contracted last month by -0.4% painting an overall mixed US housing picture over the past 48 hours.
- EUROPE:
- Germany’s PPI contracted again on a y/y basis by -1.6% this data has contracted every month since July of 2013. It’s little wonder the ECB is struggling to manage higher inflation expectations.
- JAPAN:
- Out this morning Japanese trade data was dire, with exports falling -9.6% y/y vs -4.7% expected. Prior month was -14%, so this data is a slight improvement but still woeful. Imports declined by -17.3% up from -24.7% y/y prior.
FOREIGN EXCHANGE (INDICATIVE RATES)
| Currency | Last | % Change | Overnight Range |
|---|---|---|---|
| DXY | 96.02 | 0.19% | 95.60 96.04 |
| EURUSD | 1.1151 | -0.21% | 1.1150 - 1.1213 |
| USDJPY | 101.70 | -0.23% | 101.54 - 102.06 |
| AUDUSD | 0.7556 | 0.29% | 0.7531 - 0.7565 |
| GBPUSD | 1.2988 | -0.32% | 1.2947 - 1.3065 |
COMMODITIES (INDICATIVE RATES)
| Currency | Price USD | % Change | Overnight Range |
|---|---|---|---|
| Gold | 1314.84 | 0.13% | 1312.08-1318 |
| Silver | 19.25 | 0.44% | 19.08-19.30 |
| Oil (BRENT) | 45.88 | -0.15% | 45.09-46.30 |
| Oil (WTI) | 43.44 | 0.32% | 42.55-44.05 |
COMMODITIES
Precious Metals: Gold dropped waiting for the Fed decision next week. Besides China is closed today for holiday and it is one of the biggest market participant. We are now trading close to the support at the 100d MA at 1305. A break of this level could bring Gold back to 1250
Oil: All 14 OPEC countries will attend an informal meeting with Russia on Sept. 27 in Algiers, according to a person familiar. The group’s crude exports will decline by 40,000 barrels a day to 23.68 million in the four weeks to Oct. 1, Oil Movements said. Oil bounced slightly after the strong fallout this week.
FOREX NEWS
- U.S. stocks closed broadly higher, boosted by lacklustre retail sales and industrial production data that and stabilisation in oil prices. Both DJIA and S&P500 gained 1%. All eleven sectors closed higher led by technology (+1.7%) and VIX plunged 10.1%, to 16.30.
- Nasdaq (+1.47%) enjoyed the sharpest rise among its peers, closing 1.5%, higher at 5,249.69 as Apple Inc. rose 3.4%, extend its gains to 12% for this week after disclosing that its iPhone 7 Plus have sold out globally.
- Sarepta Therapeutics (SRPT:xnas) extends its surge from Monday after its approval related to its Duchenne muscular dystrophy (DMD) treatment, eteplirsen was approves by the U.S FDA.Stock has gained more than 80% after Monday's surged.
- Allergan targets Tobira Therapeutics (TBRT:xnys), a liver disease drugs maker in an accquistion deal worth USD 1.65b and send the stock flying from 4.71 to 38.91, up 721% on Tuesday.
Emerging-Market Stocks Rise Third Day After BOJ Policy Decision
A gauge of emerging-market stocks rose for a third day after the Bank of Japan adjusted its monetary stimulus program following a policy review.
The MSCI Emerging-Market Index of shares climbed to the strongest level in a week before the Federal Reserve also announces a policy decision Wednesday. Most developing-nation currencies weakened against the dollar after the yen slumped following the release of the BOJ statement.
Read More at bloomberg.com
