Daily Market Update 28th September 2016
ECONOMIC DATA OF THE DAY
| Time | CY | Indicator | Forecast | Actual | Previous |
|---|---|---|---|---|---|
| 20:30 | US | Durable Goods Orders | -1.50% | -- | 4.40% |
SPEECHES
- 16:05 – GBP – BoE’s Shafik speaks at Bloomberg’s most influential conference
- 17:00 – EUR – ECB president Draghi addresses research conference in London
- 22:00 – USD – Fed chair Yellen testifies before house panel on bank supervision
OVERNIGHT NEWS
- US:
- Consumer Confidence hits its highest level in 9 years at 104.1 (Exp. 99.0). The confidence comes from a more positive view of the labour market.
- US Markit US Services PMI rose to 51.9 (Exp. 51.2), the fastest monthly rise since April
FOREIGN EXCHANGE (INDICATIVE RATES)
| Currency | Last | % Change | Overnight Range |
|---|---|---|---|
| DXY | 95.44 | 0.14% | 95.24 - 95.67 |
| EURUSD | 1.1215 | -0.35% | 1.1191 - 1.1259 |
| USDJPY | 100.43 | 0.10% | 100.09 - 100.99 |
| AUDUSD | 0.7667 | 0.41% | 0.7612 - 0.696 |
| GBPUSD | 1.3023 | 0.37% | 1.2937 - 1.3026 |
COMMODITIES (INDICATIVE RATES)
| Currency | Price USD | % Change | Overnight Range |
|---|---|---|---|
| Gold | 1327.32 | -0.79% | 1324.68 - 1339.68 |
| Silver | 19.15 | -1.55% | 18.99 - 19.54 |
| Oil (BRENT) | 45.97 | -2.91% | 45.63 - 47.28 |
| Oil (WTI) | 44.67 | -2.74% | 44.19 - 45.96 |
COMMODITIES
Precious Metals: Gold prices failed to make new highs and declined most in more than a month as a surge in U.S. consumer confidence and gains in the dollar damped demand for the metal. Weakness also came as China’s gold imports from Hong Kong slide to seven-month low.
Oil: Oil prices fell in volatile session as Saudi Minister says in Algiers that several freeze deals being discussed and an OPEC freeze deal is possible at Nov. meeting. Brent put open interest highest in 16 months.
FOREX NEWS
- U.S. stocks market regained its ground after first presidential debate is US seemed to give the market a 'Clinton relief rally’, countering weakness in energy sector dragged by oil price slump. The S&P 500 bounced 0.6% to 2,159.93 with tech sector (+1.2%) leading the rise.
- Nike Inc. Was up 1.7% in anticipation of better Q1 EPS. After market it reported Q1 EPS of $0.73 higher than Mkt est: $0.56, on revenue of $9.06bln .
- European stocks close narrowly higher as Deutsche Bank rebounded amid hope of lower claim from DoJ in US, however energy stocks weighted in the market. The STOXX 600 index inched up 0.19 to 340.19 with the Oil Index lost 1.4%. In London the FTSE 100 edged down 0.15% to 6,807.67, with British retail sales fell unexpectedly in September.
- Deutsche Bank erased morning losses and closed up by 0.6%, after the U.S. Justice Department's third highest-ranking official said banks can lower penalties by co-operating with authorities.
- Volkswagen slide 2.6% on reports that Germany was vetting a criminal fine that would bankrupt the firm.
- Postal Savings Bank debuts in Hong Kong, with gray market trading signalling the stock could drop after the year's biggest IPO. China's fifth-biggest lender raised $7.4 billion selling shares at HK$4.76 each, giving it a higher price-to-book ratio than other state-owned peers
Dollar Halts Two-Day Decline Before Durable Goods; Yen Weakens
A gauge of the dollar halted a two-day decline as investors awaited a report on durable goods orders to assess the outlook for U.S. rates.
The odds that the Federal Open Market Committee will increase rates in December have dropped to about even, from 61 percent a week ago, when Chair Janet Yellen said it made sense to put off a move for now to give the economy more room to grow. The yen fell for a second day as demand for haven assets waned after the first U.S. presidential debate between Hillary Clinton and Donald Trump.
“The market was volatile yesterday pre and post the first U.S. presidential debate and many investors were stopped out of short term trades,” said David Forrester, a foreign-exchange strategist at Credit Agricole SA’s corporate and investment-banking unit in Hong Kong. “The dollar is likely to be subject to some temporary downside risk ahead of the U.S. presidential election and will be especially dependent on the opinion polls.”
Read More at bloomberg.com
