Sigma Squawk uses cookies to ensure that we give you the best experience on our website. By continuing to browse the site you are agreeing to the use of cookies.

Find out more Accept cookies
New York
London
Frankfurt
Dubai
Singapore
Sydney
 
 

24 Hour Market News

European Midday/US Morning Report

November 24, 2017

European cash equity markets are mostly higher ahead of the midway stage (FTSE -0.1%, DAX +0.4%, CAC +0.6%). Renewed optimism surrounding the prospects of a grand coalition in Germany has underpinned stocks although the FTSE has underperformed slightly as retailers dropped. Politico reported this morning that German Social Democrats have dropped their hard refusal to consider governing with Angela Merkel’s conservatives with a meeting between the two with President Steinmeier expected next week. Switching to Brexit, EU Commission President Juncker has expressed confidence that sufficient progress will have been made to advance Brexit talks to the second phase. City AM also reported that Brussels is no longer holding the UK to a “strict ultimatum”, but wants to know what offer will be on the table ahead of the European Council meeting next month. In fixed, core EU bonds are underwater having been pressured by stronger-than-expected German IFO data with the ‘Business Climate’ index rising to a record multi-decade high. Treasuries are also offside along with other perceived safe-haven assets including the Japanese Yen and gold. Looking ahead, ECB Vice President Constancio is due to speak this afternoon while on the data front we await US manufacturing and service sector PMI. US markets will also close early today at 18:00 GMT.

For a more detailed report, please visit the ‘Market Research’

European Opening Report

November 24, 2017

EUROPEAN OPENING REPORT: FRIDAY – 24TH – NOVEMBER – 2017

US cash equity markets were closed for Thanksgiving yesterday. Meanwhile, we saw a few speakers from global central banks during US hours, SNB Governor Jordan said despite a slight weakening of the exchange rate, our monetary policy thus continues to be geared towards easing the pressure on the Swiss franc and making investments in Swiss francs less attractive, adding the Swiss franc remains highly valued – even if, at first glance, the current account seems to suggest otherwise. While, ECB’s Coeure said the ECB deposit rate will stay at -0.4% for a long time, adding Euro Zone recovery is robust and homogenized, while internal demand-driven upturn in the Eurozone is satisfying. Elsewhere, Bank of Mexico Governor Carstens said the Mexican Peso (MXN) is reflecting the possibility of a bad NAFTA outcome, adding the MXN could do better once uncertainty over NAFTA is resolved.

Before the open in Asia, New Zealand’s trade balance logged a larger than expected deficit of NZ$871 Mln (f/c -NZ$760 Mln). We also saw remarks from Japanese Finance Minister Aso, who said the supplementary budget will invest in infrastructure.

In the final trading session of the week, Asian stocks were mixed, while markets in Japan returned from yesterday’s national holiday. The Nikkei 225 started the session on a weak note amid a stronger Yen, before rebounding into the green as the Yen weakened. Data wise, Japan’s flash November manufacturing PMI rose to 53.8, its highest reading since March 2014. Elsewhere, Australia auctioned A$500 Mln 2% 2021 bonds at an average yield of +2.03% with a bid-to-cover of 5.4. Meanwhile, ratings agency Fitch said Chinese banks face continued regulatory scrutiny in 2018. In other news, the PBoC set the yuan mid-point at its strongest level since October 12th against the Dollar (6.5810).

Looking ahead, at 07:00 GMT, we get Danish retail sales, followed by Spanish PPI at 08:00 GMT. Next at 08:15 GMT, we get Swiss industrial output, followed by Swedish PPI at 08:30 GMT. Then at 09:00 GMT, we get Germany’s IFO survey’s and Italy’s industrial orders and sales, followed by UK BBA loans for house purchase at 09:30 GMT. At 11.30 GMT, we get Turkish real sector confidence and capacity utilisation. On the speaker front, we look for possible comments from ECB’s Nouy at 10:30 GMT. Also of note, we get the Swedish FSA capital requirement report at 07:00 GMT.

Asian Closing Report

November 24, 2017

Asian stocks traded mixed (NIKKEI +0.14%, S&P/ASX -0.12%, SHANGHAI COMPOSITE -0.59%) in the final session, while markets in Japan returned after yesterday’s Labour Thanksgiving Day. Japan’s Nikkei begun the session in the red off the back of a stronger Yen, before reversing losses as the session wore on and the Yen weakened. On the data front, Japan’s flash November manufacturing PMI rose to 53.8, its highest reading since March 2014. Elsewhere, Australia auctioned A$500 Mln 2% 2021 bonds at an average yield of +2.03% with a bid-to-cover of 5.4. Meanwhile, ratings agency Fitch said Chinese banks face continued regulatory scrutiny in 2018. In other news, the PBoC set the yuan mid-point at its strongest level since October 12th against the Dollar (6.5810).

For a more detailed report, please visit the ‘Market Research’ section.

Asian Opening Report

November 24, 2017

European bourses ended the session mixed. The French CAC-40 fronted gains, bolstered by stronger-than-expected confidence indicators earlier in the day, while Markit PMI figures also lent support to Euro Zone bourses and the Euro currency – Euro Zone composite PMI rose to a 79-month high of 57.5 (f/c. 56.0). Meanwhile, US cash equity markets were shut for Thanksgiving and many US participants opted to stay away which resulted in a low-volume/low-action. In currency space, Sterling remained on soft footing, while the Euro posted modest gains on the aforementioned data with little reaction to the release of the ECB minutes. Elsewhere, the Loonie declined after retail sales surprised to the downside for September. In fixed, core EU bonds closed higher, albeit slightly, while Treasuries were little changed on the day with no US macro releases to dictate otherwise.

While markets stateside were closed, we saw a few speakers from global central banks. SNB Governor Jordan said despite a slight weakening of the exchange rate, our monetary policy thus continues to be geared towards easing the pressure on the Swiss franc and making investments in Swiss francs less attractive, adding the Swiss franc remains highly valued – even if, at first glance, the current account seems to suggest otherwise. Meanwhile, ECB’s Coeure said the ECB deposit rate will stay at -0.4% for a long time, adding Euro Zone recovery is robust and homogenized, while internal demand-driven upturn in the Eurozone is satisfying. Elsewhere, Bank of Mexico Governor Carstens said the Mexican Peso (MXN) is reflecting the possibility of a bad NAFTA outcome, adding the MXN could do better once uncertainty over NAFTA is resolved.

Ahead of the Asian open, New Zealand’s trade balance logged a larger than expected deficit of NZ$871 Mln (f/c -NZ$760 Mln). We also saw remarks from Japanese Finance Minister Aso, who said the supplementary budget will invest in infrastructure.

Looking ahead, we get Japan’s manufacturing PMI, leading and coincident indexes. Also of note, Australia sells A$500 Mln 2021 notes.

European Closing Report

November 23, 2017

European cash equity markets are mixed at the closing bell (FTSE 0.0%, DAX -0.1%, CAC +0.5%). The French CAC-40 has led gains, boosted by stronger-than-expected confidence indicators earlier in the session while Markit PMI figures will also have lent support to Euro Zone bourses and the Euro currency – Euro Zone composite PMI rose to a 79-month high of 57.5 (f/c. 56.0). US cash equity markets meanwhile are closed today for Thanksgiving and many US participants have opted to stay away which has resulted in a low-volume/low-action afternoon. Sterling remains soft in FX space while the Euro posts modest gains on the aforementioned data with little reaction to the release of the ECB minutes. The Canadian Dollar did slide after retail sales surprised to the downside for September. In fixed, core EU bonds are ahead, albeit slightly, while Treasuries are little changed on the day with no US macro releases to dictate otherwise. Ahead, SNB President Jordan is due to speak at the European close while the ECB’s Coeure follows at 18:00 GMT.

For a more detailed report, please visit the ‘Market Research’ section.

European Midday/US Morning Report

November 23, 2017

European cash equity markets are mostly higher ahead of the midway stage (FTSE -0.1%, DAX +0.2%, CAC +0.7%). Euro Zone bourses and the Euro currency have both been underpinned by strong Markit PMI reports from both France and Germany – the Euro Zone composite figure rose to a 79-month high of 57.5 (f/c. 56.0). The FTSE has underperformed however, dragged lower by mining stocks after a rout in Chinese equities overnight on liquidity concerns. FTSE 100 constituent Centrica has also slumped after they warned investors to expect a disappointing second half of the year. Staying in the UK, Sterling is trading with minor losses this morning although did bounce off the lows after UK Q3 GDP was confirmed at the flash readings. We did hear from UK Finance Minister Hammond who said he hopes to prove wrong the bleak economic forecasts in his Autumn Budget, adding that clarity around Brexit would increase consumer confidence and lead to higher growth in the economy. In Germany, rumours have circulated that SPD leader Schulz could resign amid reports his party could offer support for a Merkel minority government. Looking ahead, a quiet afternoon is expected with US cash equity markets closed and many US participants likely away for Thanksgiving. ECB minutes and Canadian retail sales are both due.

For a more detailed report, please visit the ‘Market Research’ section.

Asian Opening Report

November 22, 2017

US stocks ended the session mixed, while the Nasdaq closed at a record high. Heavy declines for both HP and Hewlett Packard were seen after their respective earnings results after the bell on Tuesday. Meanwhile, the oil and gas sector provided support, boosted by gains in oil prices after Tuesday’s API report showed a large drawdown in crude inventories. More recently the DoE report showed a drawdown of -1.9 Mln – US Crude futures settled at $58.02 (+$1.19). The main focus for investors was the FOMC minutes which will likely be the last major event in the US ahead of Thanksgiving today and tomorrow. Many participants were said to have judged that another increase in rates was likely to be warranted in the near term if incoming information left the medium-term outlook broadly unchanged. Concerns were raised however regarding inflation with many observing that continued low readings on inflation might reflect not only transitory factors, but also the influence of developments that could prove more persistent. Both US government bond yields and the Dollar declined in response although the minutes did little to alter market expectations for a December rate increase.

A quiet slate ahead today with a New Zealand NZ$150 Mln 2033 note auction the only highlight.

US Closing Report

November 22, 2017

US cash equity markets are mixed at the closing bell (DJIA -0.27%, S&P -0.08%, NASDAQ +0.07%). We have seen heavy declines for both HP and Hewlett Packard following their respective earning updates after the bell yesterday. Providing support meanwhile is the oil & gas sector, boosted by gains in oil prices after the API report showed a large drawdown in crude inventories. More recently the DoE report showed a drawdown of -1.9 Mln US Crude futures settled at $58.02 (+$1.19). The main focus for investors this afternoon was the FOMC minutes which will likely be the last major event in the US ahead of Thanksgiving tomorrow and Friday. Many participants were said to have judged that another increase in rates was likely to be warranted in the near term if incoming information left the medium-term outlook broadly unchanged. Concerns were raised however regarding inflation with many observing that continued low readings on inflation might reflect not only transitory factors, but also the influence of developments that could prove more persistent. Both US government bond yields and the Dollar declined in response although the minutes did little to alter market expectations for a December rate increase.

For a more detailed report, please visit the ‘Market Research’ section.

European Closing Report

November 22, 2017

European cash equity are mixed at the closing bell (FTSE +0.2%, DAX -1.2%, CAC -0.2%). The Euro Stoxx 600 did extend to a fresh one-week high earlier this afternoon but has finished down 0.25% as travel & leisure stocks provide a weight on soft earnings. Thomas Cook shares slumped as much as fourteen percent on lower margins despite a profit beat. Providing support meanwhile is the oil & gas sector, boosted by gains in oil prices after the API report showed a large drawdown in crude inventories. More recently the DoE report showed a drawdown of -1.9 Mln. In the UK, Sterling has been on a round trip after first falling on the drastically lower OBR forecasts in the Autumn budget before rallying on stamp duty exceptions and other measures. Elsewhere in FX, the US Dollar has slumped across the board despite some stronger data – jobless claims fell to 239K (f/c. 240K) while November Michigan Sentiment was revised up to 98.5 (f/c. 98.0) but durables did miss at -1.2% (f/c. +0.3%). In the Euro Zone, consumer confidence surged to its highest since January 2001 at +0.1 (f/c. -0.9). An ECB sources story also suggested that the ECB will out off any major policy moves until well into next year. Looking ahead, US natural gas storage data at 17:00 GMT, Baker Hughes rig count at 18:00 GMT and the FOMC minutes at 19:00 GMT.

For a more detailed report, please visit the ‘Market Research’ section.

European Midday/US Morning Report

November 22, 2017

European cash equity markets are mixed ahead of the midway stage (FTSE +0.3%, DAX -0.3%, CAC 0.0%). The Euro Stoxx 600 is adding just 0.1% and has failed to extend above yesterday’s one-week high as travel & leisure stocks provide a weight on soft earnings. Thomas Cook shares slumped as much as fourteen percent on lower margins despite a profit beat. Providing support meanwhile is the oil & gas sector, boosted by gains in oil prices after the API report showed a large drawdown in crude inventories – US crude futures rose above $58.00 a barrel this morning for the first time since 2015. In fixed, core EU bonds are underwater while Treasuries also slipped to new lows in recent trade amid a modest unwind of the recent flattening move in the US yield curve. The US Dollar is also softer this morning with the Dollar Index back below 94.0 after Fed Chair Yellen offered an uncertain assessment on inflation in her remarks overnight. The Australian Dollar has been the worst performer however while the Japanese Yen has been the strongest of the G10’s. Standout macro releases have been absent with Danish consumer confidence rising to 7.6 from 7.1 and Norwegian unemployment falling to 4.0% from 4.1%. The Riksbank also warned that high and rising household indebtedness currently poses the greatest risk to the Swedish economy. Looking ahead, the UK Autumn Budget is due for release at 12:30 GMT with focus on the latest OBR forecasts. Euro Zone consumer confidence data is also due this afternoon along with US jobless claims, durable goods and Michigan Sentiment.

For a more detailed report, please visit the ‘Market Research’ section.

Asian Opening Report

November 22, 2017

US bourses closed higher with all three major indexes notching fresh record highs, while the S&P 500 ending the session at a record high after breaching the 2600 level for the first time thanks to a rally in the tech sector. Treasuries ended mixed with short-term yields gaining, while long-term yields fell. In FX, the Dollar dipped with the USD index lower on the day ahead of Fed Chair Yellen’s speech. We also heard from Canadian Foreign Minister Freeland, she said Canada is ready for every eventuality in NAFTA negotiations. In Europe, we heard from ECB’s Coeure who said he expects the central bank to soon delink its inflation target of close to 2% from its bond-buying stimulus in the Euro Zone. Elsewhere, US crude futures settled at $56.83 (+$0.41).

Following the US close, Fed Chair Yellen said the Fed must keep an open mind and respond to incoming data, adding reducing the Fed balance sheet is so far so good. Yellen said the Fed are reasonably close to goals in inflation and employment, adding inflation is below target and is appropriate to gradually hike rates. She stated it can be quite dangerous to allow inflation to drift lower too much, adding hiking rates is the key to dealing with potential negative shocks in the future. Lastly, she mentioned increasing rates too slowly risks tightening the labour market too much, adding she wants to avoid a boom and bust economy in the US. Meanwhile, a US official said a Nafta deal is still possible by March. Elsewhere, the WSJ reported that Special Counsel Mueller probes Jared Kushner’s contacts with foreign leaders.

Ahead of the Asian open, Australia’s Westpac leading index rose 0.13% m/m in October. Meanwhile, Kyodo reported Japan is planning fiscal 2017 extra budget of over ¥2 Trln. Sankei later reported that the figure is thought to be around ¥2.3 Trln.

Looking ahead, we get Aussie construction work done and skilled vacancies. Also of note, Australia auctions A$0.9 Bln 2028 bonds.

US Closing Report

November 21, 2017

US stocks ended the session with strong gains (DJIA +0.69%, S&P +0.65%, NASDAQ +1.06%) with all three major indices hitting fresh peaks and the S&P 500 closing at a record high after breaching the 2600 level for the first time thanks to a rally in the tech sector. In fixed, Treasuries ended the session mixed with short-term yields increasing, while long-term yields declined. In currency space, the Dollar dipped with the USD index lower on the day ahead of Fed Chair Yellen’s speech at 23:00 GMT/18:00 ET. We also heard from Canadian Foreign Minister Freeland, she said Canada is ready for every eventuality in NAFTA negotiations. In Europe, we heard from ECB’s Coeure who said he expects the central bank to soon delink its inflation target of close to 2% from its bond-buying stimulus in the Euro Zone. Elsewhere, US crude futures settled at $56.83 (+$0.41).

For a more detailed report, please visit the ‘Market Research’ section.

European Closing Report

November 21, 2017

European cash equity markets are mostly higher at the closing bell with the exception of the Spanish IBEX (FTSE +0.4%, DAX +0.8%, CAC +0.5%). The Euro Stoxx 600 has added 0.4% versus yesterday’s close and did notch a one-week high this afternoon, led by Easy Jet (earnings beat) and Volkswagen (lifted guidance). Wall Street also opened to the upside with record high levels for both the DJIA and S&P 500 in recent trade. In fixed, UK and German 10-year bonds are both trading with minor gains while the 10-Y Note had been ahead but pulled back in recent trade – the two/thirty year yield spread did fall below one-percent briefly to its lowest since November 2007. On the data front, US existing home sales surpassed forecasts for October at 5.48 Mln (f/c. 5.40 Mln) while the Chicago Fed National Activity Index rose to 0.65 (f/c. 0.20) from 0.36 and Canadian wholesale trade sales missed at -1.2% (f/c. +0.3%). Elsewhere, UK Brexit Minister David Davis said reaching a deal with the EU is far and away the most likely outcome but there remain a possibility of a no-deal scenario that we are prepared for. He added that real and tangible progress had been made in negotiations. We also heard from Riksbank Deputy Governor Johcnick who assumed that the recent weakening of the Swedish Crown is probably a temporary effect. Still to come today, Hewlett Packard reports after the Wall Street close while Fed Chair Yellen will also speak ahead of the Asian open.

For a more detailed report, please visit the ‘Market Research’ section.

European Midday/US Morning Report

November 21, 2017

European cash equity markets managed to shake off early declines and are broadly higher as we approach the midway stage (FTSE +0.2%, DAX +0.5%, CAC +0.5%). The Euro Stoxx 600 has added 0.3% versus yesterday’s close and touched a fresh one-week high in recent trade; auto shares are leading after Volkswagen offered an improved outlook. In fixed, core EU bonds are also onside this morning with Gilts showing minor outperformance over their German counterparts while in the US further yield curve flattening has been the order of the day. German political developments remain in focus after Chancellor Merkel seemingly signalled yesterday that she would prefer fresh elections to a minority government. On the Brexit front, reports that Boris Johnson and Michael Gove have agreed that the UK government should increase their Brexit divorce bill offer from £20 Bln led Sterling higher in the early exchanges but this proved to be short lived. We then saw new lows for the pound as BoE MPC members testified to the Commons Select Committee with Michael Saunders reiterating that tightening would be limited and gradual. Elsewhere in FX, the Aussie Dollar rebounded from the overnight lows after RBA Governor Lowe said it is more likely the next move in rates will be up rather than down. Oil prices meanwhile are also slightly ahead with WTI and Brent adding around $0.15. Data wise, UK CBI Trends total orders spiked to its highest since 1998 at 17 (f/c. 3) from -2 previously while the UK government posted a larger than expected deficit last month of £8.0 Bln (f/c. £7.0 Bln). Looking ahead, futures are indicating a higher open for US cash equity markets this afternoon with the Chicago Fed activity index, US existing home sales and Canadian wholesale trade sales all due.

For a more detailed report, please visit the ‘Market Research’ section.

Asian Opening Report

November 20, 2017

US stocks ended the session with small gains. Leading the DJIA were Home Depot and 3M while losses in the crude market weighed on oil related stocks, with US crude futures settling lower by $0.46 at $56.09. In corporate news, AT&T faces a US antitrust suit over deal for Time Warner. Europe, or more specially Germany, remained in focus with the Euro losing ground as German Chancellor Merkel did little to ease concerns of a snap-election in Europe’s largest economy. She stated that the conservative bloc is more united than ever and not afraid of new elections. She added that her goal is to build a stable government and she is not keen to think about a minority government. Elsewhere, US government bond yields held higher after the US leading index jumped +1.2% in October (f/c. +0.6%). We heard from US President Trump who said the Treasury Department will impose further sanctions on North Korea tomorrow as he labelled them a state sponsor of terrorism. He also said the administration will tackle healthcare, infrastructure and welfare reform once the tax overhaul is completed. Meanwhile, Fed Chair Yellen announced she will also vacate her board of governors seat when Jerome Powell is sworn in as Fed Chair. We also heard from BoE Deputy Governor Ramsden, who said he was not in the majority and it was not because he disagreed with the overall framework for setting monetary policy in this exceptional period, but rather because he have a somewhat different assessment of the economy.

Looking ahead, we get the RBA November meeting minutes. Data wise, we get New Zealand credit card spending and Japan’s all industry activity index, supermarket sales and nationwide department store sales.

US Closing Report

November 20, 2017

US cash equity markets have finished this afternoon with small gains (DJIA +0.3%, S&P +0.1%, NASDAQ +0.1%). Home Depot and 3M have led the Dow Jones Industrial Average while losses in the crude markets have weighed on oil related stocks – US Crude futures settled at $56.09 (-$0.46). In corporate news, AT&T faces a US antitrust suit over deal for Time Warner. Europe, or more specially Germany, remains in focus with the Euro losing ground as German Chancellor Merkel did little to ease concerns of a snap-election in Europe’s largest economy. She stated that the conservative bloc is more united than ever and not afraid of new elections. She added that her goal is to build a stable government and she is not keen to think about a minority government. Elsewhere, US government bond yields have held higher on the day after the US leading index jumped +1.2% in October (f/c. +0.6%). We have heard from US President Trump who said the Treasury Department will impose further sanctions on North Korea tomorrow as he labelled them a state sponsor of terrorism. He also said the administration will tackle healthcare, infrastructure and welfare reform once the tax overhaul is completed. Meanwhile, Fed Chair Yellen announced she will also vacate her board of governors seat when Jerome Powell is sworn in as Fed Chair. We also heard from BoE Deputy Governor Ramsden, who said he was not in the majority and it was not because he disagreed with the overall framework for setting monetary policy in this exceptional period, but rather because he have a somewhat different assessment of the economy.

For a more detailed report, please visit the ‘Market Research’ section.

European Closing Report

November 20, 2017

European cash equity markets are broadly higher at the closing bell as investors look through the recent political uncertainty in Germany (FTSE +0.2%, DAX +0.5%, CAC +0.5%). Healthcare stocks have outperformed, led higher by Roche after they confirmed a successful clinical trial while French telecoms group Altice has spiked after denying reports they are looking to raise capital. The Euro has come back under pressure however as the prospect of a snap election now hangs over Europe’s largest economy. German SPD leader Schulz said he expects such an outcome as his party rejected coalition talks. In fixed, UK and German 10-year bonds are holding small gains while Treasuries have moved the other way and turned negative. The US Dollar Index has also nudged higher, finding some support from a notable jump in the US leading index by +1.2% in October (f/c. +0.6%). ECB speakers were also in abundance with President Mario Draghi the main focus as he spoke to the European parliament. He told lawmakers the expansion remains solid and broad-based but also warned underlying inflation pressures are still subdued as labour market slack remains significant. Lautenchalner and Jazbec also spoke and both urged a solution to the non-performing loan problem in the Euro Zone. Elsewhere, oil prices have turned lower with US crude futures losing almost two-percent at the lows.

For a more detailed report, please visit the ‘Market Research’ section.

European Midday/US Morning Report

November 20, 2017

European cash equity markets are posting small gains as we approach the midway stage (FTSE +0.1%, DAX +0.2%, CAC +0.2%). Healthcare stocks have outperformed, led higher by Roche after they confirmed a successful clinical trial while French telecoms group Altice has spiked after denying reports they are looking to raise capital. Markets had opened to the downside while the Euro was also pressured overnight after German coalition talks collapsed as the FDP party pulled out of negotiations citing irretrievable differences. German President Steinmeier is due to speak at 13:30 GMT and could offer some clarity. Elsewhere in FX, Sterling has been one of the better performers this morning after UK Chancellor Hammond said they are on the brink of unlocking Brexit negotiations. There are also reports that PM May is considering increasing her divorce bill offer by another £20.0 Bln. In fixed, both UK and German 10-year benchmarks are little changed on the day while Treasuries are a few ticks higher. Oil prices meanwhile surrendered overnight gains to trade with small declines. On the data front, German PPI met expectations at +0.3%/+2.7%. Looking ahead, a quiet afternoon macro wise with only the US leading index due for releases. We also await comments from ECB President Draghi, Vice-President Constancio and Nowotny.

For a more detailed report, please visit the ‘Market Research’ section.

Asian Opening Report

November 20, 2017

US stocks ended the session in negative territory. Risk sentiment struggled to gain traction throughout the day after news Friday that Special Counsel Robert Mueller had issued a subpoena to officials from Trump’s campaign. Even the passage of the House GOP tax bill on Thursday failed to inspire much optimism as there is still a long way to go to bridge differences with the Senate proposal. Therefore, perceived safe-haven assets ended the session up with Treasuries and gold prices in the Green while the Japanese Yen and Swiss Franc are the best performing G10 currencies. Also well ahead were oil prices with US crude futures settling up by $1.41 at $56.55. In Europe, sources said Italian lender Carige will sign an underwriting accord with banks for its share issue later on Friday or over the weekend. Italian market regulator CONSOB has also imposed a short-selling ban on Italian bank Creval for Monday.

Over the weekend, EU’s Tusk said while good progress on citizens has been made, we need to see much more progress on Ireland and on the financial settlement, adding in order to avoid any ambiguity about our work calendar, he made it very clear UK PM May that this progress needs to happen at the beginning of December at the latest. While the FT reported that the UK Cabinet is prepared to back May’s increased Brexit bill offer. Staying In the UK, Chancellor Hammond said the UK is about to see public debt fall at last. On Brexit, Hammond stated we are at something of a turning point, on the brink of serious Brexit progress, adding we will make proposals to EU on Brexit bill in time for Decmber summit. He also said we need a transition period in place as soon as, preferably over next few months, adding the government has no intention to change to change plan to set Brexit date in law. Stateside, Rep. Senator Collins said the Senate’s legislation to cut taxes needs work, adding she wants to see changes and thinks there will be changes. Elsewhere, the WSJ reported Saudi Arabia has at least 24 military officers rounded up.

Ahead of the Asian open, the German Free Democrats (FDP) broke off talks and pulled out of negotiations with Chancellor Merkel to form 3-way coalition government. The FDP said a 4 way coalition is not possible due to differences, adding no further talks are on the schedule at this stage. The Euro fell sharply on the news at the open. Data wise, New Zealand food prices fell 1.1% m/m in October, while the October performance of services index slipped to 55.6.

Looking ahead, we look for possible comments from RBA’s Kearns and Kohler.

US Closing Report

November 17, 2017

US cash equity markets are nursing minor losses at the closing bell (DJIA -0.4%, S&P -0.3%, NASDAQ -0.2%). Risk sentiment has struggled to gain any real traction today following news overnight that Special Counsel Robert Mueller had issued a subpoena to officials from Trump’s campaign. Even the passage of the House GOP tax bill yesterday failed to inspire much optimism as there is still a long way to go to bridge differences with the Senate proposal. As such, perceived safe-haven assets are set end the session higher with Treasuries and gold prices in the Green while the Japanese Yen and Swiss Franc are the best performing G10 currencies. Oil prices are also well ahead with US crude futures settling at $56.55 (+$1.41). In Europe, sources said Italian lender Carige will sign an underwriting accord with banks for its share issue today or over the weekend. Italian market regulator CONSOB has also imposed a short-selling ban on Italian bank Creval for Monday.

For a more detailed report please visit the ‘Market Research’ section.