Article / 04 October 2017 at 6:59 GMT

Morning Markets: Equities up, dollar and oil down

Senior Editor / Saxo Bank




  • Japan: Nikkei services PMI September (already published)
  • EU: Services PMI (0800 GMT)
  • UK: CIPS/Markit Services PMI (0830 GMT)
  • EU: EU retail trade (0900 GMT) 
  • US: ADP national employment report (1215 GMT)

European equities are seen opening mostly higher this morning following another record-breaking session in Wall Street yesterday and substantial gains overnight  by mainland China stocks listed in Hong Kong. Spain will be one exception among European bourses as tensions over Catalonia's independence drive ramp up – Spain's King Felipe criticised the region's voters for "trying to break the unity of Spain" and the Catalan president, Carles Puigdemont, said the regional government would soon declare independence.

Meanwhile, Donald Trump's extraordinary visit to Puerto Rico has drawn widespread condemnation after he used the visit to praise his own efforts to deliver aid to the hurricane-battered island but also complained about the cost. Further, Puerto Rican yields have sky-rocketed after investors took another Trump comment  –“you can say goodbye” – to the territory’s crushing debt as a call to write off its massive debt load.

Another gaffe-prone leader, the UK foreign secretary Boris Johnson, is also in the news after he told reporters that the Libyan port city of Sirte, which has seen some of the civil war's bloodiest battles, could attract investors and become "a Mediterranean Singapore" once "the bodies are cleared off the streets". Johnson's highly undiplomatic comments, and the subsequent criticism of him, are further evidence of the deep fissures within the British Tory party as the UK struggles to negotiate its exit from the EU.

In forex markets, the US dollar is broadly lower and oil prices are down too as crude’s correction extends into a seventh day with the EIA stock report in focus .

Market signals

Asian session

  • Japan's services PMI slipped to just 51 for September
  • Markets remain closed in China and South Korea for national holidays
  • Speeches by Fed officials Janet Yellen and James Bullard later today will attract scrutiny
  • Australia's CBA manufacturing PMI came in at 53.8 in September; it was 53.5 in August 
  • But the CBA services PMI slipped to 53.2, down from 54.2 points in August
  • Falls for Australia's big four banks, energy explorers weighed on the S&P/ASX200
  • The ASX200 closed down 49 points to end the session at 5652
  • NZ's ANZ Commodity Price Index lifted 0.8% month-on-month in September
  • New Zealand house prices grew at their slowest pace in five years in September

Forex ahead

  • AUD regained some lost ground, thanks to USD weakness and firmer copper prices
  • Sliding dairy prices weighed on the NZ dollar

From the Floor

Got milk? “A weak dairy auction has kept AUDNZD support in place” says Hardy

Crude on the precipice “We see WTI crude oil at risk under $50/b” says Hansen

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion

Coal-fired change
China's launch of a national emissions trading scheme by the end of this year will put pressure on Australian coal exporters, says the team at Saxo Capital Markets Australia.

Food for thought
There's plenty of action in dairy and other agricultural commodities, with Arabica coffee enduring its longest slump since August, says Saxo APAC Sales Trading.

Saxo Bank's Q4 Quarterly Outlook is out now – click here to read


Time to speak up? China's adoption of an ETS may give other countries the
 confidence to tackle climate change. Photo: Shutterstock

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Patto Patto
Do I detect a new editorial policy on this site? Less trying to be an alternative to the Financial Times and more concentration on being a *Trading* floor. So I imagine we will see more postings from the likes of John Hardy, Ian Coleman, Max McKegg etc. After all, it looks like they have the highest number of Followers.... The punters have spoken !
Michael S. McKenna Michael S. McKenna
Hi Patto,

Our focus has always been on the trading scene, but I will say that we are getting a little 'leaner and meaner' as we delve into the metrics and discover more about what our readers are engaging with and responding to. Watch this space, as I believe the coming months will provide even more of what you're looking for.


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