Morning Markets: Market shrugs off iPhone X launch — #SaxoStrats
- SE: GDP 0730 GMT
- UK: Monthly unemployment 1030 GMT
- EU: Industrial production 100 GMT
- US: PPI 1230 GMT
- US: EIA weekly petroleum status report, incl. crude oil stocks 1430 GMT
Apple may have made a determined move towards higher price levels with the introduction of its $999 iPhone X on Tuesday, but investors weren’t willing to follow suit. Following a sharp drop after a glitch with the phone’s facial recognition software during the company’s presentation, Apple shares ended the day down 0.4% at $160.86 as investors apparently decided that the phone’s panoply of augmented reality features is not enough of a competitive advantage in a landscape characterised by ever-cheaper, ever-more capable devices.
In terms of Wall Street at large, however, Tuesday saw US stocks hit fresh highs as worries over the price tag presented by Hurricane Irma receded from view. Asia followed suit overnight with the Nikkei 225 gaining 0.50%, the Kospi gaining 0.25% and the Japanese Topix index rising by 0.61%.
With sterling at a one-year high versus the USD, cable will be in focus today ahead of the Bank of England’s outing Thursday. With British inflation having hit its joint highest level in over five years in August at 2.9%, policymakers are expected to provide an analysis of the ongoing Brexit situation as they explain why they are not raising interest rates.
Finally, gold prices held steady well above the $1,300/oz level repeatedly cited as key by Saxo Bank head of commodity strategy Ole Hansen. Gold currently trades at $1,330.47/oz; $1,300/oz is the 38.2% retracement of gold’s July-to-September rally, and the precious metal’s overnight performance appears very strong when pitted against the bullish equities and rising yield (the 10-year US Treasury yield rose by 2.6 basis points in tandem with rising stocks) environment.
Today brings EU industrial production data at 1100 GMT, US PPI at 1230 GMT, and the latest petroleum status report from the US Energy Information Administration at 1430 GMT.
- HSBC bank believes the AUD will continue to rise and hit US90 cents
- Aussie consumer sentiment rose 2.5% in September from August's 1.2% fall
- The index reading of 97.9 was still 3.4% lower than in September last year
- Iron ore futures in China jumped more than 2% on Wednesday
- On the Dalian Commodity Exchange, iron ore was up 2.2% at around $84/tonne
- USD's rise against JPY helped boost Japanese shares
- Spot gold was slightly higher on yesterday at $1330.47/oz
- Equities in Asia stalled in later Asian trade as the global rally petered out
- Japan's Nikkei 225 was up 0.53% at 0457 GMT, Hong Kong's Hang Seng was down 0.23%
- Australia's ASX ended the day flat and was at 5,749.20, up 0.05% at 0526 GMT
- USD held steady at 110.06 yen, well above Friday's 10-month low of 107.32
- USD fell against major peers overnight as Treasury yields declined
- AUD was trading at 80.28 cents today versus USD, a relatively flat performance
- EURUSD traded at $1.1978 into the European bell, little changed.
From the Floor
National Party takes the lead. "We have had a volatile 24 hours in the kiwi on political polling shifts," says Bresler
Canada's dangerous game. "Once the housing bubble pops, that will likely mark the beginning of the end for CAD outperformance," says Hardy
Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.
In opinionThree-day miracle
The ASX has seemingly done the incredible and risen for three days in a row, but will it last? Saxo Capital markets reports.
The Asian market this morning picked up from where the US left off overnight, with the early-rising benchmarks higher in initial trading, says Saxo APAC Trading.
The US dollar has mounted a reversal against the weakest currencies, the yen and the Swiss franc, but is not in full reversal mode yet says John J Hardy.
Morning Markets goes out on the TradingFloor platform at 0700 GMT, Monday to Friday.
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