Morning Report APAC: US consumer confidence at highest level in a year
- US consumer confidence rises to highest in a year at 101.1 versus 97 expected
- Fed's Stanley Fischer talks about global negative rates and the US dollar
- USD finds firmer footing and rallies throughout the day
- Oil falls on renewed uncertainty over output freeze deal
By Saxo APAC Sales Trading
0900 – AUD –RBA’s Guy Debelle Gives Speech
0930 – JPY – BOJ board member Yukitoshi Funo speech
1515 – USD – Fed’s Charles Evans Speaks on Economy and Policy in Beijing
2000 – USD – Fed’s Neel Kashkari speaks on Feb Structure in St. Paul
1400 – EUR – ECB’s Francois Villeroy speaks at conference in Frankfurt
US: Consumer Confidence overnight rose to its highest level in a year at 101.1 versus 97 expected. This is another print where the data has beaten estimates and shows again that US growth remains on firm footing. As we get into the second half of the week the data becomes more important and will determine whether the Fed raises rates in September or December.
Headlines from the Fed’s Stanley Fischer’s interview on Bloomberg TV focused on the conversation about negative rates and his view on the efficacy of them as a policy tool internationally. Fischer spoke briefly about the USD and how it isn’t the Fed’s biggest concern. He also commented on the much photographed walk of Janet Yellen, Fischer and Dudley at Jackson hole as symbolism to demonstrate united thinking among the most powerful members of the Fed.
Europe: German inflation data slowed with the harmonized m/m CPI number coming in at -0.1%, which will not please what has been a very quiet Mario Draghi.
Eurozone consumer confidence and economic confidence also slowed in the month.
US stocks retreated with all three indices closing in the red. The Dow Jones Industrial index is down 48.69 (0.26%) as it challenged the 18,500 key resistance level on open, but eventually closed at 18,454.3.
The S&P 500 and Nasdaq traded in similar fashion, S&P 500 down 0.20% or 4.26 before closing at 2176.12, while the Nasdaq shed 9.34 points or 0.18% and closed at 5,222.99.
European stocks did fairly well with both DAX and the CAC 40 Index outperforming the pan-European benchmark with gains of 1.07% and 0.75% respectively.
Apparel stores giant Abercrombie & Fitch Co. (down 20.3%) gapped down and eventually closed 20 points lower to $18.29 on heavy volume after the company announced its second-quarter earnings on softer sales and also cut its 2016 outlook.
Agrium Inc. (up 7%) and Potash Corp. of Saskatchewan Inc. (up 10.8%) confirmed they are in preliminary talks about a potential $28bn-plus merger of equals.
Asia Pacific Stocks
Hong Kong highlights
China Singyes (750 HK): Profit rises as China demand boosts solar business
CSCL (2866 HK): First-half net loss 840.8m yuan vs restated profit 834m yuan a year ago
Fosun Intl (656 HK): First-half profit increases 21%
Canon (7751 JP): To sell image sensors to other manufacturers: Nikkei
Mitsui & Co. (8031 JP): Co, JBIC to buy $332m of RusHydro stock: Nikkei
- Nikon (7731 JP): To get boost from OLED panel equipment orders: Nikkei
Southeast Asia highlights
Globe Telecom (GLO PM), PLDT (TEL PM), San Miguel (SMC PM): Court halts antitrust body’s review of deal
PTT Exploration (PTTEP TB): Signs deal with Petronas to develop marginal fields
Jiutian Chemical (JIUC SP): Expects to start commercial production of project sodium hydrosulfite in first-half 2017.
– Edited by Susan McDonald
This report was compiled by the Saxo APAC Sales trading team in Singapore – the home of social trading. Follow the team on @SaxoStrats or post your comment below to engage with Saxo Bank's social trading platform. Follow us on @SaxoStrats on Twitter
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