NOTABLE MOVES
As of Wed, Mar 13, Singapore Time zone UTC+8
USDJPY, +0.10%, $111.32
EURUSD, +0.33%, $1.1286
GBPUSD, -1.37%, $1.3065
USDCAD, -0.24%, $1.3360
AUDUSD, -0.09%, $0.7064
NZDUSD, +0.32%, $0.6853
S&P500, +0.30%, 2,791.52
Nasdaq, +0.52%, 7,201.28
Nikkei Futures, +1.50%, 21,243.0
CURRENCY MARKET WRAP
- Total CPI was up 0.2% month-over-month in February, as expected, while core CPI, which excludes food and energy, was up only 0.1% (consensus +0.2%).The key takeaway from the report is that inflation trends for total CPI and core CPI both moved lower on a year-over-year basis. Total CPI was up 1.5%, versus 1.6% for the 12 months ending in January, whereas, core CPI was up 2.1%, versus 2.2% for the 12 months ending in January. The benign inflation will indeed keep the Fed in a patient state of mind.
- U.K. Prime Minister Theresa May’s Brexit deal was rejected once again by Parliament, throwing the country deeper into political crisis and raising the prospect that the divorce will be delayed or even reversed. May began the day with renewed hope after securing last-minute changes to her withdrawal deal with the EU. But MPs roundly defeated her proposals, 391 votes to 242, weeks after her first attempt to pass the deal met the same fate. The next step is another vote (later today) MPs will vote on a motion on whether to allow the UK to exit the EU on 29 March without a deal – “no-deal” Brexit. Leaving the EU without a deal – and therefore without the 21-month transition period provided for by the deal carries significant risks for trade, immigration, health, and etc.
STOCK MARKET WRAP
- The S&P 500 gained 0.3% on Tuesday, adding to its strong start to the week. Softening inflation data, persistently low U.S. Treasury yields, and leadership from Apple (AAPL 180.91, +2.01, +1.1%) and Alphabet (GOOG 1193.20, +17.44, +1.5%), helped the market overcome continued weakness in Boeing (BA 375.41, -24.60, -6.2%). The Dow Jones Industrial Average lost 0.4% amid Boeing’s notable problems pertaining to the grounding of its 737 MAX by several countries, as well as the European Union. There were burgeoning calls from politicians in Washington to do the same here despite Boeing and the FAA both expressing confidence in the airworthiness of the 737 MAX.
- The S&P 500 health care (+0.7%), utilities (+0.6%), energy (+0.6%), and communication services (+0.6%) sectors led Tuesday’s advance. Conversely, the industrials (-0.9%) and consumer staples (unch) sectors underperformed.