CURRENCY MARKET WRAP
As of Fri Aug 23, Singapore Time zone UTC+8
Dollar Index -0.11%, 98.19
USDJPY, -0.14%, $106.47
EURUSD, -0.01%, $1.1084
GBPUSD, +1.02%, $1.2251
USDCAD, +0.04%, $1.3297
AUDUSD, -0.38%, $0.6755
NZDUSD, -0.23%, $0.6389
U.S. markets began the day solidly higher in a broad-based advance amid an uptick in U.S. Treasury yields. The early lead was short-lived, however, after the U.S. flash manufacturing PMI for August ticked down to 49.9 (50.5 Expected) from 50.4. A reading below 50.0 denotes a contraction, which was its first one since 2009, according to IHS Markit.
The pound strengthened to a three-week high as investors seized on hints from European leaders that a Brexit deal could still be reached. This uptick came about from Boris Johnson’s meeting with French President Emmanuel Macron in Paris. GBP investors seized on comments made in a joint Q&A in which Mr Macron appeared to show unexpected flexibility over the Irish backstop issue. Echoing comments made by German Chancellor Angela Merkel the day before, Mr Macron said a solution to the backstop could be found within 30 days “if there is goodwill on both sides”.
Elsewhere, the Fed kicked off its annual summit in Jackson Hole, Wyoming, where some officials took some time to speak with CNBC. Kansas City Fed President George (FOMC voter) reiterated her view against the need for a rate cut last month. Philadelphia Fed President Harker and Dallas Fed President Kaplan, both of whom will be FOMC voters in 2020, indicated a preference to not cut rates in September.
U.S. 2-yr yield briefly rose above the 10-yr yield multiple times during the day. Both yields finished three basis points higher at 1.60% and 1.61%, respectively. WTI crude declined 0.7%, or $0.37, to $55.28/bbl.
STOCK MARKET WRAP
S&P500, -0.05%, 2,922.95
Nasdaq, -0.36%, 7,991.39
Nikkei Futures, +0.05%, 20,628.01
The stock market finished mixed on Thursday, as weak U.S. manufacturing data and reservations from a few Fed officials contributed to some indecisiveness. The S&P 500 (-0.1%), Nasdaq Composite (-0.4%), and Russell 2000 (-0.3%) declined modestly, while the Dow Jones Industrial Average (+0.2%) managed to finish higher.
Boeing (BA 354.41, +14.42, +4.2%) was a notable standout on Thursday. Shares were boosted following a Reuters report indicating the company is planning on ramping up 737 production to 52/month in February if regulators approve the commercial return of its 737 MAX.