CURRENCY MARKET WRAP
As of Mon Oct 28th, Singapore Time zone UTC+8
U.S. Dollar Index, +0.20%, 97.83
USDJPY, +0.05%, $108.66
EURUSD, -0.22%, $1.1080
GBPUSD, -0.23%, $1.2823
USDCAD, -0.10%, $1.3059
AUDUSD, +0.06%, $0.6823
NZDUSD, -0.56%, $0.6349
U.S. University of Michigan’s Index of Consumer Sentiment checked in at 95.5 with the final reading for October (consensus 95.8) versus the preliminary reading of 96.0 and the final reading of 93.2 for September. Consumer sentiment held up just fine in October, as positive feelings about income and job growth helped drown out the headline volatility involving trade/tariff issues and the impeachment inquiry.
In trade, China and the United States are making good progress on the “phase-one” trade deal they hope to sign next month, with some sections now close to being finalized, the two sides said in separate statements. According to a statement from Xinhua on Saturday, the two sides have reached consensus on U.S. imports of Chinese cooked poultry and a quality supervision system for catfish products, as well as China lifting a ban on U.S. poultry, and how to apply a public health information system for meat products.
The 2-yr yield rose five basis points to 1.63%, and the 10-yr yield rose four basis points to 1.80%. The U.S. Dollar Index increased 0.20% to 97.83. WTI crude increased 0.4%, or $0.21, to $56.44/bbl.
In the UK the Brexit mess remained unsettled as EU officials have yet to grant an extension to the UK insisting that Parliament call an election, while the majority of Parliament is looking for an extension offer before considering a snap election. The situation remains muddy and continues to weigh on Sterling.
STOCK MARKET WRAP
S&P500, +0.41%, 3,022.55
Nasdaq, +0.70%, 8,243.12
Nikkei Futures, -0.04%, 22,770.0
Intel (INTC 56.46, +4.23, +8.1%) was among today’s most influential companies after it beat top and bottom-line estimates and issued upside guidance. Its 8% gain, the buying interest in other semiconductor stocks, and an earnings-driven gain in Visa (V 177.85, +1.69, +1.0%) all contributed to leadership of the S&P 500 information technology sector (+1.2%).
A closer look inside the utilities space showed the group was also struggling from industry-specific issues. Edison (EIX 66.05, -6.14, -8.5%) and Sempra Energy (SRE 143.94, -4.12, -2.8%) fell on concerns about more power outages in California. PG&E (PCG), meanwhile, acknowledged that one of its transmission lines fell in the area where the Kincade wildfire started, sparking investor concerns that it could face additional liabilities. Separately, Dow component Verizon (VZ 60.37, -0.21, -0.4%) reported better-than-expected earnings results, but shares ended the day lower.