CURRENCY MARKET WRAP
As of Fri 20th Dec, Singapore Time zone UTC+8
U.S. Dollar Index, +0.00%, 97.40
USDJPY, -0.13%, $109.39
EURUSD, +0.09%, $1.1123
GBPUSD, -0.46%, $1.3017
USDCAD, +0.05%, $1.3122
AUDUSD, +0.53%, $0.6890
NZDUSD, +0.33%, $0.6611
The historical impeachment vote in the House was widely discussed, but investors dismissed the news as having any consequences for the market. Staying in Washington, Treasury Secretary Mnuchin said the USMCA deal could add 0.5% to GDP, which may have supported the market’s already positive economic outlook.
U.S. Treasuries edged higher, pushing yields slightly lower across the curve. The 2-yr and 10-yr yields both declined two basis points each to 1.60% and 1.91%, respectively. The U.S. Dollar Index finished little changed at 97.39. WTI crude rose 0.6% (+0.37%) to $61.30/bbl.
The BOJ left its ultra easy monetary policy unchanged (-0.10%) Thursday despite signs of a slowdown in the country’s economy since a consumption tax hike in October. The BOJ board voted 7 to 2 to maintain its current monetary policy, with Goshi Kataoka, one of the two dissenters, demanding a further lowering of the short-term negative rate. Kuroda also said the BOJ could further lower the short-term interest rate in negative territory as a policy tool, as he said at the previous press meeting in October.
BoE kept interest rates steady (0.75%) on Thursday, saying it was too soon to gauge how much Boris Johnson’s election victory would lift the Brexit uncertainty that has hung over the economy. Two of the BoE’s nine policymakers voted for a second month in a row for a cut to borrowing costs due to fears that Britain’s jobs boom is deteriorating.
STOCK MARKET WRAP
S&P500, +0.45%, 3,205.37
Nasdaq, +0.67%, 8,887.22
Nikkei Futures, +0.09%, 23,835.0
Micron (MU 54.53, +1.49, +2.8%), Canagra Brands (CAG 33.66, +4.61, +15.9%), and Darden Restaurants (DRI 109.05, -7.26, -6.2%) all beat profit estimates, but the latter disappointed investors with its same-restaurant sales growth.
Cisco Systems (CSCO 47.88, +1.24, +2.7%) and Johnson & Johnson (JNJ 145.35, +2.16, +1.5%), two stocks that have underperformed this year, were both upgraded to Overweight from Equal Weight at Barclays.
In corporate deals, Match Group (MTCH 77.35, +6.11, +8.6%) and InterActiveCorp (IAC 238.41, +17.20, +7.8%) agreed to separate. Live Nation (LYV 69.83, +5.88, +9.2%) reportedly reached a tentative settlement with the Department of Justice over its ticketing practices.