NOTABLE MOVES
As of Tue, Mar 26, Singapore Time zone UTC+8
USDJPY, -0.03%, $110.07
EURUSD, +0.01%, $1.1315
GBPUSD, +0.00%, $1.3212
USDCAD, -0.23%, $1.3395
AUDUSD, +0.51%, $0.7117
NZDUSD, +0.50%, $0.6912
S&P500, -0.08%, 2,798.36
Nasdaq, -0.12%, 7,316.96
Nikkei Futures, -0.10%, 20,982.5
CURRENCY MARKET WRAP
The U.S. Dollar Index lost 0.1% to 96.53. U.S. Treasury yields steadily declined throughout the day on dwindling growth expectations. The 2-yr yield dropped seven basis points to 2.25%, and the 10-yr yield dropped four basis points to 2.42% after briefly touching 2.39% – its lowest level since Dec. 2017.
Brexit still takes centre stage and unfortunately there are more questions than answers on the terms of the UK’s divorce from the European Union. The EU says the divorce deal is not open for renegotiation so the UK needs to accept the current Withdrawal Agreement by April 12th or make the choice between a much longer extension or leave with no deal at all. Prime Minister May admitted yesterday that she does not have the votes to hold a meaningful vote. MPs wrestled back control of Brexit from the government on Monday night, voting in favor of holding a series of votes on alternative Brexit options on Wednesday.
STOCK MARKET WRAP
The S&P 500 decreased 0.08% on Monday in a session that showed little conviction from buyers or sellers. Lingering concerns about global economic growth tempered buying interest and contributed to a further decline in U.S. Treasury yields. The S&P 500 information technology (-0.4%) and financial (-0.4%) sectors dragged the broader market lower. Conversely, the consumer discretionary (+0.6%) and industrial (+0.2%) sectors outperformed.
Homebuilding stocks outperformed amid the continued drop in rates, providing strong support for the consumer discretionary sector. The SPDR S&P Homebuilders ETF (XHB 38.17, +0.49) advanced 1.3%. The Philadelphia Semiconductor Index (-1.3%), on the other hand, pulled back from recent gains, with many of its components weighing on the tech sector.
Apple (AAPL 188.74, -2.31, -1.2%) hosted a highly-anticipated service event, in which it introduced Apple TV Plus, Apple News Plus, Apple Arcade, and Apple Card. Apple did not mention a price for its TV video service. Apple News Plus, a magazine subscription service, will cost $9.99/month. Despite the event, shares of Apple underperformed throughout the day, losing 1.2%.
In M&A news, Thermo Fisher (TMO 268.80, +4.99, +1.9%) will expand its presence into the gene therapy field after announcing it will acquire Brammer Bio for approximately $1.7 billion in cash.