CURRENCY MARKET WRAP 

As of Wed Aug 28th, Singapore Time zone UTC+8

U.S. Dollar Index, -0.07%, 98.01
USDJPY, -0.36%, $105.75
EURUSD, -0.11%, $1.1090
GBPUSD, +0.52%, $1.2280
USDCAD, +0.23%, $1.3285
AUDUSD, -0.30%, $0.6755
NZDUSD, -0.48%, $0.6364

U.S. Conference Board’s Consumer Confidence Index for August printed at 135.1 (consensus 129.6) versus an upwardly revised 135.8 (from 135.7) in July, which was the third highest reading since October 2000.

In Trade, China’s Foreign Ministry reiterated yesterday that it had not heard of any recent telephone call between the United States and China on trade, and said it hopes Washington can cease its wrong actions and create conditions for talks. Foreign Ministry spokesman Geng Shuang made the comment at a news briefing after US Treasury Secretary Steven Mnuchin said there had been contact between the two sides, but declined to say with whom. – Trump claimed the calls happened over the weekend, during which, he said, China had indicated it wanted to work towards a trade deal.

The 2-yr yield declined two basis points to 1.53%, and the 10-yr yield declined six basis points to 1.49%. The U.S. Dollar Index was little changed at 98.01. WTI crude rose 2.4% to $54.90/bbl.

STOCK MARKET WRAP 

S&P500, -0.32%, 2,869.16
Nasdaq, -0.34%, 7,826.95
Nikkei Futures, +0.75%, 20,453.0

The stock market finished lower on Tuesday in a shaky session. The S&P 500 jumped 0.7% out of the gate after yesterday’s advance, then declined as much 0.6% as Treasury yields took a noticeable leg lower. The broader market spent most of the afternoon wavering in negative territory, leaving the S&P 500 with a 0.32% loss.

The reaction to the persistent flattening/inversion activity in the U.S. Treasury yield curve was made more evident in the S&P 500 financials sector (-0.7%), which led all sectors in losses on Tuesday. The energy (-0.6%) and health care (-0.6%) sectors followed suit, while the utilities (+0.1%), materials (+0.1%), and communication services (+0.1%) sectors managed to finish in positive territory.

Johnson & Johnson (JNJ 129.64, +1.84, +1.4%)outperformed despite being found liable in an opioid case in Oklahoma. JNJ was ordered to pay $572 million, which was at the low end of expectations and much less than the $17 billion the state wanted. Johnson & Johnson said it plans to appeal the ruling.

Other corporate news included merger talks between Philip Morris International (PM 71.70, -6.03, -7.8%) and Altria Group (MO 45.25, -1.87, -4.0%). MO surged on the initial news but fell on a subsequent report from CNBC indicating it would own just 41% of the company at no premium. J.M. Smucker (SJM 103.69, -9.24, -8.2%)disappointed investors with its results and lower guidance.