As of Fri, Mar 29, Singapore Time zone UTC+8
USDJPY, +0.12%, $110.64
EURUSD, -0.20%, $1.1230
GBPUSD, -0.74%, $1.3054
USDCAD, +0.11%, $1.3429
AUDUSD, -0.04%, $0.7082
NZDUSD, -0.24%, $0.6782
S&P500, +0.36%, 2,815.44
Nasdaq, +0.17%, 7,320.47
Nikkei Futures, -1.61%, 21.033.76
CURRENCY MARKET WRAP
The U.S. Dollar Index rose 0.5% to 97.24. U.S. Treasuries edged lower, pushing yields higher. The 2-yr yield and the 10-yr yield increased two basis points each to 2.23% and 2.39%, respectively. WTI crude decreased 0.3% to $59.27/bbl.
A U.S. trade delegation, which included USTR Robert Lighthizer and Treasury Secretary Steven Mnuchin, arrived in Beijing for a two-day meeting on Thursday. Reuters reported Wednesday evening that Chinese negotiators made “unprecedented” proposals on a range of issues including forced technology transfers. Despite the progress, the market continues to wait for a substantive, final trade deal.
In Brexit, Parliament will vote later today on Theresa May’s Brexit deal for a third and possibly final time, the British government confirmed. But the arrangements are, unsurprisingly, mired in confusion and controversy. Unless some last-minute shifts occur, it would be a huge surprise if the prime minister managed to get enough MPs to back her agreement, even after having separated it from the deal’s political declaration.
The legality of this separation is still disputed. Various MPs and pundits, from both the Remain and Leave camps, have questioned whether today’s vote is lawful. Attorney general Geoffrey Cox told parliament earlier that it is, and will address concerns in his opening speech later. DUP deputy leader Nigel Dodds said that the party will vote against the EU withdrawal agreement when it comes before the House of Commons on later today. Northern Ireland’s 10 DUP members, who prop up May’s minority government, don’t have many votes, but are crucial to the process. Despite hopes that they might give way and support her deal, or at least abstain, they remain implacably opposed to a deal that contains the Irish border backstop.
The S&P 500 increased 0.36% on Thursday, led by shares of the recently-battered financial and industrial stocks. S&P 500 materials (+1.0%), financials (+0.8%), and industrial (+0.8%) sectors outperformed the broader market. Conversely, the utilities (-1.3%) and communication services (-0.5%) sectors were the lone groups to finish with losses.
In earnings news, Lululemon athletica (LULU 167.54, +20.74, +14.1%), PVH Corp (PVH 127.26, +16.37, +14.8%), and Accenture (ACN 175.12, +8.65, +5.2%) all beat top and bottom-line estimates and provided upbeat guidance, sending shares notably higher.
In M&A news, WABCO Holdings (WBC 131.48, -14.53, -10.0%) agreed to be acquired by ZF Friedrichshafen for $136.50/share, or over $7 billion, in cash.