CURRENCY MARKET WRAP
As of Fri Oct 11th, Singapore Time zone UTC+8
U.S. Dollar Index, -0.43%, 98.69
USDJPY, +0.37%, $107.86
EURUSD, +0.35%, $1.1009
GBPUSD, +1.85%, $1.2432
USDCAD, -0.33%, $1.3289
AUDUSD, +0.58%, $0.6764
NZDUSD, +0.52%, $0.6326
U.S. Total CPI was unchanged m/m in September (consensus +0.1%) while core CPI, which excludes food and energy, was up 0.1% (consensus +0.2%).
In trade, Trump on Thursday hinted at progress in his high-stakes trade battle with China, saying talks with Beijing’s envoy had gone well. The new signs of comity were an abrupt improvement after a week in which Washington blitzed Beijing with aggressive policy measures and talks appeared headed for a dead end, just days before US duties on US$250 billion in Chinese imports are due to rise. Risk assets were bid, with investors buoyed by hopes that at least escalation might be averted even if an overarching resolution was beyond reach. Myron Brilliant, head of international affairs at the US Chamber of Commerce, told reporters on Thursday he had spoken with both sides and that an agreement on currency could emerge this week.
The 2-yr yield (1.53%) and the 10-yr yield (1.66%), which both rose seven basis points, initially started to sell off after yr/yr changes in consumer prices reflected a firming of consumer inflation. The U.S. Dollar Index fell 0.4% to 98.69. WTI crude rose 1.8% (+$0.94) to $53.57/bbl.
STOCK MARKET WRAP
S&P500, +0.64%, 2,938.13
Nasdaq, +0.60%, 7,950.78
Nikkei Futures, +1.20%, 21,697.5
Wall Street ended Thursday on a positive note, as investors looked ahead to a supposed meeting between Trump and China’s Vice Premier, Liu He, today. A tweet from Trump in which he said he will meet with the Vice Premier at the White House on Friday quickly sent stocks higher and U.S. Treasuries even lower. Ten of the 11 S&P 500 sectors finished in positive territory, with the energy (+1.3%) and financial (+1.0%) sectors advancing the most. The utilities sector (-0.1%) was the lone holdout amid the higher Treasury yields.
Notable large-cap movers included Cisco Systems (CSCO 46.15, -0.69, -1.5%), Netflix (NFLX 280.48, +12.95, +4.8%), and Delta Air Lines (DAL 53.10, -0.82, -1.5%). Cisco was downgraded to Neutral from Buy at Goldman Sachs. Netflix brushed off two more analyst price cuts. Delta Air Lines guided Q4 EPS with a midpoint that was below expectations.
Outsized moves belonged to Bed Bath & Beyond (BBBY 12.09, +2.15, +21.6%) and PG&E (PCG 7.79, -3.19, -29.1%). Bed Bath & Beyond appointed former Target (TGT 110.57, +0.21, +0.2%) executive Mark Tritton as its President and CEO. In PG&E’s case, a bankruptcy judge decided to allow other parties to put forth a Chapter 11 restructuring plan for the company.