CURRENCY MARKET WRAP
As of Thu 19th Dec, Singapore Time zone UTC+8
U.S. Dollar Index, +0.19%, 97.40
USDJPY, +0.08%, $109.57
EURUSD, -0.31%, $1.1115
GBPUSD, -0.34%, $1.3085
USDCAD, -0.34%, $1.3116
AUDUSD, +0.21%, $0.6870
NZDUSD, +0.11%, $0.6583
U.S. Economic data was limited to the weekly MBA Mortgage Applications Index, which declined 5.0% after increasing 3.8% in the prior week.
In the U.S. Treasury market, a decline in longer-dated bonds caused some curve-steepening activity. The 2-yr yield declined one basis point to 1.62%, while the 10-yr yield increased four basis points to 1.92%. The U.S. Dollar Index increased 0.19% to 97.40. WTI crude increased 0.1% (+$0.03) to $60.93/bbl.
Canada’s annual inflation rate rose 2.2% as expected in November on the back of higher energy prices. Analysts noted a surprise increase in core measures that could make it harder for the Bank of Canada to ease rates.
STOCK MARKET WRAP
S&P500, -0.04%, 3,191.14
Nasdaq, +0.05%, 8,827.74
Nikkei Futures, +0.10%, 23,857.5
Buying enthusiasm was understandably absent amid a lack of new catalysts, but there remained little interest to sell a market trading at all-time highs. FedEx (FDX 146.86, -16.37, -10.0%), however, did succumb to heavy selling pressure after it issued disappointing earnings results and guidance.
Weakness in FedEx contributed to the declines in the S&P 500 industrials sector (-0.5%) and Dow Jones Transportation Average (-0.9%). Conversely, the real estate sector (+1.3%) rose more than 1% in an opportunistic trade that pared some of its monthly decline. The utilities (+0.4%), energy (+0.3%), and communication services (+0.3%) sectors followed suit.
In other earnings news, Lennox International (LII 245.37, -13.21, -5.1%) discouraged investors by lowering its FY19 guidance, while Cintas (CTAS 265.88, +5.12, +2.0%) and Steelcase (SCS 22.21, +3.13, +16.4%) pleased investors with results and/or guidance.