CURRENCY MARKET WRAP
As of Fri Sep 21st, Singapore Time zone UTC+8
U.S. Dollar Index, -0.22%, 98.34
USDJPY, -0.36%, $108.06
EURUSD, +0.13%, $1.1044
GBPUSD, +0.41%, $1.2523
USDCAD, -0.20%, $1.3260
AUDUSD, -0.54%, $0.6791
NZDUSD, -0.44%, $0.6294
In Repo land, NY Fed injected another $75 billion into money markets to improve liquidity in the overnight repo market. This was its third repurchase operation this week and another one is reportedly scheduled for today. Fed Chair Powell said the volatility in the overnight repo market has no implications for the economy or monetary policy.
In Trade, U.S. and China resumed in-person trade talks today, and the initial tone didn’t sound too constructive. China’s Global Times editor tweeted China is not as anxious to reach a deal as the U.S. expects it to be, while a personal adviser to President Trump, Michael Pillsbury, said the president is ready to escalate the trade war if a deal is not reached soon. Talks will resume today.
U.S. Treasuries finished slightly higher, pushing yields lower across the curve. The 2-yr yield and 10-yr yield both declined one basis point to 1.74% and 1.77%, respectively. The U.S. Dollar Index declined 0.22% to 98.34. WTI crude ticked up 0.1%, or $0.05, to $58.12/bbl.
STOCK MARKET WRAP
S&P500, +0.01%, 3,006.79
Nasdaq, +0.07%, 8,182.88
Nikkei Futures, +0.77%, 21,967.5
S&P 500 closed unchanged on Thursday in a light volume session. Microsoft (MFST 141.07, +2.55, +1.8%) provided some support for the broader market, but relative weakness in the cyclical sectors dragged on a market that struggled to gain traction throughout the day.
Microsoft announced a $40 billion share repurchase program and raised its quarterly dividend 11%. Shares hit a new all-time high, bringing the company’s valuation closer to $1.1 trillion. U.S. Steel (X 11.06, -1.39, -11.2%) disappointed investors after guiding its Q3 EPS well below consensus, making it the third steel company in three days to issue downside guidance. Darden Restaurants (DRI 120.69, -6.44, -5.1%) lost 5% despite beating earnings estimates.