CURRENCY MARKET WRAP
As of Tue Sep 23rd, Singapore Time zone UTC+8
U.S. Dollar Index, +0.15%, 98.64
USDJPY, -0.06%, $107.60
EURUSD, -0.22%, $1.0994
GBPUSD, -0.29%, $1.2434
USDCAD, -0.06%, $1.3261
AUDUSD, +0.07%, $0.6773
NZDUSD, +0.49%, $0.6297
Manufacturing activity in the Eurozone contracted at its fastest pace in nearly 7 years with the index falling to 45.6 (consensus 47.6) from 47.0. The slowdown was led by Germany, where the PMI manufacturing index fell to 41.4 (consensus 44.6), the lowest level in more than a decade. German officials remain reluctant to increase the budget, but the longer they wait the worse the situation may become. It’s clear that monetary policy has run out of gas and fiscal tools are needed to jump-start the economy.
The U.S. Treasury market reflected some lingering growth concerns as increased demand pushed yields lower. The 2-yr yield declined three basis points to 1.67%, and the 10-yr yield declined six basis points to 1.71%. The U.S. Dollar Index increased 0.15% to 98.64. WTI crude rose 1.0%, or $0.60, to $58.64/bbl.
STOCK MARKET WRAP
S&P500, -0.01%, 2,991.77
Nasdaq, -0.06%, 8,112.46
Nikkei Futures, +0.01%, 21,905.0
Apple (AAPL 218.72, +0.99, +0.5%) and most stocks within the Philadelphia Semiconductor Index (+1.0%) showed relative strength throughout the day. The semiconductor space bounced back from Friday’s decline following reports indicating that officials from the U.S. and China described last week’s trade talks as “productive” and “constructive,” respectively.
In corporate news, American Express (AXP 118.25, +1.45, +1.2%) announced a 120 million share repurchase program and increased its quarterly dividend 10%. Lululemon athletica (LULU 195.18, +5.88, +3.1) rose 3% after the stock was initiated with an Overweight rating at Piper Jaffray.