Overnight Snapshot

The Day Ahead

0800hrs UK         EU ECB Governing Council Member Ewald Nowotny speaks in Prague
1130hrs UK         SW Riksbank Deputy Governor Per Jansson speaks in Halmstad
1300hrs UK         SW Swedish Financial Services Authority Director General Erik Thedeen speaks
1715hrs UK         US Atlanta Fed President Raphael Bostic speaks in Atlanta
1905hrs UK         US Philadelphia Fed President Patrick Harker speaks in New York
2230hrs UK         US Minneapolis Fed President Neel Kashkari speaks in Michigan
Earnings releases from US include KLX and American Cannabis
In the UK & Europe, no major earnings releases
The Day So Far….

STOCKS: The S&P500 ended lower on Friday after a choppy session as banks and chipmakers weighed and investors pondered the US-China trade talks. All three major US stock indices had a negative week as the markets reacted to reports from the US-China trade summit, rising treasury yields, and increasing oil prices. China denied accounts by some US officials that it had offered a package to slash the US trade deficit by up to $200bln but did confirm that talks were “constructive” in the latest salvo of tit-for-tat messages emerging from the summit. Boeing shares rose on hopes of a reduction in then trade deficit as Boeing sells about a quarter of its commercial aircraft to China. This pushed Boeing shares 2% higher and provided a near 50 point boost to the Dow Jones, allowing it to close 1.11 points higher at 24715.09, with the S&P ending the day down 7.16 at 2712.97, and the Nasdaq100 35.378 softer at 6866.254.
Most Asian indices have gained today as US stock futures gained ground overnight as it appears the much feared trade war is on hold for now. Treasury yields nudged higher, taking the dollar with them. Equity benchmarks look positive in Japan, China, Hong Kong and Korea, with Australia bucking the trend with a small loss. Mini S&P futures trading 14 points higher and Mini Dow over 200 points higher.

US TSYS SUMMARY: Treasury yields have risen across the curve as concerns ease over an immediate trade war between the US and China, dampening the demand for safe haven assets causing bonds to slip. Yields on the 2’s and 10’s both increased 2bps to 2.57% and 3.07% respectively

OIL: Oil also seeing support from the stable US-China talks. Maduro’s election victory in Venezuela overnight also helping oil futures find bids. West Texas currently trading $71.76 and Brent at $79.00

FOREX: An Italian led Euro crisis is on the verge of becoming the dominant theme for markets. Italy’s two populist parties struck a deal on a Prime Minister helping ease stresses amid a warning from France to avoid risking European stability. Spain also in focus as PM Mariano Rajoy faces more confrontation with Catalonia over the regional governments choice of leaders, threatening passage of Rajoys 2018 budget. EUR trading down at 1.1732 after starting last week at 1.1943


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Отдел аналитики