Daily News

Daily Briefing – Thursday, April 13, 2017

US

US President Donald Trump told the Wall Street Journal yesterday that he no longer saw China as a currency manipulator and that he would agree to lesser trade concessions in return for their help against North Korea. The US Dollar plummeted nearly 80 cents to a 5-month low against the Yen in afternoon trading after the president said that the currency was still too strong. Stock markets followed suite by dropping 170 points (0.3%) following the Tillerson/Lavrov meeting in Moscow, then regained marginally. March’s trade deficit came in at $176 bn, widening the year;s to $526.9 bn. The Bank of Canada held interest rates at 0.5% yesterday saying that the global economy is strengthening but revised its own output downward.

 Europe

As French election projections tighten, European stock markets logged some gains on auto stocks after 3 days of drops. The Eurostoxx was up 0.2% and the DAX – 0.13%. The FTSE lost 0.22% drawn down by supermarkets and mining stocks. British manufacturers this morning reported their highest export growth rates in over 2 years, and housing prices in central London have begun falling. The UK showed stability in unemployment yesterday, with a slight rise in average earnings, while in Germany, wholesale prices remained stable and March inflation remained stable against February.

Asia

As China prepares for a showdown with North Korea, Chinese authorities have injected 70 billion yuan into the economy. This morning’s data shows a vast improvement in the nation’s trade balance, up from February’s $9bn deficit to $24bn surplus. Exports in March were up 16.4% YoY. In Japan, the Nikkei fell due to a dollar sell-off throughout the session, which places the Yen at a 5-month high. Further south, Singapore posted a 1.9% drop in annualized GDP for Q1. Australian labor data came in overnight showing sharp rises in employment change (up 61k) and participation (up 65%) – the strongest performance in over a year. This morning sees the currency up 1.43%

Commodities

Oil halted its rise overnight on US overproduction, and in spite of a confirming EIA report that crude inventories had dropped 2.16 million barrels last week – primarily thanks to OPEC reductions. Saudi Arabia has reportedly increased production by 42,000 barrels a day.

Week’s Events

6 – 8:30 AM GMT

Germany, France & Italy: CPIs

8:30 AM GMT

UK: BoE Credit COnditions

12:30 PM GMT

US: Initial & Continuing Jobless Claims

12:30 PM GMT

Canada: New Housing Price Index

0:30 AM GMT (+1)

Australia: Westpac Consumer Confidence

02:00 AM GMT (+1)

China: Foreign Direct Investments

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