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Daily Briefing – Thursday, August 24, 2017


US equities fell yesterday after reports broke that Pres. Trump was advancing on his tax reform and was considering a government shutdown unless Congress allows his funding of a wall on the Mexican border. To do so would entail raising the debt ceiling, which Fitch sees as a necessity to prevent its reviewing the US’ AAA sovereign rating. Additionally, new home sales in July plunged 9.4% MoM due to high mortgages and stagnant wages, as the US’ service PMI soared to a 2-year high of 56.9. Manufacturing, on the other hand, lost over a point to 52.5 – a 1-year low – primarily on weak exports



Central European Banker Mario Draghi told a German symposium last night that the bank’s policies have made economies “more resilient”. Audience members who had hoped for a preview of tomorrow’s Jackson Hole speech were instead confronted with a staunch defense of Quantitative Easing. Meanwhile the Euro saw gains on the back of positive PMIs yesterday across the board, while traders await today’s UK data to see if these will be affected by Brexit pessimism.



As floodwaters rage through Macau, the Hang Seng led Asian markets upwards as the Nikkei slid on a fear-strengthening Yen. New Zealand’s trade deficit narrowed in July to $3.21bn. Both exports and imports grew beyond expectations.




Yesterday’s EIA report confirmed the previous day’s API inventory decline. The Administration, however, differed from the Institute in reading a reduction in petrol stocks, as well. WTI experienced some volatility following the announcement, but continued trading sideways below 47.80 until the opening of the Asian session, which pushed the commodity steeply up 80 cents.



In the continuing war between Google/Walmart and Amazon, the US regulator yesterday approved the merger of Amazon with Whole Foods Markets – providing the online giant with over 465 ground-hugging stores.


Today’s Events

7:15 AM GMT Switzerland: Industrial Production
8:30 AM GMT UK: GDP, Business Investments & Services Index
12:30 PM GMT US: Jobless Claims & Existing Home Sales at 2 pm
11:30 PM GMT Japan: CPISs

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