Daily Briefing – Tuesday, August 8, 2017
Indexes in Japan, Australia and Taiwan are in the red this morning on a faltering USD, while Chinese benchmarks remain above water. The Yuan spiked this morning after a better-than-expected improvement in China’s trade surplus and a 5-month low in export growth –albeit the nation’s 5th month of growth in a row. Foreign exchange reserves last night grew to a better-than-expected 3.08 trillion Yuan in July, based on central bank figures (which are being challenged by Goldman Sachs analysts – among others). Meanwhile, Japan’s trade balance declined to a disappointing 5.18 bn Yen surplus; and business confidence in Australia have improved from 8 to 12 while conditions increased a point to 15 – a 9-year high.
European indexes ended the session down yesterday on a fall in the EU’s investor confidence reading and poor German industrial data. The news continues this morning with worse-than-expected declines in exports and imports, but an increase in the nation’s trade surplus. The mining sector helped close the FTSE up a quarter percent yesterday to a 6-month high. Yesterday’s data from the UK includes I slight increase in house prices and retail sales.
Overnight dollar trading was soft after the Fed’s James Bullard cautiously said he was prepared for an unwinding in the central bank’s balance sheet. US consumer credit change fell by a third to $12.4bn in June and debt has risen to its highest since the 2008 financial crisis on student and car loans.
Apple stock is in the news again as prices spiked another $2 yesterday; and Teva stock continues plunging on debt and heavy trading after Morgan Stanley produced a bearish signal yesterday. Since the beginning of the downfall 8 days ago, the stock has lost nearly half its value YoY. Today, Godaddy reports quarterly earnings. The cloud giant is expected to report earnings of about $550 million and an EPS of 3c – triple that in Q1
As OPEC members meet to discuss their production freeze, data showing that member states are not abiding by their quotas has been pressuring oil downward. WTI crude oil continues to waver in the $49 region after major energy firms begin to remove their expat staff from Venezuela due to political turmoil. Bitcoin has once again surged and now tops $3400. However, traders fear platform manipulation. In related news, China has announced that it will adopt blockchain technology for taxation and invoicing activities to answer needs for greater transparency and security.
|12:15 PM GMT||Canada: Housing Starts|
|8:30 PM GMT||API Crude Oil Inventories|
|0:30 AM GMT (+1)||Australia: Consumer Confidence|
|1:30 AM GMT (+1)||China: Consumer Price Index|