Daily Briefing – Tuesday, October 24, 2017
Major US benchmarks closed in the red yesterday, with the Nasdaq down 0.6% and the S&P down 0.4%. With Jerome Powell still at the front of the race and Janet Yellen a distant second, the USD’s sporadic week-long rise halted yesterday after US President Donald Trump said in Singapore that he was close to deciding on the Federal Reserve’s next chairperson. Factory revivals provided a lift for the Chicago Fed’s national activity index, which entered positive territory in September – plus 0.15 from August’s minus 0.37.
European stocks closed marginally higher yesterday, with the IBEX continuing to slide on Catalan tensions. Consumer confidence in October was up 0.2 points, but at -1, still in negative territory. The GBP gained some traction after the BoE’s Jon Cunliffe said interest rates may rise in November.
The Nikkei continues to push slowly up – tempered by a strengthening Yen, as China yesterday also saw indexes rising marginally. The Hang Seng this morning closed down 0.6% alongside the Shenzhen Composite’s -0.12%.
Gold spiked yesterday to the tune of $10 a troy ounce following Trump’s Fed head statement, as the USD suffered alongside US equities.
Today’s quarterly earnings reports come from 3M before market open – expect EPS of $2.26 on $7.81bn revenues; McDonald’s before market close – expect $1.75 earnings per share on revenues of $5.77bn; Fiat Chrysler also before market open – expect 50c on the share, down from last year’s 53 despite a 2.1% increase in revenues to €27.39bn; and, finally, AT&T after market close – EPS forecasted at 75c on revenues of $40.12bn, which were down 1.9% YoY, burdened this quarter by the purchase of Time Warner.
|7-8 AM GMT||Markit Manufacturing, Service & Composite PMIs – France, Germany & EU|
|1:45 PM GMT||US: Markit Manufacturing, Service & Composite PMIs|
|8:30 PM GMT||API – Weekly Crude Oil Stocks|
|0:30 AM GMT (+1)||Australia: CPIs|