Daily Briefing – Tuesday, September 12, 2017
Global indexes are all up this morning as the US tones down its demands over North Korean sanctions and the UN passes a watered-down version thereof. Chinese stocks are up as expectations for Q3 quarterly earnings edge nearer. The Nikkei overnight led Asian equities into the green, rising 1.13% to its best intraday level in a month. Exporters are benefiting from a receding Yen, as tensions wind down. Bloomberg this morning reports that the Bank of Japan now owns 75% of the nation’s exchange-traded funds, contributing to the assets managed by those ETF’s 10-fold surge in 7 years. The Japanese press has reported that Chinese state banks are freezing transactions in North Korean-held accounts – perhaps in an attempt to themselves be hit by US and EU sanctions. And Australia delivered a 15 point business conditions index early today – its best in 9 years.
European stocks also enjoyed a respite from natural and political disasters yesterday, jumping by 4-week record rallies – especially on insurance stocks. Spain’s IBEX led the pack with a 1.9% gain, followed by the DAX (1.4%), Eurostoxx (1.3%) and the FTSE in the rear with a ½% rise. ECB official Benoît Coeuré said yesterday that the zone’s monetary policies would remain loose but that the high exchange rate shouldn’t weigh on economic growth, which is currently being fed primarily by local demand. France’s central bank has released 3rd quarter GDP projections of 0.5% growth. And, British parliamentarians yesterday passed a Brexit bill aimed at importing over 10,000 Eurozone laws into UK legislation – signaling PM Theresa May’s first victory in quite some time.
US equities marked their largest intraday gains in several months as Hurricane Irma was downgraded and North Korea failed to carry out another missile test over the weekend. All major benchmarks topped 1% gains as Tesla shares added nearly 6% after the company provided free software that extended battery life for those attempting to flee Florida. Following last week’s extension of the US debt ceiling, the nation’s total debt is now above $20 tn.
Although not contributing to a meaningful recovery, China’s largest Bitcoin exchanges say that they have not yet been instructed by the authorities regarding rumored crackdowns on ICOs, which sent the currency down over the weekend by about 10%. Oil took a dip this morning after investors recoup Hurricane-related losses and Saudi Arabia discussed a production freeze extension with Venezuela. The commodity is now slightly higher at $48.06 for a barrel of WTI, but still well below Friday’s 49.50. And gold is back beneath the 1331 level as tensions that last week sent investors to safe-havens subside.
|8:30 AM GMT||UK: Retail Prices, PPIs & CPIs|
|12:55 PM GMT||US: Redbook Index followed at 2 by Job Openings|
|8:30 PM GMT||API Crude Oil Inventories|
|0:30 AM GMT (+1)||Australia: Consumer Confidence|