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Daily Briefing – Wednesday, August 9, 2017



Panic buying following China’s dismal trade performance yesterday, plus the US-N.Korea threats volley has sent the VIX up and caused a spike in US benchmarks, which managed to erase gains by the end of the session and close in the red – a product of increasing tensions with North Korea. Job openings broke out of their range and soared by 461K to 6.16million, and IBD/TIPP’s economic optimism index jumped from 50.2 to 52.2.




Following yesterday’s trade data, China’s CIP rose a worse-than-expected o.1% MoM. In Japan, the Nikkei led Asian benchmarks down as the Yen strengthens alongside other risk assets like gold due to geopolitical pressures. After a crash in Australian consumer confidence (-1.2%), home loans also dropped by half to 0.5%.



All major European indexes closed in the red yesterday and continue the trend this morning. German trade data yesterday showed a huge decline in imports and exports before numbers from France and Greece showed similar trends – a slight drop in the former’s trade and a weakening of industrial growth in the latter.





Besides missing earnings expectations yesterday, Disney announced it was pulling its library from Netflix, generating a drop in the shares of both companies. Snapchat announces earnings today after the NY close. EPS expectations are for a 14 cent loss per share, while shares – still well below IPO rates – have actually shown a rebound, ahead of the lock-down period’s end this month. Finally, as major banks embrace blockchain technology and the era of paper money begins its decline, NVidia will be reporting quarterly earnings tomorrow. The company is a leader in cryptocurrency-specific GPUs and expects an EPS of $0.7 after beating estimates for the past 7 quarters.



Despite rising geopolitical tensions and a 7mB withdrawal of oil according to last night’s API reading, oil remains flat – unexplained by the failure of yesterday’s OPEC meeting on quota mismanagement and the increase in petrol stocks. Venezuelan unrest amidst an expected default on loans are only adding to the flame. Meanwhile, gold is also enjoying the political mayhem, having regained Friday’s plunge and resting below the 1270 mark.


Today’s Events

2:30 PM GMT EIA: Crude Oil Stocks
9 PM GMT New Zealand: Interest Rates followed at 10:45 by retail sales
11:50 PM GMT Japan: Foreign Investments
1 AM GMT (+1) Australia: Inflation Expectations followed by a speech from central bank head Wheeler.

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