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Daily Briefing – Wednesday, July 12, 2017

Europe

Indexes are recovering from yesterday bloody closing as caution overtook investors to the tune of -0.65% in the Eurostoxx, the Dax (-0.07%) and the CAC40 (_0.48%). The FTSE lost half a percent on Marks & Spencer and media giant Pearson., among others. German wholesale prices this morning show a lower increase than in May – 2.5% compared to 3.1% YoY but a slight rise out of the negative on the monthly basis.

 

US

Job openings were down below expected to 5.6m yesterday, and wholesale sales dropped for a 3rd straight month by a worse-than-expected 0.5% as inventories rose – also by a worse-than-expected 0.4%. Adding fire to the fuel, emails indicating that the President’s son colluded with Russians to interfere with elections pressured equities downward, the DJ only remaining unchanged thanks to dip-buyers, and the S&P losing a tenth of a percent. Only the Nasdaq eked out a 0.27% gain on strong tech stocks. North of the border, the Canadian Dollar is showing surprisingly weak optimism ahead of today’s expected interest rate hike. Yesterday saw a better-than-expected increase to 212K in housing starts.

 

Asia

Asian trading ground to a halt yesterday as Trumpomania overtook markets and in anticipation of today’s testimony by US Fed Chair Janet Yellen before the Senate. All benchmarks except the Hang Seng (+0.74%) ended in the red, led by the Australian S&P/ASX (-0.96%). In Australia consumer confidence is on the rise: 0.4% compared to a 1.8% decline in June.

 

 

Commodities

Gold managed to gain some of the blow back from stock drops yesterday alongside the USD, recovering from an intraday low of 1207 to 1219 as the Trump Jr. news cycle developed, then tapering off overnight. And oil struggles with resistance at the $46 level after its morning V – dropping below 44 on Saudi Arabia’s exceeding production limits for the 1st time since brokering the output freeze deal, then soaring again through a 50 cent gap on the API’s 8 million barrel drawdown.

 

Today’s Events

8:30 AM GMT UK: Average earnings & unemployment
9 AM GMT EU: Industrial production
11 AM GMT US: MBA Mortgage applications, followed at 2PM by Janet Yellen’s speech to Congress
2 PM GMT Canada: Interest rates & policy
2:30 PM GMT EIA: Crude oil stocks change
3:30 AM GMT (+1) China: Imports, exports & trade balance

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