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Daily Briefing – Wednesday, October 11, 2017

Europe

The Euro continues to strengthen after Catalan leader Carlos Puigdemont called for talks with Spanish officials as he stopped just short of announcing independence yesterday. Amongst European indexes, the FTSE was the odd man out, gaining 0.4% on banking shares despite the IMF’s 0.3% downgrading of growth projections for the UK. Manufacturing production yesterday left expectations in the dust with a 2.8% growth, although the nation’s trade deficit widened in August to £-5.835B – an all-time high. Meanwhile, UBS Wealth Management reports that – although still a bubble – UK house prices are steadily falling, 3.2% for high-end London properties for the first time in 8 years. German exports increased in August by 3.1% as demand grows in a continually recovering European economy. The country’s trade surplus also grew to €21.6B; and French industrial output unexpectedly fell 0.3% instead of rising 0.4%, as expected, while Italy increased its industrial output growth in August to 5.7% (YoY) – doubling expectations!

 

US

The US business lobby yesterday accused the Trump administration of purposefully sabotaging NAFTA talks, as today’s talks are set to to be extended by 2 days. US indexes ended up yesterday led by the DJ (+31%) thanks to consumer shares, with Walmart adding nearly 5% as it ventures forth into e-commerce – expecting a 40% increase in sales as a result. And investors are awaiting today’s FOMC minutes from its September meeting, which is expected to indicate a general willingness to increase interest rates in December.

 

Asia

Asia ended the session up this morning, led by Australia’s S&P/ASX’s 0.59%. The Nikkei added 0.32% as the Yen falls on October 22nd snap elections for to which campaigning kicked off yesterday. PM Abe is hoping to consolidate his strength after approval ratings increased during the N.Korea tensions. After delivering an excellent business confidence reading yesterday morning, Australia began the Wednesday session with a 1 point increase in consumer confidence.

 

Commodities

Oil dramatically broke through the $50 mark yesterday as OPEC Sec. Gen. Mohamed Barkindo called on the US Shale industry to help curb oil production. Contrary to Russia and other major producers, the US has increased production by 10% this year – predominantly shale.

 

Today’s Events

6 PM GMT

US: FOMC Minutes

8:30 PM GMT

API Weekly Crude Oil Inventories

Midnight GMT

Australia: Consumer Inflation Expectations

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