Dismal Philly Fed survey spooks US markets
Summary: December's US Durable Goods print was lukewarm, but the latest jobless claims data sounded a positive note. Into today's New York bell, however, it seems as though a dismal miss from the Philadelphia Fed Manufacturing Survey was the release that moved sentiment lower.
The picture was a little different on the equities front, however, as the weaker than expected US figures snapped a nascent rally on Wall Street. Equity futures pointed to a positive open in early New York trading, but sentiment turned negative after the data dump. It is still very early in the session, though, and the declines are modest.
December Durable Goods Orders were lukewarm. The headline increase of 1.2% was better than the upwardly revised November result of 1.0% but below forecasts for a 1.5% gain. It is the second consecutive increase but still not enough to recover from October's 4.3% plunge. Excluding transportation, Durable Goods Orders rose 0.1%. (forecast 0.3%, month-on-month).
USDCAD traders would be wise to take note as China is furious with Canada over its arrest of Huawei CFO Meng Wanshou.
Eurozone trade issues are sure to cause a kerfuffle as there are reports that President Trump has what he needs to impose tariffs on the import of EU cars. A “no-deal Brexit is another issue. The risk of GBPUSD instability could trigger a massive shift into risk aversion trades, and so could escalating Russia/US tensions over missile deployments.