Global Macro APAC Morning Brief

Macro 1 minute to read

Kay Van-Petersen

Global Macro Strategist

Summary:  Morning APAC Global Macro & Cross-Asset Snapshot


Happy Macro Thus 26 Sep 2019


APAC Global Macro Morning Call



O/N, Levels & Thoughts:

So it looks like the US markets could not care about the impeachment investigation launch by the democrats, as equities jumped yesterday alongside the release of the Trump/Zelensky transcript of their call.

We touched on KVP’s initial thoughts on what is going to be a massive campaign by the Democrats & potential strategic blunder, on yesterday’s Macro brief.

Trump talked up a trade agreement with China, which the markets potentially bought – worth bearing in mind, we are also bouncing back from three days of pullbacks.

The S&P closed up to 2985 +0.62% whilst the Nasdaq100 doubled that with a +1.21% lift to 7804. The US dollar continues be bid & the DXY closed at 99.04 continuing to make newer highs for the year.

Yields also saw a lift higher, as we saw UST get to 1.74%, the 2/10s is sitting at around +5bp. Bunds & JGBs are at c. -58bp & -26bp respectively.

Gold & silver had a bearish session sat -1.8% & -3.8% to 1506 & 17.97. Brent Crude closed at 62.39 down -1.1% for the session, US Crude inventories surprised to the upside +2.4m a vs. -0.3m e

We also had central bank rate decisions out of New Zealand & the Thailand, where both boards left rates unchanged at 1.00% & 1.50%, in-line with expectations.

Today:

  • EZ: Private Loans, Money Suppler, ECB Economic Bulletin
  • US: Pending Home Sales, Weekly Unemployment Claims, Trade Balance, Final 2Q GDP 2.0%e/p
    • Plus FOMC members Bullard (who was advocating for a -50bp cut) & Clarida (who was part of consensus -25bp cut)
  • Central Banks (SGT/HKT times)): BoJ’s Kuroda speaking (14:35) ECB’s Draghi (21:30) Careney (21:45)
  • As well as rate decisions out of the Philippines & Mexico, with the market expecting a -25bp from both to 4.00% & 7.70% respectively


Other:

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