E Tie-Breakers

Market Recap:

Equities: The S&P500 futures are up 0.6% after a 0.7% gain yesterday. The Stoxx Europe 600 is up 0.65% to 345 holding opening gains. The MSCI Asia Pacific index was up 0.2% holding gains from yesterday. 

  • Japan Nikkei up 0.82% to 20,204.04
  • Korea Kospi off 0.58% to 2,025.27
  • Hong Kong Hang Seng up 0.15% to 25,875.45
  • China Shanghai Composite off 0.26% to 2,526.46
  • Australia ASX up 0.68% to 5,783.30
  • India NSE50 up 0.28% to 10,802.15
  • UK FTSE so far up 0.6% to 6,854
  • German DAX so far up 0.3% to 10,777
  • French CAC40 so far up 0.8% to 4,757
  • Italian FTSE so far up 0.4% to 19,027

Fixed Income: Supply and news battle it out with focus on 3Y US next and with Trump politics and FOMC speeches also in the mix. The better equities starting to show up in weaker bonds globally. German 10Y Bund yields up 1bps to 0.23%, French OATs up 1bps to 0.73%, UK Gilts up 1bps to 1.26% while periphery holds Italy up 1bps to 2.92%, Spain flat at 1.51%, Portugal flat at 1.82% and Greece off 2bps to 4.36%. 

  • UK DMO sold GBP2.25bn of 10Y 1% Gilts at 1.264% with 2.17 cover and 0.1bps tail. 
  • US Bonds lower with focus on supply and curve– 2Y up 3bps to 2.55%, 5Y up 2bps to 2.54%, 10Y up 1bps to 2.69%, 30Y up 1bps to 2.98%. 
  • Japan JGBs lower with equities despite good auction – 2Y up 2bps to -0.15%, 5Y up 2bps to -0.15%, 10Y up 2bps to 0%, 30Y up 1bps to 0.69%.  The MOF sold Y1.769trn of 10Y 0.1% #353 JGB at 0.015% with 4.04 cover. 
  • Australian bonds lower again despite mixed trade story– 3Y up 4bps to 1.83%, 10Y up 4bps to 2.32%. 
  • China bonds rally again– 2Y off 5pbs to 2.69%, 5Y up 1bps to 2.93%, 10Y off 2bps to 3.15%.

Foreign Exchange: The US dollar index up 0.2% to 95.85. USD in EM also bid back up – INR off 0.4% to 70.06, KRW off 0.8% to 1125.50 – Samsung story – ZAR off 1% to 13.999, RUB off 0.5% to 66.968, TRY off 1.5% to 5.463

  • EUR: 1.1445 off 0.25%. Range 1.1432-1.1485 with 1.13-1.15 still key and weaker data not mattering yet…
  • JPY: 108.70 flat. Range 108.51-109.09 with 108-110 now settling in as key range to watch but risk is still 105. EUR/JPY 124.40 off 0.2%.
  • GBP: 1.2755 off 0.15%. Range 1.2746-1.2797 with focus on EUR not GBP but Brexit and data ahead matter. EUR/GBP .8975 flat. 
  • AUD: .7125 off 0.3%. Range .7116-.7150 with focus on China/rates/risk mood crosses point to .70 before .73 still. NZD .6730 off 0.3%. 
  • CAD: 1.3280 off 0.15%. Range 1.3268-1.3303 with BOC the key for today and risk for 1.34 over 1.32 again. 
  • CHF: .9810 up 0.15%. Range .9788-.9827 with focus on risk mood. EUR/CHF off 0.15% to 1.1225. 
  • CNY: 6.8600 up 0.2%. Range 6.8425-6.8675 – USD back bid despite hopes for trade deal rising. 
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