Overnight Snapshot
Nikkei 225 21031.31 (-1.34%) RTS Index Mar Future 123160 (-1.09%)
Hang Seng 30308.88 (-1.57%) Mini S&P Mar Future 2614.75 (-0.04%)
ASX200 5789.465 (-0.73%) FTSE100 Mar Future 6862.5 (-0.64%)
Shanghai Comp 3131.098 (-1.12%) DAX Mar Future 11865.5 (-0.94%)
GBP/USD 1.4188 EUR/USD 1.2394 RUB/USD 57.5165
ITI Russia Equity ETF 24.357
ITI Russia Bond ETF 24.525
The Day Ahead
0930hrs UK Bank of England Agents Business Survey
1100hrs UK UK CBI Distributive Trades Survey
1200hrs UK US MBA Mortgage Applications (previous -1.1%)
1330hrs UK US GDP (est 2.68% Price Index 2.32% vs previous 2.5%/2.3%)
1330hrs UK US Personal Consumption (est 3.84% vs previous 3.8%)
1330hrs UK US Wholesale Inventories (est 0.46% vs previous 0.8%)
1500hrs UK US NAR Pending Home Sales (est 2.1% vs previous -4.7%)
1530hrs UK US DOE Crude Oil Inventories (est 146.42K vs previous -2622K)
1530hrs UK US DOE Gasoline Inventories (est -2160K vs previous -1693K)
1700hrs UK Atlanta Fed President Raphael Bostic speaks in Atlanta
The Day So Far….
STOCKS: Wall Street closed sharply lower last night, with each of the major US stock indices posted their fourth decline in five sessions, with the Tech sector leading the way. The Techs have been under pressure recently on concerns that governments may increase regulation following the strong growth in the sector being clouded by questions over privacy. Facebook dropped another 4.9% yesterday to show a fall of nearly 15% on the month. The Dow fell 344.89 points to 23857.71, the S&P500 shed 45.93 points to 2612.62, and the Nasdaq100 dropped 223.991 to 6529.841
Asian indices have tracked Wall St. lower as a bout of risk aversion pushed stocks to fresh lows in late NY trade. - The Nikkei 225 lost 1.8% as tech names followed their US counterparts lower on trade war worry, with a large number of shares going ex-dividend also weighing on the index. - The Hang Seng lost 1.6%, with IT leading the way lower, although the defensive consumer staples sector managed to post gains. China's CSI also shed over 1%. - Australia's ASX 200 lost 0.7% - US index futures trading flat, with the e-mini S&P 2 points better off & the mini Dow 30 points higher.
US TSY/RECAP: US Tsys went out at session highs on Tuesday, with the session's price action mainly driven by shifts in US stocks, rallying on any move lower in equities but holding firm on any recovery. - 5Year Note supply passed without a hitch, with a small tail, steady cover ratio and slightly lower dealer takeup when compared to the prior auction. - Just before the close, 10Year yields broke significantly below 2.80%, with the 2s-10s curve flattening by around 4bp on the session as as 2s lagged.
OIL: WTI & Brent were $0.50 or so worse off in Asia, with WTI trading at $66.75, while Brent last stood at $69.60. - This came after the latest API crude inventory estimate reportedly provided a much larger than expected headline crude build, although Gasoline & Distillate stocks reportedly experienced large drawdowns.
FOREX: The DXY slipped in AsiaPacific dealing, although the JPY was the underperformer in the major space. - GBP garnered an early, albeit modest bid, following reports from the Times suggesting that the UK will offer a resolution on the Irish hard border issue imminently. The headline has helped cable move above 1.4180, while EURGBP trades around 0.8750. - JPY came under pressure on hopes of reduced tensions between the US and North Korea, with the USDJPY cross moving back above 105.50. - The EURUSD ticked higher in a newslight session, while the NZDUSD traded flat & AUDSD managed add 20 pips to trade at 0.7000
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