APAC Global Macro Morning Brief – Happy Macro Thu 14 Nov 2019: Powell Signals The US Ship Continues To Sail Well

(Note that these are solely the views & opinions of KVP, they do not constitute any trade or investment recommendations of any kind.)

To see this wk’s Macro Monday click here

APAC Global Macro Morning Brief

Happy Macro Thu 14 Nov 2019: Powell Signals The US Ship Continues To Sail Well

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At the same time, it looked like one autocrat talking to another with the Trump & Erdogan press event. Say what you want, yet Trump seems to be clearly long Turkey & that is likely good for Turkish assets

The US listed Turkish iShares MSCI etf TUR had a big uplift of +1.47% to 26.18 – chart looks like we are about to break out higher, with the 28.34 highs of January potentially within reach. Trump was talking about $100bn trade deal with Turkey



Once again say what you want about Trump… +9yrs of The Apprentice, this dude is a master instigator, check out one of the things he said:

“I think the president [Erdgogan] has a great relationship with the Kurds”

Just amazing & that’s the magic. Folks will focus on comments / statements like this, whilst he moves on to doing whatever he wants

It will be interesting to see if Congress has other plans/ideas around Turkey, similar to what we previously saw with Russia

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Worth also noting overnight that US inflation was mixed, beat on headline 1.8%a 1.7%e 1.7%p, whilst Core CPI which is more important missed at 2.3%a 2.4%e/p. In the UK headline missed, yet Core CPI was in line at 1.7%

Euro-zone industrial production beat at +10bp a vs. -20bp e +40bp p

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Today once again about Powell’s 2^nd half of testimony to Congress. We do also have three more FOMC members speaking: Quarles, Clarida & Evans

We have jobs data out of Aus, always a big mover for markets there both equities & the Aussie crosses, following which we will get the monthly China growth data

Namaste

-KVP

Today:

• AU: Jobs Data, MI Inflation Expectations

• CH: FAI, IP, RS U/R

• EZ: GER prelim GDP, EZ Flash GDP & Flash Jobs Data

• UK: RS, 30yr bond auction, CB Leading Index

• US: PPI, Core PPI, Crude Oil Inventories, Natural Gas Storage
  
  • FOMC’s Powell day two testimony on the economy @ 23:00 SGT/HKT/CST (10:00 AM ET)