Global Macro APAC Morning Brief

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:

• To catch this wk’s Macro Monday Click here…

   

• Don’t forget to bookmark & check our Daily SaxoStrats calls from the European morning session c. 09:00 CET