NEW STORIES OF NOTE FROM OVER THE EU & US SESSIONS: US stocks edged fresh record levels on what was a relatively range-bound trading day as markets await tomorrow’s Fed announcement, while upside was led by a surge in telecom names on M&A talk

ASIA-PAC

New Zealand Dairy Prices rose 0.9% and Whole Milk Powder Prices rose 0.6% at the GDT auction. (Newswires)

Fitch affirmed Singapore at 'AAA'; outlook stable. (Newswires)

 

UK

UK PM May said she is confident of getting a consensus on her Brexit strategy at a meeting on Thursday. (Newswires)

UK PM May intends to make a EUR 20bln Brexit payment offer to the EU. (FT)

 

EU

ECB policymakers are said to disagree on whether to set firm end date for bond-buying, according to sources. (Newswires)

 

German ZEW Current Conditions (Sep) 87.9 vs. Exp. 86.8 (Prev. 86.7)

German ZEW Economic Sentiment (Sep) 17.0 vs. Exp. 12.5 (Prev. 10.0)

 

US

 

US Building Permits (Aug) M/M 5.7% (Prev. -3.5%). (Newswires)

US House Starts (Aug) M/M -0.8% (Prev. -4.8%, Rev. -2.2%)

US Current Account (Q2) -123.1B vs. Exp. -115.0B (Prev. -116.8B, Rev. -113.5B)

US Import Prices (Aug) M/M 0.6% vs. Exp. 0.3% (Prev. 0.1%, Rev. -0.1%)

US Export Prices (Aug) M/M 0.6% vs. Exp. 0.2% (Prev. 0.4%, Rev. 0.5%)

 

COMMODITIES

US API Weekly Crude Stocks 1443K (Prev. 6181K). (Newswires)

 

GEOPOLITICAL

 

US President Trump said US stands ready willing and able to take military action on North Korea. (Newswires)

 

GLOBAL NEWS

 

A magnitude 7.1 earthquake struck Mexico which caused buildings to collapse and resulted in dozens of casualties. (Newswires)

 

MARKET RECAP

US equity markets closed at record highs, again, as markets await the Fed’s monetary policy decision on Wednesday. Although markets expect the Fed to announce the start of balance sheet normalisation, they are not expected to hike rates and will more than likely downgrade their inflation forecasts, suggesting a shallower path for interest rate hikes. T-Mobile and Sprint shares both gained after the two companies were reported to be in merger in talks by CNBC, while financials were also strong on slightly higher rates. The S&P 500 closed up 0.1% at 2506.61, the NASDAQ-100 closed up 0.2% at 5991.08, and the DJIA closed up 0.2% at 22,371.80.

US treasuries trickled lower in relatively quiet trade with all focus on today’s FOMC decision. A small bid was seen after an ECB sources story which suggested that policymakers were in disagreement on an end date for the bond buying program. Nevertheless, the bid was short lived, while volume was lower than that seen over the last five days. Dec’17 10y T-note futures settled at 125.31+, down 3 ticks.

19 Sep 2017 - 22:07- Fixed IncomeResearch Sheet- Source: Newswires

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