NEWS STORIES OF NOTE FROM OVER THE EU & US SESSIONS: US stocks closed mixed on what was a range-bound day amid measured comments from Fed Chair Yellen who cautioned against a too quick or too slow approach on monetary tightening

ASIA-PAC

New Zealand Employment Confidence (Q3) 113.8 (Prev. 113.4); highest since 2008. (Newswires)
 

UK

EU's Tusk said there has not been sufficient progress yet in Brexit negotiations to move talks on to the next stage. (Newswires)
 

EU

ECB’s Costa said an exit from QE will likely be more of a challenge than QE adoption. (Newswires)

ECB's Makuch said the Eurozone economy is improving while the EUR is firming and that the ECB must consider these factors in its autumn decisions. (Newswires)

German Economic Institute raised 2017 and 2018 GDP growth forecasts. (Handelsblatt)
 

US

Fed Chair Yellen (Chair, Dove) said a gradual approach to rate hikes is particularly appropriate in light of subdued inflation and low neutral rate, but added that the Fed should be wary of moving too gradually. Yellen added that to get to a neutral stance would require a bit more tightening but not an excessive amount. (Newswires)

Fed's Bostic (Non-Voter, N/A) is pretty comfortable with a December rate hike, while Bostic is said to be mindful FOMC has undershot inflation target for a number of years and wants clear evidence that inflation is rising. (Newswires)

US President Trump stated tax reform plan will simplify taxes and that there will be a big announcement on Wednesday. (Newswires)

Barclays US Q3 GDP estimate trimmed to 2.0% (prev. 2.1%)

US Consumer Confidence (Sep) 119.8 vs. Exp. 120.0 (Prev. 122.9, Rev. 120.4)

US New Home Sales Chg MM (Aug) -3.4% vs. Exp. 3.3% (Prev. -9.4%, Rev. -5.5%)
 

FX

Canadian Finance Minister Morneau said he sees higher rates ahead given where the economy is at but noted rates are still historically low, while he added the Canadian economy can do well with the currency at current levels. (Newswires)
 

COMMODITIES

US API weekly crude stocks (Sep 22) -761K (Prev. 1443K)

Sources suggested that Total's Port Arthur Texas Refinery restart is delayed by a blocked pipeline. (Newswires)

GEOPOLICTICAL

US President Trump stated that the US is totally prepared for North Korea military option if it has to resort to that and that North Korea’s leader is acting very badly. (Newswires)
 

MARKET RECAP

US stocks were rangebound, and finished mixed, with telecoms posting the biggest lost on a sectoral basis, with IT outperforming. The S&P 500 closed up 0.01% at 2,496.85, the NASDAQ 100 closed up 0.24% at 5,881.34, and the Dow closed down 0.05% at 22,284.66.

Treasuries moved lower, with yields hitting highs on Yellen comments but then ultimately tracked dollar gyrations and Treasuries ended just off of worst levels in relatively tight trade. US Dec’17 10y T-note futures settled at 126.00, down 2 ticks, with CME Fed Fund futures now pricing a circa 80% chance of a 25bps FOMC hike by year end.

26 Sep 2017 - 22:10- Fixed IncomeBank Speaker- Source: Newswires

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