US Market Wrap - Pound perks up as Brexit talks prevail
US Market Wrap 07/12/17
EQUITIES: S&P 500 +0.29% at 2637; Dow Jones +0.29% 24211; Nasdaq-100 +0.37% 6316
Top Sectors: Industrials +0.91%, Materials +0.70% and IT +0.65%
Bottom Sectors: Consumer staples -0.93%, Telecom -0.10%, Healthcare +0.03%
All three major indices traded positive throughout the day. The S&P 500 was led by Edison (EIX), as they staged a bounce from a 13% fall after reports their equipment caused the forest fire in California on Tuesday.
The industrials and materials sectors were the best performing sectors following reports that Trump’s administration are said to be preparing to announce infrastructure plans in January.
Leading the Nasdaq-100 was Fox (FOXA), following reports that Comcast (CMCSA) are still looking for a deal although they are still said to favour Disney (DIS. The Dow Jones was led by Nike (NKE) who rose in sympathy with lululemon (LULU), following earnings on Wednesday after market.
TREASURIES: 10-Year T-Note Futures for March settled 10 ticks lower at 124-09
The US Treasury curve steepened on Thursday in cautious, low-volume trade ahead of Friday’s Nonfarm Payrolls report. After trading in a choppy manner throughout the day, USTs slumped late on amid some optimism that the Trump administration is fulfilling some of its election promises, including lowering the corporate tax rate and the large-scale infrastructure plans, which an official said would be announced early next year.
FOREX: DXY trades 0.14% higher heading into APAC trade
Brexit uncertainties were unwound today as sources reported that the ECJ stumbling block in Brexit talks was said to be resolved. Later reports suggested Ireland and UK were close to a border deal, although talks were said to be ongoing. The positivity surrounding the talks lifted the pound above Wednesday’s highs.
The Canadian Dollar continued to weaken following Wednesday’s Bank of Canada interest rate decision with a lack of hawkish comments.
Aussie trade data missed expectations taking its toll on the currency which also hampered the kiwi with both pairs trading lower by roughly 0.7%.
Safe haven currencies depreciated against the dollar with little geopolitical newsflow today, gold had also been sliding and settled at the lowest level since July 2017. USDJPY rose to three-week highs, taking its cue from a steeper US yield curve due to optimism about stopgap funding bill and infrastructure projects.
The Brazilian Real underperformed against the USD due to uncertainty around pension reforms with Brazilian president Temer saying he still sees a possible vote by the year end after Wednesday’s vote was delayed.
COMMODITIES: WTI crude futures settle $0.73 higher at $56.69/bbl; Brent futures settle $0.98 higher at USD 62.20/bbl
WTI staged a rebound on Thursday after declining on Wednesday following the DoE inventory report. The private Genscape inventory report was said to show a decline of over 2mln barrels at Cushing which helped support prices, while a closely watched Platts survey showed OPEC output had fallen by 220K bpd in November.
07 Dec 2017 - 21:06- Fixed IncomeData- Source: RANsquawk
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