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Daily US Opening News And Market Re-Cap: September 21

Tyler Durden's picture




 

From RanSquawk:

  • The FOMC rate-decision remains the main focus today as market participants anticipate the Fed to take further easing steps
  • According to BoE’s September minutes, the MPC voted 9-0 and 8-1 to keep its benchmark interest rate unchanged at 0.50% and its asset-purchase target unchanged at GBP 200bln respectively. Most MPC members thought it increasingly likely that more QE would be warranted at some point
  • CAD received support across the board following higher than expected CPI data from Canada
  • Shares in BNP Paribas came under pressure on the back of market talk of a credit rating downgrade by one of the major rating agencies as early as today

Market Re-Cap

European equities traded lower during a vast majority of the session, weighed upon by basic materials and oil & gas sectors as the USD-Index strengthened. However, markets look ahead to the FOMC rate decision later in the session in the anticipation of further easing by the Fed, which capped losses in equities. In equity specific news, BNP Paribas shares came under pressure on the back of market talk of a credit rating downgrade by one of the major rating agencies as early as today. Weakness in equities provided support to Bunds, however narrowing was observed in the Italian/German and Spanish/German 10-year government bond yield spreads, which was attributed to market talk of the ECB buying in the Italian and Spanish spreads. In forex news, strength in the USD-Index weighed upon EUR/USD, GBP/USD and commodity-linked currencies, whereas GBP came under further pressure following a dovish BoE minutes for September. In other news, CAD received a boost across the board following higher than expected CPI reading from Canada. Also, weakness was observed in CHF and JPY overnight, however there was no official confirmation of an intervention by respective central banks.

Moving into the North American open, the FOMC rate decision remains the focus, however markets also look ahead to existing home sales and the DOE oil inventories report. Any developments pertaining to the Eurozone debt situation will also be closely watched.

US Headlines:

Republican congressional leaders urge the Fed to resist further intervention in the economy in a letter to Bernanke. They say recent quantitative easing likely added uncertainty to the economy, and further Fed action could exacerbate current problems and further harm the economy. (RTRS)

•    US MBA Mortgage Applications (Sep 16) W/W 0.6% vs. Prev. 6.3% (Rev. to 4.9%) (RTRS)

EU and UK Headlines:

•    UK Public Finances (PSNCR) (Aug) M/M 11.8bln vs. Exp. 7.0bln (Prev. -5.6bln, Rev. -5.7bln)
•    UK PSNB ex. Interventions (Aug) 15.9bln vs. Exp. 13.0bln (Prev. 0.0bln, -2.4bln)
•    UK Public Sector Net Borrowing (Aug) M/M 13.2bln vs. Exp. 11.4bln (Prev. -2.0bln, Rev. -5.2bln)
•    UK Nationwide Consumer Confidence (Aug) M/M 48 vs. Exp. 47 (Prev. 49) (RTRS)

EQUITIES

European equities traded lower during a vast majority of the session, weighed upon by basic materials and oil & gas sectors as the USD-Index strengthened. However, markets look ahead to the FOMC rate decision later in the session in the anticipation of further easing by the Fed, which capped losses in equities. In equity specific news, BNP Paribas shares came under pressure on the back of market talk of a credit rating downgrade by one of the major rating agencies as early as today. Moving into the North American open, equities continue to trade in negative territory, with basic materials and oil & gas as the worst performing sectors.

FX

Strength in the USD-Index weighed upon EUR/USD, GBP/USD and commodity-linked currencies, whereas GBP came under further pressure following a dovish BoE minutes for September. In other news, CAD received a boost across the board following higher than expected CPI reading from Canada. Also, weakness was observed in CHF and JPY overnight, however there was no official confirmation of an intervention by respective central banks.

•    Canadian CPI (Aug) M/M 0.3% vs. Exp. 0.1% (Prev. 0.2%)
•    Canadian CPI (Aug) Y/Y 3.1% vs. Exp. 2.9% (Prev. 2.7%)
•    Bank of Canada CPI Core (Aug) M/M 0.4% vs. Exp. 0.2% (Prev. 0.2%)
•    Bank of Canada CPI Core (Aug) Y/Y 1.9% vs. Exp. 1.6% (Prev. 1.6%) (RTRS)

COMMODITIES

WTI and Brent crude futures lacked direction during the European session as markets look ahead to the DOE inventories report as well as the FOMC rate decision later in the session, however strength in the USD-Index weighed on prices.

Oil & Gas News:

•    Officials at Libya’s largest refinery, Las Ranuf, said that production may be able to resume sometime next month.  An official added that logistical issues remained the main problem, rather than damage to the refinery.
•    Yemen plans to ship 6.7mln tonnes of LNG this year as expected, despite the violence in the country according to a Yemeni spokesman.

Geopolitical News:

•    A new Libyan government will be announced within seven to ten days, the transitional leadership's interim prime minister has said.

 

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Wed, 09/21/2011 - 08:28 | 1691787 WinstonWolfe
WinstonWolfe's picture

qe is inevitable with such low interest rates

Wed, 09/21/2011 - 08:33 | 1691803 oobrien
oobrien's picture

The daily recap?

Are you motherfuckers kidding me?

I can give you the daily recap.  And I don't even have a degree from Harvard Business School.

Here goes:

We're all fucking screwed.  The sky is falling.  And hope is dead.

Now run to the hills, you motherfuckers.

http://geraldcelente.proboards.com

Wed, 09/21/2011 - 08:29 | 1691792 madgstrader
madgstrader's picture

Goldman to Close Global Alpha Fund After Losses

http://www.cnbc.com/id/44545789

Wed, 09/21/2011 - 08:38 | 1691814 Moneyswirth
Moneyswirth's picture

Papandreou to dine with Merkel to discuss formal terms of surrender....er, I mean, bailout talks.

 

http://www.reuters.com/article/2011/09/21/eurozone-germany-greece-idUSB4E7K902D20110921

Wed, 09/21/2011 - 08:55 | 1691869 disabledvet
disabledvet's picture

Still: "the food will be excellent!"
http://www.youtube.com/watch?v=2_hQe6a92bE&feature=player_detailpage
plus! "the meal will be long."
"perhaps one month for this special occasion!"

Wed, 09/21/2011 - 08:49 | 1691850 msmith
msmith's picture
USD is showing strength across the board.  This should negatively impact equities.  The AUDUSD should have the most downside movement in a risk off environment. bit.ly/ruzDh2
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