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Daily US Opening News And Market Re-Cap: September 22
From RanSquawk:
- The FOMC decided to implement “Operation Twist”, however provided a downbeat assessment of the US economy yesterday, and warned of “significant” downside risks to the economic outlook
- Manufacturing PMI reports from China and the Eurozone came out worse than expected
- According to an article in the FT, BNP Paribas is in talks with Qatar to secure investment. However, the report was later denied by co.’s CEO
- The USD-Index traded higher amid risk-averse trade, which in turn weighed upon EUR/USD, GBP/USD and commodity-linked currencies
Market Re-Cap
Nikkei (-2.07%) closed down partly on the back of a downbeat assessment of the US economy by the FOMC yesterday, together with yet another contraction in the HSCB manufacturing PMI from China overnight, which also weighed upon European equities. Financials remained under pressure, led by French banks, after news emerged that BNP Paribas is in talks with Qatar to raise capital, however this was later denied by co.'s CEO, whereas PIMCO's El-Erian wrote in the FT that French banks may tip Europe into another recession. Financials came under further pressure following negative rating action by S&P on Italian banks allied with downbeat comments on European banks by EU's Commissioner Barnier. Weakness in equities provided strength to Bunds, whereas the Eurozone 10-year government bond yield spreads generally widened. However, Gilts came under some pressure following a lack-lustre conventional Gilt auction from the UK, which also observed a sharp increase in the yield tail. In forex news, the USD-Index strengthened amid risk-aversion, which weighed upon EUR/USD, GBP/USD and commodity-linked currencies, whereas EUR came under further pressure on the back of weaker than expected manufacturing and services PMI figures from the core Eurozone countries such as Germany and France. Also, NZD traded lower following worse than expected GDP reading from New Zealand, downbeat comments on the economy by country's finance minister, together with market talk of a potential sovereign downgrade of the country. In other news, WTI and Brent crude futures remained in negative territory during the European session amid growing signs of a faltering global economic recovery, and strength in the USD-Index.
Moving forward, markets look ahead to the jobless claims report and house price index data from the US, together with any comments pertaining to the Eurozone debt situation. In fixed income, 2-, 5-, and 7-year Note refunding announcements, allied with USD 11bln 10-year TIPS auction are also scheduled for later in the session.
Asian Headlines:
IMF’s Shinohara said the BoJ may expand asset purchases if the economy worsens further. (RTRS)
• Chinese HSBC Manufacturing PMI (Sep) M/M 49.4 vs. Prev. 49.9 (RTRS)
US Headlines:
The U.S. House of Representatives unexpectedly defeated a bill that would fund the federal government past September 30th on as dozens of Republicans broke with their party to push for deeper spending cuts. The measure failed by a vote of 195 to 230, with 48 of the chamber's most conservative Republicans joining Democrats in opposition. (RTRS)
EU and UK Headlines:
According to an ECB study, co-authored by Juergen Stark, fiscal imbalances in the Eurozone risks undermining stability and sustainability of the EMU. The study further said that it is not clear if latest reforms are sufficient to ensure sound fiscal policies, adding that there should be automatic fines for deficit exceeding 3% of GDP. (RTRS)
• Eurozone Manufacturing PMI (Sep A) M/M 48.4 vs. Exp. 48.5 (Prev. 49.0), lowest since Aug'09
• Eurozone Services PMI (Sep A) M/M 49.1 vs. Exp. 51.0 (Prev. 51.5), lowest since Jul'09
• Eurozone Composite PMI (Sep A) M/M 49.2 vs. Exp. 50.0 (Prev. 50.7), lowest since Jul'09
• German Manufacturing PMI (Sep A) M/M 50.0 vs. Exp. 50.1 (Prev. 50.9)
• German Services PMI (Sep A) M/M 50.3 vs. Exp. 50.5 (Prev. 51.1)
• French Manufacturing PMI (Sep P) M/M 47.3 vs. Exp. 48.5 (Prev. 49.1)
• French Services PMI (Sep P) M/M 52.5 vs. Exp. 54.5 (Prev. 56.8) (RTRS)
• UK Conventional Gilt auction for GBP 4.75bln, 1.75% Jan'17 Conventional Gilt, bid/cover 1.29 vs. Prev. 1.35 (yield tail 1.7BPS vs. Prev. 1.1BPS) (RTRS)
EQUITIES
Nikkei (-2.07%) closed down partly on the back of a downbeat assessment of the US economy by the FOMC yesterday, together with yet another contraction in the HSCB manufacturing PMI from China overnight, which also weighed upon European equities. Financials remained under pressure, led by French banks, after news emerged that BNP Paribas is in talks with Qatar to raise capital, however this was later denied by co.'s CEO, whereas PIMCO's El-Erian wrote in the FT that French banks may tip Europe into another recession. Financials came under further pressure following negative rating action by S&P on Italian banks allied with downbeat comments on European banks by EU's Commissioner Barnier. Elsewhere, strength in the USD-Index weighed upon commodities, which in turn exerted downward pressure on the oil & gas and basic materials sectors. Moving into the North American open, equities continue to trade lower, with oil & gas and basic materials as the worst performing sectors.
FX
The USD-Index strengthened amid risk-aversion, which weighed upon EUR/USD, GBP/USD and commodity-linked currencies, whereas EUR came under further pressure on the back of weaker than expected manufacturing and services PMI figures from the core Eurozone countries such as Germany and France. Also, NZD traded lower following worse than expected GDP reading from New Zealand, downbeat comments on the economy by country's finance minister, together with market talk of a potential sovereign downgrade of the country.
COMMODITIES
WTI and Brent crude futures traded lower in earlier trade after yesterday’s FOMC statement, which initiated further concerns that the Fed may not be doing enough to give the economy a much needed boost.
Oil & Gas News:
• The head of Royal Dutch Shell has warned oil and gas supplies will struggle to keep up with world demand growth, making energy prices more expensive and more volatile in the long term.
• OPEC will make a collective decision on whether to cut supply after monitoring the global economy and the pace of Libya’s output recovery over the next two months according to an OPEC official.
Geopolitical News:
• Syrian forces killed at least six civilians in military operations in central and north-western regions yesterday following an increase in attacks on the army by defectors sheltering in rural areas according to residents.
• North Korea and the US are looking at holding second round of dialogue early next month as part of renewed efforts to restart talks on disabling the North’s nuclear weapons programme, reported on South Korean media.
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Why lie to ourselves?
We're completely and utterly fucked.
Such is life.
Even the Green-lantern and Thor can't save us.
So what's a boy to do?
http://geraldcelente.proboards.com
And just wait till those motherfuckers see the unemployment numbers in 10 minutes.
Then the shit is really gonna hit the fan.
http://geraldcelente.proboards.com
The system is not going to crash within just a few days, not even weeks. A lot of more shit has to hit the fan before anything happens that affects the sheeples.
so, how much oil money is funding jihad? how many more towers have to fall for people to wake up?
http://covert3.wordpress.com
"The head of Royal Dutch Shell has warned oil and gas supplies will struggle to keep up with world demand growth, making energy prices more expensive and more volatile in the long term."
=
PEAK OIL
Rule 49, then Rule 69.
Geopolitical news :
http://www.sinodaily.com/reports/China_says_US-Taiwan_arms_deal_will_har...
China says US-Taiwan arms deal will harm ties
China warned that a $5.85 billion deal announced Wednesday to upgrade Taiwan's fleet of F16 fighter jets would damage Sino-US relations, calling on America to stop arms sales to the island.
http://timesofindia.indiatimes.com/india/ONGC-will-continue-exploration-...
Undeterred India to hunt for oil in South China Sea
Brushing aside China's warning on Thursday asking countries "outside the region" to stay away from the South China Sea, foreign minister SM Krishna told his Vietnam counterpart Pham Binh Minh that India's ONGC Videsh will go ahead with oil and gas exploration in the disputed region or the two offshore blocks which Vietnam claims as its own.
http://www.spacedaily.com/reports/Saudis_eye_Pakistani_nukes_to_face_Ira...
Saudis 'eye Pakistani nukes' to face Iran
http://www.washingtonpost.com/world/national-security/us-building-secret...
U.S. assembling secret drone bases in Africa, Arabian Peninsula, officials sayBNP Paribas : C'est pas la mer à boire ;)
Don't underestimate the power of these french banks - it's all peanuts and trivia until someone loses his equity....
The only good news in the summary...
"The U.S. House of Representatives unexpectedly defeated a bill that would fund the federal government past September 30th"
If the useless bastards are not in session it will be difficult for them to fuck things up worse than they are.
COMMODITIES
WTI and Brent crude futures traded lower in earlier trade after yesterday’s FOMC statement, which initiated further concerns that the Fed may not be doing enough to give the economy a much needed boost.
HAHAHAHA! Why Zerohedge only report PM when they go up ??? Must be hard sitting in front of the screen and see that sea of red! Silv down 6% Gold 3% . Safe havens paradise
No, just means we can buy it cheaper. In increasingly worthless fiat currency. An ounce of gold or silver stays at exactly the same value over time. It's paper 'value' that varies. When the paper is worth nothing....
b*ll*cks