|
WHAT HAPPENED OVERNIGHT IN THE US:
· S&P -0.3%, came off early in session as dust settled on Fed decision – but ended the day on lightest turnover in nearly 4 weeks.
· USD slipped from Weds’ high, giving back more than half post-Fed gains. That helped gold to recover back to within a couple of bucks of $1300.
· But 2yr Treasury held comfortably above 1.40% - around 8yr high. Fed fund futures remained odds-on for December hike.
· Financials held gains, and energy pushed higher again as Brent crude clocked $56.50. That was more than offset by techs & consumer stocks.
· But NYSE’s $22.9bn more than 20% below average in thinnest session so far this month.
WHAT’S UP THIS MORNING IN THE EAST:
· Asia mixed. Korea in shadow of further H-bomb threats from North’s Kim. Hong Kong -0.8%, on track for first weekly loss in 3 (Tencent -0.5%).
· Australia +0.5%, clawing back some of yday’s losses in financials, consumer. But resources mixed. Rio +0.8%, looking up 0.5% at London open on steadier Dalian iron this morning. BHP -0.2%, likely flat.
SOUTH AFRICAN NEWS:
· Expect AllShare -0.25%. From SA close yday, gold +$7 ($1297), plat +$7 ($942), copper -1.2% ($2.91/lb), oil +0.4% ($56.40), Dalian iron -0.5% (=spot c$66), USDZAR -0.2% (13.26), S&P -0.1%. · AGL: FT’s Lex points out valuation discount (to global peers on earnings and cash flow multiples) in light of Agarwal’s additional purchase this week which could be about to change. New chairman Stuart Chambers oversaw takeovers in previous roles at Pilkington, Arm and Rexam, but a more likely strategic game plan to unlock value at AGL would be to revisit dormant restructuring plan from early 2016. · AGMs: SRE
TODAYS KEY DATA POINTS:
· 9am: France Sept Markit PMI first read (Manuf 55.5, Services 54.8)
· 9.30am: Germany Sept Markit PMI first read (Manuf 59, Services 53.7)
· 10am: Eurozone Sept Markit PMI first read (Manuf 57.2, Services 54.8)
· 3pm: Theresa May’s speech in Florence outlining terms of Brexit
· 3.45pm: US Sept Markit PMI first read (Manuf 53, Services 55.7)
|