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WHAT HAPPENED OVERNIGHT IN THE US:
· S&P -0.9%, carried on where it left off Friday – under pressure on flattening yield curve.
· 2’s & 10’s back below 85bps – versus nearly 100bps a week ago – on long end coming unstuck after recent soft data.
· But NYSE’s $26bn, off the boil again ahead of first presidential debate. After-hrs, S&P futures +0.6%, reacted to a polished Clinton performance.
WHAT’S UP THIS MORNING IN THE EAST:
· Asia looking good, around session highs. Japan +0.6%, had started down -1.5%; Hong Kong +1% (Tencent +1.1%, eyeing last week’s record high).
· Australia -0.5%, the region’s disappointment. BHP -0.4% & Rio -0.5%, pinned back partly by firm AUD – but indicate London no better than flat. Oil & Dalian iron futures both off yday’s highs.
SOUTH AFRICAN NEWS:
· Expect AllShare +0.25%. From SA close yday, gold -$5 ($1335), plat -$4 ($1043), copper -0.5% ($2.18/lb), oil -0.7% ($47.20), USDZAR -0.5% (13.58), S&P -0.4%.
· CPI: H1 hEPS +19% vs guided range 17%-20%. New clients & branches meant loans & advances up 13% y/y, but signs also of consumer strain; net loan impairment +6.2%, arrears up 44% y/y (to 6% of total, provision for doubtful debts up 38% y/y (+14% from Feb).
· NPK: investor day today.
TODAYS KEY DATA POINTS:
· 3.45pm: US Sept Markit PMI Services first read (51.2)
· 4pm: US Sept Consumer Confidence
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