There have been a lot of large countries with elections this year, but perhaps none will be more watched than the 2024 U.S. presidential election. Even though the actual election isn’t until Nov. 5, elections can start impacting markets much earlier.
ValueAct takes a stake in Sanwa. How the activist can make a good company into a great one
The stock price and financial metrics show that Sanwa is a solid company. ValueAct can help it close the gap between good and great.
The U.S. wants to triple nuclear power by 2050. America’s coal communities could provide a pathway
The U.S. needs to add 200 gigawatts of nuclear power, a senior official at the Department of Energy said.
Why JPMorgan Chase is prepared to sue the U.S. government over Zelle scams
JPMorgan disclosed that the CFPB could punish the lender for its role in Zelle, the giant peer-to-peer digital payments network.
Forexlive Americas FX news wrap: US PCE inflation cools
- US August core PCE +0.1% vs +0.2% expected
- Canada GDP for July 0.2% versus 0.1% expected
- US Advanced goods trade balance for August $-94.26 billion vs. -100.60B estimate
- US September UMich final consumer sentiment 70.1 vs 69.3 expected
- US wholesale inventories advanced for August 0.2% versus 0.3%
- Baker Hughes US oil rig count 484 vs 488 prior
- Musalem: Fed should cut rates gradually
- China urges local companies to stay away from Nvidia AI chips – report
- Timiraos on why lower rates don’t necessarily mean lower rates
- Atlanta Fed GDPNow Q3 forecast +3.1% vs +2.9% prior
- China cuts borrowing cost of standing lending facility by 20 bps
- Incoming Japan PM Ishiba: Japan will deploy fiscal stimulus if needed
- Israel strikes Hezbollah HQ and targets its leader
- Iran supreme leader holds emergency meeting of security council – report
Markets:
- Gold down $19 to $2650
- US 10-year yields down 3.6 bps to 3.75%
- WTI crude oil up 75-cents to $68.41
- S&P 500 down 7 points to 5738
- JPY leads, CAD lags
It’s tough to separate what was driven by quarter-end flows and what was driven by fundamentals. There was certainly some US dollar selling after Friday’s PCE report and the delivery of the China rate cut. However that 40-pip move was erased later. Some of that may have been due to Middle East worries but the conflict hasn’t been much of a market mover lately and if that was the driver you would expect more gains in gold and oil.
One move that was clearly fundamental was the choice of a new PM in Japan as the choice of Ishiba was met with a hawkish response leading to a huge rally in the yen and a 6% dive in Nikkei futures. Clearly the market was leaning towards the dovish Takaichi, particularly after the first round of votes.
USD/JPY was crunched on the news and continued to fall in US trading and is on track to close at the lows of the day/week at 142.11. The pair got some help from fixed income as the recent selling reversed by 2-6 bps in a front-end led flattener pulled down by the PCE report as well.
AUD and NZD are continuing to outperform on China optimism and we will note that Chinese markets are open Monday then closed for the rest of next week. We could get more stimulus announcements before then, and the market could also be pricing that in, so silence could be a downside risks. But spare a moment for the AUD/USD chart, as it looks to be breaking above a series of tops.
It was a lively week, have a great weekend. Next week we get another edition of non-farm payrolls.
This article was written by Adam Button at www.forexlive.com.
US equity close: Positive start upended by tech selling
Closing changes in North American equities:
- S&P 500 -0.1%
- Nasdaq Comp -0.4%
- DJIA +0.3%
- Russell 2000 +0.7%
- Toronto TSX Comp -0.3%
On the week:
- S&P 500 +0.6%
- Nasdaq Comp +1.0%
- DJIA +0.6%
US stocks had a strong start and liked the PCE report but the bombing in Beirut along with quarter-end flows added some caution. Nvidia was also weak on a report about China discouraging its chips.
This article was written by Adam Button at www.forexlive.com.
Musalem: Fed should cut rates gradually
The FT interviewed St Louis Fed President Alberto Musalem and he said that future cuts should come gradually but that if there’s further weakness, a faster pace could be appropriate. That’s hardly a departure from Powell.
This article was written by Adam Button at www.forexlive.com.
Iran supreme leader holds emergency meeting of security council – report
Iran’s supreme leader, Ayatollah Khamenei, is holding an emergency meeting of the Supreme National Security Council at his home compound, in response to Israel’s strike in Beirut that targeted the leader of Hezbollah, Hassan Nasrallah.
The latest reports suggest Nasrallah was killed but there have been many conflicting reports for hours.
The market seemingly isn’t too worried that Iran will get involved over the weekend. Perhaps the thinking is that they would have after the assassination in Beirut if so.
This article was written by Adam Button at www.forexlive.com.
China urges local companies to stay away from Nvidia AI chips – report
Bloomberg is out with a report saying China is ramping up pressure on domestic companies to use domestic chip products rather than Nvidia chips.
Shares of Nvidia are down 3.5% and at a session low and weighing on the broader market. The Nasdaq is now down 0.6%.
The thing is, this exact same story was out in May.
This article was written by Adam Button at www.forexlive.com.
Verkaufskrise: Volkswagen kassiert erneut die Prognose – Umsatz, Absatz, Rendite: Alles schrumpft
Der Autobauer hat eine weitere Gewinnwarnung für das laufende Geschäftsjahr veröffentlicht. Die Vorhersagen sowohl für Umsatz als auch für Ergebnis und Rendite werden deutlich nach unten korrigiert.