Morning Call Script - 27 Sept 2023
Overnight asset drivers & the impending data calendar
Broad trend continues... USD higher, Rates higher, Equities lower. EUR (1.0560), GBP (1.2150) and ADXY all at multi month lows vs the USD whilst Nikkei dipped below 32000 for the first time since Aug overnight as MSCI ex Japan slide to a 10month low. In the US the key tech stocks that insulated the market in the early part of 2023 from the real rates rise are now down 10% (Bloomberg) with Amazon particularly under pressure following an FTC lawsuit filing (WSJ).
Aussie CPI hit consensus 5.2%, rising from previous 4.9% (Westpac, ING)
BoJ's July meeting minutes indicated a wide range of views on when they could end their negative interest rate policy (Reuters, Bloomberg). Some members saw wage momentum easing whilst others pointed to their inflation goal of 2% being reached as early as Jan 2024.
China: Evergrande once again the principal story line overnight with Bloomberg News reporting Hui Ka Yan, the chairman of the group is under police surveillance. (Reuters)
US Debt Ceiling: shutdown is looming (Reuters) as the bills working through both chambers have little in common. A closure will mean a delay in the release of economic data, government staff furloughed as well as rapid loss of food benefits (Biden, US officials warn of hunger for millions in a government shutdown).
House Reps are looking for $120bln of cuts and McCarthy's measures will also look to restart construction of the US-Mexico border wall as well as tighten immigration policies (Something that the Senate Dems will not support).
The Senate have taken a bipartisan bill forward to fund the government until mid Nov (WSJ)
US labour force: Biden made history on the picket line yesterday in a key 2024 battle state, whilst also seemingly backing a 40% pay rise (FT)
Have a great day, and keep smiling!
JPM Global Data Pod Research Rap: Inflation Monitor
EUR (07:00): German Gfk consumer sentiment
NOK (07:00): Unemployment
CHF (09:00): Swiss investor sentiment
USD (12:00): MBA 30-Yr Mortgage Rate
USD (13:30): Durable Goods
US Corp t+2 day
USD (18:00): 5 year note auction
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