Market Headlines 8/9/2017

US

  • The S&P 500 closed flat yesterday. Within sectors, Healthcare was the standout performer, gaining 1.1%, while Banks (-1.8%) and Insurers (-1.9%) were hit respectively by lower bond yields and concerns of damage from Hurricane Irma.
  • 10-year US treasury yields moved to a new YTD low during the day yesterday, settling 6bps lower at 2.04%. This move occurred following comments from ECB President Draghi (more below), moves in European bond yields, and a weaker US dollar.
  • In FX markets, the euro gained 0.9% against the dollar following upbeat comments from Mario Draghi. This marks only the second occasion that the euro closed above the $1.20 level since January 2015.

 

Europe

  • European equities outperformed their US peers yesterday, with the Euro Stoxx 50 index gaining 0.4%. The German DAX index (+0.7%) also outperformed despite a strong day for the euro.
  • The key event for the session was the press conference from ECB President Mario Draghi, with primary focus being on any clues on the ECB’s view on recent euro strength.
  • Draghi commented that the ECB Council view recent moves in the euro as a sign of robust economic fundamentals. The ECB also upgraded this year’s growth forecast from 1.9% to 2.2%.

 

Asia

  • Asian equities closed lower overnight. Japanese stocks fell 0.6% as all 11 sectors finished in negative territory.
  • Chinese export growth numbers this morning indicate a slowdown in growth, the second consecutive month of lacklustre export numbers.

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