Market Headlines 19/10/2017

US

• The S&P 500 edged another 0.1% higher, Energy stocks fell and oil prices pared gains following disappointing inventory data and the US dollar traded marginally lower against a basket of peers.
• Energy stocks were among the worst performers yesterday as oil prices fell from intra-day highs after the EIA reported a fourth successive weekly drop in crude stocks, but said gasoline inventories had risen by more than expected.
• Turning to fixed income markets, the yield on 10-year bonds rose 4bps to 2.34% (bond prices fell) as speculation continued on who might take the helm of the Federal Reserve when Janet Yellen’s term ends in February next year.

Europe

• The positive mood in equity markets was also evident in Europe. The Euro Stoxx 50 index gained 0.3% and the German DAX rose 0.4%, settling at a record high.
• The yield on Spanish bonds rose 7bps yesterday (bond prices fell) ahead of today’s deadline for Catalan President Puigdemont to formally respond on whether independence was declared or not.

Asia

• Asian equities fell from intra-day highs overnight following Chinese economic data. Japanese stocks finished a modest 0.3% stronger while Chinese equities fell 0.5%.
• China reported that its economy expanded 6.8% last quarter, with retail sales and industrial output accelerating in September.