Daily Digest: Tuesday 17th September
USA
The key data focus of the session was August’s US monthly retail sales reports, printed a day before the FOMC’s September meeting. The market’s current expectations for Wednesday are divided between a 25 and 50 basis point interest rate cut, supported by August’s weaker CPI data print. During the month of August US retail sales rose 0.1% against analyst expectations of a 0.2% decline. This indicates that the US economy expanded contrary to analyst expectations, a trend that if continued, could prove problematic in terms of the prevailing inflation rate and the Fed’s interest rate decisions through the end of 2024.
US equity performances strengthened through Tuesday’s open. By 16:15 GMT, the Nasdaq 100 ($NDX) had risen 105.04 points (0.54%) to 19,528.10, while the S&P 500 ($SPX) had risen 27.8 points (0.49%) to 5,660.89, and the Dow ($INDU) rose 159.32 points (0.38%) to 41,781.40.
Europe
UK listed equities extended Monday’s gains with the FTSE 100 (FTSE) rising 31.42 points (0.38%) to 8,309.86, while equities on the continent headed higher. The STOXX 600 (€SXXP) rose 2.15 points (0.42%) to 517.26, while the French CAC (€FCHI) rose 37.98 points (0.51%) to 7,487.42, and the German DAX (€GDAXI) rose 97.58 points (0.52%) to 18,730.69.
Rest of the World
In the absence of any key macroeconomic data prints and significant news events, Asian equities appeared to extend Monday’s trends with declines continuing. The benchmark Japanese equity index, the Nikkei 225 (¥N225), closed lower for a third consecutive session, falling a further 378.54 points (1.03%) to 36,203.22. This move comes after the market tested the 37,000 level on four occasions between Thursday and Friday, ultimately the move was rejected and selling pressure pushed the index as far as 800 points lower. On a daily chart the Nikkei’s RSI has been below 50 since Tuesday 10th September, indicating increased selling pressure and short term negative sentiment. The Shanghai Stock Exchange Composite Index (¥SSE) remains at Friday’s closing price as the nation observes the Mid-Autumn holiday. Once again, the Nifty 50 (₹NSEI) managed to edge slightly higher against wider momentum, rising 34.80 points (0.14%) to 25,418.55, the index is now trading some 27 points off of its all-time highs.
What to watch Tomorrow
UK CPI (YoY)
US Fed Monetary Policy Meet (September)
US Interest Rate Decision
FOMC Statement
US Crude Inventories
US Earnings:
General Mills - $GIS
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice