The Breakfast Briefing: U.S. & Global Stocks Lifted By Hopes Of More Easy Money

Ted

FYI: U.S. stock index futures were slightly higher Friday morning.

Around 6:06 a.m. ET, Dow futures indicated a positive open of more than 70 points. Futures on the S&P and Nasdaq were both also higher.

Wall Street ended Thursday on a lower note as traders dealt with developments on the trade front and with a whistleblower complaint against President Donald Trump.

• Europe stocks up, Asia down

• Brent crude slips

Global stocks edged higher Friday on signs of more supportive economic policies in Europe but weak Chinese data weighed on markets in Asia.

The Stoxx Europe 600 rose 0.4% in morning trade, with the U.K.’s FTSE 100 up 0.9% after a Bank of England official said an interest-rate cut could be needed even if a Brexit deal is agreed. The British pound slipped 0.3% against the dollar.

The German DAX was up 0.5% and France’s CAC 40 rose 0.2%. France on Thursday unveiled tax cuts on business and individuals in an effort to boost its economy.

In the U.S., futures for the S&P 500 rose 0.2%. The contracts don’t necessarily predict moves after the opening bell.

The yield on U.S. 10-year Treasurys inched up to 1.706%, from 1.685% on Thursday.

Stocks were broadly lower in Asia, with Tokyo’s Nikkei down 0.8% and Hong Kong’s Hang Seng down 0.3%. Shares in Shanghai were an outlier, edging up 0.1%.

China’s National Bureau of Statistics said Friday that Chinese industrial profits slipped 2% in August from the year before, after rising 2.6% in July. Producer-price deflation deepened last month, ratcheting up the pressure on manufacturers that were already struggling with the prolonged trade war between China and the U.S., official data showed earlier.

In commodities, Brent crude futures slipped 0.3% after Saudi Arabia said exports would soon return to normal after attacks on facilities earlier this month.

Later Friday, the U.S. is set to publish consumer spending figures. Luis Costa, a head of foreign exchange strategy at Citibank, said he expects the data to remain resilient.

Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-waver-after-weak-chinese-data-11569572823

Bloomberg:
https://www.bloomberg.com/news/articles/2019-09-26/asia-stocks-set-for-mixed-start-treasuries-rise-markets-wrap

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-micron-earnings-guidance-hits-mu-stock-amat-asml-wdc/

CNBC::
https://www.cnbc.com/2019/09/27/dow-futures-consumer-spending-inflation-data.html

U.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-hovers-near-two-month-high-as-boe-rate-cut-prospect-hits-pound-idUKKBN1WC0O7

Europe:
https://www.reuters.com/article/europe-stocks/update-1-miners-drive-gains-in-europe-as-sterling-falls-idUSL3N26I23J

Asia:
https://www.marketwatch.com/story/asia-stocks-falter-early-friday-as-us-political-turmoil-takes-a-toll-2019-09-26/print

Bonds:
https://www.cnbc.com/2019/09/27/treasury-yields-rise-as-impeachment-and-trade-remain-in-focus.html

Currencies:
https://www.cnbc.com/2019/09/27/forex-markets-us-china-trade-war-in-focus.html

Oil:
https://www.cnbc.com/2019/09/27/oil-markets-saudi-arabia-global-economy-in-focus.html

Gold:
https://www.cnbc.com/2019/09/27/gold-markets-us-politics-in-focus.html

Cuirrent Futures:
https://finviz.com/futures.ashx