THE MORNING VIEW

THE MORNING VIEW


News Briefs
October 20, 2017
 
Local
  • The local equities market reversed direction today as after yesterday's profit taking. Investors picked up Financials (+1.43% DoD) and Holding Firms (+0.81% DoD), especially LTG (+4.85% DoD) and AC (+4.30% DoD). The PSEi rose 55.64 points or 0.66%, closing at 8,487.37.
  • In the local fixed income market, yields of government securities fell as investors continued to shift toward risk-off assets. Continued issuances of LTNCDs by the banks (such as BPI's announcement today) appeal to investor demand for yield. On average, yields fell by 4.91 bps, led by the belly of the curve which was down 20.28 bps.
  • The US dollar was flat with a slight downward bias despite an unexpected strength in jobs (initial jobless claims of 222k compared to expectations of 240k) and manufacturing data as the leading indicator tempers expectations for US resurgence. The DXY closed at 93.266 (-0.10% DoD).
US and Europe
  • US equities were flat amid tensions in Europe and lackluster data in China. Stocks only rebounded late in the trading session, lifted mostly by robust corporate earnings. The Dow Jones Industrial Average closed at 23,163.04 (+0.02% DoD) while the S&P 500 was at 2,562.10 (+0.03% DoD).
  • European equities closed at their lowest level in three weeks as tensions in Spain escalated. Spain’s government looks to suspend Catalonia’s autonomy on Saturday after failure to drop its push for independence. The MSCI Europe ended at 131.44 (-0.58% DoD).
  • US Treasury yields marginally fell as investors focused on the decline in the leading index indicator for the US. The index fell 0.2% for September compared to an increase of 0.4% in the previous month and expectations of 0.1%. On average, yields fell 1.93 bps with the 10-year falling to 2.3178%.
  • The US dollar was flat with a slight downward bias despite an unexpected strength in jobs (initial jobless claims of 222k compared to expectations of 240k) and manufacturing data as the leading indicator tempers expectations for US resurgence. The DXY closed at 93.266 (-0.10% DoD).
Asia Pacific
  • Asian equities were mostly down following reports of slower growth in China. Data showed China’s economic expansion slowing down to 6.8% in the third quarter from 6.9% previously. The MSCI APxJ ended at 548.49 (-0.77% DoD).


     
 
Sources: BPI, Business World, PDI, Phil Star, Manila Bulletin, Reuters, Briefing, Bloomberg, CNN, Dow Jones, The Wall Street Journal, CNBC
          

 

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