Daily comment Sep 12

Analytics, 11 September 2019

Daily comment Sep 12

Wall St opens higher following tariffs delay and ECB announcement
GE (+0.4%) to reduce share in Baker Hughes; WMT (+0.5%) to expand grocery delivery service
WTI dropped 2.5% on oversupply concerns.

Market movers:

Waymo is planning to implement its self-driving system in tracking industry to address shortage in drivers. (https://reut.rs/2lKfT2j)
GE (+0.4%) on plans to reduce its stake in Baker Hughes from 50.4% to 38.4% potentially raising ~ $2.7bn. (https://reut.rs/2m6bJSi)
Walmart (+0.5%) is widening its unlimited grocery delivery program to 200 stores across the US. (https://cnb.cx/2md2UpZ)

Macro:

ECB announced QE program and deeper negative interest rates: lowered deposit facility rate to - 0.5%, disclosed plans to buy €20bn of bonds a month starting 1 Nov and slashed 2021 inflation forecast to 1.5%. Now, investors are waiting for further rate cuts by Fed next week. (https://bloom.bg/2kJ2kQf)
President Trump postponed tariff increase by 2 weeks, suggesting potential progress in October talks. (https://bloom.bg/2medb5r)
US Aug CPI: +1.7% y/y vs est. +1.8% and +1.8% in July. Core Inflation: +2.4% y/y vs est. 2.3% and 2.2% prior. (https://bloom.bg/2m6cwCK)

Commodities:

WTI (-2.5%): OPEC+ didn’t discuss deepening the supply curbs during the meeting. However, Iraq and Nigeria agreed to lower their production by 175k bpd and 57k bpd respectively. (https://reut.rs/2kxVXiX)
IEA warned OPEC about crude oversupply in 2020 and the following price pressure. (Bloomberg)

Coming up:

Company / Analytics