Analytics, 18 September 2019
Daily comment Sep 19
Daily comment Sep 19
- Wall St opens higher amid easing policies set by CBs across the globe
- Fed cut interest rate by 25 bps
- OECD cut global outlook
- TSLA +1%, earned top safety rating
- MSFT +2% on dividend hike, $40bn buyback
- T+1%, to split with DirecTV
- WTI+1.1%
Market movers:
- Tesla (+1%): Model 3 earned the top safety rating from the Insurance Institute for Highway Safety. (https://cnb.cx/2mhL70K)
- Microsoft (+2%) raised its quarterly dividend by 11%. to $0.51. MSFT also announced a $40bn stock repurchase program. (https://bit.ly/2krPzcU)
- AT&T (+1%): According to WSJ, the company is considering separation of DirecTV or its combination with Dish Network. (https://on.wsj.com/2lUbbPr)
Macro:
- Fed cut interest rate range by 25bps to 1.75% to 2% (in line with est.). Fed’ Powell hinted during the press conference that in case of slowing economy further rate cuts will be appropriate. (https://bloom.bg/2krpXNi)
- OECD slashed the global economy growth to 2.9% this year from prior 3.2%. The outlook for 2020 was lowered to 3% from 3.4%. (https://reut.rs/2kFjZsl)
- The BoJ held its benchmark policy rate at -0.1% (in line with est.), highlighting potential action in Oct. (https://bloom.bg/2kSxzIQ)
- BoE kept rates on hold at 0.75% as expected. (https://on.ft.com/2moI07p)
- Norway’s CB unexpectedly raised interest rates by 25bps to 1.5% (est. 1.25%). The CB expects this rate hike to be the last one. (https://bloom.bg/2lYuN4W)
Commodities:
- WTI (+1.1%): amid geopolitical risks surrounding Saudi Arabia.
- US crude inventories rose by 1.06mn bls last week: EIA. (https://bit.ly/1BXb9op)
- According to IEA, there is no need to release emergency stockpiles as the oil market is currently properly supplied. (Bloomberg)
Coming up:
- On Fri (9/20) quarterly expiration of futures and options on indexes and stocks occurs.