Morning Commentary: Markets take a breather

Foreign Exchange - Morning Commentary
Markets take a breather
Share this story:
David Atkinson
David Atkinson
Foreign Exchange Sales Manager
In sports, taking a little break for a travel day after a couple of tough losses and regrouping can be a good tactic…not that I am thinking about baseball or anything specific like that.  But, the parallels this morning are rather stark.  The financial news of the week remains focused on U.S. equity market volatility.  "Volatility" sounds so much better than "precipitous freefall."

After the S&P 500 and DJIA earned the distinction yesterday of erasing all their gains for the year, the rout continued into Asia, where the Nikkei lost 3.7%.  But then, it stopped there.  European equities are closing in positive territory and early U.S. trading seems to have stopped the bleeding in stocks, at least for now. 

The U.S. dollar is in tight ranges to its major counterparts.  The problems that weakened European currencies – Brexit, Italy, etc. – have not changed in the last 24 hours, but FX markets at least have decided for now that current prices reflect everyone's collective thinking and have hit the pause button.

Data this morning had durable goods orders rise 0.8% for September, above expectations.  Initial jobless claims rose to 215,000, a couple thousand more than expected.  The first look at September's U.S. trade deficit has it growing to -$76.04 billion, worsening from the August number of -$75.50 billion.
  • The ECB kept its benchmark refi rate at 0.0 percent and its deposit rate at -0.4 percent as widely expected.  It also reaffirmed its plans to cap its bond purchases (QE) in December.  The post-meeting press conference gave no further significant clues to the ECB's next moves.
  • Germany's IFO survey was weaker than expected at 102.8 with its expectations component taking a hit. 
  • Norway’s central bank left rates unchanged with its benchmark rate at 0.75%.
If we can help you with any Foreign Exchange needs, please email or call (800) 447‑4133.
Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos!
Follow City National Bank on social media:
Facebook Twitter LinkedIn Google Plus YouTube
Investment and Insurance Products:
Are Not insured by the FDIC or any other federal government agency
Are Not deposits of or guaranteed by a Bank or any Bank Affiliate
May Lose Value
This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. The Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.
Unsubscribe from this list  |  Update email preferences
This message has been sent to Please do not reply to this email. To ensure the delivery of future emails, please add to your email address book or safe sender list.
Copyright ©2018 City National Bank – All Rights Reserved.
350 South Grand Avenue, Los Angeles, CA 90071
City National Bank is a subsidiary of Royal Bank of Canada.
Equal Housing Lender


Popular posts from this blog

Acquisitions or Alliances: What's Your Growth Strategy?