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Japan’s August PPI 0.3% m/m (expected 0.1%; last 0.1%); 3.2% yr/yr, as expected (last 3.4%).
Q3 BSI Large Manufacturing Conditions 5.4 (expected 0.2; last -0.4).
September Reuters Tankan Index 4 (last 12)Japan’s Finance Minister Suzuki reiterated that the Bank of Japan is expected to “fulfill its responsibility” regarding monetary policy.
Deutsche Bank now expects that the BoJ will end its yield curve control policy in October and exit negative rates in January.South Korea’s August Import Price Index -9.0% yr/yr (last -13.6%) and Export Price Index -7.9% yr/yr (last -12.8%).
August Unemployment Rate 2.4% (last 2.8%)Hong Kong’s Q2 Industrial Production 2.6% yr/yr (last 3.8%)
New Zealand’s August FPI 0.5% m/m (last -0.5%)
Developer Country Garden was able to restructure more yuan-denominated debt.
China’s Vice Premier Guoqing said that his country is willing to deepen strategic ties with Russia.Major European indices trade in the red.
STOXX Europe 600: -0.9%,
Germany’s DAX: -0.8%,
U.K.’s FTSE 100: -0.5%,
France’s CAC 40: -0.9%,
Italy’s FTSE MIB: -1.0%,
Spain’s IBEX 35: -1.2%.U.K.’s GDP in July contracted at its fastest monthly pace since December.
U.K.’s July GDP -0.5% m/m (expected -0.2%; last 0.5%); 0.0% yr/yr (expected 0.4%; last 0.9%).July Construction Output -0.5% m/m, as expected (last 1.6%); 2.8% yr/yr (expected 2.9%; last 4.6%).
July Industrial Production -0.7% m/m (expected -0.6%; last 1.8%); 0.4% yr/yr (expected 0.5%; last 0.7%). July Manufacturing Production -0.8% m/m (expected -1.0%; last 2.4%); 3.0% yr/yr (expected 2.7%; last 3.1%).
July trade deficit GBP14.06 bln (expected GBP16.00 bln; last GBP15.46 bln)Eurozone’s July Industrial Production -1.1% m/m (expected -0.7%; last 0.4%); -2.2% yr/yr (expected -0.3%; last -1.1%)
There is renewed speculation that the European Central Bank will announce another 25-bps rate hike tomorrow after Reuters reported that the ECB’s forecast will show expectations for inflation to remain above 3.0% in 2024.
The central bank is also expected to lower its growth expectations for 2023 and 2024.Bank of France expects Q3 growth in France between 0.1-0.2% qtr/qtr.
Oracle (ORCL 109.21, -0.40, -0.4%): downgraded to Neutral from Overweight at JPMorgan
Ford (F 12.63, +0.18, +1.5%) and General Motors (GM 33.61, +0.14, +0.4%): trading up after UBS starts coverage with Buy ratings
seRocket Pharmaceuticals (RCKT 18.70, +3.41, +22.3%): Reaches FDA Alignment on Pivotal Phase 2 Trial Design for RP-A501 in Danon Disease; prices offering of 7,812,500 shares of its common stock at $16.00 per share and pre-funded warrants to purchase 3,126,955 shares of common stock at $15.99 per pre-funded warrant
T-Mobile US (TMUS 140.57, +0.46, +0.3%): to acquire spectrum in the 600 MHz band from Comcast (CMCSA) for total cash consideration of $1.2-3.3 bln
Novo Nordisk (NVO 191.17, -5.58, -2.8%): conducts a two-for-one stock split
Moderna (MRNA 109.60, +4.36, +4.1%): expands the field of MRNA medicine with positive clinical results across cancer rare disease and infectious disease
American Airlines (AAL 13.70, -0.41, -2.9%): lowers Q3 adj EPS guidance, expects capacity to be at the high end of its initial guidance, revs expected to be approximately flat to prior expectations
The weekly MBA Mortgage Applications Index fell 0.8% with refinance applications dropping 5.0% and purchase applications increasing 1.0%.
2-yr note yield is up three basis point to 5.04%
10-yr note yield is up seven basis points to 4.31%.WTI crude oil futures are up 0.5% to $89.30/bbl.
Total CPI increased 0.6% month-over-month in August, as expected, with rising gasoline prices accounting for over half of the increase.
Core CPI, which excludes food and energy, rose a stronger-than-expected 0.3% month-over-month (consensus 0.2%). On a year-over-year basis, total CPI was up 3.7%, versus 3.2% in July, and core CPI was up 4.3%, versus 4.7% in July.
The key takeaway from the report is that core inflation, which is what the Fed monitors more closely, showed ongoing improvement on a year-over-year basis; however, it is still well above the Fed’s 2.0% target, reflecting a sticky quality that probably won’t compel the Fed to raise rates further at this point, but which will certainly keep the Fed in a “higher for longer” mindset.
Treasuries saw some volatility immediately after the release, but things have calmed down.
The 2-yr note yield, which jumped to 5.07% after the data, is up two basis points from yesterday to 5.02%.
The 10-yr note yield, which hit 4.34% following the data, is up four basis points to 4.30%.
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