Treasury Reveals 2-Year, 5-Year, And 7-Year Note Auction Details

Trading 17 oct 2019 Commentaire »

The Treasury Department announced the details of this month's auctions of two-year, five-year, and seven-year notes on Thursday.

The Treasury said it plans to sell $40 billion worth of two-year notes, $41 billion worth of five-year notes and $32 billion worth of seven-year notes.

The results of the two-year note auction will be announced next Tuesday, the results of the five-year note auction will be announced next Wednesday and the results of the seven-year note auction will be announced next Thursday.

Last month, the Treasury also sold $40 billion worth of two-year notes, $41 billion worth of five-year notes and $32 billion worth of seven-year notes, attracting below average demand.

The two-year and seven-year note auctions attracted above average demand, while the five-year note auction attracted slightly below average demand.


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*U.S. Crude Oil Inventories Spike By 9.3 Million Barrels In Week Ended 10/11

Trading 17 oct 2019 Commentaire »

U.S. Crude Oil Inventories Spike By 9.3 Million Barrels In Week Ended 10/11


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Sweden Jobless Rate Steady In September

Trading 17 oct 2019 Commentaire »

Sweden jobless rate remained stable in September, figures from Statistics Sweden said Thursday, while adding that it has identified some flaws in its calculations.

The unemployment rate rose 7.1 percent in September, the same rate as seen in August. Economists had expected the rate to ease 6.7 percent.

However, the rate was higher by 1.1 percentage points from a year ago.

The statistical office said quality flaws were identified in the Labour Force Survey for September and for some time previously.

Hence, unemployment for September is overestimated and employment is slightly underestimated, the agency added.

The statistical office urged caution in interpreting the outcome, in particular with regard to changes within one year.

The youth unemployment rate, which is applied to the age group of 15 to 24, rose slightly to 18.4 in September from 18.2 in the preceding month.

The number of unemployed persons decreased to 391,000 in September from 393,000 in the prior month.


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U.S. Industrial Production Drops More Than Expected Amid GM Strike

Trading 17 oct 2019 Commentaire »

With the strike at General Motors (GM) contributing to a drop in manufacturing output, the Federal Reserve released a report on Thursday showing a bigger than expected drop in industrial production in the month of September.

The Fed said industrial production fell by 0.4 percent in September after climbing by an upwardly revised 0.8 percent in August.

Economists had expected production to edge down by 0.1 percent compared to the 0.6 percent increase originally reported for the previous month.

Manufacturing output dropped by 0.5 percent in September after rising by 0.6 percent in August, with the production of motor vehicles and parts plunging by 4.2 percent.

The report also said mining output tumbled by 1.3 percent in September after spiking by 2.4 percent in August, while utilities output jumped by 1.4 percent after inching up by 0.2 percent in the previous month.

"Overall, after a couple of months of surprisingly strong manufacturing output, the drop back last month is hardly a surprise, particularly with the GM strike," said Paul Ashworth, Chief US Economist at Capital Economic.

He added, "Unfortunately, the deteriorating survey evidence suggests that weakness will extend for some time to come."

The Fed said capacity utilization for the industrial sector dropped to 77.5 percent in September after climbing to 77.9 percent in August. Capacity utilization had been expected to dip to 77.7 percent.

Capacity utilization for manufacturing and mining decreased to 75.3 percent and 88.9 percent, respectively, while capacity utilization for utilities rose to 77.7 percent.


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Pound Retreats On Doubts Over Brexit Deal Approval In Parliament

Trading 17 oct 2019 Commentaire »

The pound eased off from its early highs against its major counterparts in the European session on Thursday, after Northern Irish party continued to object the Brexit deal, complicating the chances of getting it passed by Parliament.

The support of the DUP is needed for approving the accord in Parliament.

"These proposals are not, in our view, beneficial to the economic well-being of Northern Ireland and they undermine the integrity of the Union," the DUP said in a statement.

The pound retreated to 1.2757 against the greenback, from a 5-month peak of 1.2989 hit at 5:35 am ET.

Reversing from early nearly 5-month highs of 1.2893 against the franc and 141.51 against the yen, the pound pulled back to 1.2622 and 138.66, respectively.

The pound fell to 0.8702 against the euro, off its early more than 5-month high of 0.8574.

The pound is likely to find support around 1.24 against the greenback, 1.24 against the franc, 134.00 against the yen and 0.88 against the euro.


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Philly Fed Index Indicates Continued Slowdown In Growth In October

Trading 17 oct 2019 Commentaire »

Growth in Philadelphia-area manufacturing activity saw a continued slowdown in the month of October, the Federal Reserve Bank of Philadelphia revealed in a report released on Thursday.

The Philly Fed said its diffusion index for current general activity dropped to 5.6 in October after falling to 12.0 in September, although a positive reading still indicates growth in regional manufacturing activity. Economists had expected the index to fall to 7.1.

Shipment growth showed a notable slowdown during the month, with the shipments index slumping to 18.9 in October from 26.4 in September.

On the other hand, the report said the new orders index crept up to 26.2 in October from 24.8 in September, indicating modestly faster growth.

The number of employees index also surged up to 32.9 in October from 15.8 in September, pointing to a substantial acceleration in the pace of job growth.

On the inflation front, the prices paid index plunged to 16.8 in October from 33.0 in September and the prices received index slid to 16.4 from 20.8.

The Philly Fed said the survey's future activity indexes remained positive, suggesting continued optimism about growth for the next six months.

The diffusion index for future general activity increased jumped to 33.8 in October after tumbling to 20.8 in September.

Earlier this week, the New York Fed released a separate report unexpectedly showing a modest acceleration in the pace of growth in regional manufacturing activity in the month of October.

The New York Fed said its headline general business conditions index edged up to 4.0 in October after dipping to 2.0 in September.

The modest uptick came as a surprise to economists, who had expected the general business conditions index to slip to 0.8.


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U.S. Housing Starts Pull Back Sharply After Reaching 12-Year High

Trading 17 oct 2019 Commentaire »

After reporting a substantial increase in new residential construction in the previous month, the Commerce Department released a report on Thursday showing a sharp pullback in U.S. housing starts in the month of September.

The Commerce Department said housing starts plunged by 9.4 percent to an annual rate of 1.256 million in September after soaring by 15.1 percent to a revised 1.386 million in August.

Economists had expected housing starts to drop by 3.2 percent to an annual rate of 1.320 million from the 1.364 million originally reported for the previous month.

With the much bigger than expected decrease, housing starts pulled back well off the twelve-year high set in August.

Multi-family starts led the way lower, plummeting by 28.2 percent to a rate of 338,000 in September after spiking by 41.4 percent to a rate of 471,000 in August.

Meanwhile, the report said single-family starts rose by 0.3 percent to a rate of 918,000 after jumping by 5.1 percent to a rate of 915,000 in the previous month.

The report said building permits also slumped by 2.7 percent to an annual rate of 1.387 million in September after surging up by 8.2 percent to a revised 1.425 million in August.

Building permits, an indicator of future housing demand, had been expected to tumble by 4.9 percent to a rate of 1.350 million from the 1.419 million originally reported for the previous month.

Multi-family permits tumbled by 8.2 percent to a rate of 505,000, more than offsetting a 0.8 percent increase in single-family permits to a rate of 882,000.

On Wednesday, the National Association of Home Builders released a separate report showing homebuilder confidence unexpectedly climbed to its highest level in well over a year in the month of October.

The report said the NAHB/Wells Fargo Housing Market Index jumped to 71 in October after inching up to 68 in September. Economists had expected the index to come in unchanged from the previous month.

With the unexpected increase, the housing market index rose for the fourth straight month and reached its highest level since hitting a matching reading in February of 2018.


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U.S. Weekly Jobless Claims Show Modest Increase

Trading 17 oct 2019 Commentaire »

First-time claims for U.S. unemployment benefits saw a modest increase in the week ended October 12th, according to a report released by the Labor Department on Thursday.

The report said initial jobless claims edged up to 214,000, an increase of 4,000 from the previous week's unrevised level of 210,000. Economists had expected jobless claims to inch up to 215,000.

The Labor Department said the less volatile four-week moving average also crept up to 214,750, an increase of 1,000 from the previous week's unrevised average of 213,750.

Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, fell by 10,000 to 1.679 million in the week ended October 5th.

The four-week moving average of continuing claims still rose to 1,669,750, an increase of 3,500 from the previous week's revised average of 1,666,250.


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Dollar Little Changed Following U.S. Industrial Production

Trading 17 oct 2019 Commentaire »

After the release of U.S. industrial production for September at 9:15 am ET Thursday, the greenback changed little against its major counterparts.

The greenback was trading at 108.70 against the yen, 0.9882 against the franc, 1.1117 against the euro and 1.2801 against the pound around 9:17 am ET.


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*U.S. Industrial Production Drops 0.4% In September

Trading 17 oct 2019 Commentaire »

U.S. Industrial Production Drops 0.4% In September


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