US CREDIT OPEN-Equity futures higher as dollar dips
By John Balassi
NEW YORK, Aug 23 (IFR) - Summary of overnight events and Tuesday's main headlines:
Dow Futures: +46, S&P Futures: +5.25, Nasdaq Futures: +12.75
CDX IG.26: -0.5375 tighter, CDX HY.26: +0.125 point higher
10-yr UST yield: 1.558% +1.9bp, 30-yr UST yield: 2.244% +0.09bp
EUR/USD: 1.134 +0.21%
USD/JPY: 100.10 -0.22%
WTI Oil: $47.04 -0.78%
HEADLINES
Global stocks creep up on Fed limbo
World shares crept up on Tuesday while the dollar lost ground as investors awaited further clues on whether the Federal Reserve will raise U.S (Other OTC: UBGXF - news) . interest rates this year.
Dollar dips on Fed rate hike doubts
The dollar weakened across the board on Tuesday as investors shifted their focus away from hawkish remarks on U.S. interest rates by Federal Reserve officials and towards a speech on Friday by Fed Chair Janet Yellen.
Eurozone business growth stable in Aug
Surprisingly strong growth in France supported stable euro zone private business activity during August but factories could face a tougher September as new order growth stumbled, surveys showed on Tuesday.
Oil under US$49 as supply trumps hopes
Oil fell below $49 a barrel on Tuesday, giving up part of August's strong rally, as signs of rising supply outweighed hopes that producing nations will agree steps to support prices.
Best Buy (Swiss: BBY.SW - news) surprises on sales
Best Buy reported a surprise rise in quarterly comparable stores sales, helped by strong demand for appliances and consumer electronics.
OVERNIGHT TREASURIES
* Futures trade 132-03 - 132-08+ range, last at 132-03+ down 6 ticks
* Low volumes at 134k as at 06:15 EST
* 10-yr yields trade a tight 1.545%-1.565% range
* 2s/30s 1.5bp steeper at 150.5bp
* 10-yr US/Germany 0.25bp tighter at 164.25bp
* 10-year cash trades in 1.546% to 1.566% range
* USTs underperforming Germany by 1.5bp in the 10-year maturity compared to the previous London close
GLOBAL MACRO
* Market opens risk-on after above forecast corporate results
* Brent Crude slips back below $49 as expectations fade that producers may tackle oversupply problem
* Germany, France and Italy say Europe must move forward after Brexit
* Shanghai Composite gains 0.19% on government talk of infrastructure expansion
* France August Markit Manufacturing Flash PMI 48.5 (exp 48.8, prev 48.6)
* France August Markit Services Flash PMI 52.0 (exp 50.5, prev 50.5)
* France August Markit Composite Flash PMI 51.6 (exp 50.4, prev 50.1)
* Germany August Markit Manufacturing Flash PMI 53.6 (exp 53.5, prev 53.8)
* Germany August Markit Services Flash PMI 53.3 (exp 54.4, prev 54.4)
* Germany August Markit Composite Flash PMI 54.4 (exp 55.0, prev 55.3)
* EZ August Markit Manufacturing Flash PMI 51.8 (exp 52.0, prev 52.0)
* EZ August Markit Services Flash PMI 53.1 (exp 52.8, prev 52.9)
* EZ August Markit Composite Flash PMI 53.3 (exp 53.1, prev 53.2)
* UK August CBI Trends - Orders -5 (exp -9, prev -4)
* EZ August Consumer Confidence Flash due 14:00 GMT (exp -7.60, prev -7.90)
DATA
* 10:00 New Home Sales (Jul) (mkt 580k SAAR, prev 592k SAAR)
* 10:00 Richmond Fed Manufacturing Index (Aug) (prev 10)
* 10:00 Richmond Fed Services Index (Aug) (prev 8)
* 10:00 Philly Fed Nonmanufacturing Business Outlook Survey (Aug) (prev 20.3)
EVENTS
* 13:00 Treasury auctions $26 bn 2-year notes
USD HIGH-GRADE SUMMARY
Number of deals priced on Monday: 2
Monday's issuance: US$1.2bn
Weekly issuance: US$1.2bn
Monthly issuance: US$98.05bn
Quarterly issuance: US$192.650bn
2016 year to date issuance: US$906.017bn
2015 year to date issuance: US$900.202bn
2015 full year issuance: US$1.269trn
LIPPER FLOWS
For the week ended August 17 Lipper US Fund Flows reported the following:
- INVESTMENT-GRADE FUNDS NET INFLOW: US$2.161bn
- IG YTD NET INFLOW: US$27.951bn
USD HIGH-GRADE ACTIVE DEALS
Hyundai Capital Services, Baa1/A-/BBB+, announced a US$ benchmark 144a/Reg S 3-year senior notes. Active bookrunners are BAML, BNP (Paris: FR0000131104 - news) , HSBC and MUFG. Pricing expected today. IPT: T+105bp area.
USD HIGH-GRADE PIPELINE
Industrial Bank of Korea, Aa2/AA (Frankfurt: A116XA - news) -, hired HSBC and Nomura to arrange fixed income investor meetings that took place in Hong Kong and Singapore on Monday in preparation for a 144a/Reg S dollar-denominated offering.
Woori Bank (KSE: 000030.KS - news) , A2/A-, hired Bank of America (Swiss: BAC.SW - news) /Merrill Lynch, Citigroup (NYSE: C - news) , Commerzbank (Xetra: CBK100 - news) , Credit Agricole CIB, HSBC and Nomura to arrange fixed-income investor meetings that took place in the US, Europe and Asia from July 11 to July 20. (Reporting by John Balassi; Editing by Marc Carnegie)