In a market wrap, analysts at ANZ Bank New Zealand noted that global equities rebounded overnight, with solid earnings to kick off the season (Goldman Sachs, Morgan Stanley) buoying sentiment.
“Positive developments on the Italian budget and a conciliatory tone from UK PM May also lifted the mood. European bourses were solidly in the green (FTSE 100 +0.4%, DAX +1.4%) with key US indexes rising pretty steadily (S&P 500 and Dow +1.8% at the time of writing). Tech led gains ahead of the first major FANG to report earnings at the close, Netflix (Nasdaq +2.5%). The USD fell against the G10 with SEK and NZD outperforming. US 10-year yields were unchanged, while European yields were lower (Germany -1bp, Italy -9bp). WTI oil is up 0.3% at the time of writing, while gold was little changed.”
“US LABOUR MARKET REMAINS STRONG: Job openings rose to another record high), up over 1m compared to a year earlier. There are now 1.2 million more jobs than unemployed in the US. Construction, finance, professional business, and health care led gains. Industrial production also came in marginally better than expected.
UK WAGES HIGHER: August average earnings rose 3.1% y/y ex-bonuses, the strongest in nine years, while unemployment was unchanged at 4.0%. It’s good news for workers and consumption, but the BoE will be worried about competitiveness against a backdrop of uncertainty. In themselves, the data are biased towards higher rates.”