Markets React Calmly to Terrorist Explosion in NYC

December 11, 2017

A bomb carried by Bangladeshi suicide bomber seems to have exploded prematurely at the New York Port Authority bus terminal at around 07:30 am this morning, producing only 3 minor injuries other than to the Terrorist assailant.

Compared to Friday closing levels, the dollar is down 1.2% versus the kiwi, 0.6% relative to the yen, 0.4% versus the Australian dollar, 0.3% vis-a-vis the euro and Swiss franc, 0.2% against the yuan and 0.1% versus the loonie. The dollar has also strengthened 0.3% against the peso and sterling.

U.S. stocks have risen marginally. Stock markets in the Pacific Rim scored good gains of 1.2% in Hong Kong, 1.1% in Singapore, 1.0% in China, 0.7% in Taiwan, 0.6% in Japan and 0.5% in India. Share prices in Europe have slipped 0.2% in Spain, Italy, and Germany.

The 10-year British gilt yield fell seven basis points, and its German and U.S. counterparts are down by 2 and 1 basis points.

Gold and oil firmed 0.1% and 0.3% so far.

According to a quarterly survey of Japan’s Ministry of Finance, business sentiment strengthened slightly this quarter but is seen likely to fall more appreciably during the first half of 2018. Japanese machine tool orders registered a 46.9% on-year advance in November according to preliminary observation. Machine tool orders in September and October had also been over 40% above their year-earlier levels.

Chinese CPI inflation slowed to 1.7% in November from 1.9% in October, while PPI inflation dropped to a 4-month low of 5.8% from 6.9%. China also released money and bank lending figures showing CNY 1.2 trillion of new yuan loans in November, faster on-year growth of M2 money (9.1%), but the slowest on-year increase so far in M1 (12.7%).

The U.S. Department of Labor’s monthly JOLTS index revealed a smaller number of job openings in October than in September and fewer job separations, but more hires than in the prior month.

The Bank of France’s monthly indices of manufacturing and service-sector business sentiment were unchanged in November with a reading of 106. Such had risen in September and October. In construction, sentiment went up in November to 104 after holding steady at 103 in August-October. Monetary officials project that French GDP likely will climb 0.5% in the final quarter of 2017.

Turkish on-year GDP growth more than doubled to a 6-year high of 11.1% in the third quarter from 5.1% in 2Q and 4.7% in the first quarter of the year. Turkey recorded a smaller current account deficit of $3.83 billion in October.

Denmark’s current account surplus of DKK 16.3 billion in October lay between its surpluses of DKK 21.9 billion in September and DKK 12.7 billion in August.

Mexico’t trade deficit widened slightly to $2.07 billion in October. Portugal’s EUR 1.54 billion deficit was also wider than in September.

Consumer prices in the 12-months to November increased 1.1% in Norway, 2.6% in the Czech Republic, and 1.3% in Denmark.

In the year to October, Greek industrial production rose just 0.5%, while Italian retail sales declined 2.1%.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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