EUROPEAN MIDDAY/US MORNING REPORT
WEDNESDAY – 23RD – AUGUST – 2017
* European cash equity markets are little changed at the midway stage (FTSE 0.0%, DAX 0.0%, CAC +0.1%).
* Comments from US President Trump regarding a potential government shutdown have hampered risk sentiment.
* Core EU bonds also flat, along with Treasuries, with investors keeping to the side-lines ahead of the Jackson Hole symposium on Friday where Fed Chair Yellen and ECB President Mario Draghi speak.
* FX moves also relatively muted. Dollar Index slightly offside, pound also trading soft. Oil prices nurse minor declines with latest reports suggesting the Sharara oil field is still down
* ECB President Mario Draghi offered little on the outlook for monetary policy. His speech was centred around the importance of research in monetary policy decisions.
* Euro Zone PMI Data (Aug P):
Manufacturing 57.4 versus 56.3 expected, previous 56.6
Services 54.9 versus 55.4 expected, previous 55.4
* German PMI Data (Aug P):
Manufacturing 59.4 versus 57.7 expected, previous 58.1
Services 53.4 versus 53.3 expected, previous 53.1
* French PMI Data (Aug P):
Manufacturing 55.8 versus 54.5 expected, previous 54.9
Services 55.5 versus 55.8 expected, previous 56.0
* UK sold £2.75 Bln of a 2023 Gilt: Bid to Cover 2.9 | Yield 0.635%
* Germany sold €2.4 Bln of a 2027 Bund: Bid to Cover 1.3 | Yield 0.41%
* Ahead, futures pointing to a relatively flat open for US stocks. Data wise, US manufacturing and service PMI, US new home sales and Euro Zone consumer confidence are on tap before the DoE weekly inventory report. Dallas Fed Governor Kaplan also speaks.