Thursday, September 21, 2017

Good morning-  Global equities are mixed to start this morning’s session. European stocks are all higher with the Euro Stoxx 50 up points, FTSE up 1 point, and DAX up 38 points. Asian stocks are mixed as the Nikkei is up 20 points and the Hang Seng is down 6. US equities are slightly lower following yesterday’s hawkish rhetoric from the Fed. The DOW is down 9 points, S&P down 1.5 points, and the NASDAQ down 4 points. The yield on the US 10 yr is mostly unchanged at 2.259% as the Bloomberg Barclays IG and HY indices continue to tighten. Moreover, oil is still hovering above $50/bbl and the VIX is back below 10. Today we will see weekly jobless claims and hear from the Philly Fed.  

In other news, China’s credit rating was downgraded to A+ from AA- at S&P. Citing risks from soaring debt, S&P revised China’s outlook to stable from negative. This is the first time S&P has cut China’s sovereign credit rating since 1999. Other notable events from this week include the Bank of Japan keeping its monetary stimulus unchanged yesterday and Toys “R” Us filing for Chapter 11 bankruptcy protection on Monday.