Euro is slightly up supported by strong Eurozone manufacturing PMI data for August, haven assets rose on the backdrop of Trump’s comments regarding Nafta. Preliminary Eurozone manufacturing PMI data for August came out at 57.4 higher than consensus forecast of 56.3 (July’s reading was 56.6). EURUSD gained 0.3% and reached 1.180. The dollar index is down 0.3% today. US 10Y yields are flat at 2.20%. Futures on S&P 500 are 0.3% lower today after Trump threatened to terminate North American trade agreement. Eurostoxx 600 is 0.3% down today. Nikkei 225 is up 0.2%. Bloomberg commodity index is marginally higher. Gold is 0.2% up.
Oil prices are down despite favourable inventories data. American Petroleum Institute reported that crude oil inventories fell by 3.6 mn bbl in the previous week. Brent prices are down 0.6% today at $51.6/bbl.
Russia and CIS area developments and market colour
MinFin’s first auction was in a strong demand today. MinFin placed fixed-coupon OFZ with maturity in October 2024 for the full amount of RUB 25bn at an average yield of 7.97% with the total demand of RUB 60.1bn.
The rouble is down 0.2% against the dollar at 59.2. OFZ yields are 1-3 bps lower. Russia’s and Kazakhstan’s longer term sovereign yields are 1-2 bp lower today.
Weekly inflation data are out today at 16:00 Moscow time. Further weekly deflation is consistent with CBR’s cutting the key rate in September.
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