Fixed Income Market Overview
Treasury yields edged higher on Wednesday as markets digested a mixed consumer price index (CPI) report ahead of the Federal Reserve’s upcoming rate decision. The 10-year Treasury yield rose slightly to 3.652%, while the 2-year yield climbed 3 basis points to 3.639%. The CPI showed a 0.2% rise in August, but core inflation excluding food and energy rose 0.3%, slightly above expectations. Traders expect a rate cut at the Fed’s Sept 17-18 meeting, with an 83% chance of a 25-basis-point cut and a 17% chance of a 50-point cut. Economists are divided on the size of the rate reduction.
US inflation falls to 2.5% in August.
Sebi considers new stricter rules to curb risks as tiny IPOs boom.
U.S. crude oil rebounds more than 2% after steep sell-off
Dell job cuts will continue with margins under pressure
Jamie Dimon says JPMorgan CEO succession is his priority
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,861.71 | 124.75 | 0.31%↑ |
| NASDAQ | 19,237.30 | 408.16 | 2.17%↑ |
| S&P 500 | 5,554.13 | 58.61 | 1.07%↑ |
| FTSE 100 | 8,193.94 | -12.04 | -0.15%↓ |
| SX5E | 4,763.58 | 16.38 | 0.34%↑ |
| NIKKEI | 36,619.77 | -539.39 | -1.49%↓ |
| HSI | 17,108.71 | -125.38 | -0.73%↓ |
| VIX | 17.69 | -1.39 | -7.28%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.65% | 0.003 |
| US 30-YR | 3.96% | -0.004 |
| US 5-YR | 3.44% | 0.014 |
| JPN 10-YR | 0.86% | -0.039 |
| UK 10-YR | 3.76% | -0.057 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 67.31 | 2.62 | 4.05%↑ |
| NAT GAS | 2.27 | 0.04 | 1.70%↑ |
| GOLD | 2,511.76 | -31.34 | -1.23%↓ |
| SILVER | 28.68 | 0.06 | 0.22%↑ |
| COPPER | 4.08 | -0.01 | -0.37%↓ |
Equity Market Overview
Commerzbank
Commerzbank shares surged over 20% on Wednesday after Italy’s UniCredit acquired a 4.5% stake from the German government for €702 million. This marks the start of Berlin’s exit from Commerzbank, reducing its stake to 12%, though it remains the largest shareholder. UniCredit hinted it may seek to increase its holding to over 9.9% and sparked speculation about a potential takeover of Commerzbank. The German lender’s supervisory board planned an extraordinary meeting to discuss UniCredit’s move, while Commerzbank CEO Manfred Knof confirmed he won’t renew his contract after 2025. UniCredit has been active in recent M&A deals.
Nvidia
Nvidia’s shares surged 8% after CEO Jensen Huang made optimistic remarks about the company’s future at a technology conference. He highlighted strong demand for Nvidia’s AI chips and credited Taiwan Semiconductor Manufacturing Company (TSMC) for its pivotal role in their success. The positive outlook boosted Asian semiconductor stocks, with companies like TSMC, Foxconn, and Japan’s Advantest seeing significant gains. Huang emphasized that AI goes beyond chips, involving a broader infrastructure and ecosystem. Nvidia, which dominates the AI chip market, reassured investors about its supply chain amid geopolitical concerns. Nvidia’s stock has jumped 136% in 2023.
