Fixed Income Market Overview
On Thursday, U.S. 10-year Treasury yields rose by over 8 basis points to 3.858%, with the 2-year Treasury yield also increasing to 3.999%, as investors awaited remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. The previous day, the Fed’s July meeting minutes indicated most officials favored easing policy if data trends continued. Market participants are now largely expecting a rate cut at the Fed’s next meeting, with a 66% chance of a 25-basis-point cut. Additionally, jobless claims data slightly exceeded expectations, adding to concerns about a potentially weakening labor market.
US jobless claims stabilise after weeks of market volatility.
Deutsche Bank shares rise 4% after settlement of bulk of claims in long-running Postbank suit.
U.S. crude oil holds above $72 per barrel after erasing most of 2024 gain.
Chanel buys 25% stake in niche Swiss watchmaker MB&F.
Sterling rises after UK business activity grows more than expected.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 40,712.78 | -177.71 | -0.43%↑ |
| NASDAQ | 19,491.84 | -333.00 | -1.68%↑ |
| S&P 500 | 5,570.64 | -50.21 | -0.89%↑ |
| FTSE 100 | 8,288.00 | 4.57 | 0.05%↑ |
| SX5E | 4,885.00 | -0.28 | -0.006%↑ |
| NIKKEI | 38,211.01 | 259.21 | 0.68%↓ |
| HSI | 17,641.00 | 249.99 | 1.43%↑ |
| VIX | 17.55 | 1.28 | 7.86%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 3.85% | 0.051 |
| US 30-YR | 4.12% | 0.048 |
| US 5-YR | 3.71% | 0.060 |
| JPN 10-YR | 0.87% | -0.003 |
| UK 10-YR | 3.77% | 0.07 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 73.01 | 1.08 | 1.50%↓ |
| NAT GAS | 2.05 | -0.12 | -5.69%↑ |
| GOLD | 2,484.75 | -27.81 | -1.10%↓ |
| SILVER | 28.99 | -0.61 | -2.07%↑ |
| COPPER | 4.15 | -0.04 | -1.00%↑ |
Equity Market Overview
Toronto-Dominion Bank
TD Bank reported its first loss in over two decades, driven by a$2.6 billion provision to cover expected fines from U.S. regulators probing its anti-money laundering controls, including allegations tied to Chinese drug traffickers. To offset the impact, TD plans to sell part of its 12.3% stake in Charles Schwab. Despite investing $500 million to strengthen its AML controls, analysts fear potential non-monetary penalties could restrict TD’s U.S. growth, which has been a key market. The bank reported a net loss of C$181 million in the latest quarter, though its Canadian banking segment saw a 13% rise in net income. Shares have fallen 7.7% this year amid investor concerns over the regulatory probe’s outcome.
Peloton Interactive
Peloton achieved its first sales growth in nine quarters, with a modest 0.2% increase in Q4 and narrowed losses of $30.5 million, down from $241.8 million a year earlier. Shares surged 35% as Peloton emphasized profitability over growth, cutting marketing spend and improving free cash flow and adjusted EBITDA. Subscription revenue rose 2.3%, driven by secondary market bike purchases, while treadmill sales grew 42%. Despite weaker hardware sales, Peloton’s strategic shift towards profitability is yielding positive results, with $70 million in adjusted EBITDA and $26 million in free cash flow. Leadership changes are anticipated soon, and the company projects further improvements in profitability.
