Quiet start seen after Wall Street is on the rise
MELBOURNE, Oct 27 (IFR) – Risk appetite supported by more record-breaking Wall Street closings, although gains were contained by Facebook’s steep losses, while blue chip profits were mixed after the closing bell.
In Australia, the focus is on the Quarterly Consumer Price Report at 11:30 a.m. Sydney time, which could test the RBA’s prediction that no interest will rise until 2024.
The Dow Jones and S&P 500 rose 0.04% and 0.18% to new closing highs, while the Nasdaq Composite rose only 0.06%, the share price of Facebook having plunged 3.9% after the social media giant warned that Apple’s new privacy rules would affect its digital business.
After the market, Microsoft recovered and Alphabet lost ground after the publication of its quarterly results.
Underlying sentiment was boosted by a surprising jump in US consumer confidence in October, from 109.8 to 113.8, according to the Conference Board, far exceeding expectations of a drop to 108.3.
The Treasury curve flattened overnight, with US 10-year and 30-year yields falling 2bp and 3bp to 1.62% and 2.05%, while two-year yields firmed 1bp to 0.45%, despite a well-received $ 60 billion two-year bond auction. .
European stocks hit 10-week highs on strong results from companies including UBS, while travel and leisure stocks rose 0.76%, 1.01%, 0.80% and 0, 58% for the FTSE 100, the DAX, the CAC 40 and the FTSE Milan.
In the fixed income market, German and UK 10-year yields fell 2 bps and 5 bps to minus 0.13% and 1.09%, while the Italian 10-year rose 2 bps to 0.94 %.
European main and cross CDS spreads tightened by 1bp and 7bp to 49bp and 253.5bp. The spread on US investment grade CDS narrowed by 0.5 bps to 51 bps.
ICBC Financial Leasing (A1 / A / A) has raised US $ 1.35 billion through a two-part Reg S bond offering. The standard 1.625% US $ 600million three-year note and US $ 750million 2.25% five-year notes are priced 88bp and 110bp treasury bill wide against 125bp and 145 bps of initial forecast.
IOI Corporation issued a US $ 300 million 10-year 3.375% Reg S bond, rated Baa2 (Moody’s), which is priced within the 210bp T-bill zone forecast plus 185bp .
Hong Kong-based bank Dah Sing, rated A2 / BBB + (Moody’s / Fitch), valued a US $ 300 million Tier 2 Reg S bond at 3% 10-year and 195 bps wide in Treasuries, as part of the initial forecast in the 230 bp area. The subordinate note has expected ratings of Baa1 / BBB– (Moody’s / Fitch).
Indonesian Tower Bersama Infrastructure sold a 2.8% 5.5-year Reg S bond for US $ 400 million, rated BBB– (Fitch), at par, below initial price expectations in the area. 3.125%.
MUFG Bank, Auckland branch, rated A1 / A (Moody’s / S & P), has mandated ANZ, BNZ, MUFG and Morgan Stanley for a potential three-year floating rate TCD in New Zealand dollars which could be launched as early as this week. .
(Reporting by John Weavers; Editing by Vincent Baby)
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