Stock Market News Today 2018/09/01
CBOE Volatility Index (VIX) >>> University of Michigan Consumer Sentiment Index Revised Higher.
A key gauge of U.S. consumer confidence was revised higher in August, according to a survey released on Friday. The University of Michigan’s consumer confidence index was revised up to 96.2 from 95.3. Economists had forecast a reading of 95.5. A sub index tracking consumer expectations unexpectedly fell from 87.3 to 87.1 in August.
US Dollar Index >>> No U.S.-Canada Trade Deal Friday, but Agreement Still Possible.
The U.S. and Canada could not reach a trade agreement Friday, but negotiations will to continue to bring Canada into a trilateral deal that includes Mexico. “Today the President notified the Congress of his intent to sign a trade agreement with Mexico – and Canada, if it is willing – 90 days from now,” U.S. Trade Representative Robert Lighthizer said in a statement. Lighthizer spoke after the Wall Street Journal reported, citing sources, that talks had broken up with no deal and that U.S. President Donald Trump was prepared to go ahead with a revision of the North American Free Trade Agreement (NAFTA) with just Mexico.
FTSE MIB Futures >>> Italy, after Fitch cuts outlook, vows to respect EU commitments.
Italy will respect European Union budget commitments and address the concerns of credit ratings agencies like Fitch – which cut the outlook for Italian debt – with concrete policy choices in coming weeks, the economy minister said on Saturday. Fitch Ratings on Friday changed the outlook for Italian debt, the world’s third-largest pile of state borrowing, to “negative” from “stable”, citing concerns about the populist government’s “new and untested nature” and its promises to hike spending. “Fitch expects a degree of fiscal loosening that would leave Italy’s very high level of public debt more exposed to potential shocks,” said the agency, which held steady its overall ‘BBB’ credit rating.
FTSE 100 (FTSE) >>> Brexit talks hit snag on EU food labelling protections.
The EU’s chief Brexit negotiator has warned that the bloc will not agree to a deal that does not protect European specialities such as parmesan cheese and Parma ham, saying that he has “concerns” about Britain’s unwillingness to offer guarantees. The EU’s system of “geographical indicators” that protect its emblematic food products has emerged as a sticking point in the final stretch of Brexit negotiations, with Brussels frustrated by British insistence that the protections will need to be reassessed by the UK government on a case-by-case basis. “I expressed again my concern,” Michel Barnier said at a joint press briefing with UK Brexit secretary Dominic Raab in Brussels. Brexit “cannot lead to a loss of existing protection of intellectual property”, he said. “It has to be clarified in the withdrawal agreement.” The geographical indicators are one of the most sensitive issues in EU trade policy, covering around 3,000 different products.
Coca-Cola Company (KO) >>> Coca-Cola and Costa expansion opportunity, group hopes acquisition will give it boost in battle with Starbucks and Nestlé.
Coca-Cola heralded the transaction, which still requires shareholder and regulatory approval, as the latest step in its efforts to become a “total beverage company”. It is chasing the tastes of millions of consumers by diversifying away from fizzy sodas and pushing into healthier drinks. The US giant’s choice of Costa as the vehicle to take on more established rivals in the global coffee market, including the likes of Starbucks, Nestlé and JAB Holdings, comes as Whitbread recognised it had taken the UK-based chain as far as it can. Coca-Cola aims to turn Costa into an international coffee “platform”, expanding the number of stores and vending machines around the world, while also using the Costa brand to sell home coffee products, from pods to instant coffee.
Gold Futures >>>Gold prices brushed off a sharp uptick in the dollar Friday, but remained on track to end the month roughly unchanged.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose by $0.21, or 0.50%, to $1,207.30 troy ounce. Gold prices fell to a session low of $1,204.50 before pairing losses following a strong uptick in the Dollar as investors looked ahead to another rate hike from the Federal Reserve in a little over three weeks. The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.240% to 95.02. Gold is sensitive to moves higher in both bond yields and the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding gold as it pays no interest. The wider metals traded mostly lower, struggling to hold off a wave of selling pressure as weakness from dollar strength was exacerbated by fears of an escalating U.S.-China trade war amid a report President Donald Trump was looking to move ahead with tariffs on China. Trump plans to move ahead with tariffs on $200 billion in Chinese imports as soon as a public-comment period concludes next week, Bloomberg reported, citing six people familiar with the matter. Investors fear that further friction with the U.S. could throw China’s economy into a faster decline, hurting Beijing’s demand for commodities. A Chinese state planning official stoked fears of slowdown in China earlier this week, warning there were increasing risks to growth in the second half of the year.
