Volume picked up in the afternoon vs the slower morning turnover but still remained lower on the day ahead of the US Fed. Stocks and sectors up vs down was very similar to yesterday with an even mix on the day. Moves away from the flatline were muted with Italy the outperformer even as it gave up half of its earlier gains.
Earlier we noted Russia was calling for OPEC to move away from production limits with the IEA adding Venezuela and Iran would see curtailed production with the vacuum likely to be filled by US shale production. Since then, Iran has said oil markets do not need additional supply and hopes OPEC sticks to the current agreement. That, coupled with a 4.1M draw in DOE crude supplies, saw oil move higher.
Of interest, yesterday the Republic of Macedonia agreed with Greece to change its name to the Republic of North Macedonia as several regions in Greece are called Macedonia. Evidently the request has upset those in the New Democracy Party as they have called for a no confidence vote over the issue.
The semi space rallied today despite RBC stating the semi capital equipment industry will face a “muted year” next year. RBC though sees ASML +2.7% outperforming due to its “potential monopoly pricing” on its ultraviolet lithography tools. Manufacturers were up as well with STM +4.4% and Dialog Semi +.8%.
Glencore +3.8% worked back to recent highs today on a debt-to-equity swap deal in the Congo which should allow them to begin production of copper and cobalt. Several brokers though were so enthused with governmental strife and new taxing structures there said to continue to weigh.
Luxury goods names rose on a note from JPM stating it appears that China is reducing import duties on jewelry. Instead of being classified as luxury goods jewelry looks like it will be classified as everyday consumer goods which could lower tariffs to 8-10% from the current 20-35%. Swatch +1.4%, Kering +.5%, Richemont +.5%.
From earlier: Inditex +3.5%, Ericsson +4.7%, Dixon’s Carphone 2.8%, Adyen +90%, Ingenico +6.8%, Wirecard +3.7%, and Renault +.9%.
Tonight China will release jobs data along with Industrial Production, Retail Sales and FDI. Japan is out with Industrial Production as well with jobs data due from Australia. The ECB will announce rates with Draghi speaking at 8:30 EST. Germany and France will release inflation data as the UK reports retail sales.