BRIEF-Lupin says Goa plant gets three 483 observations by USFDA
* Lupin clarifies on news item, "Lupin's Goa plant receives adverse FDA observations".
SYDNEY, March 2 (IFR) - USD, bond yields & stocks surge, JPY purged Market Briefs * US consumer spending 0.2% v 0.3% Rtrs f/c 0.5% pvs * US Jan PCE price IDX y/y 1.9% v 1.6% pvs, m/m 0.4% v 0.2% pvs * US Feb ISM Mfg PMI surges to 2.5-yrr high in Feb; 57.7 v 56 Rtrs f/c, 56 pvs; Employment dips, prices pd steady * Fed’s Kaplan: We should begin process of gradual rate hikes, econ solid not spectacular - DJ * Atlanta Fed’s GDPNow: US econ growing at 1.8% in Q1 vs 2.5% on Feb 27 * Wall St hits new highs as Trump speech reignites rally * Weaker euro helps propel EZ factory growth to six-year high, Growth in new export orders highest since April 2011 * Welcome or not, ECB buying crushes German 2-yr bond yields, ECB seen buying more bonds sub -0.40% for QE * U.S. crude oil stocks rise, production up again; early NorAm oil gains reversed -EIA * US 2-yr yield hits highest since 2009 on rate hike bets, fed funds futures show 65% chance of hike in March * Mexico’s Carstens: Bank has never thought to request swap line w/Fed, lifts MXN of session high Looking Ahead - Economic Data (GMT) * 23:50 JP Foreign Bond Investment w/e 48.2b-prev * 23:50 JP Foreign Invest JP Stock w/e -127.9b-prev * 00:30 AU Building Approvals* Jan f/c 0%, -1.20%-prev * 00:30 AU Private House Approvals* Jan -1.60%-prev * 00:30 AU Trade Balance G&S (A$)* Jan f/c 3800m, 3511m-prev * 00:30 AU Goods/Services Imports* Jan 1.00%-prev * 00:30 AU Goods/Services Exports* Jan 5.00%-prev Looking Ahead - Events, Other Releases (GMT) * No Significant Events Macro Themes in Play * USD gives back big chunk of early gains, near term Fed rate hike expectations raised by Dudley/Trump but long term Fed Funds (end-2019) still unable to break 2%, situation will continue to hold back long USD trade * US rate market pricing 2 ½ hikes for 2017 now that March meeting firmly in play, new high for cycle, March trades 7-in-10 chance * Markets sharply higher, S&P and bank sector gaps up, bullish on appearance that Trump/GOP coalition united, to leverage majority status to advance legislation * EURUSD ends down only small, bears losing grip, between European events last week and US rate move this week currency pair should be much lower; USDJPY up but underwhelming given spike in stocks/rates; Cable down on Mfg PMI miss, foreign investors turn net sellers of Gilts for first time in six months * BOC holds, US-Canada rate diff at new highs, last time here (1 year ago) USDCAD had 1.40 handle; AUD up behind copper on US infrastructure play; MXN better, Banxico sees inflation above target for most of year Gold climbs back above 200 hma, not dead yet, no clear message on FX; crude down small, stuck in tight range, lacks catalyst, huge long oil trade risks getting trapped Currency Summaries EUR/USD * Heavy in Europe's morning, NY opens near 1.0545, bear pressure persists * USD & UST yields rally on above f/c core PCE, EUR/USD slides to 1.0514 * ISM beat is no help to USD, gains erode as UST yields slip, EUR/USD lifts * Nears the 200-Hour SMA, rally stalls as USD bounces after Fed's Beige Book * EUR/USD slips towards 1.0550 late in the day * Techs are bearish, RSIs biased down & pair holds below 10 & 55-DSMAs * EZ Feb inflation & US weekly claims data are risks tomorrow USD/JPY * USD/JPY's Dudley-inspired rally got to 114.05 by midday NY * Move o/b on hourlies & yld spreads had stopped rising in Asian trading * Weak 114.00 break brought a pullback toward Kijun at 113.49 * US data were mixed, but ltd post-ISM beat gains triggered some P/T * Beige Book eyes labor tightening, but no econ moderating * Lots of rsst in 114.80-115 range fm 55-DMA, Cloud top & Feb peak * EUR/JPY probed 38.2%, 61.8% & daily Kijun at 120.16-18 * 50% Fibo & daily Kijun look pivotal at 120.78 * BoJ Sato: BoJ may raise yield targets before (if) inflation hits 2 pct - Rtrs * GBP/JPY rebound rejected near daily Cloud base * AUD/JPY near Feb 22 swing high @87.38 after Oz data & 55-DMA prop * JP Jobs, CPI next key local releases on Friday USD/CHF * Franc firm today after Swiss PMI data outshined EZ results * Mfg PMI highest since April 2011 * Swiss consumption indicator rose to 1.43 pts in Jan * Good news may spur Swiss franc rally , less SNB rsst * EUR/CHF back to hovering above Feb & Brexit lows at 1.0632/23 * USD/CHF shed its hawkish Dudley gains in late Ldn trading * US PMI beat not enough to maintain big USD/CHF gains * Beige Book eyes labor tightening, but no big econ rush * CHF/JPY on the rise, as JPY bore brunt of risk-on flows * Swiss GDP & Retail Sales are out Thurs GBP/USD * Cable tripped stops below daily cloud top (1.2379) during Ldn am, moved to 6-wk low * Below 1.2350 selling exacerbated, ultimately finding support in NY AM at 1.2282 * Pair moved higher finding resistance by 1.2330, A50 overhang continues to weigh * Lower UK mortgage lending & lower Markit Mfg PMI hit GBP as well * EUR/GBP remains bid, ends NY 0.42% to 0.8580, Brexit fears take toll on UK econ * EZ Feb flash inflation Thurs Rtrs f/c 2% v 1.8% pvs; may hint at UK-EZ econ divergence USD/CAD * O/N range 1.3285/3340 O/N, Noram range 1.3298/3357, last 1.3343 (NY +24 pips) * CAD under pressure O/N as UST/GoC spreads widened (2-Yr opened 54.2, +8.4bp) * Spread closed 53.1, strong demand for CAD FI y'day & Fed hike focus * Trump's speech was more balanced than expected, stocks rallied * Risk on continued in NY after data S & P +1.53% Dow +1.67% * BoC was as predicted unch Thur - Cda GDP Dec & Q4 [page:2417] AUD/USD * Choppy in Europe's morning, NY opens near 0.7660, USD goes broadly bid * AUD/USD slides toward 0.7640, USD bid fades after ISM data, gains erode * UST yields slip as well, AUD/USD lifts towards the 10-Day SMA * USD bounces and AUD/USD slips towards the 21-DSMA late in the day * Techs mixed, daily lean bearish but monthly suggest higher * Oz Jan building approvals and trade balance are data risks in Asia NZD/USD * Choppy in Europe's morning but with a bear tint, AUD/NZD rally weighs * NY opens near 0.7135, USD bought across the board early, NZD/USD slides * Nears 0.7105 but slide stalls as USD bid reverses, NZD/USD steadily climbs * Pair nears 0.7160 but can't extend as USD bounces late, near 0.7145 late * Techs are bearish, new s-t low set and RSIs biased down with room to run * No NZ data due, pair might be impacted on OZ data via AUD/NZD LATAM * USD/MXN reverses o/n high by 20.1670, pre-Trump address Asia high * Pair falls to 5-day low by 19.7220, ends NorAm nearby * Peso shrugs off higher US rate outlook & weak oil, eyes better US-Mex relationship * USD/BRL -0.42% to 3.0966, Brazil holiday avoids recent risk-off yaw * BCB survey sees inflation falling further, GDP steady in 2017 * USD/CLP -0.17% ends NY 649.25, copper higher, BCCH holds maintains easier bias Fed rate expectations may accelerate despite Trump While U.S. payrolls data will be important ahead of the Fed meeting, the backdrop of looser financial conditions and lack of market volatility helps to strengthen the case for a March rate hike. The latest Fed speakers' comments seem to invalidate the view that the Fed will wait until policymakers have greater insight into President Trump's fiscal policies. While questions remain over implementation of Trump's fiscal plans, the Fed seems to feel risks are now asymmetric and if policymakers don't move in March then the alternatives of May (French election) and June (six months between hikes) look less appealing. A March hike also gives the Fed the flexibility not only to hike rates by a total of 100bps this year (once a quarter) but also not be rushed into two further rate hikes embedded in the dot plots. Full comment CHART OF THE DAY (AUD/JPY) The final days of Feb proved trying for AUD/JPY longs, but a sizeable rebound has followed this week's tests of the 55-DMA line (85.86) that is just above the daily Cloud top (85.71), staving off a broader retreat. For today's bullish engulfing candle to gain greater purchase, the Feb 22 swing high at 87.38 must be closed above. More important for longer horizon bulls is whether a weekly close above 88.01, the 50% Fibo of the Nov '14-Jun'16 drop, can be mustered. The explosive rally since Nov has created a pending overbought bearish divergence top risk from weekly RSI, while opening a huge gap between the weekly Tenkan and flat Kijun (82.06) by the weekly Cloud top (81.96), often a warning that a correction is overdue. Weekly ADX is also the highest it's been since an Oct '15 peak (Reporting by IFR and NY buzz team)
* Lupin clarifies on news item, "Lupin's Goa plant receives adverse FDA observations".
April 28 The following bids, mergers, acquisitions and disposals were reported by 1000 GMT on Friday: