• Wall Street extended gains on September 12, with the DJIA, S&P 500 and Nasdaq closing up by +0.58%, +0.75%, and +1.00%, respectively.
• Stocks rebounded on Thursday, with the Dow Jones and S&P 500 reaching 1-week highs and the Nasdaq hitting a 1.5-week high. Positive corporate news, including Warner Bros' +10% gain and Nvidia's +1% rise, boosted the market. US stocks also drew support from a rally in European stocks, with the Euro Stoxx 50 up +1.06% following the ECB's deposit rate cut by -25 bps to 3.50%.
• The 10-yr UST yield rose by +3.0 bps to 6.68%, while the 2-yr yield rose by +2.0 bps to 3.64%. Thursday's stock rally cut safe-haven demand for T-notes, but losses were capped by higher-than-expected US jobless claims and solid demand at the 30-yr T-bond auction.
• The US Producer Price Index (PPI) rose +0.2% in August, in line with expectations, while core PPI increased +0.3%, slightly above the +0.2% forecast. Headline PPI increased +1.7% YoY, with core PPI, excluding food, energy, and trade, rising +3.3%.
• Unemployment benefits claims in the US edged up by +2,000 to 230,000 in the week ending September 7th, missing expectations for a drop to 226,000, hinting at a softer labor market.
• The ECB cut its key interest rates as expected, marking the second reduction this year after June. New rates are 3.65% for main refinancing, 3.90% for the marginal lending facility, and 3.50% for the deposit facility.
• In Asia, Japan’s PPI climbed by 2.5% YoY in August, below the expected 2.8% and down from 3% in July, signaling a slowdown in input costs. Meanwhile, the central bank has indicated plans to hike interest rates further in the coming months.
• Global bond yields rose on Thursday: the 10-yr German bund yield climbed by +3.9 bps to 2.15%, the 10-yr UK gilt yield were up by 2.0 bps to 3.78%, and the 10-yr Japanese JGB closed +1.3 bps higher to 0.87%.
