A Eurex publication focused on European financial markets, produced by MNl

Morning Briefing September 5th 2017 The US markets return to the fray on Tuesday and there is a full data calendar on both sides of the Atlantic.

gain, a Market News survey shows. The headline index expected to have fallen to in 53.5 in August, 0.1 point above June's outturn.

The European calendar kicks off at 0545GMT, with the release of the Swiss GDP, followed by the Swiss CPI numbers at 0715GMT.

The UK Parliament returns Tuesday after the summer recess.

The euro area and composite PMI data will also be released Tuesday, starting with the Spanish data at 0715GMT. The Italian numbers will be released at 0745GMT, followed by France at 0750GMT, Germany at 0755GMT and the euro area at 0800GMT. The UK services PMI will be released at 0830GMT. The UK Services PMI will have almost certainly slipped in August, falling back to the level set in June, erasing virtually all of July's marginal

The late morning European data sees the latest retail sales published at 0900GMT. Across the Atlantic, at 1200GMT, Federal Reserve Governor Lael Brainard will speak at the Economic Club of New York in New York City, with audience Q&A. The first US data release comes at 1345GMT, when the ISM-NY Manufacturing Index. At 1400GMT, the latest US factory new orders data and the employment trends index will be published.

Global Economic Trading Calendar

Factory orders are expected to fall by 3.1% in July. Durable goods orders fell 6.8% in the month on a plunge in aircraft orders, while nondurables orders are expected to post a modest gain after falling in the previous two months. Factory orders are expected to be up 0.2% excluding transportation. Durable orders excluding transportation were up 0.5%. Minneapolis Federal Reserve Bank President Neel Kashkari will speak at a moderated Q&A at the 1st Tuesday Speaker Series at Carlson School of Management in Minneapolis, with audience Q&A., starting at 1710GMT. Dallas Federal Reserve Bank President Rob Kaplan will participate in a moderated Q&A session in Dallas, with audience Q&A, starting at 2300GMT.

Markets SNAPSHOT: Below gives key levels of markets in the second half of the Asia-Pac session: - Nikkei 225 down 142.54 points at 19365.58 - ASX 200 down 15.902 points at 5686.1 - Shanghai Comp. up 2.63 points at 3381.926 - JGB 10-Yr future down 3 ticks at 151.19, JGB 10-Yr yield up 0.7bp at -0.002% - Aussie 3-Yr future down 4 ticks at 97.98, Aussie 3-Yr yield up 4.2bp at 2.029% - Aussie 10-Yr future down 4 ticks at 97.34, Aussie 10-Yr yield up 4.1bp at 2.665% - US 10-Yr future up 7+ ticks at 126.29, US 10-Yr yield down 3.49bp at 2.1308% US TSYS: With cash tsys closed, futures saw muted price action and thin volumes on US Labour Day holiday. Futures ended flat at 126.27+, moving in a 4.5 tick range. - T-Notes in Asia last at 126.26+, 10-Year yield last 2.166%. AUSSIE BONDS: Aussie bonds sell off after domestic BoP Current Account Balance datathat showed net exports add 0.3ppts to GDP in Q2 compared to an expectation of 0ppts and a previous drag on GDP of 0.7ppts. - Aussie bonds sell off across the curve, futures hit session lows of 97.98 in 3-Year and 97.335 in 10-Year. Yields rise around 2bp across the curve with moves even. BONDS: Seeing safe assets catch a bid on the headline that North Korea have started moving intercontinental ballistic missile (ICBM) for possible launch before Saturday (headlines from newswires).

US EURODLR FUTURES: Higher across the strip after newswire reports that North Korea are moving ICBM ahead of a potential launch before Saturday (Foundation Day in Korea). STOCKS: Japanese stocks went into the lunch break in negative territory, the index opened slightly higher but has dropped into negative territory as the session has worn on. The index has come under extra pressure after newswire reports that North Korea were moving ICBM for a possible test before Saturday. This headline saw a flight to safety, putting a bit into yen which saw extra losses on the Nikkei 225, last down 90.94 points at 19,417.31. Other stocks in the region are mixed, with sentiment still cautious and sensitive to North Korea headlines. The UN met on Monday and US ambassador Haley said that North Korea were begging for war and requested the strongest sanctions possible OIL: Oil is slightly higher in Asia-Pac trade, WTI last up $0.10 at $47.39 having seen a narrow range. WTI rose on Monday in thinned US holiday trade, demand has shown burgeoning signs of picking up as refineries restart after being impacted by Hurricane Harvey. Gasoline is down again, last down around 4% as refiners restart and bring production back on line. - Oil was also supported by comments from Iranian oil minister Zanganeh that OPEC compliance to the

output cuts was good, adding that output cuts would extend to March 2018 GOLD: Gold is higher in Asia-Pac trade, the yellow metal last up $2.40 at $1,336.27 after taking a leg higher following newswire headlines that North Korea were moving ICBM for a possible test before Saturday. This headline saw a flight to safety and pushed gold to session highs of $1,338.89. At these levels gold is hovering around the highest levels since late September 2016, supported by ongoing tensions with North Korea. The UN met on Monday and US ambassador Haley said that North Korea were begging for war and requested the strongest sanctions possible FOREX: Risk-off was again the theme during the Asia-Pacific session, with reports that N. Korea has started moving ICBM for possible launch before Saturday, the news left the Japanese yen as the clear winner against its peers. Dollar-yen trekked lower from Y109.84 to Y109.23 and was last at Y109.25. Aussie-dollar climbed higher from $0.7942 to $0.7985 before Aussie-yen supply weighed. Aussie was last at $0.7960. Meanwhile, Euro-dollar trades at $1.1905 and Cable at $1.2930, after trading in respective ranges of $1.1890 to $1.1910 and $1.1920 to $1.2935.

Technical Analysis BUND: (Z17) 21-DMA Support Remains Key

*RES 4: 166.40 2017 High Feb 24 *RES 3: Apr 18 4: 165.93 163.14 Monthly Daily BullHigh channel top 2: 162.81 165.69 Monthly High AugHigh 29 Aug 29 *RES 3: 1: 162.76 165.31 Bollinger High Aug band 30 top *RES 2: *RES 1: 162.42 High Aug 31 *PREVIOUS CLOSE: 165.19 *PREVIOUS CLOSE: 162.15 *SUP 1: 164.97 Daily Bull channel base 2: 162.02 164.92 Low Sept Aug 30 *SUP 1: 4 3: 161.66 164.58 Low Sept Aug 28 *SUP 2: 1 4: 161.55 164.36 21-DMA Low Aug 25 *SUP 3: *SUP 4: 161.14 Low Aug 18 *COMMENTARY: The lack of topside follow through Tuesday remains a concernThe for bulls and sees bulls close above *COMMENTARY: lack of topside followneeding throughaTuesday 165.31 toinretain focus onbroke 165.69-93. Thebull Bollinger andand O/Bsaw resulted a sell-off that the daily channeltop base studies remains key concern forthe bulls. The daily bull channel pressure back onthe 161.55-66 where 21-DMA is noted. Bears basefor is now initial support with bears needingtoathe close below look a close below the 21-DMA to now add weight case for a 164.92 to confirm where a break, bullish & pressure shifting test of 160.29-52 55easing & 100-DMAs the bull and channel base initial focus back 164.00-36. are located. Bullstonow need a close above 162.42 to return focus to 162.81-163.14 where the bull channel top is situated.

EUROSTOXX50: Bears Need Close Below 3412.26 *RES 4: 3476.01 55-DMA *RES 3: 3467.78 High Aug 23 *RES 2: 3444.98 21-DMA *RES 1: 3438.41 Hourly support Sept 1 now resistance *PREVIOUS CLOSE: 3443.88 *SUP 1: 3412.26 High Aug 30 now support *SUP 2: 3395.03 Hourly resistance Aug 29 now support *SUP 3: 3373.52 Hourly support Aug 29 *SUP 4: 3363.68 Low Aug 29 *COMMENTARY: Bulls took comfort in the close above the 200DMA Thursday that saw them gain breathing room but layers of resistance 3467.78-3539.48 remain key. Bulls need a close above 3497.29 to confirm breaks of the 55-DMA and bear channel top and to pressure 3519.04-3539.48. A close above 3539.48 is needed to shift focus higher. Bears look for a close below 3412.26 to return focus to the bear channel base 3337.82.

Eurex Futures Market Close *** No Eurex prices today

Eurex Exchange. An exchange for the better.

Essential Macroeconomic and Market Intelligence

As one of the world’s leading derivatives exchanges we offer a broad range of international benchmark products.

MNI is the leading provider of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

We operate the most liquid EUR fixed income derivatives markets, provide the broadest range of equity index derivatives worldwide and are the platform of choice for European equity derivatives. In addition, we cover derivatives on dividends, volatility and ETFs. All on one single platform. Innovative and reliable technology supplies about 400 participants and 7,500 traders in 35 countries with access to more than 2,000 products across nine traditional and alternative asset classes.

Our credibility for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of journalists in 12 bureaus across America, Asia, and Europe truly set us apart from other news sources. Our markets reporting staff includes former fixed-income and currency traders and strategists who know the markets, while our macroeconomic policy and data correspondents combine economics expertise with rigorous financial journalism. MNI is a wholly owned subsidiary of Hale Global Contact MNI: Nick Shamim, Managing Editor + 44 207 862 7494, [email protected] MNI Sales • [email protected] • [email protected]

Eurex is part of Deutsche Börse Group. For further information, please visit

Published by Eurex Frankfurt AG Mergenthalerallee 61 65760 Frankfurt / Main Germany

Eurex Zürich AG Selnaustrasse 30 8021 Zurich Switzerland

www.eurexchange.com ARBN Number Eurex Frankfurt AG ARBN 100 999 764

© Eurex, 2016

Deutsche Börse AG (DBAG), Clearstream Banking AG (Clearstream), Eurex Frankfurt AG, Eurex Clearing AG (Eurex Clearing) as well as Eurex Bonds GmbH (Eurex Bonds) and Eurex Repo GmbH (Eurex Repo) are corporate entities and are registered under German law. Eurex Zürich AG is a corporate entity and is registered under Swiss law. Clearstream Banking S.A. is a corporate entity and is registered under Luxembourg law. U.S. Exchange Holdings, Inc. and International Securities Exchange Holdings, Inc. (ISE) are corporate entities and are registered under U.S. American law. Eurex Frankfurt AG (Eurex) is the administrating and operating institution of Eurex Deutschland. Eurex Deutschland and Eurex Zürich AG are in the following referred to as the “Eurex Exchanges”. All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof (other than certain trademarks and service marks listed below) are owned by DBAG and its affiliates and subsidiaries including, without limitation, all patent, registered design, copyright, trademark and service mark rights. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication DBAG, Clearstream, Eurex, Eurex Clearing, Eurex Bonds, Eurex Repo as well as the Eurex Exchanges and their respective servants and agents (a) do not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication. This publication is published for information purposes only and shall not constitute investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. Eurex and Eurex Clearing offer services directly to members of the Eurex exchanges respectively to clearing members of Eurex Clearing. Those who desire to trade any products available on the Eurex market or who desire to offer and sell any such products to others or who desire to possess a clearing license of Eurex Clearing in order to participate in the clearing process provided by Eurex Clearing, should consider legal and regulatory requirements of those jurisdictions relevant to them, as well as the risks associated with such products, before doing so. Eurex derivatives are currently not available for offer, sale or trading in the United States or by United States persons (other than EURO STOXX 50® Index Futures, EURO STOXX 50® ex Financials Index Futures, EURO STOXX® Select Dividend 30 Index Futures, EURO STOXX® Index Futures, EURO STOXX® Large/Mid/Small Index Futures, STOXX® Europe 50 Index Futures, STOXX® Europe 600 Index Futures, STOXX® Europe 600 Banks/Industrial Goods & Services/Insurance/Media/Travel & Leisure/Utilities Futures, STOXX® Europe Large/Mid/Small 200 Index Futures, Dow Jones Global Titans 50 IndexSM Futures (EUR & USD), DAX®/MDAX®/TecDAX® Futures, SMIM® Futures, SLI Swiss Leader Index® Futures, MSCI World/Europe/ Europe Value/Europe Growth/Emerging Markets/Emerging Markets Latin America/Emerging Markets EMEA/Emerging Markets Asia/China Free/India/Japan/Malaysia/South Africa/Thailand/AC Asia Pacific ex Japan Index Futures, TA-25 Index Futures, Daily Futures on TAIEX VFutures, VSTOXX® Futures, Gold and Silver Futures as well as Eurex agriculture, property and interest rate derivatives). Trademarks and Service Marks Buxl®, DAX®, DivDAX®, eb.rexx®, Eurex®, Eurex Bonds®, Eurex Repo®, Eurex Strategy WizardSM, Euro GC Pooling®, FDAX®, FWB®, GC Pooling®,,GCPI®, MDAX®, ODAX®, SDAX®, TecDAX®, USD GC Pooling®,VDAX®, VDAX-NEW ® and Xetra® are registered trademarks of DBAG. All MSCI indexes are service marks and the exclusive property of MSCI Barra. ATX®, ATX® five, CECE® and RDX® are registered trademarks of Vienna Stock Exchange AG. IPD® UK Annual All Property Index is a registered trademark of Investment Property Databank Ltd. IPD and has been licensed for the use by Eurex for derivatives. SLI®, SMI® and SMIM® are registered trademarks of SIX Swiss Exchange AG. The STOXX® indexes, the data included therein and the trademarks used in the index names are the intellectual property of STOXX Limited and/or its licensors Eurex derivatives based on the STOXX® indexes are in no way sponsored, endorsed, sold or promoted by STOXX and its licensors and neither STOXX nor its licensors shall have any liability with respect thereto. Dow Jones, Dow Jones Global Titans 50 Index SM and Dow Jones Sector Titans IndexesSM are service marks of Dow Jones & Company, Inc. All derivatives based on these indexes are not sponsored, endorsed, sold or promoted by Dow Jones & Company, Inc. Dow Jones & Company, Inc. does not make any representation regarding the advisability of trading or of investing in such products. Bloomberg Commodity IndexSM and any related sub-indexes are service marks of Bloomberg L.P. All references to London Gold and Silver Fixing prices are used with the permission of The London Gold Market Fixing Limited as well as The London Silver Market Fixing Limited, which for the avoidance of doubt has no involvement with and accepts no responsibility whatsoever for the underlying product to which the Fixing prices may be referenced.PCS® and Property Claim Services® are registered trademarks of ISO Services, Inc. Korea Exchange, KRX, KOSPI and KOSPI 200 are registered trademarks of Korea Exchange Inc. Taiwan Futures Exchange and TAIFEX are registered trademarks of Taiwan Futures Exchange Corporation. Taiwan Stock Exchange, TWSE and TAIEX are the registered trademarks of Taiwan Stock Exchange Corporation BSE and SENSEX are trademarks/service marks of Bombay Stock Exchange (BSE) and all rights accruing from the same, statutory or otherwise, wholly vest with BSE. Any violation of the above would constitute an offence under the laws of India and international treaties governing the same. The names of other companies and third party products may be trademarks or service marks of their respective owners.