Market Overview (04.11.2017)
by Aaron.J | Hans.S | Yilin.Z
ContentsMarket Today
Indices
Currency
Commodities
Econ & Policy
Economic Indicators
Policy
Business News
Energy
Industrials
Consumers
Information Tech
Telecommunication
Data Center
Equity
Bond
ETF Flow
Calendar
Economic Calendar
S&P 500 Earnings
Market Today
S&P 500 (+0.1% at 2,357) Dow Jones (0.0% at 20,658) NASDAQ (+0.1% at 5,881) U.S. stocks were little changed in choppy trading on Monday, as rising oil prices buoyed energy shares ahead of corporate earnings season.
FTSE 100 (+0.6% at 7,394) FTSE 100 flies high with airlines setting the pace. Airlines flew to the top of the FTSE 100 on Tuesday after broker Exane upgraded its rating on Germany’s Lufthansa, setting a positive tone for the European airline sector.
Nikkei 225 (-0.3% at 18,748) Japan's Nikkei share average fell on Tuesday, as rising geopolitical tensions over North Korea, a stronger yen and renewed uncertainty in the French presidential election hurt investor sentiment.
US Dollar Index (DXY): The Federal Reserve's plans to raise U.S. interest rates gradually are aimed at sustaining full employment and near-2-percent inflation without letting the economy overheat, Fed Chair Janet Yellen said on Monday. (DXY: -0.18% at 100.75)
EUR/USD: fell to a new reaction low at 1.0570 in Monday’s trading but is currently making a move to the upside, breaching the 1.0600 level and currently trading at 1.0617, a gain of 0.21% over Monday’s North American close. (EUR/USD: 0.12% at 1.061)
Japan Yen: The dollar held weaker against the yen in Asia on Tuesday with remarks from the Fed chief that suggested rate hikes were likely sooner rather than later failing to lift the greenback and political risk aiding yen safe-have demand, while the Aussie held ground after a mixed business survey. (USD/JPY: -0.44% at 110.44)
British Pounds: is marginally higher in today’s trading, currently at the 1.2426 level, a gain of 0.08% over Monday’s North American close. In today’s session, it was reported that rose 0.4% in March, versus expectations of a 0.3% increase. The year-over-year rate was unchanged at 2.3%. The annual rate was in line with expectations and was the highest rate since September 2013. (GBP/USD: 0.14% at 1.2433)
Gold prices edged higher during Asian trading hours on Tuesday April 11 – rising geopolitical tensions buoyed haven demand for the yellow metal, while US Federal Reserve chair Janet Yellen’s comments on gradual US interest rates rises had a limited impact. (Gold Prices: +0.9% at $1,262.44)
Oil prices traded lower in the early European session following the longest positive streak of the year for the commodity as analysts remained divided on where the price will head from here. (Brent Crude Futures: -0.2% at $55.87 a barrel. WTI Futures: -0.13% at $53.01 a barrel)
Steel Chinese iron ore futures were firmer on Tuesday, but remained under pressure from concerns demand is slowing in the world's biggest market for industrial materials. (Shanghai Steel Rebar Futures: -1.3% at 2,982 yuan per tonne. Iron Ore Contract: +0.2% at 524.5 yuan tonne.)
Econ & Policy
Americas
The National Federation of Independent Business index of small business optimism 104.7 vs. 104.7 forecast from 105.3 in the preceding quarter.
Europe
Euro zone industrial production -0.3% vs. 0.1% forecast from 0.3% in the preceding month; Euro zone ZEW economic sentiment 26.3 vs. 25.0 forecast from 25.6 in the preceding month. There was a sharp 4.7% decline in energy output for the month while non-durable consumer goods production also declined on the month. In contrast, capital goods and intermediate goods output both increased for the month.
German ZEW economic sentiment 19.5 vs. 14.0 forecast from 12.8 in the preceding month.
U.K. consumer price inflation 2.3% vs. 2.3% forecast from 2.3% in the preceding month. The core inflation rate declined to 1.8% from 2.0% and compared with expectations of a smaller decline to 1.9%. There was upward pressure on prices from food and drink together with clothing prices. This pressure was offset by downward move in transport costs as declined on the month and air fares also declined.
Polish CPI 2.0% vs. 2.0% forecast from 2.0% in the preceding month.
The British Retail Consortium Retail Sales -1.0% vs. -0.5% forecast from -0.4% in the preceding month.
Swedish CPI 1.3% vs. 1.5% forecast from 1.8% in the preceding month.
PolicyAmericas
Yellen: 'Pretty healthy' economy doesn't need Fed's foot on the gas: The economy's doing pretty well and doesn't necessarily need a step on the accelerator from the Fed, Chairwoman Janet Yellen says, but the "neutral" ending spot for short-term interest rates is "pretty low." Speaking at the University of Michigan late yesterday, she didn't tip the Fed's approach either way, but characterized the central bank as near its twin goals of full employment and inflation control.
Middle East and Africa
Crude eases on gains as G-7 meets Middle Eastern allies on Syria: Crude oil has backed off yesterday's gains after the G-7 world leaders met with Middle Eastern allies, a gathering at which the U.S. approach to Syria was the key topic. The group made a show of togetherness on the issue, in part to pressure Russia's Vladimir Putin to break ties with Syria's Bashar al-Assad. Yesterday, crude made gains amid a shutdown of Libya's biggest oil field; currently, WTI crude is off 0.24% to $52.95/bbl, while Brent crude is down 0.2% to $55.87.
Business News
A significant find in Texas' Permian basin may be one of that area's best ever, SunTrust says, and that could mean a boost for companies drilling in the region - not just EOG Resources (NYSE:EOG), which made the discovery, but also Concho Resources (NYSE:CXO), Energen (NYSE:EGN), Matador Resources (NYSE:MTDR) and WPX Energy (NYSE:WPX).
IndustrialsToshiba (OTCPK:TOSYY, OTCPK:TOSBF) filed a twice-delayed quarterly report without sign-off from its auditor, PricewaterhouseCoopers Aarata. The report showed deep losses with a heavy impact from writedowns at its U.S. nuclear unit Westinghouse, along with a going-concern warning. Toshiba says it has negative shareholders' equity of nearly ¥226B.
ConsumersSupervalu (NYSE:SVU), in a major grocery combination, is acquiring grocery/specialty distributor Unified Grocers in a deal at about $375M including debt, with $114M in cash. That will merge two complementary grocery wholesalers with a combined $16B in 2016 sales, and Supervalu says the deal will be accretive to EPS in the first full fiscal year after the closing.
LVMH (OTCPK:LVMHF) is benefiting, as luxury goods rebound is under way. The company's stock hit record highs in Paris after Q1 revenues grew 15% and easily beat expectations. The company warned, though, that it may not be able to replicate strong first quarter growth all year; that would depend on good sentiment continuing in China and improvement in the U.S.
Information TechnologyQualcomm (NASDAQ:QCOM), in its legal battle with Apple (NASDAQ:AAPL), has fired back, saying the iPhone maker has sicced international regulators on the chipmaker and is mischaracterizing its business. Apple wouldn't have an iPhone business if it weren't for Qualcomm's fair approach to licensing, Qualcomm says. Apple has filed suits worldwide charging Qualcomm with pursuing excessive royalties.
Telecommunication ServicesAustralia's National Broadband Network has an "under-utilized asset" in its fixed wireless network, Vodafone (NASDAQ:VOD) says, and NBN should use it to offer wholesale mobile service. Vodafone has the least network coverage in rural and remote parts of the country vs. competitors Optus and Telstra (OTCPK:TLSYY), but says it doesn't make sense for each carrier to duplicate infrastructure in such areas.
Data Center
Equity
S&P500
VIX
Bond
World Bond Yield Curve
Sovereign Debt Movement
Sovereign 5Y Debt CDS
U.S. Municiple Bond
U.S. Investment Grade Bond
U.S. High Yield Bond
U.S. Corporate Bond CDS
ETF Flow
Asset Class
Asset Class: Equity
Geography Regions
Geography Regions: Asia Pacific
Calendar
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Sources