Market Overview (05.09.2017)
by Aaron.J | Hans.S | Yilin.Z
ContentsMarket Today
Indices
Commodities
Currency
Econ & Policy
Economic Indicators
Policy
Business News
Industrials
Consumers
Health Care
Financials
Data Center
Equity
Bond
ETF Flow
Calendar
Economic Calendar
Market Today
S&P 500 (0.0% at 2,399) Dow Jones (0.0% at 21,012) NASDAQ (0.0% at 6,102) U.S. stocks were little changed Monday, with a key measure of volatility approaching historic lows on the back of upbeat corporate earnings and a weaker dollar. Investors tracked slumping European equities after market favorite Emmanuel Macron secured the French presidency over the weekend.
US Dollar Index (DXY): The dollar and the euro moved higher against the yen on Tuesday, boosted by diverging outlooks for economic growth and tighter monetary policy. The victory for Macron signaled that political risks in France and across Europe are receding, in the wake of the populist surge which resulted in and propelled to the White House. (DXY: 0.37% at 99.39)
EUR/USD: The euro pulled away from six month highs on Tuesday but remained supported by the improving outlook for the euro area, while the dollar was steady against a basket of the other major currencies. (EUR/USD: -0.30% at 1.089)
British Pound: is modestly lower in today’s trading, holding near 1.2924, a loss of 0.13% from Tuesday’s North American close. Today’s minor setback follows the formation of a dark cloud cover, a bearish candlestick formation, on the daily chart as a result of Monday’s pullback. (GBP/USD: -0.06% at 1.293)
Japan Yen: has followed through on Monday’s gain in today’s trading, reaching 113.86 for a high. The pair is currently just off the high at 113.80, a gain of half a percent over Monday’s North American close. (USD/JPY: 0.68% at 114.01)
Gold futures traded lower on Tuesday as the U.S. dollar strengthened and as assets perceived as risky traded mostly higher, pointing to waning appetite for the yellow metal. (Gold Prices: -0.38% at $1,221.04)
Oil prices slipped on Tuesday amid concern over slowing fuel demand and the rise in U.S. crude output, which has shaken investors' faith in OPEC's ability to rebalance the market. (Brent Crude Futures: -0.32% at $49.19 a barrel. WTI Futures: -0.32% at $46.28 a barrel)
Steel: Chinese iron ore futures fell 2 percent on Tuesday, dropping for a fourth session in five, amid soft demand for the steelmaking raw material. (Shanghai Steel Rebar Futures: +2.5% at 2,989 yuan per tonne. Iron Ore Contract: -2% at 460.5 yuan tonne.)
Econ & Policy
Americas
The National Federation of Independent Business index of small business optimism 104.5 vs. 104.0 forecast from 104.7 in the preceding quarter.
Canadian building permits -5.8% vs. 5.5% forecast from -2.8% in the preceding month. The data was sharply weaker than consensus forecasts which called for an increase of around 4.5% for the month. Despite two consecutive declines, overall permits still increased 1.5% over the year.
Europe
Italian Retail Sales 0.0% vs. 0.2% forecast from -0.2% in the preceding month.
Asia and Pacific
Australian Retail Sales Decline in March for Second Consecutive Month. March sales, a proxy for consumer spending, declined at a seasonally adjusted 0.1%, the Australian Bureau of Statistics reported. Analysts in a median estimate called for a 0.3% gain.
PolicyAmericas
Venezuela close to civil war?: Nationwide protests are spreading beyond President Maduro's control and risk morphing into civil war, said a retired Venezuelan general who was in charge of suppressing the last wave of unrest three years ago. "We're seeing much larger masses protesting across all major cities, including the working-class neighborhoods," Major Gen. Torres declared. "The government is losing control."
Dodd-Frank review may be done in stages: We have "an entire team dedicated to reviewing the financial regulatory rules and will begin reporting our findings to the president in June," a Treasury spokesperson told Reuters. "Given the volume and scope of the issues... we are carefully considering the best options to begin rolling them out." The reach of the project could require several separate reports, as permitted under the executive order.
Europe
Paris climate meeting postponed: A meeting of Trump administration advisers that had been set for today - deciding whether to pull the U.S. out of the Paris Climate Agreement - has been postponed due to scheduling conflicts. While the White House didn't say when the meeting would be rescheduled, President Trump has promised to announce a decision before a G7 summit at the end of May.
Asia and Pacific
South Korea heads to the polls: South Koreans are heading to the polls to elect a new leader - most likely liberal Moon Jae-in - after former President Park Geun-hye was ousted over a sprawling corruption scandal. The vote is being closely watched at a time of economic uncertainty and heightened tensions with North Korea. So far in 2017: The won is up nearly 7% against the dollar, with local shares trading at a record high.
Asia-Pacific growth and China: Asia-Pacific's long-term growth outlook remains the strongest in the world, but the medium-term picture is weighed down by an aging population and sluggish productivity, the IMF warned in a new report. Worries about China have been on the back burner for months now, but some recent weaker-than-expected data - PMI manufacturing, trade figures and a metals selloff - has also put the spotlight back on the country's economy.
Business News
Toshiba has told Western Digital to stop interfering in plans to sell its memory chip unit, warning it may take legal action against the U.S. company and ban its employees from its facilities. Western Digital (NYSE:WDC) became Toshiba's (OTCPK:TOSYY) manufacturing partner in the flash-memory business when it acquired SanDisk last year, however, that unit may now pass into the hands of a new owner.
The U.S. is considering expanding a ban on carry-on electronic devices larger than a cellphone to include American flights departing for Europe. Department of Homeland Security officials are currently weighing the advantages against possible disruptions it will cause. Some passengers and businessmen may live with the restriction for the sake of convenience but others may start to shop around. Related tickers: AAL, DAL, UAL
ConsumersLooking to better compete with Amazon (NASDAQ:AMZN) and Wal-Mart (NYSE:WMT), Target (NYSE:TGT) plans to test a next-day home delivery service called Target Restock in the Minneapolis area. Household essentials ordered online, like laundry detergent, coffee and 8,000 other items, will be packaged at a nearby store and delivered for a flat fee.
Amazon is due to unveil a new Echo speaker with a screen that will incorporate video calling capabilities, WSJ reports, keeping the tech giant one step ahead of rivals in seeking to control smart homes. The news comes on the heels of a new speaker announced by Microsoft (NASDAQ:MSFT), powered by the company's Cortana voice assistant, which offers similar functionality to Alexa (AMZN).
Janssen Biotech, a unit of Johnson & Johnson (NYSE:JNJ), has received a civil investigative demand from the DOJ regarding an investigation under the False Claims Act related to its arthritis drugs Remicade and Simponi Aria. Meanwhile, the U.S. Attorney's office in Massachusetts is probing co-payment support programs for hepatitis C drug Olysiotm, as well as Simponi and Crohn's disease drug Stelara.
HealthcareHoping to speed up a review of a deal that was first announced two years ago, Walgreens (NASDAQ:WBA) and Rite Aid (NYSE:RAD) have notified the FTC about their compliance with the agency's request for information. That triggers a 60-day deadline for the commission to clear the merger or sue to block it. "We will continue to work closely with the FTC regarding the pending transaction," Walgreens CEO Stefano Pessina declared.
FinancialsJPMorgan has some advice for regional banks: A deposit drain is coming, so merge while you can. Those with $50B in assets or less could face a funding problem in coming years as the Fed goes about shrinking its massive balance sheet. Bloomberg obtained a copy of JPMorgan's (NYSE:JPM) confidential presentation, which was entitled "Core Deposits Strike Back."
China's mobile payment leaders are ramping up efforts in the land of Apple Pay (NASDAQ:AAPL). Alipay and WeChat Pay (OTCPK:TCEHY) are expanding into North America, seeing a big market in the waves of Chinese traveling abroad. To that end, Ant Financial, operator of Alipay and affiliate of Alibaba (NYSE:BABA), announced a deal with U.S. payment processing company First Data (NYSE:FDC).
California is borrowing up to $500M to pay for the crisis at the Oroville Dam, which was damaged earlier this year following major erosion to its emergency and primary spillways. Guess who's providing the short-term funds? Wells Fargo (NYSE:WFC). It's perhaps a sign the state is ready to move past the sanctions it slapped on the bank in 2016.
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
Emerging Market
ETF Flow
Asset Class
Asset Class: Equity
Geography Regions
Geography Regions: Asia Pacific
Calendar
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Sources