Market Overview (05.12.2017)
by Aaron.J | Hans.S | Yilin.Z
ContentsMarket Today
Indices
Commodities
Currency
Econ & Policy
Economic Indicators
Policy
Business News
Industrials
Consumers
Health Care
Financials
Information Tech
Telecommunication
Data Center
Equity
Bond
ETF Flow
Calendar
Economic Calendar
Market Today
S&P 500 (-0.2% at 2,394) Dow Jones (-0.1% at 20,919) NASDAQ (-0.2% at 6,116) U.S. stocks headed lower Thursday, as tumbling retail and bank shares dragged markets from record highs. Comments Thursday from New York Fed President William Dudley highlighted the growing divide between the central bank and White House. The Fed’s next policy-setting meeting will occur June 13-14, where it is expected to raise interest rates for the second time this year.
US Dollar Index (DXY): The dollar turned lower against other major currencies on Friday, after the release of disappointing U.S. economic reports and amid ongoing concerns over recent U.S. political events. The U.S. Commerce Department said rose 0.4% in April, below expectations for a 0.6% gain. , which exclude automobiles, increased by 0.3% last month, compared to expectations for a 0.5% rise. (DXY: -0.41% at 99.12)
EUR/USD: The was firm Friday despite a surprise fall in euro-zone industrial output. The single currency was up 0.10% at $1.0873 at 06.00 ET. The off 0.03% at 99.50. Euro-area output fell 0.1% in March when it was forecast to rise 0.3%. That failed to dampen the impression the euro-zone recovery is broader and picking up steam. (EUR/USD: 0.56% at 1.0924)
British Pound: is maintaining a downside bias in today’s trading, currently holding near 1.2859, a loss of 0.23% from Thursday’s North American close. Heading into the Asian session, GBP/USD was already down 0.68% for the week. A weekly loss, which appears set to take place, would represent the first weekly loss in four for the pair. (GBP/USD: 0.02% at 1.2889)
Japan Yen: is essentially unchanged from Thursday’s North American close, currently holding near 113.85. The pair will likely maintain a dull tone heading into the release of inflation data and Retail Sales in the US at 08:30 ET. The is experiencing similar dull price action ahead of the data, currently holding near 99.62, a loss of 0.03% from Thursday’s close. (USD/JPY: -0.45% at 113.37)
Gold prices moved higher on Friday, as recent political events in the U.S. continued to weigh on the greenback and boost demand for safe-haven assets, although investors were also eyeing the release of U.S. data due later in the day. (Gold Prices: -0.23% at $1,265.06)
Oil prices rose slightly on Friday, on track for their biggest weekly gain in five weeks, helped by expectations of an extension of OPEC-led output cuts and buoyed by falling U.S. crude inventories. (Brent Crude Futures: -1.81% at $50.88 a barrel. WTI Futures: -1.83% at $48.71 a barrel)
Steel Chinese iron ore futures dropped to near four-month lows on Friday and were on course to decline for a seventh week out of eight, weighed down by concerns over weak demand in the world's top consumer.(Shanghai Steel Rebar Futures:-0.9% at 3,004 yuan per tonne. Iron Ore Contract: -1.7% at 453.5 yuan tonne.)
Econ & Policy
Americas
US retail sales rose 0.4% in April compared with market expectations of a 0.6% gain. The March data was revised to show a 0.1% increase compared with the 0.2% decline reported originally and the year-on-year increase slowed to 4.5% from 4.8%. Core sales rose 0.3% on the month compared with an expected gain of 0.5% with the March data also revised higher to 0.3% from 0.0% with the annual growth also at 4.5%
U.S. consumer price inflation 0.2% vs. 0.2% forecast from -0.3% in the preceding month; U.S. core CPI 0.1% vs. 0.2% forecast from -0.1% in the preceding month. Annualized consumer price inflation (CPI) and the core reading rose less than expected in April, decreasing the pressure on the Federal Reserve (Fed) to remove accommodative monetary policy
Europe
Euro zone industrial production -0.1% vs. 0.3% forecast from -0.1% in the preceding month. The March monthly output decrease was due to a 3.2 percent decline in energy production, the only indicator that recorded a drop.
France's economy added nearly 50,000 new jobs in the first three months of the year, marking seven straight quarters of net new job creation. The increase brought the overall level to 16.228 million, the highest level since the third quarter of 2008 just before the global financial crisis began taking its toll on the French economy.
German GDP 0.6% vs. 0.6% forecast from 0.4% in the preceding quarter. German economic growth speeds up was helped by a surge in investment, a slight increase in consumer spending and a pickup in exports. Sentiment surveys signal that Europe’s largest economy maintained momentum at the start of the second quarter.
German CPI 0.0% vs. 0.0% forecast from 0.0% in the preceding month.
Asia and Pacific
China's fiscal spending rose 3.8 percent in April from a year earlier, slowing sharply from a 25.4 percent jump in March and adding to signs of cooling in the world's second-largest economy. The slowdown in spending was mainly due to significant expenditure earlier. Government-led stimulus has been a major driver of economic growth over the past years, but the pump-priming has also been accompanied by runaway credit growth and has created a mountain of debt.
Indonesia's trade surplus likely shrank in April due to a rise in imports ahead of the Muslim fasting month due to start later this month, a Reuters poll showed. The median forecast from 10 analysts was for an April surplus of around $860 million, smaller than the $1.23 billion the country had in March.
PolicyTillerson talks climate change policy: Secretary of State Tillerson has signed an agreement recognizing the Paris climate accord at a meeting of Arctic nations in Alaska. But in opening remarks, he cautioned that the U.S. was not rushing to decide whether to leave or weaken American commitments to the pact. "We're going to work to make the right decision for the U.S.," he said.
Americas
U.S. inks trade deals with China: Reshaping their trade relationship, the U.S. and China have revealed a new 10-point package that will see the latter open its market to American companies and agencies. Commerce Secretary Wilbur Ross said the import/export deals on beef, poultry, natural gas, agriculture, financial services and biotechnology will help reduce the massive trade deficit with Beijing.
Mexico warns U.S. on trade: Mexico has meanwhile sent a stark message to the U.S., saying an upcoming visit by government officials to China showed the country had other places to export to if NAFTA gets torn up. "We will use (the China visit) geopolitically as strategic leverage," declared Mexican Economy Minister Ildefonso Guajardo. "It sends the signal that we have many alternatives."
Europe
Macron unveils parliamentary candidates: French President-elect Emmanuel Macron's "En Marche!" has unveiled a list of 428 candidates ahead of a crucial parliamentary election next month. Most of the names put forward have never held elected office, in an attempt to shake up the political establishment. Recent polls suggest that Macron's party, along with his centrist allies, will receive the majority of votes.
Asia and Pacific
China to unveil 'One Belt, One Road': China's President Xi is also expected to detail plans for his "Belt and Road Initiative" at a forum this weekend. Over fifty agreements are set to be signed to advance the project, which aims to build a new Silk Road connecting Asia, Europe, the Middle East and Africa. The vast logistics and transport network would involve 65 nations that together account for one-third of global GDP.
Business News
Airlines meet with Homeland Security: Airlines around the world are bracing for a possible expansion of an electronics travel ban to include many routes from Europe to the U.S., but no decision has yet been made by DHS Secretary John Kelly. Representatives from Delta (NYSE:DAL), United (NYSE:UAL) and American (NASDAQ:AAL) met with national security officials late Thursday to discuss threats to aviation security and possible pre-emptive measures.
ConsumersUnilever (NYSE:UL) CEO: Let us do our job: After the failed attempt by Kraft Heinz (NASDAQ:KHC) to acquire Unilever- and Warren Buffett's defense of the offer - CEO Paul Polman offered a response, adding that Unilever tells a growth story. "My returns have been higher in the last eight years than Warren's returns. So I think it's better if he leaves us with what we know how to do well," he told Jim Cramer.
HealthcareAstraZeneca +4.4% premarket after its immunotherapy drug durvalumab was shown to fight and reduce the risk of stage III lung cancer. The chemotherapy alternative, called by brand name Imfinzi, is hoped to become a blockbuster drug with sales in the billions of dollars. AstraZeneca (NYSE:AZN) intends to get regulatory approval "as soon as possible."
Volkswagen (OTCPK:VLKAY) makes another settlement in emissions cheating case: A federal judge has approved a roughly $1.2B payment by Volkswagen for buybacks and repairs to U.S. diesel owners that weren't included in a first larger settlement. VW has made a string of settlements tied to the emissions cheating scandal, some of which included increased oversight and reforms on top of monetary penalties.
FinancialsGoldman (NYSE:GS) to launch new 'dark pool': Looking to boost competitiveness and offset regulatory burdens, Goldman Sachs will launch a new "dark pool" today that's run by exchange operator Nasdaq (NASDAQ:NDAQ). At first, only two stocks will trade on the new platform, dubbed Sigma X-Squared, but everything else will be shifted over within about a month from the older Sigma X system.
Wells Fargo (NYSE:WFC) is hoping to sell MBSs this year (without government guarantees) for the first time since the financial crisis, according to the head of the bank's consumer lending division. "There's been many many years since Wells Fargo has participated in any kind of private label market," Franklin Codel told investors. We are trying to "see what we can do there to help bring confidence back."
Information TechnologyApple (NASDAQ:AAPL) has wrapped up a sale of $7B in debt across various tranches. The tech giant has been using debt to pay shareholders while holding most of its $256B in cash overseas to avoid repatriation taxes. At last report, Apple's total debt had risen to $98.88B (some $85B of that in long-term debt).
Uber's bid to shift its litigation with Waymo (GOOG, GOOGL) to arbitration has been rejected in court, in a win for Alphabet's self-driving car unit. UBER had pressed to move the case - a dispute centering on former Google engineer Anthony Levandowski, who left the company and sold his self-driving truck start-up to Uber shortly thereafter - behind closed doors.
Telecommunication ServicesSprint has begun preliminary merger conversations with T-Mobile (NASDAQ:TMUS), Bloomberg reports, marking the latest attempt to consolidate in a market closely watched by U.S. regulators. M&A talks in the wireless industry had been on hold for almost a year because of an FCC spectrum auction that required participants to avoid negotiating deals until April 27. S +3%; TMUS +1% premarket.
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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