Weekly Performance
Dow -5.21% S&P -5.16% Nasdaq -5.06% Russell -4.49% Canada-3.66% MExico -5.52% BRazil -3.74% Nikkei -8.13% Hang Seng -9.49% CSI -10.08% Shanghai -9.60% Shenzen -7.81% EuroStoxx -5.60% FTSE -4.72% Dax -5.30% CAC -5.33% Ibex -5.60% MIB -4.46% SMI -5.84%
Investors will remember this week for a longtime as the spike in volatility that began late last week unmercifully tightened its grip on equity markets. On Tuesday, the VIX surged above 50 on wordthat several highly leveraged volatility ETFs and ETNS essentially blew up overnight. By mid-week stock indices around the globe officially moved into correction territory (-10%) despite little change to overall global economic sentiment. Bouts of intense selling remained prevalent and all eyes were on theS&P's 200-day SMA heading into Friday. US Treasury yields remained pinned at elevated levels, but buyers generally came in when equities move significantly lower. The narrative that higher interest rates were the catalyst that induced stock volatility stayed engrained in many investors’ minds. The Bank of England added to the hand-wringing by signaling the next BOE rate hike could come sooner than expected which backed up against mediocre US Treasury auctions and the wrangling over a $300B spending bill in Washington D.C. Overall though,the volatility remained mostly an equity market story. The US dollar bounced modestly but investors remained reluctant to forcefully push money into traditional safe haven assets while some cracks emerged in other risk-tethered asset classes. Commodities like copper and oil moved lower with WTI crudetrading below $60 for the first time since late December. The high yield bondETF (HYG) has made a steady move and now sits at the lowest levels since lastNovember. For the week, the DJIA and S&P each lost5.2% and the Nasdaq sank 5.1%.
Macro :
- EU’s Vestager ‘Disappointed’ No Class-Action Suits in Europe: RP
- JPMorgan Sees ‘Severe’ Unwind by Systematic Strategies Ending
- Goldman Says Energy Selloff is Chance to Build Long Positions
- XIV Is Just the Tip of the Iceberg for This Hedge Fund Investor
Keep an eye on :
- AIR FP : Airbus Has Halted Deliveries of Pratt-Powered A320neos: IndiGo
- AIR FP : Airbus: Munich Prosecutor Ends Eurofighter Austria Probe
- AMZN US : Amazon-Driven Jitters Make FedEx a Buying Opportunity: Cowen
- BABA US : Alibaba to Invest 5.45b Yuan for 15% Stake in Beijing Easyhome
- ARW US : Arrowhead Pharma 1Q Loss Per Share Wider Than Est.
- BKIA SM : Bankia, Unions Reach Accord on Staff Reduction: Europa Press
- BMC SOft IPO : BMC Software Is Said to Explore IPO With >$10B Valuation: Rtrs
- BMPS IM : Paschi Chairman Says Possible Govt Change Won’t Affect Bank Plan
- BPE IM : BPER Banca CEO Says Lender Focused on NPLs Reduction Plan
- BPL PL : Banco BPM May Consider M&A Opportunities From End of 2019: CEO
- DAI GY : Daimler CEO Said to Have Earned Less Than EU10m in 2017: FAS
- DELIVEROO IPO : Deliveroo Is Said to Consider IPO in Next 12-18 Mos.: S. Times
- DEZ GY : Deutz Flags Improved 2017 Sales, Profit on Engine Demand: Welt
- ELE FP : Euler Hermes Full Year Net Income 1.2% Below Estimates
- GET FP : Eurotunnel Reports Launch of Eurostar London-Amsterdam Service
- ISP IM : Intesa Sanpaolo Chairman Says ‘Confident’ on Reaching NPL Deal
- JMT PL : Jeronimo Martins Plans to Seek New Market to Grow, Expresso Says
- KORS US : Michael Kors Growth Profile Questionable, JPMorgan Says
- GVC LN : Ladbrokes Coral Says FY Op. Profit at Top End of Forecasts
- LLOY LN : Lloyds to Gauge Interest on EU5b Mortgage Book Sale: S. Times
- MELI US : MercadoLibre Falls Most Since Oct. Amid Amazon Warehouse Reports
- NOVN VX : Novartis Loses Bid to Challenge One AbbVie Patent on Humira
- NOVN VX : Novartis Says Unaware of Swiss Investigation Linked to Greece
- PHIA NA : Philips to End Cleveland Diagnostic Imaging Manufacturing Ops
- PAH3 GY : Audi, Porsche to Share Electric Car Platform:Stuttgarter Zeitung
- RNO FP : Renault Performance Chief Mueller Is Said to Step Down: Reuters
- RIO LN : Rio Tinto Is Said to Consider Pacific Aluminium Unit IPO: AFR
- RYA LN : Ryanair Says It Will Shed U.K. Investors in Hard Brexit: Times
- SDRL NO : Seadrill Says It’s Close to Resolution of Restructuring Conflict
- SIXT GY : Sixt Sees Earnings for 2017 to Be ‘Substantially’ Higher
- SNAP US : Snap Lures Instagram Advertisers by Offering Free Ads: Recode
- TSCO LN : UK’s Tesco Is Planning A Chain of Discount Stores: Reuters
- VIV FP : Universal’s ‘Fifty Shades’ Tops Weekend Box Office: ComScore
- VONN SS : Vontobel Agrees on Untaxed Asset Settlement W/German Authorities