Weekly Performance
Dow -2.19% S&P -2.17% Nasdaq -3.34% Russell-3.68% Ibovespa -5.44% EuroStoxx-2.67% FTSE -3.50% CAC-2.85% Dax -3.09% Ibex -4.10% MIB -3.39% SMI -4.49% Nikkei -3.13% Hang Seng -4.85% Shanghai -8.72%
The New Year's market mayhem went from bad to worse this week. Beijing took its campaign to create volatility in the yuan FX rate to Hong Kong, creating elevated levels of paranoia regarding the economic strategy behind its big interventions. On Wednesday, the Shanghai Composite slipped below 3,000 for the first time since last August, putting the index in a technical bear market, down 20% from its December highs. The index closed the week below its August lows at 2,900, down about 6.5%. US and European equities were whipped around by the continuing chaos, with highly volatile trading seen all week, however Friday's session was the real moment of truth, as options expiration, the coming three-day weekend and a real sense of panic in markets combined to drive a massive selloff, with the DJIA and S&P500 down more than 3% a piece and the Nasdaq down more than 4% at their worst levels. On Friday, the S&P500 plunged through its August low of 1867 in mid-day trading before recovering to close above it. The 10-year UST yield tumbled nearly 18 basis points from its high of 2.175% on Monday below 2.00% before the open on Friday. Short rates fell too, when futures traders used Friday's disappointing US data to push Fed rate hike expectations out further into 2016. And behind it all, WTI and Brent crude marched in lockstep to 12-year lows below $30.
Saudi Arabia -5.4% Egypt -1.67% Kuwait -4.32% Israsel -0.39% Qatar -7.16% UAE -4.64%
--> US Close on Monday for Martin Luther King Day
Macro :
- Poland Cut to Bbb+ From A- by S&P, Outlook Negative
- ING Sees ‘Major Sell-Off’ Next Week in Poland After S&P’s Cut
- SAC’s Steinberg Wins Dismissal of SEC Insider Trading Case
- Flood of Iranian Crude Won't Change Motor-Fuel Prices in China
- Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears : http://bit.ly/1n3g0AW
- Iran Sanctions to End as IAEA Verifies Nuclear Deal Implemented
- Mideast Stocks Plummet as Iran Plans to Boost Crude Exports
Keep an eye on :
- AC FP : Accor Hotels Opening 15-20 Hotels in Germany Annually: FAZ
- ADP FP : Aeroports De Paris to Invest EU650m in Baggage-Control Equipment
- AIR FP : Airbus CEO Says He’s ‘Bullish’ on China Despite Market Rout
- AIR FP : Iran to Buy 114 Airbus Jets, May Seek Boeings Post-Sanctions : http://on.wsj.com/1llbMTT
- AIR FP : Airbus to Test Helicopter Ride Service with Uber: CEO Enders : http://on.wsj.com/1Klk9FL
- AH NA : Ahold interested in 130 DA pharmacies in NetherlandsP
- AAL LN : Anglo American Said to Hire Banks to Sell Assets in Brazil:Globo
- BAYN GY : Bayer Unit Wins Confirmation of $455.4 Mln Patent Case Award
- EN FP : Bouygues, Ferrovial Eye Laing O’Rourke Australia Ops: Australian
- CBK GY : Commerzbank Said to Seek Successor for Chairman Mueller: Spiegel
- CBK GY : Commerzbank Luxembourg Fined for Tax Evasion: Sueddeutsche Z.
- DEB LN : Incoming Debenhams Chairman Cheshire Sees Upside: Sunday Times
- EDF FP : EDF Sees Higher Provisions Hurting 2015 Net Income by EU500m
- FER SM : Bouygues, Ferrovial Eye Laing O’Rourke Australia Ops: Australian
- HEI GY : HeidelbergCement issues EUR 625m debt certificates, reducing refinancing needs for Italcementi acquisition
- HDD GY : Heidelberger Druck Says China Business Stable: Euro am Sonntag
- ICAD FP : Icade to Pursue Divestments, CEO Wigniolle Tells Investir
- ITV LN : ITV Chairman Norman to Step Down This Year: Sky News
- NG/ LN : Canadian Pension Funds May Bid for National Grid Unit: Telegraph
- ORA FP : Orange CEO Says Doesn’t Want Bouygues Talks to Drag On for Weeks
- UG FP : Peugeot 208, 508 Show No Anomalies in Emissions Tests: JDD
- PAH3 GY : Porsche, Piech Families Stand by VW CEO Mueller: Bild am Sonntag
- RHK GY : Asklepios Looking Into Possible Acquisitions: Boersen-Zeitung
- SAB LN : Lion Capital Plans Bid for Peroni, Grolsch Brands: Sunday Times
- SHP LN : Shire CEO Confident Shareholders Will Vote for Baxalta Deal
- SHP LN : Shire CEO Says Baxalta Deal Isn’t About Cost Savings, Taxes
- SUN SW : Sulzer Considering Options Including Merger With Competitor: FAS
- TEF SM : O2, Three Face Tough Merger Conditions From Europe: Telegraph
- TEF SM : Telefonica Eyes AT&T’s $10b Latin American TV Assets: Reuters http://reut.rs/1J9cyiF
- TIT IM : Telecom Italia CEO Doesn’t See Crossborder Takeover: Repubblica
- VIV FP : Canal Plus, Sky, Others Combine to Fight Netflix: WSJ : http://on.wsj.com/1JaWQnb
- VOW GY : VW’s Audi Unit Trims Expenses for WEF Sponsoring in Davos: FAS