Weekly Performance
Dow +0.44%% S&P -0.06% Nasdaq -0.13% Russell -1.71% Brazil -3.49% Nikkei +2.13% Hang Seng -3.25% CSI -4.23% Shanghai -4.23% EuroStoxx +1.93% CAC +1.45% DAX +1.79% Ibex +2.65% MIB +3.95% FTSE +0.83% SMI +1.58%
The week opened with US stock markets riding at fresh all-time highs ahead an all but certain FOMC rate hike. Global economic readings continued to improve led by better than expected readings in the US which only solidified Fed expectations, as well as kept upward pressure on interest rates and the Dollar. Though the 25 basis point hike was widely telegraphed, markets still spent much of the latter half of the week calibrating to what it heard from Chair Yellen in the FOMC statement and her press conference. Most FOMC members now expect three rate hikes in 2017 from two previously. By emphasizing she never favored running high pressure economy some perceived the news was ultimately a bit more hawkish then what markets were expecting. The Dollar Index extended to fresh 14 year highs and the US 10-year yield topped 2.6% while stocks sold off into Wednesday's close as aggressively as we had seen since the Nov election. Buyers though quickly returned when concerns surrounding the rising US dollar and higher interest rates were pushed aside by another round of accelerating economic data and performance chasing into years end. Friday's options expiration saw generally muted trade as Treasury prices stabilized and the Dollar rally lost momentum. The Euro closed the week at the lowest levels seen in more than 13-years and gold prices finished below $1150 for the first time since February. For the week the Dow rose 0.4%, while the S&P and NASDQ finished marginally lower.
Macro :
- Oil Service Stocks Have About 20% Upside on 4Q17 Oil View: RBC
- Saudi Re-Evaluates U.S. Investments After Trump Election: WSJ
- Whitney Tilson Says He’s ‘Highly Skeptical of This Trump Rally’
- Merkel Aide Warns Against Taxpayer Rescue of Monte Paschi: WAZ
- A $55 Billion Manager Who Bought at Market Low Returns to Cash
Keep an eye on :
- ABBN VX : ABB Chairman Sees Opportunities From Trump Presidency: NZZ am S.
- AIR FP : A380 Planes Aren’t Part of Iran’s Airbus Deal: Iran Air CEO
- AB1 GY : Air Berlin Says Lufthansa’s Winkelmann to Replace Pichler as CEO
- BATS LN : British American Tobacco thinking about increasing offer for Reynolds American by USD 8 per share - The Times - http://bit.ly/2gZPES1
- BBVA SM : BBVA to Cut About 60 Jobs With Branch Closures in Spain
- BMPS IM : Monte Paschi to Hold Share Sale From Dec. 19 Through Dec. 22
- BP/ LN : BP takes $2.4bn stake in Abu Dhabi oilfields, BP refocuses on renewal after shedding assets to cover Deepwater Horizon liabilities - FT
- IAG LN : British Airways Cabin Crew to Strike Christmas, Boxing Day: PA
- DAI GY : Daimler Expects Diesel Cars to Remain Popular in Europe: BamS
- DBK GY : Deutsche Bank to Settle U.S. Probe in Coming Weeks: Sunday Times
- EDF FP : Edison has Italmobiliare teaming together with F2i in bid for 20-25% stake
- EDF FP : RWE, EDF May Absorb Losses to Capture Emerging Battery Market
- ENEL IM : Enel Open Fiber, Metroweb to Merge This Week: Sole
- EDPR PL : EDP Renovaveis Says Alves Resigns From Executive Committee
- ENGI FP : Engie Regulated Gas Prices in France to Rise in January: AFP
- LIN GY : Praxair, Linde Said Close to Finalizing Merger Terms: Reuters
- LLOY LN : U.K. Treasury Said to Seek Sale of Lloyds Stake in 1Q ’17: FT
- MC FP : Rapha denies bid approaches; LVMH private equity unit mulling bid
- MS IM : Mediaset Says There Are No Ongoing Negotiations With Vivendi
- OMV AV : Borealis shareholder OMV signals interest in raising stake
- RNO FP : Nissan Seeks to Build Electric Car, Cut Prices by 20%: Nikkei
- PUB FP : Publicis Unit Receives DOJ Subpoena on Video Market Practices
- RWE GY : RWE, EDF May Absorb Losses to Capture Emerging Battery Market
- SPW LN : Scottish Power Calls on U.K. to Change Subsidy Policy: Telegraph
- TIT IM : Telecom Italia to Start Production of Broadband Premium Content
- TITI IM : Telecom Italia Says Report on Dividend Return ‘Groundless’
- UBI IM : UBI’s Boards to Meet This Week on ‘Good Banks’ Purchase: Sole
- UMI BB : BASF Wins Order Banning U.S. Imports Umicore Battery Materials
- VOW3 GY : VW Said to Agree to $200m Payment for Emissions Offset: Reuters
- VIV FP : Vivendi Seeks ‘Industrial’ Partnership With Mediaset: Corriere
- VIV FP : Mediaset owner may ask for Vivendi stake to be frozen - Il Messagero