Weekly Update
Dow +0.21% S&P +0.53% Nasdaq +2.31% Russell +0.46% EuroStoxx -3.86% FTSE -0.98% CAC -3.54% DAx -2.81% Ibex -4.34% MIB -5.62% SMI -1.62% Nikkei -2.63% Hang Seng -2.44% CSI -3.06% Shanghai -2.88%
Volatility continued this week as the markets pondered the timing of the next Fed rate hike. The week started off with Fed Governor Brainard making the dovish case for Fed policy, which helped reverse the risk off sentiment that built up last week amid a barrage of hawkish commentary from Brainard's colleagues. A big miss on US Advanced Retail Sales data on Thursday lent support to the dovish view that the Fed will be on hold next week. But a hotter than expected US CPI reading on Friday caused markets to once again reassess expectations for Fed policy as progress toward the inflation target could bring the next hike sooner. Meanwhile, the BOE kept its policy unchanged this week, as expected, but said it could cut rates again if the baseline forecast set in August is realized. The renewed contrast between US policy tightening and European easing led to the dollar strengthening substantially on Friday, particularly against the pound sterling. WTI crude futures slid throughout the week, dropping three bucks to around $43/bbl. Two major M&A deals in the agriculture sector, an earnings miss by Oracle and increased guidance from Intel provided the buzz in the corporate sector. The tech sector was also bolstered by a surge in Apple shares driven by strong pre-orders for iPhone 7 at Sprint and T-Mobile. Equities were volatile but ended little changed: for the week the DJIA gained 0.2%, the S&P500 added 0.5%, and the Nasdaq was jumped 2.3%.
Macro :
- Weidmann Says Banking Supervision Should Be Split From ECB: SZ
- McDonald’s May Face $500m Luxembourg Back Tax Bill: FT
Keep an eye on :
- ABBN VX : ABB Not to Sell Its Power Unit Despite Activist Pressure: Paper
- AIR FP : Airbus Said to Introduce Restructuring Plan in October: FT
- ASML NA : Samsung Says It Sold Stakes in ASML, Seagate, Rambus and Sharp
- ATL IM : Macquarie to Use EU4b Infrastructure Fund in Italy: CEO to Sole
- BAYN GY : Bayer-Monsanto Deal ‘Patently Anti-Competitive’: CLSA
- BT/A LN : U.K. Could Fine Mobile Operators Over Coverage: Telegraph
- DBK GY : Germany Expects U.S. to Cut Deutsche Bank Claim: Handelsblatt
- DGE LN : Diageo Reviewing Staffing Levels at London HQ, Sunday Times Says
- FCA IM : Fiat Chrysler turns down EUR 1bn private equity offer for unit Magneti Marelli - http://bit.ly/2cUkhnH
- LHN VX : LafargeHolcim May Pull Out of Some Countries, Chairman Tells SZ
- NG/ LN : Fosun, China Gas Considering Joint Bid for National Grid: Times
- NOVN VX : Novartis: BAF312 Significantly Reduced MS Disability Progression
- RDSA NA : Argentine Shell CEO Says Co. May Be Sold After Review: La Nacion
- SAN FP : Sanofi Sues Merck to Block Rival of Lantus Diabetes Drug
- SFR FP : SFR Minority Shareholders Protest Altice Buyout Plan: Les Echos
- TALK LN : U.K. Could Fine Mobile Operators Over Coverage: Telegraph
- TEF SM : U.K. Could Fine Mobile Operators Over Coverage: Telegraph
- VOD LN : U.K. Could Fine Mobile Operators Over Coverage: Telegraph
- VOW3 GY : Audi’s Knirsch to Be Put on Leave in Diesel Scandal: BamS
- WPP LN : WPP’s CEO Sees ‘Rocky’ Dollar on Trump Win; Slower U.K. Growth