Weekly Performance
Dow +0.38% S&P +0.83% Nasdaq +0.96% Russell +0.94% Ibovepsa -4.55% EuroStoxx +1.80% FTSE +0.63% CAC+1.66% Dax +2.59% Ibex +0.90% FTSE Mib +1.08% SMI +1.24% Nikkei -0.44% Hang Seng +2.52% Shanghai +4.99%
The Fed raised rates for the first time in nearly a decade, fulfilling the forecast of a 2015 rate liftoff in the final policy meeting of the year. The well telegraphed move initially sent equities higher as market participants were relieved to finally get the first rate rise under their belt. The greenback strengthened on the rate move, keeping pressure on already weak energy prices. Other central banks reacted as countries closely aligned with the US economy raised rates in tandem while the Bank of Japan created more monetary policy divergence by adding more stimulus. As the Fed rate hike sank in, stocks sold off into the weekend and for the week the DJIA ended down 0.8%, the S&P fell 0.3%, and the Nasdaq lost 0.2%.
Macro :
- Greek Bond Yields May Drop Below 5% in 2016, Paulson Tells Real
- Lippmann, Trader Portrayed in ‘Big Short’, Said to Plan New Fund
- US Retail Sentiment : IPSOS survey finds 55% of US shoppers are cautious about spending because of economic uncertainty, about equal to response in a survey taken last year at this time
- Fed's Powell (moderate, FOMC voter): A 25 bps rate hike will not have a major impact on the economy; rising rates is a sign of Fed's confidence in the economy; the Fed was not backed into a corner on this rate hike
Keep an eye on :
- ANA SM : Acciona Wins Tender for Ground Handling in Dusseldorf, FAZ Says
- AC FP : Accor CEO Bazin Says He’s Not Afraid of Airbnb: Figaro
- CRG IM : Banca Carige may rejoin race for merger with BPM
- BLT LN : Brazil judge freezes assets of Vale and BHP after finding their joint venture Samarco was unable to pay damages for the dam burst in Minas Gerias - press - The judge ruled that Vale and BHP could be held liable for the BRL20B ($5B) in damages being sought by the state of Minas Gerais. Vale argued unsuccessfully that Samarco was independent legal entity that should be wholly responsible for the accident and resulting fines and damage awards.
- CO FP : Cnova Reviews Brazil Inventory Tied to Employee Misconduct
- ENI IM : Eni, Sonangol to Upgrade Plan for Lobito Refinery
- GAS SM : Gas Natural Fenosa to divest LPG business in Chile
- ITV LN : Comcast Weighing GBP11b Bid for U.K.’s ITV, Mail on Sunday Says
- BAER VX : U.S. to Ask Julius Baer for $700 Million Fine: Sonntagszeitung
- MEO GY : Haniel will cautiously look to widen portfolio
- MSK IM : Moleskin Aims to Diversify, Boost Retail Chain: Il Sole
- SHP LN : Shire to improve offer for Baxalta with GBP 8bn cash sweetener - Sunday TImes
- SYNN VX : ChemChina Said to Improve Bid for Syngenta in Two-Stage Takeover
- TIT IM : Telecom Italia Gets 4 Non-Binding Bids for Inwit Stake: Il Sole
- VPK NA : Royal Vopak Agrees to Sell U.K. Assets to Macquarie, Greenergy
- VOW3 GY : Calif. Extends Deadline on Volkswagen Diesel-Emission Plan