Weekly Performance
Dow -0.21% S&P -0.61% Nasdaq -1.99% Russell +0.04% Nikkei -0.49% (-1.48% in $) Hang Seng +0.37% CSI +1.21% Shanghai +1.29% EuroStoxx -2.87% (-0.86% in $) FTSE -1.50% (+0.89% in $) CAC -2.76% Dax -3.21% Ibex -1.75% MIB -1.20% SMI -1.39%
An aggressive backup in global interest rates headlined a week that also saw a significant rebound in oil prices and bifurcated trading in US stocks. Hawkish central bank commentary complemented hotter than expected CPI readings in Europe, which induced a mid-week rotation out of sovereign bond markets, driving up yields. The spread between European and US Treasury yields narrowed, pressuring the Dollar Index, and pushing the Euro to a 1-year high. Higher rates and encouraging CCAR announcements powered equity flows into the banks and financials. In Washington, doubts about the fate of the Senate healthcare bill injected more uncertainty about the Republican legislative agenda, as GOP leaders continued to woo votes from their own caucus and were forced to push back the vote until after the 4th of July break.
By Friday, WTI crude extended to a 7-day winning streak, adding 6.5% on the week, and buoyed equity flows. Despite the positive sentiment in those sectors, continued aggressive selling in the high beta, high profile technology stocks resulted in another notable spike in NASDAQ volatility, allowing for a mid-week dip in US stock trade. Much of the equities weakness was blamed on the likelihood that algorithmic trading along with thin quarter end/holiday conditions exacerbated a rotation out of big-cap tech into other areas of the stock market. Ultimately, stock indices were lower on the week, with the DJIA off 0.2%, the S&P500 down 0.6%, and the Nasdaq falling 2%.
Macro :
- EU’s Vestager Says Received No U.S. Reaction to Google Fine
- Emerging-Market Assets Trim Biggest Rally Since 2009: Inside EM
- Hedge Funds Cut Nasdaq Futures Holdings to 12-Month Low: CFTC
Keep an eye on :
- AMUN FP : Amundi to Expand Its Business Via ’Organic Growth,’ Sole Reports
- BA/ LN : BAE Systems Wins GBP3.7b Ship Deal From U.K. Defence Ministry
- BAYN GY : Bayer Warning Has Mosaic, Compass, Agrium Read-Through: Stifel
- BBVA SM : BBVA Frances Offers up to 95m Shares; Indicative Price: $6.23
- DEDRL IT : Delek Drilling Says Tamar Reserve 13% Bigger Than Pvs Estimate
- DROPBOX IPO : Dropbox Said to Be Seeking to Hire IPO Underwriters: Reuters
- ELAL IT : El Al Agrees on Terms to Merge Its Sun D’Or Unit With Israir
- EOAN GY : E.ON CEO Teyssen Rejects SPD Proposal to Cap Salaries: Focus
- GTO NA : Gemalto’s Potential Deal Could Be Valued Up To EU75/Share: UFP
- GSK LN : GSK Signs Drug Discovery Collaboration Deal With Exscientia
- GOOG US : Alphabet Says EU Antitrust Fine to Cut Profit by $2.74b
- LISN VX : Lindt’s Russell Stover Plans Stevia Chocolate in U.S., SamW Says
- OPTI BB ; Option Targets Up To EU9M in Revenue for 2017, De Tijd Says
- RNO FP : Renault Samsung to Recall 62,000 Cars Over Sensor Defects
- SBRY LN : Sainsbury May Be Interested in Supply Deal With McColl’s: Mail
- SRT3 GY : Sartorius Has EU1.5 Bln Leeway for Acquisitions, CFO Tells BZ
- STL NO : Statoil Evaluating New Co2 Storage Project Offshore Norway
- TELE2 SS : Tele2 Says Court Rejects Its Claim for Interest Deduction
- TKA GY : Thyssenkrupp, Tata Seek Clarity on Steel Merger This Month: HB
- TKO FP : Tikehau Must Pay EU0.28m in French Markets Regulator Probe
- FP FP : Iran, Total to Sign S. Pars Gas-Field Deal on Monday: Official
- UN01 GY : Uniper Could Invest in Sweden Reactor After Tax Agreement: CEO
- VWS DC : Vestas Gets 200-Megawatt Order in U.S.; Total 2Q Orders 1,956 MW
- VOW3 GY : Volkswagen to Recall 385,000 Cars in Germany: Bild
- VOW3 GY : VW’s France Sales Numbers Were Falsified for Years, Spiegel Says