Weekly Performance
Dow-1.74% S&P-0.78% Nasdaq-0.52% Russell Ibovespa-2.52% EuroStoxx+2.40% FTSE+1.65% CAC+3.01% Dax+2.30% Ibex+2.10% MIB-0.87% SMI+2.02% Nikkei -1.10% Hang Seng -2.26% Shanghai+1.25%
After three weeks of punishing declines, global markets may have found a bottom. Traders keyed on what appears to have been Wednesday's important intraday technical reversal for both stocks and oil prices. On that day trading volumes surged, negative market internals spiked, the VIX reached levels not seen since last summer ahead of a 400+ point reversal in the Dow. By Thursday many suggested sentiment was also improving upon markets hearing the distant sound of the central bank cavalry riding to the rescue. Mario Draghi promised the ECB would look at more easing at the next policy meeting, while there were rumors that the Bank of Japan could launch another helping of QE at the policy meeting next week. The PBoC was less sanguine, however they promised to expand use of a new medium-term instrument to provide markets with liquidity, and separately fixed the yuan reference rate higher for the tenth consecutive session on Friday, putting the yuan at its strongest rate to the basket since January 6th. The other big positive catalyst was crude, which found a short-term bottom below $28. Both WTI and Brent dipped into the $27 handle on Wednesday upon Feb options expiration, then rallied hard through the close on Friday. Prices gained more than 20% in 48 hours, with both WTI and Brent closing out the week above $32. Global elites gathered in Davos, where nearly every interviewee was asked at least once whether they saw recession in the offing (most hedged or said not really). In the background, Q4 earnings season slogged on with managements offering up cautiously optimistic outlooks based on more of same in terms of tempered economic growth. US stock indices posted their first weekly gains in a month: after losing over 500 points through Wednesday morning, the DJIA rallied to end up 0.7% on the week, the Nasdaq rebounded to post a 2.3% gain, and the S&P added 1.4%.
Macro :
- Snowstorm Paralyzes Washington, Halts Thousands of Flights
- ECB’s Nouy Says Property Loans May Cause Problems for Banks: STA
Keep an eye on :
- A2A IM : Milan, Brescia May Reduce 50% Stake in Italy’s A2A, Sole Reports
- AIR FP : Iran to Sign Airbus Deal to Buy 114 Planes This Week: Mehr
- AF FP : Turkish Air Isn’t Interested in, Partly, Buying KLM: Telegraaf
- AAPL US : Apple Not Planning to Settle EU Tax Case, Irish Times Says
- AAPL US : Apple Said to Introduce ‘IPhone 5se’ Upgrade in March: 9to5Mac
- AAPL US : Apple Exec Overseeing Electric-Car Effort Is Leaving, WSJ Says
- MT NA : Vale, ArcelorMital Fined BRL68m for Brazil Port Issues: Reuters
- AREVA FP : Areva Bailout May Cost at Least EU4 Billion: Journal du Dimanche
- AR4 GY : Aurelius CEO Says 2015 Results Exceeded Target: Euro am Sonntag
- BATS LN : British American Tobacco CEO Pay Plan Angers Holders: Telegraph
- BG/ LN : Shell/BG merger boosted by news Brazil will not increase tax levy - Sunday Times
- BMPS IM : Santander Denies Report It’s Considering Monte Paschi Purchase
- BMW GY : BMW 2015 Vehicle Output Topped 287,000 Units in Shenyang: Xinhua
- CABK SM : CaixaBank Targets 1M Payroll Client Accounts in 2016: Expansion
- LNG US : Reportedly wants to borrow $2.6B to refinance its Sabine Pass LNG import facility - press - Cheniere owes $2.1B on the project and has a $1.67B payment due in November.
- CSGN VX : Credit Suisse CEO Says Distressed Sales Weighing on Markets
- AM FP : France’s Hollande Says Rafale Jet Deal on ’Right Track’: PTI
- DAI GY : Daimler Sees 2016 U.S. Car Industry Sales Up More Than 1%: Welt
- DROPBOX IPO : T. Rowe Marked Down Dropbox Stake Value in 4Q15: The Information
- EDF FP : EDF May Sell Part of French Power Grid RTE: Journal du Dimanche
- GKN LN : U.K. Engineer GKN Mulling Iran Revival: Sunday Telegraph
- GSK LN : Och-Ziff Said to Hold 0.5% Stake in GSK Via Derivatives: Times
- JCI US : Johnson Controls Said to Be in Advanced Talks to Combine With Tyco - WSJ
- LHN VX : LafargeHolcim CEO Says Co. to Sell Assets Valued at CHF3.5B: SoZ
- PCL US : Plum Creek Says ISS Recommends Holders Back Weyerhaeuser Merger
- SPM IM : Saipem Lowers 2015 Rev. Guidance to EU11b-EU12b From About EU12b
- SBRY LN : Sainsbury Investors Fear Overpaying for Home Retail: Telegraph
- SUNE US : Greenlight Capital to Get SunEdison Board Seat, WSJ Reports
- TIT IM : Nextel Brazil Said to Attract Claro, Tim, Foreign Funds: Folha
- FP FP : Total CEO: Gas Output to Grow Faster Than Oil on Climate Goals
- UBER IPO : Usmanov’s USM Holdings Invests in Uber, RBC Reports
- VOW3 GY : VW to Expand to Kenya, Ecuador and Ethiopia: Automobilwoche
- VOW3 GY : VW Executives in Engine Development Aware of Manipulations: SZ