Weekly Performance
Dow +0.76% S&P +1.19% Nasdaq +1.17% Russell +2.44% Nikkei +0.84% Hang Seng +1.50% CSI +1.14% Shanghai +1.03% Brazil +2.83% EuroStoxx +3.31% Dax +3.41% FTSE +2.97% CAC +3.61% Ibex +2.20% MIB +1.61% SMI +1.75%
Coming into the week, focus was squarely on two key Central Bank meetings. Equities drifted higher and global bond prices stabilized leading into the BOJ and FOMC announcements on Wednesday. The Bank of Japan surprised many observers when it formally changed course introducing yield curve control and inflation overshooting policies. Investors' increased willingness to add risk was evident globally and was only intensified by the US Federal Reserve announcement a few hours later. The FOMC left rates unchanged exasperating some who felt the window was there for the Fed to take the next step in the slow process of normalizing rates. Despite three hawkish dissenters in the decision, markets took solace from the updated forecast that plotted rates staying lower for even longer than they had previously thought.
- With the risk of central bank induced turmoil behind it, the market settled back in to risk on mode for the balance of the week. By Thursday, the NASDAQ was touching fresh all-time highs, and for the week, the S&P500 gained 1.2%, the DJIA added 0.8%, and the Nasdaq was 1.2% higher. Treasury markets rallied in tandem while curves flattened as investors moved back into the long end. The benchmark US 10-year yield fell towards 1.6% after entering the weak at 1.7%.
- Crude prices stabilized early in the week helped by a deluge of press reports surrounding producers. OPEC members met in Vienna ahead of next week's Algiers meeting and there was no shortage of jawboning by officials. Momentum appears to be building for some kind of agreement on a production freeze, but Iran and Saudi Arabia remain at odds on what yardstick will be used in determining high water output marks. On Friday, the price of WTI slipped back below $45 after the Saudis said they do not to expect any formal decision from Algiers next week.
- In corporate news there was intrigue around Apple's plans for the auto market again, with a report that it could consider buying supercar maker McLaren. Later in the week Apple shares were dragged lower on more concerns about interest waning in the iPhone 7. Shares of Twitter jumped 20% on Friday after a report that the social media firm was stepping up efforts to sell itself and had attracted some early interest from Google and Salesforce.com. The IPO market was seeing a renaissance with several notable deals pricing favorably and posting big first day gains including Apptio Inc. and Elf Cosmetics.
Macro :
- Corbyn Is Re-Elected as U.K. Labour Leader, Urges Party Unity
- BOE Easing Makes Gilts Best Place to Be for Frankfurt Investor
- OPEC Deal Still Elusive Even After Saudis Offer Oil Cuts to Iran
- S&P 500 Bull Trend Versus EM at Risk as Curve Flattening Resumes
- Credit-Equity Correlation Marks Risk Perception Shift: Analysis
- EU Commissioner Moscovici to Propose EU Blacklist for Tax Havens
- Star trader Rokos eclipses his old Brevan Howard fund - FT - http://on.ft.com/2dtUViO
Keep an eye on :
- ABBN VX : Cevian May Seek Seat on ABB Board, Schweiz am Sonntag Reports
- ABG SM : Abengoa Says Acceptance Period Opens for Restructuring Plan
- AKZA NA : Akzo Nobel Committed to U.K. Business, CEO Tells Guardian
- AAPL US : Apple Falls; IPhone Sales May Disappoint, GFK Report Says: CNBC
- AREVA FP : Areva: ASN Probing 87 Irregularities in French Nuclear Reactors
- AZN LN : Impax, AstraZeneca Sue Par Pharma Over Generic Migraine Drug
- CRG IM : Banca Carige Seeking to Sell EU900m of NPLs: Il Sole
- BMPS IM : Qatar Funds May Be Interested in Paschi Cap. Increase: Corriere
- BAS GY : BASF Plans to Make Further Cuts in Asia Amid Slowdown in Demand
- COIC SS : Concentric could be a takeover target - Dagens Industri
- CSGN VX : Credit Suisse’s Grigg Quits to Start Independent Firm: Sky News (he was bank rescue advisor)
- AM FP : Rafale Deal to Create Jobs in France, Dassault Aviation CEO Says
- DBK GY : Merkel Unwilling to Help Deutsche Bank in U.S. DOJ Case: Focus
- DUFN VX : Airport Vendor Dufry Could Rise 20% or More - Barron's
- GLPG NA : Gilead could place takeover bid for Galapagos - tijd
- GKN LN : SAIC could be interested to bid for Company, 7bil price tage mentionned
- GS US : Goldman Said to Plan 25% Cut of Asia Investment-Banking Jobs
- HSBA LN : HSBC Hires Headhunting Firm to Strengthen Management Team: FT
- INGA NA : ING Belgium Poised for Major Restructuring, L’Echo Reports
- KTM IPO : KTM Industries, the Austrian motorcycle company, is to list in Switzerland soon, Finanz und Wirtschaft
- LHA GY : Lufthansa Has Right to Buy Brussels Airlines for EU2.6m: De Tijd
- MS IM : Mediaset Board to Meet Tuesday as Vivendi Offer Looms: JDD
- PBR US : Petrobras Rig Bids Could Bring $6b in Investments: Globo
- PFC LN : Tunisia Reaches Deal W/ Petrofac Protesters Over Jobs: Reuters
- SBRY LN : J Sainsbury shareholder Qatar Investment Authority could attract offer for 22% stake from Chinese bidder
- SNAPCHAT IPO : Snapchat to Release ‘Spectacles,’ First Hardware Product: WSJ
- SWEDA SS : Swedbank Open to More Acquisitions in Baltic Region: DI
- TEF SM : Telefonica Plans for IPO of O2 Advancing, Telegraph Reports
- TUI LN : Tuifly subject of sale talks with easyJet, other airlines - Boersen-Zeitung
- UBI FP : Ubisoft to Buy Bpifrance’s 3.2% Stake in Co. for $138 Million
- UBI FP : Ubisoft CEO Says Sees ’Very Few’ Synergies With Vivendi
- UCG IM : UniCredit Said to Pick 4 Cos. in Pioneer Bidding Process: Rtrs
- VIE FP : French state bank CDC plans run of share sales - http://on.ft.com/2d1oVzX
- VIT CN : Victoria Gold could be a takeover candidate, analysts say
- VIV FP : Ubisoft CEO Says Sees ’Very Few’ Synergies With Vivendi
- VOW3 GY : Audi CEO Stadler to Help Clarify Emissions Scandal: Rheinische
- VOW3 GY : Audi Recalls 79,895 Cars, SUVS for Side Light Software Errors
What to watch on Monday in the US:
- New home sales, Aug.; Dallas Fed manufacturing index, Sept.
- Fed’s Tarullo Speaks on Next Steps in Bank Stress Testing
- Fed’s Kaplan Speaks in San Antonio in Moderated Q&A
- No S&P 500 earnings scheduled
- Pre-Market Earnings:
- Vail Resorts (MTN) 6:45am, ($1.67)
- Carnival (CCL) 9:15am, $1.89