Weekly Update
Dow +0.98% S&P +0.86% Nasdaq +0.17% Russell -0.33% Nikkei +0.25% (+0.90% in $) Hang Seng -0.28% CSI +1.53% Shanghai +1.60% Mexico -1.60% (+2.35% in $) BRazil -1.60% EuroStoxx -0.14% FTSE -0.77% Cac -0.46% Dax +0.40% Ibex -0.49% MIB -2.16% SMI +0.22%
Early on this week, US stocks looked poised for a fifth consecutive week of record high closes. The economic data generally remained robust globally. A hotter than expected print for US CPI figures and a FOMC minutes release that pointed to a committee inclined to pull the trigger sooner rather than later kept the reflation narrative intact. President Trump continued to meet with high-profile business leaders and talk up his soon-to-be-announced tax and regulatory reforms. By Friday, the Dow was riding a 10-day winning streak.
The second half of the week though, saw the tone reach an inflection point, and investor appetite for risk began to wane. Polls out of Europe drummed up populism/nationalism concerns ahead of key elections in France and Germany later this year. President Trump doubled and tripled down on many of his most controversial campaign promises/tactics, while his Treasury Secretary laid out a timeline for growth reforms that underwhelmed. The narrative shifted its focus onto the growing number of obstacles that stand in the way of his administration and Congress reaching a deal on substantial fiscal reforms. The markets seemed to reflect this in rising bond and gold prices, while stock gains were notably more subdued. Trading may have also hit a bit of a dead spot; with earnings season nearing an end and a relatively sparse economic calendar, markets have become beholden to headlines out of Washington ahead of Trump's congressional address next week. The Dow S&P and the NASDAQ finished a fifth consecutive week at all-time highs, but the Russell 2000 lost ground. For the week the Dow rose 1%, the S&P added 0.7% and the NASDAQ eked out a gain.
Macro :
- Banks Near Decision on Post-Brexit EU Hubs: Boersen-Zeitung
- Sweden Aims to Propose New Bank Tax Before 2018 Elections
- Italy Backs Brexit Talks Once U.K. Assures on Exit Bill: FT
- London-Shanghai Stock Connect May Start Soon: Global Times
- Moody's affirms German credit rating at AAA
Keep an eye on :
- AZA IM : Alitalia to Cut Up to 4,000 Jobs as Part of New Plan: Messaggero
- AAPL US : Berkshire’s Average Purchase Price for Apple Was $110.17
- ARAMCO IPO : Mitusbishi Fin. Said to participate in underwriting Saudi Aramco IPO - Nikkei
- BRK/b US : Berkshire Hathaway 4Q Oper EPS $2,665, Est. $2,717
- CLN VX : Clariant Isn’t a Takeover Target, CEO Tells FUW
- DBK GY : Deutsche Bank to Conclude Most Large Legal Cases in 2017: FAS
- DOW US : Berkshire Booked $1.2 Billion Gain on Dow Conversion, Sold Stake
- EDF FP : EDF Closed Hinkley Point B Unit for Maintenance Yesterday
- EDL FP : Disneyland Added EU68b to French Economy in 25 Years: Figaro
- FCA IM : Fiat Chrysler Says U.S. Unit Prepaid $1.8b Term Loan
- FCT IM : French Industry Minister says Fincantieri must have less than 50% stake in STX France
- KATE US : Michael Kors, Coach Seen in Kate Spade 2nd Round Auction: Rtrs
- LHN VX : LafargeHolcim Shares Could Rally 25%, The cement giant has been a roll, thanks to cash generation and stronger markets. Returning cash to shareholders could help, too. - Barron's
- LMN SW : Lastminute.com Sees Plenty of Acquisition Options in Europe: FUW
- LIFE SW : Lifewatch in talks with alternative buyers in attempt to prevent takeover by Aevis Victoria
- NESN VX: Nestlé Shares Could Rise by 16%, It’s a high-quality company that is trading cheaply because of political and economic worries in Europe - Barron's
- NOKIA FH : Nokia to Supply Xiaomi With Fiber Optic Network
- NOKIA FH : Nokia’s Suri Says Network Gear Demand May Pick Up This Yr: Rtrs
- PLT IM : Parmalat offer by Lactalis ruled unfair to minority shareholders by advisor
- PRS SM : Amber Seeks Support to Replace Prisa’s Cebrian: El Economista
- RYA LN : Ryanair in Advanced Talks With Aer Lingus, Norwegian: NZZ
- SAX GY : Stroeer Can Spend Up to EU1b on Acquisitions: Euro Am Sonntag
- SAZ GY : Stada Starts ‘Structured Bidding Process’ for Company
- TEC FP : TechnipFMC 2016 Pro Forma Net Income $457.9 Million
- UCG IM : UniCredit’s CIB Can Generate Growth Organically: Papa to Sole
- UNA NA : Dijsselbloem Says Unilever Shouldn’t Abandon Long-Term View