Weekly Update
Dow +1.32% S&P +1.43% Nasdaq +2.08% Russell +1.09% Nikkei +0.49% Hang Seng +1.84% CSI +2.25% Shanghai +0.63% Mexico +1.24% (+2.40% in $) Brazil +2.31% EuroStoxx -0.22% FTSE +1.03% CAC +0.23% Dax -0.29% Ibex +0.63%
Markets began the week putting last Wednesday’s brief bout of risk aversion and elevated volatility further back in the rear view mirror. Even another heinous terrorist attack in Europe did little to upset trading. US stock indices marched onward to fresh all-time highs as technical/momentum-buying emerged as seasonality and thin volumes once again played a significant role heading towards the long holiday weekend. The Dollar continued to serve as a tailwind for stocks as well. Wednesday’s FOMC minutes were seen to have a somewhat dovish tilt keeping the Dollar index from rebounding significantly from last week’s six month low. The VIX dropped back below 10 and US Treasury markets barely budged despite the new highs for equites. Oil prices moved up ahead of the OPEC meeting on Thursday, but WTI slid back below $50/bbl when ministers failed to offer up anything in the form of a surprise. The energy complex suffered with many stocks dropping to the lows of the year, but that too had little effect on overall trade or sentiment. For the week the S&P500 added 1.4%, DJIA gained 1.3%, and the Nasdaq rose 2.1%.
There were a few notable earnings reports this week. Shares of luxury goods retailer Tiffany & Co. dropped over 8% as Q1 revenues missed expectations, with management blaming continued marcoeconomic challenges, geopolitical uncertainty, and a strong USD. Video game producer Take-Two Interactive saw its share up 10% this week on the back of blow out earnings. GM took a hit after a class action lawsuit was filed accusing the automaker of employing VW-like emissions test defeat devices in some diesel trucks.On the M&A front, shares of Bunge were sharply higher on reports that Glencore had made an informal approach about a potential merger or partnership.
Macro :
- G-7 Minus U.S. Affirms Paris Climate Pledge in Draft Statement
- Atlanta Fed’s GDP Nowcast Model Sees U.S. 2Q GDP at 3.7%
- Short Sellers Resist Covering as S&P 500 Retakes Record in Week
- Govt sources say US debt ceiling could be hit this summer, sooner than markets may be expecting - CNBC
- Mattis Says Trump ‘Wide Open’ on Paris Climate Accord
Keep an eye on :
- ABE SM : Atlantia signs EUR 16.3bn financing deal with pool of banks for Atlantia bid
- AIR FP : Airbus Helicopters Breaks Ground on 1st Assembly Line in China
- AMS SM : Amadeus Drops as Much as 7.8% After IAG Sets Booking Fees, Sabre, Travelport Follow Amadeus Lower on IAG Booking Charge
- AAPL US : Apple Said to Plan Dedicated Chip to Power AI on Devices
- BMW GY : BMW’s Stalled Stock Ready to Accelerate, German car maker’s heavy R&D spending should pay dividends down the line, as autonomous driving and electric cars gain popularity - Barron's
- BMW GY : BMW Plans Car-Data Link for Service Providers: Automobilwoche
- CA FP : Fnac CEO Bompard to Meet Carrefour Appointments Committee: JDD
- CPR PL : Cimpor Says Shareholders to Vote to Take Company Private
- BN FP : PepsiCo Said in Bid to Acquire Owner of Vita Coco: Reuters
- DIS US : Disney Cuts ‘Pirates’ Weekend Forecast to Mid-$70m From $80m, Disney Says ‘Pirates’ Has $62.2m in 3-Day Weekend Sales
- FNAC FP : Fnac CEO Bompard to Meet Carrefour Appointments Committee: JDD
- FNTN GY : Freenet Not Limited to German-Speaking Regions, CFO Tells BZ
- GLEN LN : Deutsche Boerse Adds Glencore to STOXX 50, Deletes Syngenta
- IAG LN : British Airways Cancels All Heathrow, Gatwick Flights Today
- JNJ US : J&J Ordered to Pay $2.1 Million Over Woman’s Vaginal-Mesh Claims
- LGEN LN : Legal & General Said to Eye GBP15b Steel Pensions Buyout: Times
- NOVN VX : Novartis’s Zykadia Gets Expanded FDA Approval for Lung Cancer
- NVDA US : SoftBank Said to Consider Raising Stake in Nvidia
- DPS US : KKR Said to Consider Bidding for Pepper Group, AFR Says
- PFV GY : Pfeiffer Vacuum Interested in ‘Larger’ Acquisitions: EamS
- PRS SM : Prisa Decides to Reject Offers for Santillana
- SAN FP : Sanofi Won’t Renew One of Two Regeneron Pacts: Bernstein
- SPM IM : Saipem Board Approves Tax Disputes Settlement
- SIE GY : Three IG Metall Reps to Leave Siemens Supervisory Board: Spiegel
- SIKA VX : Sika’s Haelg Says Jenisch Departure Won’t Change Strategy: SamW
- SITESL MM : Slim Said Preparing to Sell Minority Stake in Telesites: Reuters
- SYNN VX : Deutsche Boerse Adds Glencore to STOXX 50, Deletes Syngenta
- VALE US : Vale CEO’s Strategy Could Include M&A, New Cost-Cutting: BofAML