Weekly Performance
Dow +1.20% S&P +0.19% Nasdaq -0.36% Russell -1.19% Nikkei -0.04% Hang Seng +2.16% CSI -0.38% Shanghai +0.27% Shenzen -0.53% Mexico +0.22% Brazil +2.14% EuroStoxx +1.14% FTSE +1.95% CAC +1.40% Dax +1.11% Ibex +1.16% MIB +2.36% SMI +1.77%
The Dow and the S&P spent much of the week chopping wood at or just below all-time highs, while -- similar to July’s action -- the Transports, Russel 2000 and Nasdaq languish behind. Earnings season made the turn and the back nine revealed similar corporate themes to what has been seen prior. More firms have been beating top line growth expectations, and managements remain upbeat on second half growth even if it is becoming more difficult to squeeze out further margin improvement. The greenback also served as a tailwind with the Dollar Index falling to fresh 14-month lows led by broad strength in the Euro. Rates dipped led by Treasury yields as the data continued fall in line with a goldilocks scenario: Strong enough growth to support a healthy employment market and rising equity valuations, but benign enough inflation readings allow central banks remain on extremely gradual paths toward normalizing policy. Similar to last week’s ECB policy statement, the BOE announcement on Thursday surprised markets to some degree by revealing an unwillingness of a majority of policy makers to change course yet on rates. Friday’s stronger than expected July US jobs print did little to change the overall narrative but it did produce a bounce in the greenback. Gold prices came off $1,275 while crude oil prices have consolidated the recent run up to $50. For the week the DJIA gained 1.2%, the S&P500 added 0.2%, and the Nasdaq slipped 0.4%.
Macro:
- Venezuela Guard Surrounds Prosecutor’s Office Before Ouster Vote
- Iran’s Rouhani Sworn In for New Term, Commits to Nuclear Deal
- Britain to Offer EU GBP36 Billion for Brexit Bill: Telegraph
- Temasek Targets German Companies as Stake Candidates: Welt
Keep an eye on :
- AZA IM : Alitalia Bidders Can Show Interest Starting Aug. 7: Messaggero
- AREVA FP : Kuwait PIA Sells 4.8% Areva Stake to France for $97.7m: KUNA
- BATS LN : BAT Is Said to Prepare to Raise $25b in Bond Market: S. Times
- BPM PL : Banco BPM Second Quarter Revenue Beats Estimates, Banco BPM Agrees to Sell Asset Mgmt Unit to Anima for EU700M
- BA/ LN : 3 Marines Missing After Osprey Aircraft Crashes Off Australian Coast
- EDPR PL : EDP raises EDPR holding to 82.6% for EUR 296m in takeover offer
- GLEN LN : Glencore approached by bankers offering to finance offer for Bunge
- IBM US : Berkshire Filing Shows Further Reduction in Buffett’s IBM Stake
- KINVB SS : Kinnevik Says Deputy Chairman Anders Borg Steps Down From Board
- LIN GY : Linde Forms Holding Company for Merger With Praxair: Welt
- RNO FP : Renault to Finalize Venture to Raise Car Production in Iran: AFP
- SPM IM : Saipem Is Said to Get $800m Contract in Oman: Ansa
- SBRY LN : Sainsbury May Cut Over 1,000 Jobs in Cost Cutting: Telegraph
- SGL GY : SGL Carbon Mulls Full Ownership of BMW Carbon Fiber JV: Euro
- SIE GY : Siemens to Build Two Tech Centers in Chengdu, China: Xinhua
- SNH GY : Steinhoff Africa Retail enters option agreement with Shoprite
- STM FP : STMicro Expects to Reach High End of 2017 Growth Goal: Investir
- TXT US : 3 Marines Missing After Osprey Aircraft Crashes Off Australian Coast
- TIT IM : Telecom Italia BoD issues response to Italian security regulator; says issue of whether Vivendi controls company not addressed at 27 July meeting
- TIT IM : Italy Regulator Reviewing Telecom Italia-Canal Plus Tie-Up: Sole
- UBER IPO : SoftBank Talks Were Said to Value Uber at $45b: The Information
- UCB BB : UCB Granted FDA Orphan Drug Status for Seletalisib
- VIV FP : Vivendi agrees to place bulk of 29.9% stake in Mediaset into blind trust
- VIV FP : Vivendi Must Declare If It Fully Controls Telecom Italia: Sole