Investor uneasiness towards equities showed throughout much of the trading week. A confluence of decelerating growth readings, particularly in Europe, along with lingering concerns about US trade relations and the new headwind of a suddenly appreciating US dollar led to an increase in volatility. Earnings season rolled on with many of the same themes holding; companies that missed or offered disappointing outlooks got punished while firms like Apple where expectations had already been downgraded significantly saw relief rallies when results topped expectations. The FOMC’s change of inflation language only confirmed the expectation the Fed will be hiking at least two more times this year, including at the next meeting. After touching 3.3% last week the US 10-year yield backed off below three percent when money flowed away from stocks and into bonds. By midweek both the Dow and S&P had retested their respective 200-day moving averages for the second and third times. Buyers stepped in aggressively following the Fed meeting and into Friday’s jobs report which failed to fan an inflation fears while indicating slack in the US job market continues to come out. The Dollar Index closed the week above 92.5 for the first time since mid- December, while WTI crude finished the week at the highest level going back to 2015. For the week the S&P fell 0.2%, the Dow lost 0.2% and the NASDAQ gained 1.25%.
Macro :
- May Under Pressure From Tories on Both Sides of Brexit Split
- Iran Opposes Higher Oil Prices, Signaling Divide With Saudis
- JPMorgan Casts a Wary Eye on ‘Unhelpful’ Rates/USD Correlation
Keep an eye on :
- ADP FP : French State Will Sell ADP Stake, Francaise des Jeux: Le Maire
- AF FP : Air France Is ‘in Danger of Disappearing’: Finance Minister
- AF FP : Air France Pilot Union SNPL Says Janaillac ‘Good CEO’
- AF FP : Air France-KLM CEO Janaillac Resigns After Losing Pay Vote
- AMS SM : Airline Industry Eyes Payment System to Rival Credit Cards: FT
- AAPL US : Apple’s Corporate Bond Holdings Drop for First Time Since 2013
- AZN LN : Astra Zeneca CEO’s Pay Plan Opposed by ISS, PIRC: Sunday Times
- BP/ LN : Iraq Delays Signing Deal With BP to Develop Kirkuk Oil Fields
- BPI PL : CaixaBank to Buy 8.425% of BPI From Allianz, to Delist Lender
- CABK SM : CaixaBank to Buy 8.425% of BPI From Allianz, to Delist Lender
- CON GY : +ve artcile in the barron's
- DAI GY : Daimler Cooperating Fully in Emissions Probe: Spokeswoman
- DBK GY : Deutsche Bank to Move NYC Headquarters From Wall St. to Midtown
- FCA IM : Fiat Chrysler Seat Plant Workers Voting on Whether to End Strike
- GLEN LN : Glencore-QIA Pact to Sell 14.16% Rosneft Stake Won’t Proceed
- HIS SM : Spain CNMC Regulator Approves Blackstone Hispania Bid
- NOVN SW : Novartis’s Tafinlar, Mekinist Get FDA OK for New Uses for ATC
- NHY NO : Qatar Petroleum Plans IPO of Aluminum Venture With Norsk Hydro
- OERL SW : Oerlikon Preparing for IPO for Drive Systems Business: FUW
- RNO FP : Nissan Plans to Stop Selling Diesel Cars in Europe, NHK Says
- RBS LN : Holbourn Is Said in Talks With RBS for Head of Strategy Job: Sky
- RKET GY : Rocket Internet Bought 9.7 Mln Own Shrs in Public Shr Buy Offer
- G24 GY : Scout24 Board Members Goetz, Healy, Kleinman Will Resign
- SPD LN : Sports Direct Unit Sues House of Fraser for Company Information
- SREN SW : Swiss Re, SoftBank Talks Are Said to Be Close to Collapsing: FT
- TIT IM : CPPIB Says It Voted for Elliott in Telecom Italia Fight
- TIT IM : Telecom Italia CEO Says He Expects New Board to Back His Plan
- VOW3 GY : VW Lawyer Says Winterkorn Discussed Emissions Device in 2015: SZ
- VOW3 GY : *VW BOARD CONSIDERS SEEKING DAMAGES FROM EX-CEO WINTERKORN: FT