Weekly Performance
Dow +1.65% S&P +1.19% Nasdaq +1.45% Russell +1.30% Nikkei +1.64% Hang Seng +2.95% CSI / Shanghai / Shenzen / Mexico +0.60% Brazil +2.37% EuroStoxx +0.24% FTSE +2.04% CAC +0.56% DAX +1.98% Ibex -1.89% MIB -1.34% SMI +1.03%
Equity markets ran up yet again this week to fresh highs before Friday’s September employment report induced some minimal profit taking. Outside of Friday's jobs numbers the economic data remained unambiguously strong; headlined by the highest ISM non-manufacturing composite since 2005. The September jobs report did suggest wage inflation may be taking hold as unemployment rates continue to dwindle. The figures came on the heels of a plethora of Fed speak which seemed to indicate Fed officials were gaining confidence in their ability pull the trigger and raise rates in December. Rates moved up and Treasury curves steepened while the US Dollar regained some upside momentum. The Pound came under pressure as Brexit concerns, and in particular, the fate of PM May weighed on traders psyche. Spanish stocks weighed on Europe as uncertainty surrounding Catalonia resulted IBEX weakness and a modest widening of peripheral yield spreads. WTI crude futures stumbled, dipping back below $50 and under the 50-day moving average even as another tropical storm, Nate, approached the Gulf of Mexico. Copper prices broke back above the 50-day moving average to the highest levels in more than a month, helped by a dearth of headlines out of China as markets were closed for Golden Week. In Washington DC, Republicans continued to press the case for tax cuts while speculation swirled surrounding the fate of Sec of State Tillerson. Democrats called for renewed gun regulation in the wake of Las Vegas suffering the worst mass shooting in US history. The VIX drifted lower yet again nearing the 9.00 mark midweek and overall stock volumes remained notably soft. For the week the DJIA gained 1.6%, the S&P500 was up 1.2%, and the Nasdaq added 1.5%.
Macro :
- German Government Raises 2017 Growth Forecast to 1.9%: HBMIB
- Fitch: Catalonia Confrontation Could Raise Spanish Bank Risks
- Spanish Bank Ratings Not Affected by Catalonia Crisis, S&P Says
- Spain’s Rajoy Said Art. 155 Not Justified for Catalonia: ABC
- U.K. Cabinet Reshuffle After Oct 19-20 EU Summit: Sunday Times
- House Speaker Ryan: Tax reform is on track for implementation by Jan 1st, 2018 - Ryan tweets
Keep an eye on :
- ABE SM : Abertis Said to Study Moving Legal Base From Catalonia Monday
- ACS SM : ACS Says Has Funds to Rival Atlantia’s Abertis Bid: Confidencial
- AB1 GY : Air Berlin’s KfW Loan Due for Repayment on Dec. 4, BamS Says
- AIR FP : Airbus Sees ‘Significant Penalties’ Risk in Payments Probe : AFP
- AIR FP : Airbus Probes 100 Possible Bribery Payments: Spiegel
- AMZN US : Amazon Is Said to Decide Before Thanksgiving on Drug Sales: CNBC / (Amazon’s Pharmacy Dreams Sink Distributors)
- AGL IM : Autogrill ready to make new buys
- BOL FP : Bolloré Divested Of Benin-Niger Part Of Cotonou-Abidjan Project
- CABK SM : CaixaBank Board Agrees Move of Legal Base From Catalonia
- COL SM : Colonial Weighs Registered Office Move From Catalonia: Vozpopuli
- CBK GY : Credit Agricole Would Look at Commerzbank If Was for Sale: HB
- EDP PL : China Three Gorges Considering Repacing EDP CEO Mexia: Expresso
- ENI IM : Eni Says Water Tests at Costa Molina 2 Well Conformed With Norms
- GAS SM : Gas Natural Approves Temporary Legal Base Move to Madrid
- MDLZ US : Mondelez Holder Pershing Square Reports 4.97% Stake (from 5.6%)
- NEX FP :Prysmian, Nexans, NTK Are Said to Bid for General Cable: Reuters
- PRY IM : Prysmian, Nexans, NTK Are Said to Bid for General Cable: Reuters
- QIA GY : Qiagen NV Rises as Much as 5% to Highest Since July
- RIO LN : Rio Tinto considering sale of Dunkerque aluminum smelter
- SAB SM : Fitch: Catalonia Confrontation Could Raise Spanish Bank Risks
- TSLA US : Tesla Delays Semi Unveil, Says Diverting Resources for Model 3
- TEVA US : Cooper/Teva $1b Deal May Be Hurt by Birth Control Rule: JPMorgan
- UBSN VX : UBS Wins GBP11b Passive-Equity Mandate From U.K. Pension Funds
- VIV FP : Mediaset, Vivendi Start Talks to Resolve Pay TV Dispute: Sole
- VOW3 GY : German Transport Ministry Wants Hardware Diesel Fixes: Spiegel
- ZURN VX : Zurich to Lower Costs by $700m by Year End, CEO Greco Tells NZZ