Weekly Update
Dow-0.19% S&P-0.40% Nasdaq-0.82% Russell-1.43% Nikkei-7.64% Hang Seng -5.89% Shanghai -1.10% EuroStoxx-3.02% FTSE -3.11% CAC-2.88% Dax-1.68% Ibex-3.59% MIB -4.07% SMI -4.49%
Over recent weeks there has been a recurring debate in markets about the prospects for the stalled global economic recovery. Many analysts saw the first quarter as a seasonal aberration and predicted the widespread economic softness would soon to be replaced by green shoots as oil prices rose, China stabilized and the US economy improved. The more pessimistic analysis said the problems seen in the first quarter were indicative of deeper problems, and developments this week seemed to favor the latter camp. The April US jobs report was soft, and the decline in the April US ISM factory data suggested manufacturing was not healing quite as quickly as expected. Other global data was similarly weak. The softer dollar trend appears to have plateaued, with EUR/USD unable to sustain gains above 1.1500 while the USD/JPY appears to holding above 105. A resurgent Dollar weighed on commodity prices in general before production hotspots pushed up oil prices late in the week. Treasury yields drifted lower aided by flows out of the equity markets pushing rates to levels not seen since mid-April. For the week the DJIA lost 0.2%, the S&P lost 0.4% and the NASDAQ fell 0.8%.
Macro :
- China’s April Exports Rise 4.1% Y/y in Yuan Terms
- BOE Prepares for Rate Cut in Event of Brexit: Sunday Times
- Juncker Says Brexit to Have ’Unforeseeable Effects’: Funke
- Soros Chart Signals BOJ Bond Buying Already Enough to Weaken Yen
Keep an eye on :
- ABI BB : Anheuser-Busch Inbev Debt Rating Cut Two Notches by Fitch
- ACMI IM : AC Milan owners to decide on whether to concede exclusive takeover talks to Chinese consortium at beginning of next week - Il Sole 24 Ore
- AMZN US : CEO Bezos sells 1% of holding for $671M; Marks his largest company stock sale ever
- BMW GY : BMW to Offer Engineers Retraining as Software Experts: Spiegel
- BB/ LN : Blackstone, Cerberus Study Bradford & Bingley Loans: Times
- EDF FP : China National Nuclear May Take Hinkley Point Stake: Telegraph
- EMC US : Dell said to plan to market debt next week to raise funds for previously announced EMC deal
- ENEL IM : Enel makes informal offer for Metroweb - Il Corriere della Sera
- EOAN GY : Abandoning Coal May Cost Germany EU71.6b: Handelsblatt
- FRS SM : Fersa attracts final offers from Springwater, Audax and Oaktree; low bids may trigger hostile move - Expansion
- GALP PL : Galp Said to Seek Bids for Stake in Gas Distribution Ops: Rtrs
- GILD US : Gilead Discloses U.S. Attorney’s Office Subpoena on 501(c)(3)s
- GLEN LN : Glencore in discussions with bidders including SALIC, Qatar, Canadian pension fund about sale of further 9.9% stake in agricultural arm - Reuters - http://bit.ly/1rB2TcS
- ILD FP : Telefonica considering options for O2 in light of expected EC block on sale to Hutchison; Iliad considering bid, Iliad Considering Bid for Telefonica’s O2: Sunday Times
- MC FP : Jeweler De Grisogono Buys Rights to Sell 404-Carat Rough Diamond
- LSE LN : LSE and Deutsche Boerse executives unlikely to be questioned by UK MPs about merger - Daily Mail
- NRF US : Colony Capital, NorthStar Asset, NorthStar Realty Confirm Talks -->+5.8% in After Hours
- QIHU US : Qihoo 360 Says Speculation on Its Privatization Untrue
- RCS IM : Cairo Communication asked by Italian securities regulator for additional information on public offer
- STL NO : Statoil Declares Force Majeure Amid Oil Sands Wildfire
- TEF SM : Telefonica considering options for O2 in light of expected EC block on sale to Hutchison; Iliad considering bid
- TESB BB : Tessenderlo Chemie CEO Tack Buys Additional EU1.75m of Stock