Weekly Update
Dow +0.60% S&P+0.23% Nasdaq +0.14% Russell -0.03% Mexico +0.40% Brazil -1.51% (-0.70% in $) Nikkei -0.52% (-1.84% in $) HAng Seng -1.64% CSI -0.30% Shanghai +0.80% EuroStoxx +0.64% FTSE +0.52% (-0.57% in $) CAC +0.48% Dax +0.52% Ibex +0.42% SMI -0.27% (-0.88% in $)
For the second straight week rising interest rates continued to overshadow global trading and geopolitical developments. North Korea's successful test of an ICBM on the July 4th holiday may have spurred some risk off sentiment when trading resumed on Wednesday, but most pointed to a sustained rise in Treasury yields as the culprit. The European economic data continued to surpass expectations broadly, resulting in the German 10-year Bund yield moving back above 0.5% to levels not seen since early last year. US rates tracked European yields higher and in a move that appeared justified by the release of another robust June jobs report on Friday. The Euro moved to a 1-month high while the Pound suffered after UK economic releases significantly lagged that of continental Europe's. The Dollar also rose to the highest level since early May against the Yen, and buyers were rewarded on Friday when the BOJ was forced to offer an unlimited amount of bids in its fixed-rate bond operation to stem the rise in JGB bond yields. Crude oil prices rolled over mid-week giving back half of gains seen since the June 21st low while by Friday gold prices dropped to levels not seen since March likely hurt by the back up in rates.
Macro :
- ECB’s Coeure Says Euro Zone Needs to Be Ready for Next Crisis
- France Ready to Fend Off Hostile Predators of Big Cos.: Le Maire
- Google, Amazon, Facebook Must Pay EU taxes, French Minister Says
- Cariparma in Talks to Buy 3 Italian Banks for EU1: Messaggero
- Buffett Plans Further Investments in Germany, Advisor Tells BAMS
Keep an eye on :
- A2A iM : A2A Gets Non-Binding Offers for Montenegro EPCG Stake: Radiocor
- ADP FP : Caisse Des Depots May Consider Aeroports de Paris Stake: Reuters
- AMZN VX : Amazon Prime On Pace to Have More Subscribers Than Cable: Recode
- AAPL US : ITunes Store’s Share of Movies Market Falls to 25%-30%: WSJ
- AV/ LN : Schneider Electric Is Said to Mull New Bid for Aveva: S. Times
- GBF GY : Bilfinger CFO Patzak Says Restructuring Still at Early Stage: BZ
- BT/ LN : BT Group to Conduct a Review of Its Businesses: Telegraph
- DC/ LN : Dixons Carphone CEO Is Said to Have Been Approached for ITV: Sky
- EDF FP : EDF May Not Be Part of France State-Asset Sale: Reuters
- HEN3 GY : Henkel Plans Additional Acquisitions, Mega Deals Unlikely: RP
- NETS DC : Nets shareholders could unlock value via sale after disappointing post-IPO run - MergerMarket
- OCLR US : Oclaro PT Raised at Stifel; Seen as Logical M&A Target
- ROG VX : Shire Gets Injunction Against Roche on Emicizumab
- SU FP : Schneider Electric Is Said to Mull New Bid for Aveva: S. Times
- SHP VX : Shire Gets Injunction Against Roche on Emicizumab
- FP FP : Total-Led Group Saw Return of Iran Sanctions as Unlikely: Shana
- VIV FP : Vivendi asks Telecom Italia boss to cool broadband row with Rome - http://reut.rs/2u75fFx
- VOW3 GY : VW Official Said to Have Estimated ~$19b Fines in Aug. ’15: BamS