Global equities lost altitude through Thursday as the parade of poor economic data and bond market choppiness continued. Early in the week, the ADP jobs report raised real worries that the US would see another anemic payrolls number for April, while Chinese trade data was concerning. There was no breakthrough on Greece, with both sides seemingly committed to forcing negotiations down to the wire. The global bond market rout continued apace this week and the surge in yields kept pressure on stocks worldwide, nudged further by Fed Chair Yellen weighing in on equity valuations. The stampede out of stocks and bonds sent European indexes to their lowest levels in two months. Note that the UST 10-year yield peaked just below 2.3% on Wednesday and then headed back below 2.12%, while the 10-year Bund peaked around 0.777% on Thursday and quickly dropped below 0.540% by Friday. The surprise landslide victory by the Conservative government in UK elections and Friday's not-too-hot, not-too-cold US jobs report helped equities recoup their losses for the week, with DJIA gaining 0.9%, the S&P500 adding 0.4% and the Nasdaq ending just above flat.
Macro :
- China Cuts 1-Year Interest Rates by 0.25 Percentage Point
- China Adds Stimulus With Third Interest-Rate Cut in Six Months
- Greece Cuts 2015 Growth Forecast, Reuters Reports
- Iran Can Raise Oil Exports by 500,000 Bpd Once Sanctions Lifted
- China April Consumer Prices Rise 1.5% Y/Y; Est. 1.6% Gain
- Greek Deal With Creditors to Unlock 7 Projects: Kathimerini
- German Fin Min Schaeuble: concerned about potential for surprise default in Greece; Germany will do everything to keep Greece in the eurozone
- Norway Christian Democrats to Seek More Oil Fund Exclusions
- Merkel Pressed to Give Up on Greece as Germans Urge Strong Euro
Keep an eye on :
- ABBN VX : ABB CEO Tells SRF He Plans No Big Restructurings, Wants to Build
- AH NA : Ahold, Delahize Decline to Comment on Merger Talks Report
- AIR FP : Airbus A400M Crash, First Ever, Leaves 4 Dead, 2 Injured
- AIR FP : Airbus Says Test Flights of A400M Aircraft to Proceed: Reuters
- ATL IM : Atlantia 1Q Ebitda Misses; Italy Traffic +0.9%
- BARC LN : U.K. Banks May Get GBP4b Windfall From Visa Deal, Sky Reports
- BMPS IM : Monte Paschi Sees Possible Merger With Cooperative Banks: Sole
- BMW GY : BMW CEO Faces Investor Opposition to Chairmanship Move: FAS
- BP/ LN : US appeals court finds the company can appeal damages awards from oil spill in the Gulf of Mexico (Deepwater Horizon) - financial press - Court finds existing rules of settlement that gave the claims fund administrator full discretion on paying claims violated BP's rights by not providing it with acceptable methods to for it to appeal decisions.
- CA FP : Carrefour Brazil shareholder Diniz negotiating BRL 1bn raise from Qatari fund to boost stake
- DPW GY : Deutsche Post Faces Strikes After Wage Talks Collapse: Ver.di
- GIL GY : DMG Mori Seiki AG to Be Renamed DMG Mori AG, CEO Says at AGM
- EXO IM : Exor Said to Weigh PartnerRe Bid Raise at Tues. Meeting: Reuters
- MB IM : Mediobanca confirms plans to sell stakes in Telecom Italia and other companies - Il Sole 24 ore
- PFV GY : Pfeiffer Vacuum may make large acquisitions- http://bit.ly/1ElK8JV
- SGO FP : Saint-Gobain Remains Open for Talks With Sika Board, CEO Says
- SCYR SM : Blackstone, Merlin Among Bidders for Sacyr’s Testa: Expansion
- SIE GY : EU Regulators Said Set to Unconditionally Clear SI/DRC: Reuters http://reut.rs/1Qwp9Ma
- SYNN VX : Syngenta trading higher in NYC on report of Shareholders backing a $50b deal
- SYNN VX : Monsanto to Pursue Syngenta Takeover After Bid Rejected: Reuters
- TEVA IT : Mylan chairman tells investors he would consider buying Teva http://reut.rs/1H5lW1F
- UBER IPO : Uber Fund-Raising Points to $50 Billion Valuation - NYT
- V US : Said to be in early stage talks to buy Visa Europe for as much as $20B