US Market Closed Higher, Banco Espirito Santo bailout gave some more confidence about Europe to deal with issues, The top-weighted S&P 500 sector—technology (+0.7%)—ended in line with the benchmark index. Large cap listings displayed broad strength with Google (GOOGL 582.27, +8.67) and Microsoft (MSFT 43.37, +0.51) both adding near 1.3%, while Apple (AAPL 95.59, -0.54) lagged. The largest tech stock shed 0.6%, Industrial Underperformed (+0.3%), On the countercyclical side, consumer staples (+0.4%), health care (+0.5%), and telecom services (+0.6%) benefitted from the afternoon rally,
while the utilities sector (-0.6%) spent the entire trading day in the red to widen its third quarter loss to 7.1%, Like energy, the consumer discretionary sector (+1.0%) also added at least 1.0%. The group received all-around support as carmakers, homebuilders, and retailers rallied. Volume @ 661mil shares below average. VIX @ 15.12 -11.22% ...Today, June Factory Orders ( consensus 0.5%) and the ISM Services Index for July (consensus 56.5) will both be reported at 10:00...Early optimism that followed a rebound on Wall St has dissipated with the release of record-low HSBC services PMI figure from China. HSBC economist noted the "weakness in the headline number likely reflects the impact of the ongoing property slowdown in many cities as property related activity see less business... meanwhile, the employment and business sentiment indices remain stable." Separately, Chinese press speculated lending activity by China's top 4 banks in July would slow to CNY210B v CNY290B in June...
Asian Numbers today :
- Consumer Discretionary: Daiichikosho 7458.JP +2.6% (Q1 results)
- Consumer staples: WH Group 288.HK +7.7% (IPO debut)
- Financials: Cinda International 111.HK +9.7% (H1 guidance); HSBC 5.HK +0.8% (H1 results); Greentown China 3900.HK -10.6% (H1 guidance); Bank of Yokohama 8332.JP -3.9% (Q1 results); NTT Urban Development Corp 8933.JP +4.8% (Q1 results); Yamaguchi Financial Group 8418.JP -1.9% (Q1 results); Suruga Bank 8358.JP -4.8% (Q1 results)
- Industrials: Brother Industries 6448.JP -3.5% (Q1 results); Isuzu Motors 7202.JP +4.8% (Q1 results); Japan Steel Works 5631.JP -7.7% (Q1 results); Downer DOW.AU -4.0% (FY14 results)
- Technology: Tamron 7740.JP +2.0% (Q2 results); Rakuten 4755.JP +5.1% (H1 results)
Eur$ 1.3425 S&P -0.15% EuroStoxx +0.16% FTSE -0.02% SMI +0.02% Dax +0.30%
Macro
- HSBC China July Services PMI 50 vs 53.1 in June
- HSBC India July Composite PMI 53 vs 53.8 in June
- KKR Expects European M&A Market to Gain Traction: Handelsblatt
- Russia May Restrict Overflights as Sanctions Response: Vedomosti
- ZEW President Says Banking Union Could Stabilize Europe: HB
Keep an eye on :
- AKTAV FH : Aktia Bank Boosts Capital Ratio, EPS; Net Interest Income Drops
- SPR GY : Axel Springer 2Q Rev, Ebitda Beat; Reiterates Full Year Forecast
- BALN SW : Baloise Sees 1H Profit up More than 40% to More Than CHF340m
- BES PL : Novo Banco could stay in state hands for up to two years- report
- BIM IM : Banca IPIBI and BIM sale could be announced this week
- BMSA GY : Braas Monier 1H LFL Revenue Growth 6%, Confirms 2014 Outlook
- BMW GY : BMW 2Q Profit Beats Est., Rev. Misses; Confirms Forecast (1114 -1.25% in HK)
- BWO NO : BW Offshore Signs Documentation for New $800M Bank Loan Facility
- ACA FP : Credit Agricole 2Q Profit Misses Ests. on Espirito Santo Costs
- ACA FP : Credit Agricole Entering Talks With U.S. Over OFAC Review: CEO
- DAI GY : China Antitrust Regulator Inspects Mercedes Office: Jiemian
- DPW GY : Deutsche Post 2Q Profit Beats; Sets 2016 Ebit Target
- DTE GY : Deutsche Telekom Said Unimpressed by Iliad’s TMUS Bid: Reuters
- DSM NA : DSM 2Q Ebitda Cont. Operations Ex-Items EU293m, Estimate EU301m, Says 2Q Improvement at Nutrition vs Last 2 Quarters
- DVR LN : De Vere Group believed to have agreed to GBP 162m sale of six golf resorts to Sankaty Advisors
- EUZ GY : Eckert & Ziegler BEBIG 1H Net Loss EU967,000 Vs EU658,000 Profit
- GLPG BB : Galapagos Gets Osteoarthritis Milestone Payment From Servier
- GSK LN : Rumored to be a target for Pfizer - Daily Express - the Guardian
- HSBA LN : HSBC Rises in Hong Kong After CEO Predicts Revenue Rebound
- ILD FP : Deutsche Telekom Said Unimpressed by Iliad’s TMUS Bid: Reuters
- LG FP : Lafarge, Holcim Propose Sale of 3 Brazilian Cement Plants
- MEO GY : Metro In Talks to Sell Vietnam Cash & Carry Unit: WSJ (Yday)
- OERL SW : Oerlikon 2Q Ebit, Orders Rise; Confirms 2014 Forecasts
- PFV GY : Pfeiffer Vacuum 2Q Sales, Orders Drop; Confirms Forecast
- 1913 HK : Prada PT Cut to HKD57.8 at Mediobanca; Kept at Neutral ( -1.19%)
- RHI AV : RHI 2Q Sales and Profit Fall on Sluggish Market, Restructuring
- RHJ GY : Deutsche Bank Sells Stake in RHJ as Oddo & Cie Boosts Holding
- ROD FP : Rodriguez Group declared bankrupt, could find buyer for Camper and Nicholsons activities
- SLR SM : Solaria 1H Net EU4.4m vs Loss EU2.8m Y/y
- TKA GY : ThyssenKrupp Job Cuts at Italy Mill Said on Hold: Reuters Link
- TNET BB : Telenet Attractive Cash Return in Sight, Nomura Says; Rates Buy
- UCG IM : UniCredit to Decide on Pioneer Sale in September: Repubblica
- VIV FP : Telefonica Says Made Offer for Vivendi's GVT Unit, €6.7bil, Vivendi Confirms Bid;Says Board Will Study Offer From Telefonica
- VCT FP : Vicat 1H Rev. EU1.22b vs Est. EU1.16b