Dow +0.44% S&P +0.34% Nasdaq +0.64% Russell +1.08%
US market closed higher setting new record. In Japan, Prime Minister Shinzo Abe's LDP won a supermajority, paving the way to an easier approval process of potential future stimulus measures, pushing Nikkei more than 4% higher helping th sentiment in Europe & the US. technology (+0.6%), financials (+0.6%), industrials (+0.6%), and consumer discretionary (+0.6%) outperformed, countercyclical health care (-0.2%), telecom services (-0.1%), and utilities (-0.1%) underperformed. Volume were below average with 789mil shares traded. STX +12.5% and AA +3.7% on earnings/guidance... IMPV -9.7% after cutting guidance, TSLA -1.2% on potential SEC investigation. Asian equity markets have extended their gains, tracking another strong session Wall St. while political risks in UK, Japan, and Australia have also abated to give way to more clarity. AA beat on top and bottom lines, affirmed global aluminum demand growth expectations, and forecast improvement in H2 and 2017 on ramp-up of capacity. Tech got a welcome set of prelim numbers from Seagate, which raised its top line forecasts even though it also increased its layoff plans. Shares of AA and STX were up 3.6% and 13% afterhours respectively. S&P500 emini futures are pointing to a modestly higher open on Tuesday. After yesterday's 4% jump, Nikkei225 is at the forefront of the rally again with a near 2.5% gain. Weakness in JPY continues to provide a tailwind in Tokyo, as USD/JPY rose about 80pips from the lows above 103.20, though expectations of a liberal fiscal stimulus response to low inflation doldrums is also helping stoke sentiment. In Europe, Italian Fin Min Padoan declared that speculation of a banking crisis in Italy is incorrect since the govt is working to resolve the non-performing loans issue. Shortly after those comments, IMF lowered its Italy 2016 GDP target to just under 1.0% from 1.1% and 2017 to about 1% v 1.25% prior forecast, warning that risks are tilted to the downside with resolution needed to address asset quality in the financial sector.
Nikkei +2.51% Hang Seng +0.70% CSI +0.81% Shanghai +0.61%
Eur$1.1083 CNH 6.7028 CNY 6.6911 JPY 103.09 GBP 1.3065 CHF 0.9825 RUB 64.0868 WTI$44.86 +0.22%
S&P +0.06% EuroStoxx -0.10% Dax -0.25% SMI -0.12%
Macro :
- E&Ps Still ‘Weary’ of Stressing Balance Sheets Via M&A: TD
- Greek Banks Must Reduce Their NPEs by 40% by 2019: Stournaras
Keep an eye :
- AA US : Alcoa 2Q Adj. Beats Highest Est.; Shrs Up 3.9% Post-Mkt
- ADS GY : Adidas Sues Skechers, Says It Stole Shoe Design: Reuters
- AIR FP : Boeing, Airbus Duel for $12 Billion Order From Revived SpiceJet
- AIR FP : Airbus Said Close to Winning Germania Order for 25 A320neo Jets
- CSGN VX : Credit Suisse Hires Deutsche Bank, CICC Bankers for China
- DAI GY : Daimler 2Q Adj. EBIT ‘Significantly’ Better Than Expectations
- EDF FP : EDF Seen in Talks to Sell Coal Trading Unit to Japan’s Jera: WSJ
- GFC FP : Gecina Sells Preliminary Pacts to Buy, Sell Paris Assets
- KU2 GY : Midea to Provide Funds for Kuka to Make Acquisitions: WiWo
- LHN VX : LafargeHolcim, Wienerberger Upgraded at HSBC Post-Brexit
- LIGHT NA : Schroders Holds 3.08% of Philips Lighting Voting Rights: Filing
- UG FP : PSA Sees ‘Slower’ 2H European Car Market Due to Brexit
- SAN SM : Santander, UniCredit Said Set to Drop EU5.3b Asset-Mgmt Deal: FT
- SGO FP : Saint-Gobain’s Weber Unit Buys Cos. in Slovenia, Albania, Brazil
- SHP LN : Shire’s Xiidra Approved by FDA for Dry Eye Disease
- SIE GY : Siemens CEO Says in Britain for ‘Long Term’: Telegraph
- UCG IM : UniCredit to Begin Strategic Review; to Sell Part of FinecoBank
- UCG IM : UniCredit Sells 10% Stake in Fineco at EU5.40 Per Share
- VLA FP : Valneva Gets EU25m European Investment Bank Loan for Vaccine R&D