Dow+1.32% S&P+1.47% Nasdaq+1.68% Russell+1.37%
US MArket closed sharply higher after Friday correction. Interest rates remained in focus at the start of the session as participants mulled over a continued downturn in global bond markets. Recall that last week the European Central Bank disappointed investors by voting to leave its monetary policy stance unchanged. Furthermore, ECB President Mario Draghi indicated that the Governing Council did not discuss expanding the asset purchase program at the central bank's latest meeting. Equity indices shook weakness in the opening hour of trade as Atlanta Fed President (non-FOMC voter) Dennis Lockhart and Minneapolis Fed President (non-FOMC voter) Neel Kashkari struck divergent tones on the future path of interest rate normalization. Mr. Lockhart signaled that recent data seriously warrants the discussion of raising rates. However, Mr. Kashkari stated that there's no urgency in raising rates at this time. implied probability of a rate hike at the September meeting fell to 15.0% from 24.0% in the prior session. All ten sectors ended in the green with technology (+1.7%), utilities (+1.7%), consumer staples (+1.9%), and telecom services (+2.0%) leading the pack. On the flipside, the commodity-sensitive energy (+0.9%) and materials (+1.0%) sectors finished at the bottom of the leaderboard. Volume were above average at 992mil shares. US After Hours UNFI +1% following earnings, KTOS +6% on contract news... WTW -4% on CEO news and despite confidence in growth, APC -3% following Gulf of Mexico asset acquisition news. Asian equity markets are marginally higher, tracking a bounce-back rally on Wall St after a fairly cautious set of comments from Fed's Brainard balanced some of the more hawkish remarks from Rosengren and Kaplan last week. Key August economic data in China were fairly constructive. Industrial output growth of 6.3% stood out the most as it accelerated to a 5-month high. After a record magnitude 5.8 earthquake in South Korea earlier today, Samsung, LG Electronics, and Hyundai Motor temporarily halted some production facilities. South Korea Finance Ministry has also announced it is closed monitoring the impact of the quake, while adding the nuclear test by the North has not played a big part in financial markets. President Park has called for more measures to effectively deal with threats from Pyongyang.
Nikkei +0.41% Hang Seng +0.92% CSI -0.26% Shanghai -0.19%
Eur$ 1.1230 CNH 6.6906 CNY 6.6797 JPY 101.87 GBP 1.3323 CHF 0.9721 RUB 64.6346 WTI$45.92 (-0.80%)
S&P -0.38% EuroStoxx +0.86% Dax +0.83% SMI +0.68%
Macro :
-Germany Considers Venture Capital Tax Law Change: Handelsblatt
- Fed’s Brainard Urges ‘Prudence’ in Removal of Accommodation
- EU May Allow Regional Telecom Cartels: Handelsblatt
Keep an eye on :
- ABBN VX : Cevian’s Gardell Wants to Spin Off ABB’s Power Grids Unit: SVD
- ABN NA : ABN Amro CEO Zalm to Step Down in 2017
- AIR FP : Boeing Predicts China Demand for 6,810 New Planes in Next 20 Yrs
- AI FP : Air Liquide Seeks EU3.3b in Rights Offer for Airgas Purchase
- AZ IM : Alitalia Seeking 30% Cut in Labor Costs: Repubblica
- APD US : Air Products Block Trade: 3.5m Shrs at $149.25
- ATO FP : Atos to Buy Anthelio Healthcare Solutions From Actis
- BARC LN : Diamond Said to Still Be Interested in Barclays Africa Bid: FT
- BMPS IM : New Paschi CEO To Be Appointed on Wednesday, Padoan Says
- FCX US : Anadarko Buys $2b in Freeport-McMoRan Gulf Assets
- GAS SM : Repsol, Caixa Each Sell 10% Stake in Gas Natural to Gip
- ITP FP : Interparfums Names Ferrant Artistic Director of Rochas Homme
- ISIL US : Renesas to Buy Intersil for $22.5/Share
- RAND NA : Monster Worldwide Board Recommends Accepting Randstad Offer
- RBS LN : RBS Facing Cyclical Headwinds in Core Business, Barclays Says
- SAB LN : ISS Recommends SABMiller Holders Vote for AB InBev Deal
- SAN SM : Santander Said to Buy Citi’s Argentina Retail Business: Nacion
- VOW3 GY : VW’s HR Head Wants to Avoid Layoffs in Restructure: Handelsblatt