Turbulence in the high-yield debt markets sent US equities sharply lower on Friday, though US futures now point to a higher open. Investors are more enthused over improvement in China economic data out over the weekend, with industrial production coming in particularly impressive while also helping Shanghai Composite. Nikkei225 and ASX200 remain under pressure however - the former weighed upon by firmer JPY and also a somewhat disappointing outlook in the BOJ quarterly Tankan survey. USD/JPY is off Friday's lows but only slightly, rising some 30pips above 121.20. AUD/USD dipped some 30pips in the opening hour to 0.7160 but has since tested $0.72. EUR/USD is off by about 30pips from Friday close below 1.0960. China industrial output came in at a 5-month high of 6.2%, well above 5.7% consensus. Closely monitored power generation component also saw its first y/y rise in 3 months at +0.1%. Ahead of this week's widely anticipated FOMC liftoff, WSJ Fed watcher Hilsenrath released a somewhat dovish assessment for the medium-long term policy expectations. Hilsenrath contends that after taking target rates to 3% in about 3 years, Fed officials are concerned they may have to reverse course back to zero. Latest WSJ survey of economists revealed that more than half said it was somewhat or very likely that fed funds rate will return to zero within next 5 years, pointing to potential risks that include "a shock to the US economy from abroad, persistently low inflation, new financial bubble bursting, or lost momentum in a business cycle" that may have run its course on the upside.
Nikkei -1.80% Hang Seng -0.70% Shanghai +2.27%
Eur$1.0970 JPY121.20 CNY6.4585 GBP1.5194 CHF 0.9849 RUB$ 70.4197 WTI $3546 (-0.45%)
S&P +0.47% EuroStoxx +0.03% Dax+0.04% SMI -0.15%
Macro :
- China Nov. Industrial Output Rises 6.2%; Est. 5.7%
- France’s Ratings Affirmed at AA by Fitch
-German Transport Ministry Plans Tighter Emission Controls: BamS
Keep an eye on :
- ABG SM : Abengoa Banks Put EU5B of Co’s Debt on Sale: El Confidencial
- AC FP : AccorHotels Ready to Keep Making Acquisitions, Les Echos Says
- ADP FP : ADP Says Ryanair Has Possibility of Getting Slots at Paris CDG
- AIR FP : Cinven, OHB Said to Bid Jointly for Airbus Defense Unit: Reuters
- AZN LN : AstraZeneca May Buy Acerta Pharma for More Than $5b: WSJ
- BG/ LN : Shell-BG Merger Deal Gets Chinese Antitrust Clearance
- BMPS IM : BTG Pactual Sold Stake in Banca Monte Paschi, Il Sole Reports
- CCR LN : C&C targeted by activist investors Southeastern and Sawiris
- CU FP : Club Med 2014-15 Loss EU44M, Les Echos Says
- CSGN VX : Credit Suisse Won’t Cut Bonuses by Up to 60%: Sonntagszeitung
- DLG GY : Dialog Acknowledges Atmel’s Receipt of Unsolicited Proposal
- FGR FP : Awarded renovation contract at Versailles Parc des Expositions for €152M
- FNC IM : Finmeccanica CEO Says No Intention to Sell Westland Unit, Finmecannica CEO says group has received no offer for AgustaWestland from Boeing
- GCL LN : Cinven Said to Buy Kurt Geiger for GBP245m: FT
- GXI GY : Gerresheimer Considering More Acquisitions, Debt Reduction: BZ
- GPRO US : Fitbit v GoPro: faster, faster - FT - http://on.ft.com/1QmtuEb
- IHG LN : Accor & Kingdom could soon be back on hunt for big acquisitions, making IHG a prime target http://thetim.es/1Nq3mm8
- KUNN SW : Kuoni Hires Morgan Stanley to Explore Options, SZ Reports
- LHN VX : China cement makers propose measures to cut overcapacity- financial press
- LHA GY : Lufthansa’s Swiss to Post 2nd Best Result in History: SamS
- EMG LN : Man Group Said in Talks to Name Livingston as Chairman: Sky News
- MUV2 GY : Berkshire Cuts Munich Re Stake to 4.6% From 9.71%
- POG LN : Renova builds 20% stake in Petropavlovsk, fuelling takeover speculation - Sunday Times
- RNO FP : Nissan Happy With Outcome From Renault Board Meeting: Saikawa
- RIO LN : Rio Set to Sell Carbone Savoie Subsidiary, Figaro Reports
- RR/ LN : Rolls-Royce shareholders split over giving ValueAct a board seat
- RR/ LN : U.K. Said to Mull Nationalizing Rolls-Royce Nuclear Sub Unit: FT http://on.ft.com/1J6eToX
- RYA LN : ADP Says Ryanair Has Possibility of Getting Slots at Paris CDG
- RYA LN : Ryanair Subject of Tax Investigation: Times Link
- SAB SM : Sabadell Doesn’t Plan Any Acquisitions in Next Year: Telegraph
- SPM IM : Saipem Completes EU4.7b Syndication of Senior Credit Lines
- SHP LN : Shire Said to Hold Talks With Baxalta That May Lead to Deal
- TKA AV : Telekom Austria CEO Eyes ‘Key Role’ in Europe Telco M&A: Wiblatt
- TIT IM : Telecom Italia Notes Vivendi Opinion on Saving Shares Plan
- VIE FP : Veolia Targets 2018 Current Net Above EU800m, Jump in Cash Flow
- VOW3 GY : VW Developing New Technology to Integrate Flat Batteries in Cars
- ZO1 GY : Zooplus CFO Sees Lower Margins Also in 2016: Euro am Sonntag
- ZURN VX : Zurich Insurance Names Gary Shaughnessy CEO Global Life