Weekly Performance
Dow +1.04% S&P +1.41% Nasdaq +2.59% Russell +0.92% Brazil +5% (+8.35% in $) Mexico +2.20% (+5,27% in $) Nikkei +0.95% (+2.20% in $) Hang Seng +4,14% CSI +1.29% Shanghai +0.14% EuroStoxx +1.79% (+2.41% in $) FTSE +0.37% CAC +1.75% DAX +1.96% Ibex +1.59% MIB +2.27% SMI +1.70%
Equity markets moved up early in the week while interest rates appeared to stabilize. Stocks quickly brushed aside volatility induced by the latest revelations out of Washington D.C. that President Trump’s son met with Russian operatives during the 2016 election. By Wednesday, Fed Chair Yellen’s testimony was seen largely in a dovish light when she noted the federal funds rate would not have to rise all that much further to get to a neutral policy stance. Global bond prices continued to rise even in the face of various press reports suggesting the ECB is close to signaling its own QE taper. By Friday, soft readings for both US consumption and consumer prices cemented the week's tone of a lower US dollar, stabilizing global rates, and rising equity valuations. The Dollar index finished the week at its lowest level since September, while gold prices rose to the highest point in about 2 weeks. WTI crude prices rose 5% helped by larger than expected draw downs in US inventories. By Friday, the VIX dipped back below 10, closing near a record low, while the Transports, S&P 500 and Russel 2000 all finished the week at an all time closing high. The NASDAQ had its best week in almost 3 months. For the week the S&P gained 1.4%, Dow added 1% and the NASDAQ jumped 2.6%.
In corporate news this week, Target raised its Q2 guidance and indicated a broad-based improvement in traffic, giving a much-needed boost to the beaten-down retail sector. Amazon saw a huge spike in Echo sales during its annual Prime Day promotion, with demand for the smart speaker reaching seven times last year’s levels. And as banks kicked off earnings season, JPMorgan reported profits came in well above consensus, and CEO Dimon pointed to strong loans and deposits growth, as well as double-digit boosts to card sales and merchant processing volumes. Citi posted an earnings beat on notable strength in its fixed-income segment. Wells Fargo earnings also topped Street estimates, but disappointed on revenues and warned costs may remain inflated in the short term.
Macro :
- U.K. Businesses Urge Min. Wage Freeze on Brexit Fear: S. Times
- David Einhorn’s Greenlight Capital Hedge Fund Fell 4% in 2Q
- Goldman Lowers Odds of December Fed Rate Hike to 50% From 55%
- Netanyahu Says Israel Rejects South Syria Cease-Fire: Haaretz
Keep an eye on :
- ADS GY : Adidas Shares Could Double as Profit Margins Expand - Barron's
- AF FP : Air France-KLM Stake in Kenya Airways to Fall on Debt Conversion
- AIR FP : Airbus U.K. Unit CEO Kahn Replaced by Bennett: Telegraph
- AZN LN : AstraZeneca’s Pascal Soriot Is Said to Plan on Staying as CEO
- BMW GY : Germany, Carmakers Reach Diesel Emissions Agreement: Spiegel
- CXDG PL : Caixa Geral Hires Societe Generale for Sale of Spain Unit: Eco
- DAI GY : Mercedes-Benz Recalls 16,301 Cars in China Over Brake Problem
- DAI GY : Germany, Carmakers Reach Diesel Emissions Agreement: Spiegel
- AM FP : France to Sell 63 Mirage Planes to U.S. for Training: Les Echos
- DIS US : Disney Announces New Attractions, Theme Parks
- EZJ LN : EasyJet Is Said to Confirm CEO McCall Resigning for ITV Job: Sky
- ENEL IM : Enel Starts to Sell Assets; Continues Being Operator: CEO
- FCA IM : Fiat Chrysler Recalls Some 2011-2015 Dodge, Fiat Vehicles
- G1A GY : Gea Group Lowers 2017 Ebitda Outlook Amid Additional Costs
- IPR PL : Impresa Says Extends Bond Sale Period Deadline to July 19
- JUN3 GY : Jungheinrich Could Bypass Possible U.S. Import Taxes: WamS
- NAS NO : Norwegian Air U.K. Unit Gets Tentative Approval by U.S. DOT
- OERL SW : Oerlikon open to more technology buys, Drives unit to be sold to the right buyer at the right time
- PWTN SW : Panalpina Sea Freight Result Is Improving: CEO Tells Basler
- POP SM : EU Names Mazars as Monitoring Trustee for Popular: Expansion
- PAH3 GY : Porsche Says Racing Decision Near as Spiegel Reports on F1 Plans
- RB/ LN : Unilever Is Said to Table Bid for Reckitt’s Food Div.: S. Times
- CFR VX : Richemont’s Kern Pushed Digital Before Departure, Le Temps Says, Kern Takes Less Than 5% of Breitling Capital for CEO Role: NZZ
- RIO LN : Rio Tinto’s Aluminum Smelter Workers in B.C. Vote for Strike
- SAN FP : Sanofi: Zika Vaccine License Fee to U.S. Army May Be Significant
- S US : Sprint Chairman Is Said to Seek Investments From Buffett, Malone
- TEVA IT : AstraZeneca’s Pascal Soriot Is Said to Plan on Staying as CEO
- TOD IM : Tod’s Ends Collaboration With Aquilano and Raimondi on Fay Brand
- UNA NA : Unilever Is Said to Table Bid for Reckitt’s Food Div.: S. Times
- VNA GY : Vonovia to Consider Acquisitions if Property Prices Fall: WamS