Dow -0.60% S&P -0.81% NAsdaq -0.50% Russell -1.28%
US Market closed lower after long expected FOMC Meeting and announced 25bps rate hike. The central bank lived up to that expectation, but the accompanying "dot plot" indicated that policymakers expect to raise rates three times in 2017. This is at odds with the fed funds futures market, which expects just two hikes in 2017. All eleven sectors ended the day in negative territory with rate-sensitive groups leading the retreat. Real estate (-1.9%) and utilities (-2.0%) settled near the bottom of the leaderboard while consumer staples (-1.0%) and telecom services (-1.0%) posted slimmer losses. The health care sector (-0.4%) ended a bit ahead of the market thanks to the outperformance among biotech names. volume were above average with 1.2bil shares. US After Hours MDLZ+15% and then +6% on article in Swiss press of potential Kraft Heinz bid. ATHN +21%, PIR +19%, APOG +2% following earnings/guidance, ORIG -20% following earnings/guidance, several names lower following offering news. Asian mkt are digesting FOMC Decision, USD spiked by over 200pips against JPY and about 150pips against EUR to 1.05, while Gold fell over $20/oz below $1,450. US treasury yields rose most notably on the short end - 2-year added 11bps and the 5-year was saw a 10bp increase. USD added to gains in Asia, with EUR/USD coming within 10pips of its 14-year low below 1.0460 and USD/JPY approaching 118 handle. Aussie gold miners are bearing the brunt of the precious metal decline. Hong Kong was also hard hit - Insurers, financials, property developers, and gaming stocks were the biggest decliners. Japan's Dec prelim manufacturing PMI printed an 11-month high with its 4th straight month of expansion. Markit economist noted new work inflows rising at the quickest pace since January, helping the rate of job creation picking up to a 32-month high. BOJ's Q4 Tankan survey of inflation raised its 1-year target and 5-year target by a decimal to 0.7% and 1.1% - still well below the 2% goal.
Nikkei +0.10% Hang Seng -1.93% CSI -1.29% Shanghai -1%
Eur$ 1.0491 CNH 6.9372 CNY 6.9349 JPY 117.55 GBP 1.2551 CHF 1.0239 RUB 61.7433 WTI$ 50.96 -0.15%
S&P +0.06% EuroStoxx -0.06% Dax -0.06% SMI +0.21% FTSE -0.30%
Macro :
- Yellen: It Will Take Several Years to Let Balance Sheet Run Off,
- Yellen: FOMC Discussed Strength of Post-Election Markets
- Yellen: Fiscal Boost ‘Not Obviously Needed’ for Full Employment
- EU Leaders to Call for Additional Defense Spending: Draft
- Juncker: Don’t See New Euro Crisis Emerging From Italy
Keep an eye on :
- ABG SM : Abengoa Wins Approval for U.S. Units to End Bankruptcy
- ADS GY : Adidas to Focus on U.S. Expansion, Digitization: Handelsblatt
- CS FP : Axa Vice-Chairman of Board Resigns; Co. Appoints Poncet
- CS FP : Cap Gemini Acquires Axa Tech’s Indian Unit: Les Echos
- BMW GY : BMW I Ventures Invests in Virtual-Reality Co. Strivr, No Terms
- BPOST BB : Belgian Regulator Approves Bpost Plan to Meet Delivery Criteria
- CAP FP : Cap Gemini Acquires Axa Tech’s Indian Unit: Les Echos
- DB1 GY : Merger Watchdogs Disclose Objections to LSE-Deutsche Boerse Deal
- EDF FP : EDF Sees Ebitda Falling to EU13.7 Billion-14.3 Billion in 2017
- FUR NA : Boskalis not ruling out future Fugro move - report
- GAM SM : Gamesa Improves Terms of EU750 Million Syndicated Loan Facility
- GTO NA : Oddo Meriten Reports Smaller Gemalto Stake of 2.98%: AFM Filing
- GBB FP : Bourbon Names Henri de Chateauvieux’s Daughter De Breon as CFO
- HAR US : Harman shareholder Atlantic Investment says no to proposed acquisition by Samsung - WSJ
- LIN GY : Linde to Become U.S. Company After Praxair Deal: WiWo
- LLOY LN : Lloyd’s of London May Propose EU Base Location by February: FT
- LONN VX : Lonza to Buy Capsugel for $5.5b
- MEO GY : Metro Group to Demerge, Split Into Two Separate Companies
- MDLZ US : Kraft Heinz Said Planning to Acquire Mondelez, Bilanz Reports - http://bit.ly/2hGq8Bx
- MDLZ UA : Mondelez Said to Be Unaware of Any Kraft Heinz Approach: Reuters - http://reut.rs/2hwa84h
- MS IM : Vivendi Increases Stake in Italy’s Mediaset to 20%
- MS IM : Mediaset may carry out EUR 500m-EUR 800m capital increase to ward off Vivendi attack - Il ~Messaggero
- NOVOB DC : Drugmaker Novo Says Stem Cell Trials May Begin Within 5 Yrs
- SAN FP : Sanofi Cited by FDA Over Misleading TV Ad for Diabetes Drug
- SIKA VX : Sika Acquires U.S.-Based Rmax Operating, Doesn’t Disclose Price
- SKY LN : 21st Century Fox to make formal offer for Sky today - The Times
- SOP FP : Sopra Chosen by Bank of France for Payment Systems: L’Agefi
- TOM2 NA : TomTom, Microsoft to Partner on Location-Based Services
- UCB BB : UCB Says Evelyn du Monceau to Succeed Gerhard Mayr as Chairman
- VIV FP : Italy’s Calenda Says Vivendi’s Action Doesn’t Seem Appropriate
- VIV FP : Canal to Pay EU8/New Subscriber for French Soccer Rights: Echos
- VOW3 GY : *VW POSTS FIRST EUROPEAN MARKET-SHARE GAIN SINCE DIESEL CRISIS
- VOLVB SS : Volvo Cars could be worth EUR 4.6bn-EUR 5.7bn in the event of a listing - Dagens Industri
- YHOO US : Yahoo Says 1 Billion Other Accounts May Have Been Hacked --> Verizon Says Will Evaluate Yahoo Hacking Situation: CNBC