Lift of Iran Sanctions pushed Crude lower, Saudi Arabia, Kuwait & Qatar markets were trading sharply lower yesterday...Crude @ $28.92 (-1.7%)...US Market closed for MArtin Luther King Day...Asian equity markets opened lower after Friday's rout on Wall St, but the selling was more contained by the afternoon hours. China measures on the currency and policy front helped ease some worries and S&P500 futures erased early 0.7% decline. Among key Asian equities, Shanghai Composite also flipped into positive on strong housing data. Oil prices were down as much as 4% after confirmed lifting of Iranian sanctions over the weekend, but WTI returned above the $30 handle later in the session. In FX, USD/JPY was up 50pips from the lows above 117.20. PBoC set the Yuan stronger relative to the close for the 7th straight session. A setting of 6.5590 was also the strongest since the mini-devaluation of Jan 6th while the margin of strength relative to the prior setting was the highest in 4 weeks. Attempts to discourage one-way action the Yuan were also on display in the policy actions, as regulators announced an increase on RRR for Yuan deposits among offshore clearing banks, raising the cost of borrowing to short the currency. PBoC added the rules - effective Jan 25th - were not expected to affect domestic liquidity, and that the central bank will continue to use multiple policy tools to maintain ample liquidity. China, Premier Li announced that 2015 GDP would be close to 7%, with services sector now accounting for nearly half of China growth and consumption also taking up a bigger part of the economy. China GDP, along with other 2015 and Dec metrics will be released tomorrow. In Japan, PM Abe noted the govt continues to monitor financial markets, with some weakness coming in the EM space. BOJ Gov Kuroda reiterated the central bank will maintain policy easing as long as needed to achieve 2% inflation target, adding the easing is exerting intended effects. Kuroda also reiterated that while the economy is no longer in deflation, it has not reached the point where there are no lingering risks or concerns.
Nikkei -1.12% Hang Seng -1% Shanghai +0.35%
Eur$ 1.0887 CNH 6.5872 CNY 6.5791 JPY 117.25 GBP 1.4282 CHF 1.005 RUB$ 78.5802 WTI $28.90 (-1.77%)
S&P+0.17% EuroStoxx+0.45% Dax+0.66% SMI+0.66%
Macro :
- Poland Cut to Bbb+ From A- by S&P, Outlook Negative
- ING Sees ‘Major Sell-Off’ Next Week in Poland After S&P’s Cut
- SAC’s Steinberg Wins Dismissal of SEC Insider Trading Case
- Flood of Iranian Crude Won't Change Motor-Fuel Prices in China
- Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears : http://bit.ly/1n3g0AW
- Iran Sanctions to End as IAEA Verifies Nuclear Deal Implemented
- Mideast Stocks Plummet as Iran Plans to Boost Crude Exports
Keep an eye on :
- AALB NA : Aalberts Industries Buys Ushers Machine & Tool Co.
- AC FP : Accor Hotels Opening 15-20 Hotels in Germany Annually: FAZ
- ADEN VX : Adecco Sees Small Uptick in Organic Growth in 4Q
- ADP FP : Aeroports De Paris to Invest EU650m in Baggage-Control Equipment
- AIR FP : Airbus CEO Says He’s ‘Bullish’ on China Despite Market Rout
- AIR FP : Iran to Buy 114 Airbus Jets, May Seek Boeings Post-Sanctions : http://on.wsj.com/1llbMTT
- AIR FP : Airbus to Test Helicopter Ride Service with Uber: CEO Enders : http://on.wsj.com/1Klk9FL
- AH NA : Ahold interested in 130 DA pharmacies in NetherlandsP
- AAL LN : Anglo American Said to Hire Banks to Sell Assets in Brazil:Globo
- BEAV US : B/E Aerospace's cash generation capacity may attract buyers - Barron's
- BSLN SW : Actelion not interested in Basilea - Finanz und Wirtschaft
- BAYN GY : Bayer Unit Wins Confirmation of $455.4 Mln Patent Case Award
- BNP FP : BNP Chairman: Europe is Changing, at Turning Point for Growth
- BPM IM : Banco Popolare CEO confirms close to merger with Banca Popolare di Milano - Il Messaggero
- EN FP : Bouygues, Ferrovial Eye Laing O’Rourke Australia Ops: Australian
- CO FP : Casino Says to Soon Conduct Review of Credit Rating With S&P
- CBK GY : Commerzbank Said to Seek Successor for Chairman Mueller: Spiegel
- CBK GY : Commerzbank Luxembourg Fined for Tax Evasion: Sueddeutsche Z.
- DEB LN : Incoming Debenhams Chairman Cheshire Sees Upside: Sunday Times
- EDF FP : EDF Sees Higher Provisions Hurting 2015 Net Income by EU500m
- SFER IM : Ferragamo CEO Norsa Sees Less Impact From Forex in 2016
- FER SM : Bouygues, Ferrovial Eye Laing O’Rourke Australia Ops: Australian
- FUM1V FH : Fortum could be interested in acquiring E.ON's Swedish hydro power business - Talouselama
- HEI GY : HeidelbergCement issues EUR 625m debt certificates, reducing refinancing needs for Italcementi acquisition
- HDD GY : Heidelberger Druck Says China Business Stable: Euro am Sonntag
- ICAD FP : Icade to Pursue Divestments, CEO Wigniolle Tells Investir
- ITV LN : ITV Chairman Norman to Step Down This Year: Sky News
- LHA GY : Lufthansa to Tackle Eurowings Flight Delays: Stadt-Anzeiger
- MMT FP : M6 to Lose Money in Soccer Euro 2016 Finals, CEO Tells Figaro
- NG/ LN : Canadian Pension Funds May Bid for National Grid Unit: Telegraph
- NRE1V FH : Nokian Renkaat makes an attractive target - Talouselama
- OHB GY : OHB Expects EU1 Billion Annual Sales by 2020: Handelsblatt
- ORA FP : Orange Mkt Share Must Not Rise With Bouygues Telecom: Arcep
- ORA FP : Orange CEO Says Doesn’t Want Bouygues Talks to Drag On for Weeks
- UG FP : Peugeot 208, 508 Show No Anomalies in Emissions Tests: JDD
- PAH3 GY : Porsche, Piech Families Stand by VW CEO Mueller: Bild am Sonntag
- RNO FP : Renault Summoned by French Govt. Commission, Les Echos Says
- RHK GY : Asklepios Looking Into Possible Acquisitions: Boersen-Zeitung
- SAB LN : Lion Capital Plans Bid for Peroni, Grolsch Brands: Sunday Times
- SHP LN : Shire CEO Confident Shareholders Will Vote for Baxalta Deal
- SHP LN : Shire CEO Says Baxalta Deal Isn’t About Cost Savings, Taxes
- SUN SW : Sulzer Considering Options Including Merger With Competitor: FAS
- TEF SM : O2, Three Face Tough Merger Conditions From Europe: Telegraph
- TEF SM : Telefonica Eyes AT&T’s $10b Latin American TV Assets: Reuters http://reut.rs/1J9cyiF
- TIT IM : Telecom Italia CEO Doesn’t See Crossborder Takeover: Repubblica
- TIT IM : Vivendi increases stake in Telecom Italia to 21.39% - Les Echos
- VIV FP : Canal Plus, Sky, Others Combine to Fight Netflix: WSJ : http://on.wsj.com/1JaWQnb
- VOLVB SS : Volvo risks being split up if profitability does not improve - Dagens Industri
- VOW GY : VW’s Audi Unit Trims Expenses for WEF Sponsoring in Davos: FAS