US Market Closed for Martin Luther King Day.
Asian indices are in rally mode and US futures portend an upbeat return for markets from a long weekend. China economic data points whiffed across the board, boosting speculation of expanded PBoC easing in time for the extended Lunar New Year holiday early next month. Q4 GDP came in at 1.6% V 1.8%E q/q and 6.8% V 6.9%E y/y. For 2015, GDP slowed to a 25-year low of 6.9%, even though services component rose to 50.5% v 48.2% in 2014 and consumption marked 66.4% of total economy vs 51.2%. Fixed asset investment slowed to a new multi-year low, with property investment growth slowing to v +1.3% prior and new construction falling y/y by -14.0%. Industrial Output growth slowed below 6% after last month's bounce, with power generation component back in the red at -3.7% v +0.1% prior. The initial reaction to China data was pronounced risk-off, but expectations of more easing in the pipeline have trumped the fears of a deeper slowdown. China Stats Bureau head said China will step up reform on supply side even with the economy in "reasonable" range, also warning that some industrial companies would slow further in 2016. BOJ Gov Kuroda reiterated the central bank will do whatever it takes to achieve price target and that there were no issues with JGB liquidity. Econ Min Amari also reiterated cabinet position that the economy is solid and the volatility in Japan equities was due to external factors.
Nikkei +0.55% Hang Seng +1.42% Shanghai +3.12%
Eur$ 1.0872 CNH 6.6017 CNY 6.5793 JPY 117.87 GBP 1.4281 CHF 1.0076 RUB$ 78.90 WTI $29.53 (+0.37%)
S&P +0.97% EuroStoxx+1.47% Dax +1.55% SMI +1.19%
Macro :
- China’s Economy Grows 6.8% in 4Q Y/y; Est. 6.9%
- China GDP Misses Forecast for First Time Since Early 2013
- ECB’s Villeroy Says European Recovery on Track, Stimulus Working
- Merkel Said to Meet With Car Execs on E-Mobility: Handelsblatt
- Oil Price Rebound Seen After 2H; 7 Cos. Raised, 6 Cut: Canaccord
Keep an eye on :
- ABG SM : Abengoa Bondholders to Provide at Least EU60M: El Economista
- AC FP : Starwood Capital, Fosun Said to Weigh Ascendas Hospitality Bids
- AF FP : French Shared Plane Services Outlawed in Current Form, DGAC Says
- BLT LN : BHP May Cut Fiscal 2017 Capex View to $5b From $7b: Deutsche
- BMPS IM : Paschi CEO Confirms Bank’s Financial Stability After Shares Drop
- BMPS IM : Paschi, UniCredit Say ECB to Review Their Bad Loans
- BP IM : Banco Pop., Carige Say ECB to Conduct Analysis on NPLs Strategy
- ACA FP : Credit Agricole Said to Eye Capital Boost by Selling Bank Stakes
- ACA FP : Credit Agricole Restructuring Would Embed EPS Dilution Risk: KBW
- HEN3 GY : Henkel Still Plans Major Acquisitions, Bagel-Trah Tells Paper
- EGL PL : CMVM Announces Temporary Ban on Mota-Engil Short Selling
- UG FP : Opel’s Zafira Exceeded Emission Limits in French Tests: Echos
- RNO FP : Opel’s Zafira Exceeded Emission Limits in French Tests: Echos
- RIO LN : Rio Tinto 4Q Iron Ore 100%-Basis Output 87.2mt; Est. 91mt, Sees Up to 24% Boost to Mined Copper Output in 2016
- SOW GY : Software 4Q Operating Earnings 92.2m Euros Vs 88.4m Euros Y/Y
- UCG IM : Paschi, UniCredit Say ECB to Review Their Bad Loans
- UQA AV : Uniqa Sees Significantly Lower 2016 Result on Spending, Outlook
- VOW3 GY : Ex-FBI Head Freeh to Assist Volkswagen: Suedddeutsche Zeitung
- VOW3 GY : VW to Adhere to Selling Diesel Cars in U.S.: RedaktionsNetzwerks