Dow-1.56% S&P-1.17% Nasdaq-0.12% Russell+0.45% VIX 27.59 (+5.91%)
US Market closed lower, but not on the lowest levels. reversal in equities was partly fueled by recovering oil prices, but more likely, a short-term oversold market invited participants to take on more risk. Oil was down more than 6.5% before recovering to a 3.7% decline at $28.35/bbl. health care (+0.2%), technology (-0.6%), materials (-0.7%), and consumer discretionary (-1.0%) outperformed while energy (-2.9%), utilities (-2.3%), financials (-2.1%), and telecom services (-1.6%) displayed the steepest declines. C-3.5%, JPM-2.6%, GS-2%. IBB +3.5% leaded the reversal. ABBV+3.9%, UNH+2%. Volume today were one of the highest volume of the year with 1.4bil shares. US After Hours BGG +7.4%, XLNX +6.1%, FEYE +5.3%, RJF -6.6% following earnings/guidance; OGXI -41.8% following Phase 2 trial data. Asian market rebound failed, with sell off pressure on the last hour. PBoC Vice Gov Chen Yulu mentioned the need for policy coordination to prevent risks amid ongoing reduction of overcapacity and deleveraging. China Securities regulator CSRC official also stated that Beijing will not allow the domestic economy to slow too much. And while PBoC chief economist Ma Jun backed up his remarks overnight with suggestion that overuse of RRR cut may be harmful for FX rate, Chinese central bank injected a multi-year high amount of liquidity through reverse repos in its open market operations. At the time of writing in the afternoon part of the Asia session, the risk-on rally has been dented by comments from China state economist forecasting GDP growth to slow to 6.5%. Volatility in Japan centered around commentary from an unnamed PB Abe advisor urging the central bank to announce more QE at its upcoming meeting later this month. Abe's aide noted conditions for more QE are in place, the risks of further Yen strength cannot be underestimated, and that the BOJ risks a credibility problem if it continues to push back expectations for reaching inflation target. Later in the day, BOJ Gov Kuroda merely reiterated that the timing of reaching 2% CPI target is determined by oil prices, though economic fundamentals remain firm.
Nikkei -2.43% Hang Seng -1.42% Shanghai -2.64%
Eur$ 1.0901 CNH 6.6107 CNY 6.5792 JPY 116.70 GBP 1.4176 CHF 1.0032 RUB $82.25 WTI $28.13 (-0.81%)
S&P -0.61% EuroStoxx +0.10% Dax +0.13% SMI +0.28%
Macro :
- Goldman Sachs Said to Have Donated to Pro-EU UK Group: Sky
- El-Erian Doesn’t Think There Will Be a Rate Hike at Next Fed Mtg
- Foxconn Said to Bid 600 Billion Yen for Japan’s Sharp
Keep an eye on :
- ABBN VX : ABB examining all options for Power Grids, could still restructure and keep division - Aargauer Zeitung
- ABG SM : Abengoa Seeks EU1B for Bioenergy Unit, El Economista Says
- ADEN VX : Adecco Completes Share Buyback Program of EU250m
- AH NA : Ahold 4Q Sales, Netherlands ID Sales Beat Ests.
- ATC NA : Altice Completes Sale of Cabovisao, ONI to Apax France
- BARC LN : Barclays Said to Prepare to Cut 1,000 More Jobs, FT Reports
- BP IM : Italy Temporarily Bans Short Selling on Banco Popolare: Consob
- BIM FP : BioMerieux Targets 2016 Organic Sales Growth of 6% to 8%
- DBK GY : Deutsche Bank 4Q Prelim Net Loss EUR2.1B; 4Q Prelim Rev. EUR6.6b
- DGE LN : Diageo, Pernod Ricard Whiskey Sales Slump in Russia: Kommersant
- FER SM : Ferrovial Bid for Broadspectrum ‘Opportunistic’: Allan Gray
- GALN VX : Galenica 2015 Sales Rise 11%, Confirms Plan to Split Up
- GET FP : Eurotunnel FY 2015 Revenue Ex-MyFerryLink EU1.22b; Est. EU1.26b
- GSK LN : Glaxo CEO Says Consumer Health Can Be Thought About on Its Own
- GSK LN : Glaxo Said to Be in Talks With Qualcomm to Form Joint Venture
- LOGN VX : Logitech 3Q Rev. Tops; Boosts FY16 Adj. Operating Income
- MHG NO : Marine Harvest 4Q Operational Ebit Falls to ~NOK850m
- ORA FP : Orange could sell up to EUR 5bn worth of assets as part of EUR 10bn merger with Bouygues Telecom - Figaro
- RI FP : Diageo, Pernod Ricard Whiskey Sales Slump in Russia: Kommersant
- RCO FP : Remy 3Q Organic Sales Growth Beats Ests., Confirms Outlook
- SIE GY : Siemens Rail Deal in Iran Could Be Worth EU1.5B to EU2B: CEO
- SLIGR NA : Sligro 2015 Ebitda Up 7.4%, Sees Gradual Eco. Recovery in 2016
- SONAE VX : Sonae 2015 Preliminary Sales Rise 0.7% to EU4.85b
- FP FP : Total CEO: Employee Numbers Won’t Be Adjusting Variable: Figaro