Dow-0.45% S&P -0.64% Nasdaq-1.10% Russell-1.97%
US market spent the Wednesday session under selling pressure as a tumble in crude oil fueled a retreat in the broader market. hawkish commentary from St. Louis Fed President Bullard (FOMC voting member), the underperformance of the heavyweight financial sector (-0.8%), and some below-consensus earnings results led the averages to their worst levels of the day. crude oil abandoned the $41.00/bbl price level after the API weekly inventory report showed a larger-than-expected build. Later, the energy component and the major averages carved out fresh session lows following the release of the Department of Energy's more influential stockpile data. The report showed that crude oil levels increased by 9.35 million barrels (consensus 3.09 million barrel) over the last week. By the end of its pit session, oil had surrendered 4.3% ($39.79/bbl) (MTD WTI crude remains up 17.4%). hawkish commentary from St. Louis Fed President Bullard added to uncertainty in the broader market. President Bullard argued that rising inflation expectations would call for more rate hikes and that an April hike is not off the table. President Bullard's hawkish note raised speculation that there may be growing dissent on the FOMC with regards to the direction of the fed funds rate. Heavily-weighted technology (-0.6%), consumer discretionary (-0.6%), health care (-0.6%), and financials (-0.8%) all joined energy (-2.1%) on the bottom of the leaderboard. Conversely, countercyclical utilities (+0.7%) and consumer staples (UNCH) ended above their flat lines, Commodity-sensitive energy (-2.1%). Volume were once again below average @ 839mil shares. US After Hours KBH +8.6%, PVH +3.8%, REED -12% following earnings, TEX +9.1% (To move forward with negotiations with Zoomlion Heavy Industry Science and Technology Co - received a revised non-binding proposal $31/share cash. Asian equity markets are largely in the red, tracking more pronounced declines in US. China Premier Li delivered the keynote address at the Boao forum with largely boilerplate rhetoric. Li saw latest employment data as steady and also promised to help workers who lost their jobs due to overcapacity in steel/coal find new work. Li acknowledged that China is facing unavoidable challenges in the process of upgrading economy, but also noted there have been positive changes this year. On exchange rate, Li pledged to keep Yuan levels stable and not devalue to boost exports, assuring the audience of his confidence in maintaining the 6.5% GDP target for the next 5 years. BOJ Gov Kuroda also largely reiterated his prior expectations that negative rates will spread to real economy, adding he expects to face less opposition to negative rates at the next policy meeting.
Nikkei -0.64% Hang Seng-1.46% Shanghai -1.38%
Eur$ 1.1169 CNH 6.5168 CNY 6.5104 JPY 112.85 GBP 1.4088 CHF 0.9762 RUB$ 68.85 WTI $39.34
S&P -0.33% EuroStoxx -0.81% Dax -0.95% SMI -0.50%
Macro :
Goldman to Fed: Stop Worrying So Much About the Stronger Dollar
Pound’s $16 Billion of Option Trades Envisage Drop to 1980s Lows
Keep an eye on :
- AF FP : CityJet Sold to Founder Pat Byrne, Irish Independent Reports
- AAPL US : Apple Pay Said Coming to Mobile Websites Later This Yr: Re/code
- CRG IM : Banca Carige receives non-binding offer from Apollo - La Repubblica
- DRI GY : Drillisch Reaffirms ’16 Ebitda View; Sees Div. Boost
- DYS LN : Dyson Developing an Electric Car, FT Says
- EMMN SW : Emmi 2015 Profit Rises, Revenue Drops; Proposed Dividend Beats
- SKB GY : Koenig & Bauer 2015 Sales Fall 7%, Ebit, Net Rise; Pays No Div.
- KCR1V FH : Konecranes could use own shares for acquisitions - Co.Press Release http://bit.ly/22HdkbS
- MS IM : Mediaset and Vivendi to engage in share swap to cement content platform deal - Il Sole 24 Ore
- NOVN VX : Novartis to Settle SEC Case on China FCPA Probe for $25m
- NUM FP : SFR Ready to Share UK Premier League Soccer With Rivals: Echos
- POP IM : Popolare Di Milano, Banco Popolare Agree to Merge
- SECUB SS : Melker Schoerling AB Doesn’t Plan to Sell Securitas Shares: DI
- SYNN VX : Grassley warns on ChemChina-Syngenta deal - FT Article (sent)
- TLSN SS : Zegona Bids More Than EU620M for Teliasonera’s Yoigo: Expansion
- UBI FP : Ubisoft Wields Threat of Talent Exodus to Thwart Hostile Vivendi
- UCB BB : Ucb Says 1 Primary Endpoint Not Met in Cimzia, Humira Study
- VIV FP : Ubisoft Wields Threat of Talent Exodus to Thwart Hostile Vivendi
- VIV FP : Mediaset and Vivendi to engage in share swap to cement content platform deal - Il Sole 24 Ore