Equity trade remained extremely sloppy this week as the growing tension between the US and China hung over markets. Huawei remained ground zero for the trade war as rhetoric around the controversial Chinese telecom name mushroomed. The White House was said to be considering an expanded black list of Chinese companies while reports circulated that China could retaliate against US tech companies or use its rare earth monopoly as an asymmetrical pressure tactic.
By the week’s end, some analysts saw the seeds of a new Cold War splitting the world between two economic and technological blocs.
Brexit uncertainly also continued to drag on sentiment as PM May made one final gambit to gain support for her withdrawal bill. By Friday, the broad-based rejection of her new Brexit offer to Parliament forced her to step aside and begin the process for finding a new Conservative leader.
More weak manufacturing and business confidence data reignited uneasiness about the potential for recession across
For the week, the S&P lost 1.2%, the DJIA dropped 0.7%, and the Nasdaq gave up 2.3%.
In corporate news this week, Sprint and T-Mobile reached a deal with the FCC for merger approval, but hurdles still remain from potential antitrust action at the Justice Department or from state attorneys general. Home Depot slipped after announcing that weak lumber prices and bad weather weighed on its Q1 results. Kohl’s missed expectations on earnings and its outlook, while JC Penney’s same store sales fell 5.5%, well below consensus. Lowe’s shares plummeted after it reported an EPS miss amid gross margin contraction, while Target jumped after seeing strong SSS and traffic in Q1.
Macro :
- Ifo Sees German Job Growth Losing Pace: Handelsblatt
- Goldman Says Buy Commodities, Vale Upgrade: N.A. Materials Wrap
- Le Pen Set to Beat Macron Group in EU Vote, Polls Show: TOPLive
Keep an eye on :
- ACA LN : Barrick CEO Says Not Ready to Consider Raising Offer for Acacia
- ADS GY : PVH’s Tommy Hilfiger Targets Sportswear Market: Sueddeutsche
- AAPL US : Apple Accused of Selling ITunes Customers' Listening Data
- AZN LN : Inventia Health’s Anda for Dapagliflozin Gets Tentative FDA Nod
- BYND US : Beyond Meat Faces Key Test as Wall Street Reviews Hot IPO
- CNA LN : Centrica said to have attracted takeover interest from abroad
- COFB BB : Cofinimmo Sells Partly Vacant Office for Residential Development
- DBK GY : Trump Appeals Deutsche Bank, Capital One Subpoena Ruling (1)
- GS US : Goldman Sachs to Quicken Push Into U.S. Wealth Management: FT
- MC FP : Reportedly LVMH has been subpoenaed by a federal grand jury in the probe of U.S. media buying practices - Ad Age
- MMB FP : M6 to Buy Lagardere TV Unit Excluding Mezzo for €215m
- MMT FP : M6 to Buy Lagardere TV Unit Excluding Mezzo for €215m
- NESN SW : Nestle to Decide on $10 Billion Skincare Cash in Second Half: SZ
- NOVN SW : FDA Approves Novartis’ Piqray Tablets for Breast Cancer
- RI FP : Pernod Ricard wine unit suitor Carlyle appoints Bank of America Merrill Lynch- Afr.com
- PETS LN : speculation that PE firms may be looking at Pets at Home - Time
- RAL FP : Rallye Liquidity Pact With Rothschild Martin Maurel Terminated
- RX FP : Recylex: Bridge Financing Granted by Glencore Raised to EU21.3M
- RNO FP : French Government Said to Study Jobs Impact of Fiat-Renault Deal
- SRS IM : Saras may consider selling stake to industrial partner
- SLB US : Schlumberger Suffers Credit Hit as Oil Clients Stick to Cuts
- STB NO : Storebrand May See Tax Cost of NOK1.3B From TNTA Decision
- TIT IM : Telecom Italia moves closer to Persidera sale to F2i
- TSS US : *GLOBAL PAYMENTS NEARS DEAL TO BUY TOTAL SYSTEM SERVICES: CNBC
- TSLA US : The Tesla Stock Bubble Burst, Triggering Existential Questions
- TSLA US : SpaceX Raised Over $1 Billion in Funding This Year: Filings (1)
- TCG LN : Thomas Cook Seeks to Focus on Online Market, Website: Telegraph
- UN01 GY : Uniper Operations Chief, Chief Commercial Officer to Resign
- VOW3 GY : VW Will Audit Suppliers on Human Rights, CO2: Automobilwoche
- VOW3 GY : German Appeals Court Rules in Favor of VW Diesel Owners: Reuters