Dow +0.36% S&P +0.25% Nasdaq +0.40% Russell +0.11%
US Market closed higher for a fifth day. FOMC minutes revealed that Committee members agree that it will soon be appropriate to begin reducing the central bank's massive balance sheet, and provided a possible straightforward approach to do so. Currently, the central bank is holding the balance sheet steady by reinvesting the principal of maturing securities. But, by the end of the year, the Fed would like to introduce a gradual increase of caps to limit the reinvestment. Taking steps to reduce the Fed's balance sheet would add to the tightening effect from rising rates, but it is worth noting that the plan revealed in the minutes is not as aggressive as it could be if the Fed decided to stop reinvestments altogether. The Fed's willingness to discuss the issue shows that the central bank has pretty good confidence in the economic outlook, having attributed first quarter weakness to transitory factors. fed funds futures market still points to the June FOMC meeting as the most likely time for the next rate-hike announcement with an implied probability of 83.1%, up from yesterday's 78.5%. Eight of eleven sectors settled in positive territory, however, sector leadership was weak. The lightly-weighted materials (+0.7%), utilities (+0.7%), and real estate (+0.6%) spaces paced the advanced while the top-weighted technology (+0.5%) and financials (unch) sectors failed to really distinguish themselves. energy (-0.4%) sector settled with the telecom services group (-0.7%) at the bottom of the day's leaderboard as crude oil fell 0.3% to $51.35/bbl. US After Hours GES +16%, PSTG +11%, WSM +9%, PVH +3.6%, HPQ +3% following earnings/guidance, INFO +5% on S&P 500 addition news, AERI +27% on Ph 3 trial update... BF.B -1.6% CEO denies sale speculation. In China, stocks are rallying a day after Moody’s Investors Service reduced its rating on the country amid concerns over rising debt and slowing economic growth. Investors are also looking past comments by Carson Block, the founder of Muddy Waters LLC, who said China’s credit problems since the global financial crisis will reach a breaking point.
Nikkei +0.45% Hang Seng +0.98% CSI +1.88% Shanghai +1.57%
Eur$ 1.1241 CNH +6.8583 CNY 6.8723 JPY 111.61 GBP 1.2991 CHF 0.9721 RUB 56.1520 WTI$ 51.80 +0.85%
S&P +0.37% EuroStoxx +0.56% FTSE +0.32% DAx +0.40% SMI closed
Macro :
- China Willing to Strengthen Economic Ties With U.S.: Ministry
- Interest in Power, Utility M&A at 7-Year High: Ernst & Young
- Nearly All on FOMC Favored Shrinking B/Sheet in 2017: Minutes
- Fed Fund Futures Continue Pricing About 80% Odds of June Hike
- EU to Make Targeted Changes to MiFID on Systematic Internalizers
Keep an eye on :
- ABI BB : AB InBev Sales Chief Doukeris Buys EU1m of Brewer’s Stock
- AIR FP : Airbus Plans to Deliver About 200 Aircraft to China in 2017
- AGN NA : Aegon Appoints Maurice Perkins Head of Govt and Policy Affairs
- AIXA GY : Aixtron to Sell ALD/CVD Memory Product Line for $45m-$55m
- BA/ US : Boeing China Expects 200 Aircraft Delivery in 2017: Info. Daily
- BF/B US : Brown-Forman Says Company Is Not for Sale
- DBK GY : Deutsche Bank Eyes Fed Deal as U.S. Stays Mum on Russia Probe
- FCA IM : Fiat Tells U.S. Judge It Has Quick Fix for Diesel-Cheating Cars
- LIN GY : Praxair Confirms Pact in Principle for Combination With Linde
- ROG VX : Roche Says It’s Investigating Brain Infection in MS Patient
- SDRL NO : Seadrill Sees 2Q Ebitda at $240 Million
- SNAP US : Snapchat Said Offering Ad Buyers Discounts to Mid-June: Digiday
- SO FP : Somfy Says 5-For-1 Stock Split to Take Place July 3
- SAZ GY : Permira Consortium Said Not Making Stada Counteroffer: Reuters
- SYNN VX : ChemChina Says 92.2% of Syngenta Shares Tendered
- DG FP : Vinci: A9 Near Montpellier to Be in Use 6 Mos. Ahead of Schedule