Dow -1.62% S&P -1.46% Nasdaq -2.37% Russell -2.34%
US Market traded lower, with S&P closing below its 50d MA..Technology was under pressure...the energy sector added 1.2% thanks to daylong strength in crude oil that sent the energy component higher by 3.5% to $49.19/bbl. WTI crude received a measure of support from dollar weakness as the Dollar Index (96.88, -0.32) slipped 0.3%...the consumer staples sector (-0.2%) slipped into the red during the final hour, but still finished well ahead of the broader market thanks to a 34.9% surge in the shares of Kraft (KRFT 83.15, +21.83) after the company agreed to merge with H.J. Heinz. KRFT shareholders are expected to receive a special dividend of $16.50 when the deal closes. US After Hours FIVE +4.9%, RHT +4.6%, PVH +1.3%, PSUN -5.9%, RARE -2.9%, VRNT -2.3% following earnings/guidance...Economic calendar was rather sparse, and much of the focus fell on sharp escalation of geopolitical tensions in Yemen. Following overnight reports that Saudi Arabia is mobilizing artillery on the border and earlier rumors that Yemeni President has fled the country by boat from Aden, Saudi Arabia led an air assault on positions of Houthi rebels. There is no indication yet that ground troops will participate in the offensive, though Saudi Arabia has also reportedly allocated up to 100K troops for Yemen operations. A statement from the White House indicated the US will authorize logistical and intelligence support to Saudi-led military operations but will not be taking any direct military action. There was no word out of Tehran, where Iran's Shia govt is widely suspected of financing the Houthi militants. WTI May crude oil contract spiked up about $3 toward $52/brl on reports of air strikes before retreating below $51. Brent also rose over $3 above $59.50 before coming off to $58. CAD also tracked higher oil, with USD/CAD falling some 50pips below 1.2480...Greece debt problems also remain pressing after EFSF officials announced the EFSF fund will not return €1.2B in contributions that Athens claims it overpayed. Bank of Greece Gov Stournaras sought to soothe tensions, noting 2015 growth will be higher than in 2014, and the economy is recovering. Stournaras noted the uncertainty related to the bailout is weighing on outlook, and as soon as it is resolved, recovery will gather speed...In China, comments out of the PBoC reiterated intentions to keep monetary policy "prudent", aiming to prevent and resolve any potential financial risks. Note that for the week, PBOC operations resulted in a net injection of CNY10B - the first injection after 4 previous weeks of net drain.
Nikkei -1.39% Hang Seng +0.03% Shanghai +0.29%
RUB $56.29 WTI $51.03 (+3.72%) CHFEUR 0.9502 CHF 0.9574
Eur$ 1.0992 S&P -0.35% EuroStoxx -0.94% Dax -1.25% SMI -0.50%
Macro :
- Oil Rallies for Fifth Day on Yemen; Gulf, Tech Stocks Retreat
- Why Bombing the 39th Biggest Oil Producer Is Roiling Markets (1)
Keep an eye on :
- AF FP : Air France-KLM Revises Debt Target to EU4.6b End 2015 vs EU5b
- ANA SM : Acciona Gets EU1.8b Syndicated Loan
- ADS GY : Adidas Sees Net Income Up About 15% Per Yr Through 2020
- BALN VX : Baloise 2014 Net Income Misses; Dividend Plan Meets Forecast
- BYW6 GY : Baywa Sees 2015 Ebitda, Ebit, Pretax Rising
- MAU FP : Maurel & Prom Says It May Close Or Sell Some Units; Net Falls
- PFV GY : Pfeiffer Vacuum Sees 2015 ‘Noticeable‘ Rev., Ebit Margin Gain
- SRCG SW : Sunrise 2014 Net Loss CHF8.4m vs CHF81.9m Loss
- TEF SM :Telefonica Prepares EU3.05b Capital Increase
- TIT IM : Telecom Italia May Revive Metroweb Talks: Reuters
- DG FP : Vinci Wins Contract for GBP750m Welsh Motorway Project