US Market closed on a weaker note but in weak volume (525mil shares), cyclical sectors were responsible for the bulk of the weakness as three of six growth-sensitive groups settled in-line with or behind the broader market while the utilities sector (-2.1%) was the only laggard on the countercyclical side (narrow its 2014 gain to 26.6%). Energy finished also lower (-0.6%) following early weakness on crude on a volatile session...Oil service stock Civeo (CVEO) -52.6% after cutting its guidance for next year...VIX @ 15.92 +5.71%...After Hours MIG +14.3% to be acquired by Fosun for $8.65/share +21.3% Premium...JPST +20.6% to be bought by HNH for $10 in cash and share (+34% Premium)...Trading conditions are particularly light in the final session of 2014. In Japan, Nikkei225 was already closed for holidays after registering its 3rd consecutive year of gains, while Korea was also closed and Australia was out early. A press report out of Japan speculated the govt issuance of JGBs in FY15 would fall to ¥37T, below ¥41.3T budgeted for this year and below ¥40T for the first time in 6 years. Shanghai Composite was an outperformer in the early going and only added to its gains in the afternoon session with a near 2% rally retesting the 3,200 level. China HSBC final manufacturing PMI for December confirmed the first contraction in 7 months but also fared a 0.1pt better than expected...HSBC economist Qu remarked that price contraction deepened, and coupled with weaker economic activity, stronger disinflationary pressures warrant further monetary easing in the coming months. Separately, a Chinese press report reiterated 2015 GDP target could be formally set at 7% and 2016 below 7%. In the property space, a research note out of China Academy of Social Sciences (CASS) forecasted 2015 property price decline of another 5%...CSR, CNR to merge : CSR 1766 HK +32.3%, CNR 6199 HK +45.2% ...Nikkei Close...Hang Seng +0.44%...Shanghai +2.06%
RUB $56.02 RUB €69.41 WTI $53.60 Brent $57.18
EUR$ 1.2152 S&P +0.17%
YTD Perf in local Curr:
DOW +8.48% SPX +12.55% Nasdaq +14.39% Nikkei +7.12% Hang Seng +1.28% Shanghai +53% EuroStoxx +0.87% CAC -1.17% DAX +2.65% IBEX +3.66% FTSE MIB +0.23% AEX +4.93% SMI +9.51% FTSE -2.99% Bovespa -2.91%
Macro :
- HSBC China Dec. Manufacturing PMI 49.6; Est. 49.5
- S&P Takes Various Rating Actions on Russian Corporates
- Greece State Financing Covered Until Around March 20, FD Says
Keep an eye on :
- AC FP : ITaly chain UNA gets offers from Potential Buyers, Starwood offered €200m, offers also made by NHH & AC
- STS IM : Italy’s FSI Fund Could Have Role in Ansaldo Deals: Corriere
- POP SM : Banco Popular to Convert Mandatory Convertibles at EU4.31/Shr
- BP/ LN : BP Said to Examine Its Own Foreign-Exchange Trading: WSJ
- BPTY LN : Bwin.Party Sees 2014 Rev. EU608m-EU612m
- BRISA PL : Brisa Plans to Invest About EU55m in Highway Network in 2015
- CBK GY : Commerzbank CEO Excludes Negative Rates for Private Clients: BZ
- EDP PL : EDP Agrees to Sell 50% Stake in EDP Asia Unit
- EZJ LN : EasyJet to Cancel 138 Flights To, From France On Dec. 31, Jan. 1
- FLO FP : Groupe Flo Plans Asset Sales, CEO Tells Le Figaro
- FUR NA : Fugro Secures Credit Agreements’ Amendment; Sees More ‘Headroom’
- KPN NA : KPN Sues Samsung in U.S. After Patent Licensing Talks Fail
- MRL SM : Merlin Properties Raises EU940m Loan Backed by Its Assets
- SAP GY : SAP BEO Endorses Single EU Digital Market, Boersen Zeitung Says
- SPM IM : Saipem Received Notice South Stream Project Still Suspended
- TRN IM : Terna May Buy Ferrovie Dello Stato’s Electricity Network