ML
* ABERTIS - Placing of $900m, priced EUR 11.75. UBS/JPM/BAML bookrunners.....
MCCARTHY & STONE - Reassuring statement. Mindful of EU referendum impact+5-7%
SOPHOS - Q1 billings ahead with LfL growth exp in range of 20%-23% YoY....+5%
COBHAM - Positive hire. Appoint David Mellors from QinetiQ as new CFO.....+5%
GREENE KING - EBIT 0.5% & EPS 3% ahead of BAML, recent trading solid....+3-4%
DIXONS - PBT £447m v £445-450m. £30m incremental EBITDA in 2017/18......+2-3%
STAGECOACH - Messy. '16 inline but disposal of retail ops of Megabus....+2-3%
KBC - We UPGRADE to Buy, PO EUR 55.8. Will turn into great capital story..+2%
CRED AG - We U/G to Neutral, PO EUR8.9. Drag on earnings partly priced in.+2%
HOMESERVE - Continues to trade inline. Profits will benefit from FX.......+2%
BURBERRY - We UPGRADE to Buy, PO 1250. Supported by FX tailwind. SI 9%....+2%
RECKITTS - Restarts share buyback, to buy 5m shrs between 29 Jun & 31 Aug.+1%
UK MINERS - Copper -0.15%, Iron Ore -0.56%, Gold +0.36% & BHP OZ +2%......+1%
DANONE - Venture Cap arm takes min stake in Michel et Augustin. No fins...+1%
ITV - Press spec that Liberty Global may try to buy the co; London Times..+1%
BUNZL - Inline. Rev growth +9% inc org +0%. M&A pipeline remain active....+1%
ABN AMRO - We DOWNGRADE to Neutral, PO EUR17.3 despite 6.4% div yield 17E.u/c
ADIDAS - NKE US -4% aft hrs on future orders below exp (+11% v +13%e)..u/c-1%
BRAMMER - Warning. H1 PBT now expected to be £5m vs BBG FY exp £28.6m.-25-50%
CS:
Adidas UNCH Nike -6% after hours on deceleration in North America
Adidas UNCH Nike -6% after hours on deceleration in North America
Alstom +2% Hitachi and Alstom win Italy train order
Amec M/P Contract win from the UK Ministry of Defence
Asos M/P CMD - no new financial news out
Bunzl M/P Growth inline, a couple of small acquisitions
Dixons M/P PBT and dividend inline, LFL already known
Electrocomp -1% CS DOWNGRADE to NEUTRAL (Valuation)
Gam +3% To buy Cantab Capital for $217m, they have AUM of $4b
Geberit M/P Is selling the Koralle Group to AFG Arbonia-Forster
Greene King +3-5% Revs inline, Co highlight a strong start to the year
Helvetia M/P CEO Stefan Loacker is stepping down
Intesa +2-3% Mr Renzi wants to use State Aid to buy bad loans from banks
ITV +2% Times & FT mention potential M&A
Miners +1% Copper -0.15%, Brent +2.10%, Iron Ore -0.35%, China +0.39%
Oils +1-2% API Crude inventories -3.86m barrels, Brent +2.1% to $48.8
SAP +2% Added to the CS European & Global FOCUS LIST
Snam +2% CMD - proposes a share buyback programme for max EU500m
Stagecoach M/P Numbers slightly light but keep guidance
Stagecoach M/P Numbers slightly light but keep guidance
Unicredit +2-3% Mr Renzi wants to use State Aid to buy bad loans from banks
Mainfirst:
*SNAM-Approves spinoff of Gas Dist,to keep 13.5% stake in newco...+2%
Mainfirst:
*SNAM-Approves spinoff of Gas Dist,to keep 13.5% stake in newco...+2%
*ABERTIS-OHL sells 7% stake,priced at €11.75 vs clse €12.895......-5%
*GEBERIT-Sells Koralle Group to AFG Arbonia-Forster-Holdings......+1.5%
*GAM-Buys Cantab Capital for $217m + d/consideration(AUM $4B).....+1.5%
*HELVETIA-Grp CEO Loacker steps down,replaced by Philip Gmur......U/C
*ADIDAS-Read across from Nike Q4 Rev inline,future orders weak....+0.5%
RBC:
*ABERTIS: -7% OHL sold 69.3M ABERTIS in placing at 11.75.
RBC:
*ABERTIS: -7% OHL sold 69.3M ABERTIS in placing at 11.75.
*ADIDAS: +1% NIKE read through, NIKE -4% on weak no.s, market share loss.
*ANGLO: +2% disposal of BRAZIL phosphates/niobium business, miners +2%.
*BUNZL: -2% H1 trading update inline, FX pressure, no margin/outlook.
*COBHAM: +2% appoints new CFO DAVID MELLORS from QINETIQ.
*DIXONS: +3% FY +5%, net debt better, positive on connected world services.
*ECM: -2% warning from BRAMMER in UK/Europe, MAY weakness continues.
*G.KING: +2% FY revenue in line, strong start to 2016. Synergies ahead.
*HOMESERVE: +2% continues to trade in line, 5 new affinity partnerships.
*ITV: +3% FT article speculating merger talk.
*SNAM: +2% positive strategic plan, dividend boosts and buy-back.
*STAGECOACH: +1% FY results broadly in line, tad weak trading result.
*TUI/TC: -1% ISTANBUL terrorist attacks may have negative implication.
*VEOLIA: +1% contract extension, plans to cut approx. 430 jobs in FRANCE
Dow +1.57% S&P +1.78% NAsdaq +2.12% Russell +1.62%
US MArket Closed higher following Asian & European Mkt, better Q1 GDP Data and an improved US consumer confidence also helped the sentiment. In front of the pack, commodity-sensitive energy (+2.6%) led heavily-weighted financials (+2.5%), technology (+2.0%), health care (+2.0%), and consumer discretionary (+1.9%). Conversely, countercyclical telecom services (+0.3%), utilities (+0.3%), and consumer staples (+0.6%) finished with the slimmest gains. Energy was helped by a strong rebound on oil (+3.1% @ $47.92/bbl). IBB +3.8%. FB rallied 3.4% helping heavy tech to outperformed. Volume were above average with more than 1bil shares traded. US After Hours NKE-5% on numbers. Asian equity markets were on the upswing, tracking the solid gains made in US indices, as post-Brexit worries continue to subside. Quarter-end window-dressing and short-covering cited for this rally. PM Cameron reiterated invoking Article 50 is the matter for the next PM in Sept and expressed confidence in maintaining close relationship through negotiations, just as EU's Juncker called for quicker submission of the withdrawal. The "redo-Brexit-vote" movement is also gathering steam with protests in London. Outside of Brexit uncertainty, an explosion attributed to ISIS suicide bombers rocked a Turkish airport, killing over 35 people. Japan govt and BOJ held another joint meeting to help reverse sentiment behind the recent rally in JPY. In China, local press speculated the govt is considering measures to boost private investment and may announce some new plans in H2. Report noted govt should reduce regulatory costs and increase financial support for private companies. In another sign of easing strain, PBoC's Yuan fix was set stronger for the first time since the Brexit vote.
Nikkei +1.56% Hang Seng +0.59% CSI +0.31% Shanghai +0.49%
Eur$ 1.1059 CNH 6.6685 CNY 6.6537 JPY 102.23 GBP 1.3304 CHF 0.9811 RUB$ 64.1006 WTI$ $48.07 +0.46%
S&P +0.18% EuroStoxx +1.42% Dax +1.31% SMI +1%
Macro :
- CDL Chairman Says to Buy London Properties If There Are Bargains
- Brexit May Spur Deals Between U.K. and Israeli Firms, Leumi Says
- Airbnb Said to Be Seeking Funding at a $30b Valuation: NYT
- Schaeuble Planning Stricter EU Financial Rules: Handelsblatt
Keep an eye on :
- ABE SM : Abertis Shares Sold by OHL at EU11.75/Share ( OHL Starts Placing 7% Stake in Abertis Infraestructuras)
- ADS GY : Nike Sees 1Q Sales Up Mid-Single-Digit Percent vs Est. Up 9%
- ALO FP : Hitachi, Alstom Win Italy Train Order in Part of EUR4.5B Tender
- AAPL US : Buy Apple; iPhone 7 Is ‘Obscuring a Powder Keg,’ Cowen Says
- ATC NA : Altice Growth Lies in U.S., CEO Combes Tells Le Figaro
- AZN LN : *ASTRAZENECA SUES FDA TO SHIELD CRESTOR FROM GENERIC COMPETITION
- BEKB BB : Bekaert Says Bridon-Bekaert Ropes Group Begins Business, Bekaert Appoints Beatriz Garcia-Cos Muntanola as CFO
- CABK SM : CaixaBank Said to Pick Gual as Next Chairman: Expansion
- BN FP : Danone Starts Talks Over Minority Michel & Augustin Stake
- OLE SM : Deoleo Presented New 2016-2021 Strategic Plan Ahead of Agm
- ERICB SS : Ericsson Chairman Says Anti-Corruption Work Is ‘Key Priority’
- ETE US : Energy Transfer Ends Merger Talks With Williams Cos.
- FCC SM : Bill Gates Seeks Higher Price from Slim for FCC: El Confidencial
- HELN SW : Helvetia Group CEO Loacker Steps Down, Replaced by Gmuer
- KU2 GY : Kuka, Midea Group Sign Investment Agreement, Kuka Says
- NKE US : Nike Drops to 10-Month Low After Results; Sports Names Follow, Nike Sees 1Q Sales Up Mid-Single-Digit Percent vs Est. Up 9% --->-7% after Hours
- SDRL NO : Seadrill Partners Signs Extended Standby Deal for West Capricorn
- VIE FP : Veolia Extends Contract With Milwaukee Sewer District
- V US : Visa May Shift Jobs From U.K. Once EU Exit Is Set: Sky
- VOD LN : Vodafone Weighs Future of Headquarters After U.K.’s Brexit Vote
>>> Up
*ALSTOM RAISED TO BUY VS NEUTRAL AT GOLDMAN
*BURBERRY RAISED TO BUY VS NEUTRAL AT BOFAML
*CREDIT AGRICOLE RAISED TO NEUTRAL VS UNDERPERFORM AT BOFAML
*CRODA INTERNATIONAL RAISED TO BUY AT JEFFERIES
*DEUTSCHE POST DHL RAISED TO ADD VS REDUCE AT ALPHAVALUE
*ENDESA RAISED TO BUY AT KEPLER CHEUVREUX
*GAZPROM NEFT RAISED TO BUY VS HOLD AT RENAISSANCE CAPITAL
*GENEL RAISED TO BUY VS HOLD AT LIBERUM
*K+S RAISED TO BUY AT BAADER-HELVEA
*KBC RAISED TO BUY VS NEUTRAL AT BOFAML
*MAGNIT RAISED TO OUTPERFORM VS UNDERPERFORM AT CREDIT SUISSE
*MERLIN ENTERTAINMENTS RAISED TO NEUTRAL AT JPMORGAN
*OPHIR RAISED TO HOLD VS SELL AT LIBERUM
*PATTERSON-UTI ENERGY RAISED TO OVERWEIGHT AT PIPER JAFFRAY
*PETROFAC RAISED TO BUY AT JEFFERIES
*ROYAL DUTCH SHELL RAISED TO BUY VS HOLD AT LIBERUM
>>> Down
*ABN AMRO CUT TO NEUTRAL VS BUY AT BOFAML
*ADMIRAL GROUP CUT TO ’UNDERWEIGHT’ AT BARCLAYS
*AEGON CUT TO UNDERWEIGHT AT BARCLAYS
*ALDERMORE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*AMUNDI CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*CNP ASSURANCES CUT TO REDUCE AT HSBC
*DUFRY CUT TO UNDERWEIGHT AT JPMORGAN
*ELECTROCOMPONENTS CUT TO UNDERPERFORM VS NEUTRAL: CREDIT SUISSE
*EULER HERMES CUT TO REDUCE AT HSBC
*GJENSIDIGE FORSIKRING CUT TO ’UNDERWEIGHT’ AT BARCLAYS
*HEARTWARE INTERNATIONAL CUT TO EQUALWEIGHT AT BARCLAYS
*HENDERSON CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*HEINEKEN CUT TO HOLD AT HSBC
*IAG CUT TO REDUCE AT INTERMONEY VALORES; WAS UNDER REVIEW
*LEGAL & GENERAL CUT TO EQUALWEIGHT AT BARCLAYS
*LEONARDO-FINMECCANICA SP CUT TO NEUTRAL AT JPMORGAN
*LLOYDS CUT TO HOLD AT SANTANDER
*PARAGON CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*RICHEMONT CUT TO HOLD VS BUY AT HSBC
*RICHEMONT CUT TO NEUTRAL VS BUY AT GOLDMAN
*SWATCH CUT TO REDUCE VS HOLD AT HSBC
*TOD’S CUT TO HOLD VS BUY AT HSBC
*TULLOW OIL CUT TO SELL VS HOLD AT LIBERUM
*UNIPOL CUT TO ’EQUALWEIGHT’ AT BARCLAYS
*WHITBREAD CUT TO NEUTRAL AT JPMORGAN
>>> PT Change
>>> Initiation
*BILIA RATED NEW BUY AT NORDEA
*ENEL RATED NEW BUY AT ODDO SEYDLER, PT EU5.05
*NATIXIS RATED NEW SELL AT BERENBERG; PT EU3
*RIVERSTONE ENERGY LTD RATED NEW OVERWEIGHT AT JPMORGAN
>>> Call
Announces termination of merger with The Williams Companies Energy Transfer Equity announced that it has terminated its merger agreement with The Williams Companies, Inc. (Williams) effective June 29, 2016.
As previously announced, on Friday, June 24, 2016, the Delaware Court of Chancery issued an opinion finding that ETE is contractually entitled to terminate the merger agreement with Williams in the event ETEs counsel Latham & Watkins LLP (Latham) were unable to deliver a required tax opinion prior to the June 28, 2016, outside date in the merger agreement. Latham advised ETE that it was unable to deliver the opinion as of the outside date. Consistent with its rights and obligations under the merger agreement, ETE subsequently provided written notice terminating the merger agreement due to failure of conditions under the merger agreement, including Lathams inability to deliver the required tax opinion, as well as the other bases detailed in ETEs filings in the Delaware lawsuit referenced above.
Williams has appealed the decision by the Delaware Court of Chancery to the Delaware Supreme Court.
Asian Mid-session Market Update: Brexit relief rally continues despite tough talk from EU leaders
***Economic Data***
- (AU) AUSTRALIA MAY HIA NEW HOME SALES M/M: -4.4% V -4.7% PRIOR; 2nd consecutive decline
- (NZ) New Zealand revises Q1 jobless rate from 5.7% to 5.2%; Participation rate from 69.0% to 68.7%
- (JP) JAPAN MAY RETAIL SALES M/M: 0.0% V 0.0%E; RETAIL TRADE Y/Y: -1.9% (3rd straight decline) V -1.6%E
- (CN) China June Westpac Consumer Confidence Index: 115.9 v 114.2 prior
- (KR) SOUTH KOREA JULY BUSINESS MANUFACTURING SURVEY: 72 v 74 PRIOR; NON-MANUFACTURING SURVEY: 72 v 73 PRIOR
***Index Snapshot (as of 04:00 GMT)***
- Nikkei225 +1.8%, S&P/ASX +0.9%, Kospi +1.5%, Shanghai Composite +0.5%, Hang Seng +0.7%, Sep S&P500 +0.2% at 2,033
***Commodities/Fixed Income***
- Aug gold +0.3% at $1,321/oz, Aug crude oil +0.7% at $48.18/brl, Jul copper -0.6% at $2.17/lb
- (US) Weekly API Oil Inventories: Crude: -3.9M v -5.2M prior; 2nd straight draw
- SLV: iShares Silver Trust ETF daily holdings rise to 10,374 tonnes from 10,350 tonnes prior
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6324 V 6.6528 PRIOR
- (CN) PBOC to inject CNY210B in 7-day reverse repos
- (JP) BOJ offers to buy ¥350B in 1-3yr JGBs, ¥440B in 3-5yr JGBs, ¥220B in 10-25yr JGBs and ¥140B in JGBs with maturity over 25-yr
***Market Focal Points/FX***
- Asian equity markets were on the upswing, tracking the solid gains made in US indices, as post-Brexit worries continue to subside. The duration of the rebound remains unclear however, with quarter-end window-dressing and short-covering cited for this rally. Outside of the improved US consumer confidence and an uptick in Q1 GDP, there was little in terms of positive catalysts behind the gains. EU gathering in Brussels underscored the uncertainty over Brexit proceedings - PM Cameron reiterated invoking Article 50 is the matter for the next PM in Sept and expressed confidence in maintaining close relationship through negotiations, just as EU's Juncker called for quicker submission of the withdrawal. The "redo-Brexit-vote" movement is also gathering steam with protests in London. Outside of Brexit uncertainty, an explosion attributed to ISIS suicide bombers rocked a Turkish airport, killing over 35 people.
- Japan govt and BOJ held another joint meeting to help reverse sentiment behind the recent rally in JPY. PM Abe called for Fin Min Aso and BOJ Gov Kuroda to continue watching markets and also making sure that there is sufficient liquidity to support economy. BOJ's Kuroda also reiterated the central bank can add funds to the market if needed. Japan retail sales for May were in line m/m but disappointed y/y, with the 3rd straight decline and the biggest fall since early 2015.
- In China, local press speculated the govt is considering measures to boost private investment and may announce some new plans in H2. Report noted govt should reduce regulatory costs and increase financial support for private companies. In another sign of easing strain, PBoC's Yuan fix was set stronger for the first time since the Brexit vote.
- Down under, Australia's May HIA new home sales fell for the 2nd straight time, though resident economist noted the unfolding pullback will be mild by historical standards. NZD got a lift from a downward revision in unemployment and also RBNZ report that long term inflation expectations are still well anchored.
- In FX majors, USD/JPY traded toward the lower end of its 102.30-80 range late in the day despite the risk-on rally. AUD/USD was up about 40pips from the lows around 0.7420, while NZD/USD nearly reached 0.71 handle - up about 50pips from the lows. GBP/USD was also volatile, initially rising to about 1.3370 before a slide to as low as 1.3290 later in the day.
***Equities***
US equities / ADRs:
- NKE: Reports Q4 $0.49 v $0.48e, R$8.24B v $8.26Be; Exec: Sees outlook for FY17 largely in line with prior guidance; Guides Q1 Rev up mid-single digit pct; Affirms FY17 Rev ex-FX up high single digits to low double digits; -4.0% afterhours
- AVAV: Reports Q4 +$0.23 v -$0.08e, R$84.8M v $85.8Me; -7.4% afterhours
- ESPR: Provides update for Bempedoic Acid; Plans phase 3 trials for 4Q; FDA did not provide clarity for LDL-C lowering Indication; -26.6% afterhours
Notable movers by sector:
- Consumer discretionary: Midea Group Co 000333.CN -1.1% (acquisition); APN News APN.AU +2.3% (UBS cuts to neutral)
- Financials: National Storage REIT NSR.AU +2.5% (acquisition, guidance)
- Industrials: UGL UGL.AU +12.6% (awarded order)
- Technology: Sony Corp 6758.JP +3.8% (revises mid-term ROE target)
- Materials: LG Chem 051910.KR +7.6%, Samsung SDI Co 006400.KR +5.4% (South Korea asks China to help on EV battery producers)
- Energy: Idemitsu Kosan Co 5019.JP -7.5% (founding family oppose to Showa Shell merger); Caltex Australia CTX.AU +3.2% (guidance)
- Healthcare: Australian Pharma API.AU +7.5% (Goldman raises to neutral)
Danone négocie son entrée au capital de Michel et Augustin
Danone et les actionnaires de Michel et Augustin sont entrés en négociations exclusives en vue de l’acquisition par Danone d’une participation minoritaire au capital de la société Michel et Augustin, aux côtés d’Artémis et de ses fondateurs.
Danone a communiqué, mardi 28 juin au soir, être entré en négociation exclusive avec les trublions du goût. Avec un chiffre d’affaires d’environ 40 millions d’euros en 2015, "l’expertise des équipes de Danone permettrait à Michel et Augustin de bénéficier d’un appui important pour accélérer son développement international - en particulier aux Etats-Unis - tout en préservant son originalité" selon la communication de Danone.
Cette prise de participation constituerait la première opération réalisée par Danone Manifesto Ventures. Une toute nouvelle structure d’investissement et d’incubation basée à New York, opérationnelle à l’automne 2016. " Cette nouvelle structure permettra à Danone d’accompagner le développement d’entreprises à fort potentiel de croissance qui partagent sa vision de l’alimentation. Les équipes de Danone pourront quant à elles s’inspirer d’idées et de pratiques nouvelles au contact d’entreprises plus jeunes, pour développer l’ambition de son Manifesto : promouvoir des habitudes alimentaires saines et durables qui valorisent la diversité culturelle de l’alimentation".
Ce projet de prise de participation, dont les termes anticipent une montée progressive de Danone au capital de Michel et Augustin, reste notamment soumis à l’information et à la consultation des instances représentatives du personnel. La holding de la famille Pinault Artémis est entrée au capital de Michel et Augustin en 2013 à hauteur de 70%.
Closing Market Summary: Global Markets Rebound Post-BrexitThe stock market finished Tuesday on a broadly higher note as equities rebounded alongside European bourses. The major averages drifted to the upside today as investors abandoned their risk-off posture, bidding oil, oversold currencies, and the heavily-weighted financial (+2.5%), technology (+2.0%), health care (+2.0%), and consumer discretionary (+1.9%) sectors. The Nasdaq Composite (+2.1%) ended its day ahead of the S&P 500 (+1.8%) and the Dow Jones Industrial Average (+1.6%).
The major U.S. averages began the day on a higher note as participants eyed a rebound in European equity markets. The Euro Stoxx 50 Index climbed 2.1%, rebounding from an 11.2% decline over the last two sessions. European banking names helped lead the gains as investors shifted their attention to a two-day EU Summit in Brussels. News flow from the Summit has been relatively light, but comments from German Chancellor Angela Merkel indicated that EU membership remains an all or nothing endeavor. Ms. Merkel said that Britain cannot simply pick and choose elements of membership.
Equities pulled back in the late morning, which corresponded to some late selling interest in the European market. The S&P 500 (+1.8%) found support near the 2020 price level, vacillating near that area until the final ninety minutes of trade. The major averages notched fresh session highs in the final hour of trade, finishing the day at their best levels. In front of the pack, commodity-sensitive energy (+2.6%) led heavily-weighted financials (+2.5%), technology (+2.0%), health care (+2.0%), and consumer discretionary (+1.9%). Conversely, countercyclical telecom services (+0.3%), utilities (+0.3%), and consumer staples (+0.6%) finished with the slimmest gains.
The energy sector (+2.6%) ended its day broadly higher, responding to a 3.1% ($47.92/bbl; +$1.44) gain in oil. In the group, Pioneer Natural Resources (PXD 149.71, +3.10) outperformed after updating its guidance. The company estimated that production growth will increase 12.0% through fiscal year 2016 while maintaining that its capital program is funded through 2018. The American Petroleum Institute will release its weekly inventory data this evening.
In the financial sector (+2.5%), money center banks demonstrated relative strength as Bank of America (BAC 12.70, +0.52) and Citigroup (C 40.44, +1.96) gained 4.3% and 5.1%, respectively. On a side note, after the close on Wednesday, the Fed will release results from its Comprehensive Capital Analysis and Review (CCAR). Expectations remain high that most banks will be granted approval to increase their respective capital return programs. Separately, Dow component Travelers (TRV 114.13, +3.78) ended its day atop of the price-weighted index.
Biotechnology outperformed in the health care space (+2.0%), evidenced by the 3.8% rebound in the iShares Nasdaq Biotechnology ETF (IBB 250.66, +9.17). The sub-group traded higher alongside large caps Gilead Sciences (GILD 82.31, +4.06) and Allergan (AGN 227.72, +10.24). For the month, the ETF has lost 10.4%.
The PHLX Semiconductor Index (+2.7%) demonstrated relative strength, trimming its monthly loss to 4.8%. In the index, Skyworks (SWKS 60.26, +2.25) jumped 4.3% after Craig Hallum provided bullish commentary on the name. The firm maintained its "Buy" designation on the stock, citing industry-leading margins. In the broader technology space (+2.0%), Facebook (FB 112.70, +3.73) rallied 3.4%, erasing yesterday's loss.
The U.S. Dollar Index (95.96, -0.58) slipped today as the euro and the pound rebounded against the dollar. The euro/dollar pair ended higher by 0.6% (1.1089) while sterling jumped 1.0% (1.3354) against the buck. Conversely, the dollar gained 0.6% against the safe haven yen (102.64).
The Treasury complex finished modestly lower as the yield on the 10-yr note rose two basis points to 1.46%.
Today's participation was above the recent average as more than one billion shares changed hands on the NYSE floor.
Today's economic data included the third estimate of first quarter GDP and GDP deflator, the Case-Schiller 20-city index for April, and Consumer Confidence for June:
- The third estimate for first quarter GDP showed output increasing at an annual rate of 1.1% consensus 1.0%), up from the second estimate of 0.8% and the advance estimate of 0.5%.
- The third estimate for first quarter GDP should not be regarded as the basis for any change in economic sentiment this morning for a number of reasons.
- First, the report is very dated considering it is being released two days before the end of the second quarter.
- Second, the report featured a downward revision to personal spending.
- Third, it still points to a very weak period of growth in the first quarter.
- And fourth, it is virtually meaningless for a market that is now consumed with what the third and fourth quarters will look like following the Brexit vote.
- The upward revision in the third estimate was driven largely by exports increasing more than previously estimated.
- That boosted the contribution from net exports to the change in GDP from -0.21 percentage points to 0.12 percentage points.
- That negated the drag from the revised contribution level for personal spending from 1.29 percentage points to 1.02 percentage points.
- Small upward revisions to government spending, the change in private inventories, and fixed investment helped account for the remaining difference.
- Final sales of domestic product, which exclude the change in inventories, increased from 1.0% to 1.3% with the third estimate.
- The Case-Shiller 20-city Home Price Index for April rose to 5.4%, which was below the consensus of 5.5%. This followed the previous month's revised reading of 5.5% (from 5.4%).
- The Conference Board's Consumer Confidence Index increased to 98.0 in June from a downwardly revised 92.4 (from 92.6) in May.
- The June reading was well ahead of the consensus estimate, which was pegged at 93.1, and is the highest level for the index since last September.
- The uptick in June was driven by an improvement in both the Present Situation Index, which increased from 113.2 to 118.3, and the Expectations Index, which rose from 78.5 to 84.5.
- The Conference Board noted that expectations regarding business and labor market conditions, as well as personal income prospects, improved moderately.
- This report offers a nice headline surprise, although its relevance is diminished considering the survey was mailed and responses were collected prior to the Brexit vote and its aftermath.
- The latter consideration will lend more relevance to the consumer confidence reading for July.
Tomorrow's economic data will include the 7:00 ET release of the weekly MBA Mortgage Index. Meanwhile, Personal Income ( consensus 0.3%), Personal Spending (onsensus 0.3%), and Core PCE Prices ( consensus 0.2%) for May will cross the wires at 8:30 ET. Finally, the day's data will be capped off with Pending Home Sales for May ( consensus -1.4%), which will be released at 10:00 ET.
- Nasdaq Composite -6.3% YTD
- Russell 2000 -2.6% YTD
- S&P 500 -0.4% YTD
- Dow Jones -0.1% YTD
RTRS - AIRBUS AIR.PA PROCUREMENT CHIEF SAYS ZODIAC AEROSPACE ZODC.PA HAS "NOT RECOVERED YET" AFTER CABIN DELAYS
http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm508915.htm
--> *GILEAD CEO SAYS EPCLUSA LIST PRICE WILL BE $74,760 FOR 12 WEEKS