Dow+0,46% S&P+0,38% Nasdaq+0,53% Russell+0,51% VIX@ 15.13 (-0,13%)
US Market rebound closing near its 50d MA. Equity weakness coincided with selling in the Treasury market, which abated once the benchmark 10-yr yield kissed the 2.30% level. To be fair, the overnight selloff in Treasuries did not take place in a vacuum as Germany's 10-yr bund endured a sharp plunge that briefly sent its yield as high as 0.79%. German bunds were able to retrace the entire move, returning to 0.59% while U.S. Treasuries did that and then some. The 10-yr note rallied throughout the session, dropping its yield six basis points to 2.18% and back below the 200-day moving average (2.19%)...Treasury will be in Focus again today with Non Farm Payroll tio be published...Yelp+23% on WSJ article on possible sale...the energy sector (-1.1%) spent the day in negative territory as crude oil struggled amid dollar strength. WTI crude slumped 3.2% to $58.98/bbl, volumes were in line with average @ 785mil shares...US after Hours SSNI +22.6%, NPTN +21.7%, SEDG +15.4%, AMDA -31%, KEYW -21.5%, PLNR -15.2% following earnings/guidance...Overnight focus is US election even with Non Farm today in the US. GBP saw particularly outsized gains on solid performance by ruling Conservatives and disappointing polls for opposition Labour and coalition member Liberal Democrats. Just after 4am GMT, Conservative Party picked up 14 seats and lost 5, while Labour lost 43 against +12 gained and LD lost 22 seats with none gained. Pro-independence Scottish National Party (SNP) results were especially impressive, picking up 46 seats. Note that 326 seats are needed for a majority, and Conservatives will still likely need to find a governing partner. GBP/USD spiked up some 150pips on the initial exit polls in early trade and added to those gains throughout the session, testing $1.55 level late in the session - a 2-month high. EUR/GBP collapsed 150pips as well to fall below £0.7240 - a 1-week low. Shanghai and Hong Kong led regional indices to the upside, with most pronounced gains coming after disappointing China trade data that lifted expectations for additional PBoC policy easing. Trade surplus was shy of expectations, exports fell for 2nd straight month by -6.2% v +1.6% expected, and imports fell for the 6th straight month by over 16% - much worse than 12% decline forecast. Shipments to US were up 3%, but exports to EU and Japan were down double digits. China press reports that Shenzhen-Hong Kong stock connect was approved was also notable for the H-shares which have previously attracted mainland inflows on cheaper valuations. Bank of Japan meeting minutes from Apr 7th offered little new
Nikkei +0,82% Hang Seng +0,43% Shanghai +0,11%
Eur$ 1,1205 RUB $50,4247 CHFEUR 0,9672 GBP 1,5477 GBPEUR 1,3813 WTI $58,60 (-0,60%)
S&P +0,05% EuroStoxx+),04%% Dax +0,13% SMI +0,52% FTSE +1,5%
Macro
- China April Retail Auto Sales Rise 6.2% on Year, PCA Says
- China April Exports Fall 6.2% Y/y in Yuan; Est. +0.9%
- Greek Govt Asks Bank Recap Fund CEO Sakellariou to Resign: Skai
- SALT Day 2 Wrap: Bass Has Perrigo Position, Chanos Short Shell
- U.K. Equities Should React Positively to Poll Result: Jefferies
Keep an eye on :
- AGS BB : Ageas 1Q Insurance Profit Beats Ests.; Gross Inflows Rise 19%
- BELG BB : Belgacom 1Q Rev., Adj. Ebitda Beat Est.; Free Cash Flow Dwindles
- COL SM : Colonial Recurring 1Q Net EU5.8m Vs EU2.5m a Year Earlier
- EDF FP : EDF Outlook to Negative From Stable by S&P; Rating Affirmed
- EDP PL : EDP 1Q Net Income EU297m vs Est. EU282.5m
- EIT IM : EI Towers 1Q Net EU10.1m vs EU9m Y/y; Ebitda Target Confirmed
- ELE SM : Endesa 1Q Net EU435m; Est. EU318.2m
- ENEL IM : Enel 1Q Ebitda, Revenues Beats Estimates; Net Debt Rises
- FNC IM : Finmeccanica 1Q Ebita EU157M; Est EU163M; 2015 Targets Confirmed
- FORTH GA : Forthnet in Talks With Greek Banks on EU100m Convertible Bond
- 13 HK : Hutchison Whampoa sells approximately 32.98% of Hutchison 3G UK to investors including CPPIB, GIC and Abu Dhabi Investment Authority --> +2% in HK
- IT IM : Italcementi 1Q Recurring Ebitda EU95.2m Vs EU95.5m
- JUN3 GY :Jungheinrich 1Q Sales Rise 8%, Beat Ests.; Confirms 2015 Outlook
- KVAER NO : Kvaerner 1Q Ebitda NOK101m; Est. NOK103m
- MB IM : Mediobanca 3Q Net Income More Than Doubles to EU205m, Beats Est.
- NOK1V FH : Uber Said to Bid for Nokia Mapping Service Here: NYT, offered $3b for Here Unit
http://nyti.ms/1H2XJsQ
- NRE1V FH : Nokian Renkaat 1Q Sales, Profit Beat Ests.; EU100.3m Tax Impact
- NOVN VX : Novartis Says Lung Cancer Drug Zykadia Gains EU Approval
- NSI NA : NSI 1Q Direct Investment Result EU13.5m vs EU12.8m
- ORI SS : Oriflame 1Q Ebitda Misses Est.; Sees Sales Decline in 2Q, Offers Owners to Exchange Shrs in Domicile Change
- PHIA NA : Philips Says Issues in Chinese Medical Mkt Are Industrywide
- PRY IM : Prysmian Strength in 1Q Likely to Continue in 2015: Barclays
- ROG VX: Roche Says Smith & Nephew CFO Brown to Be Nominated for Board
- SBMO NA : SBM 1Q Non-IFRS Rev. $601m vs $782m Y/y; Sees More Job Cuts
- SCYR SM : Sacyr Considers Selling Testa: Expansion
- SCH NO : Schibsted Offers to Buy Hemnet; Values Co. at SEK1.5b EV Basis
- SCH NO : Schibsted 1Q Opg Revenue Unexpectedly Declines; Media Rev Drops
- SYNN VX : Monsanto Said to Make Initial $45b Offer for Syngenta --> CHF450/share, 35% premium, Synn reject offer but open to talks
- TIT IM : Telecom Italia 1Q Ebitda, Sales, Net Debt Match Ests.
- UBSN VX : UBS Will Be Long-Term Winner of Structural Change: Berenberg
- US IM : UnipolSai 1Q Net Premiums EU3.68b vs EU4.16b Yr Earlier
- VWS DC : Albaek Leaves Vestas to Manage Activist Investment Fund: Borsen