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Daily Briefing – Monday, April 17, 2017

Europe

With most world markets closed for the Easter Weekend, Bloomberg on Friday reported that the London home market has suffered its worst collapse since 2008. According to the survey, London prices were down 4-6% in December. Across the Eurozone, markets ended the shortened week in the red between a third and a half percent, after most inflation data came in unchanged.

US

The Atlanta Federal Reserve has once again revised the US’ Q1 GDP forecast to its lowest in 3 years – 0.5%. Stock markets began pulling back after a short surge on Monday, as the SPX/DOW and Nasdaq lost over a percent for the week. Price indexes, retail sales and consumer sentiment were down, jobless claims and the deficit were up. The CPI fell in March for the 1st time in over a year, primarily due to drops in gasoline prices. While long term analysis still points to an uptrend, mid and short term expectations are bearish for US equity markets.

Asia

Asian markets begin the week in the red, following the US lead and a strengthening safe-haven yen. Following up on US President Donald Trump’s declaration, the US treasury on Friday announced that China does not yet meet the criteria of a currency manipulator. It did, however, mention the persistently large trade surplus with the US – a result of the nation’s restrictive trade policies. As bank lending increases and debt at double economic growth, GDP this morning showed a 6.9% increase for this year’s 1st quarter YoY.

Commodities

Oil fell this morning during the Asian session on a rising US rig count and North Korea’s failed missile test launch. As West Texas crude struggles to regain the $55 handle, Iran’s oil minister,m Bijan Zanganeh told an audience of students on Sunday that most countries would like to see the OPEC-led production freeze extended. The group meets towards the end of May to discuss a new deadline. Saudi Arabia’s soon-to-be privatized ARAMCO CEO Amin Nasser told students at Columbia University on Friday that although US producers continue to oversupply, long-term demand will most probably exceed production.

Shares

This season’s quarterly earnings reports for Q1,2017 begins with Netflix, which reports after US markets close today. EPS is expected to come in at $0.38, compared to $0.06 for this period last year. With growing numbers refusing to pay for the service, though, the share closed down 0.63% on Friday. Company CEO Reed Hastings was optimistic, however, noting that in the final 1uarter of 2016 subscriber growth was strong.

Week’s Events

Undisclosed time

China: GDP

2 PM GMT

US: NAHB Housing Market Index

1:30 AM GMT (+1)

China: House Price Index

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