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Daily Briefing – Monday, April 24, 2017

Europe

The Euro soared Sunday to a 1-month high as French election results began pouring in putting centrist runner Emmanuel Macron slightly ahead of Marine Le Pen after Friday’s terror attack in the capital. The Eurostoxx and Dax were slightly up o0n better-than-expected PMIs for the Eurozone (but worse for Germany), but the FTSE fell on weak retail sales – the worst in 5 months.

US

A strong start to quarterly earnings reports had Dow futures up 200 points this morning, the S&P gained 0.86% and the Nasdaq 0.91% – all these after closing marginally down on Friday. Adding some back wind was Donald Trump’s announcement on Friday that businesses and individuals will be getting a “massive tax cut” in this week’s proposed tax reform package. The dollar index reacted to post electoral Euro strength and opens the day below its 200dMA at 99 cents per dollar. On the other hand, a Credit Suisse report estimates that retail store closures over the year’s 1st quarter are worse than those in 2008. 10 retailers have filed so far for bankruptcy, compared to 9 throughout the whole of last year. Friday’s PMIs were down below expectations but existing home sales soared to 5.71mn. in March – a 10-year high.

Asia

In spite of liquidity injections monetary conditions in China are worsening and equities dropped drastically in overnight trading.  The Shanghai Composite was down 1.43%, but the Nikkei soared as much upward (1.5%), especially on the tail of US markets following the French election results yesterday.

 

Commodities

Oil fell again slightly following Friday’s increased US rig count, but was edging up towards the $50 mark against a weakening dollar this morning.

 

Shares

Quarterly earnings season is in full swing this week, with Alcoa reporting today, AT&T, Coca Cola & McDonalds tomorrow, PayPal, Twitter, Daimler & Yahoo on Wednesday, Amazon, GoPro, Microsoft and Starbucks on Thursday, and Google and Barclays on Friday.

Week’s Events

8 AM GMT Germany: Business Climate & expectations
10 AM GMT UK: CBI Industrial Trends
12:30 PM GMT US: Chicago FED Nt’l Activity Index

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