Daily Briefing – Monday, August 7, 2017
The morning began with a bump after indexes all closed green Friday for their best daily gain in nearly a month thanks to banking shares anticipating a December interest rate hike in the US. This morning, though, German industrial production fell by nearly half YoY and contracted MoM – most believe a retracement – and the EU’s investor confidence index dropped by half a point to 27.7. At present, the DAX and Eurostoxx are showing a 0.39% 0.17% retreat, respectively. In the UK, on the other hand house process rose by a better-than-expected 0.4% MoM in July
Increasing chances for a Fed hike in December, superb US jobs data on Friday plus a surprise upward $10 drive in index-pushing apple puts market openings in a severe risk-on mode. The USD, however, continues to consolidate rather than continuing its weekend uptrend. Director of the National Economic Council, Gary Cohn said on Friday that the administration aims to reduce corporate tax to 23%.
Asian indexes this morning performed well, reflecting US jobs plus optimism that China may agree to endorse a maritime code for the disputed South China Sea. Overnight, Japanese foreign reserves and the nation’s leading index rose in line with expectations.
Despite continuing over-spending and last week’s EPS loss, Tesla shares ended the week by posing their best performance since April with a 6.5% week-over-week rise. It was also a good week for Snapchat, which shot up nearly 4% on Friday. The stock is still below its IPO pricing, but will report quarterly results on Wednesday. Also on the week’s quarterly earnings radar – Godaddy tomorrow and NVidia on Thursday.
Oil seems pessimistic this morning as OPEC members gather in Abu Dhabi to discuss non-adherence to the production freeze. On Friday the commodity hit support at $48.6 as the Baker Hughes count showed one rig less on US soil, hitting resistance at 49.57
|2 PM GMT||US: Labor Market Conditions, followed at 7 by the Consumer Credit Change.|
|11:01 PM GMT||UK: BRC Retail Sales|
|11:50 PM GMT||Japan: Trade Balance|
|2 AM GMT (+1)||China: Trade Balance|