Daily News

Daily Briefing – Monday , May 1, 2017


With Labor Day being observed in most of Europe and Asia, Friday’s markets closed slightly down. The FTSE lost nearly half a percent, and the DAX and CAC40 were down by 0.05 and 0.08% respectively. Shares were down also after the ECB decided on Thursday to leave interest rates untouched – this in spite of the fact that the zone’s inflation had risen by 1.9%, well up from March’s 1.5. Over the weekend, the EU approved its 8 page negotiating guidelines for upcoming Brexit talks. On the agenda, the rights of EU expats in Britain and tens of billions of euros in penalties. The Belgian Prime Minister was especially worried that a Britain profiting from its emergence could prompt like decisions amongst other members. Meanwhile, in the UK, house prices, consumer confidence and the GDP were all down, and inflation could soon take a toll on living standards.


A busy week ahead as Friday’s NFP looms and the FED begins to slow its spending spree and analysts begin talking about an interest rate hike in June. So far, first quarter data has been weak, with consumer sentiment on Friday down and annualized GDP hammered down to 0.7% from last year’s 2.1% – its weakest result in 3 years. Consumer spending rose by a mere 0.23% YoY – its lowest rate since 2009. The dollar index double bottomed as the week ended at the 98.50 mark and is testing 99.


Chinese PMIs on Sunday – 51.2 in April down from 51.8 in March – indicate a faster-than-expected slowdown in manufacturing in spite of last week’s reported acceleration in GDP and retail spending . Ahead of the holiday, the Nikkei also lost footing (-0.2%) alongside most other Asian markets, which followed the cautious mode of Wall Street as the week closed. Tech shares were mostly up on fiscal results, with Nintendo up 1.25% and Samsung up 1.78%. Data shows, however, that Japanese industrial production fell 2.1% while retail sales actually added 2.1%


Libya’s output recovered yesterday, surging to more than 700K barrels a day following a 3-week closure due to armed conflict.


A heavy week of earnings ahead, with Apple reporting tomorrow after a 22.3% gain in last year’s revenues. Facebook and Tesla report Wednesday, as the latter, with shares closing at $314 Friday, overtakes the Big-3 to become the number one car company in the US. The focus swings to Germany on Thursday, with Adidas, BMW and Siemens presenting what analysts expect to be a strong financial quarter.


Week’s Events

7:15 AM GMT

Switzerland: Retail Sales

12:30 PM GMT

US: Personal consumption & income, followed at 1:45 by Markit’s Manufacturing PMI, & the ISM’s at 2

11:50 PM GMT

Japan: Monetary Policy Minutes

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