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Daily Briefing – Thursday, April 27, 2017


European markets are down today by less than percent, receiving some strength from the banking sector. UK retail sales increased their most in 2 years, based on CBI data, but sales sales growth is expected to slow down next month. The ECB is scheduled today to deliver its latest interest rate decision, following excellent confidence markers this morning. President Draghi, though, is expected to cite weak inflation and wage growth as a reason to maintain present conditions.


After targeting Canadian wood, Australian aluminum is next on the agenda, with hopes to approve additional smelters for the defense industry. Meanwhile, President Trump sent a message to NAFTA partners that, although he would be making no special efforts to renegotiate these, he has no intention of scrapping the deal at the moment. Retail sales came in well below expectations yesterday as cracks are seen in the country’s housing bubble. Yesterday, shares of Home Capital Group plunged by 60% dragging down mortgage lenders and placing the company under threat of insolvency.


The Bank of Japan this morning decided to keep interest negative as it cut inflation projections. Although exports are rising, price competition is keeping a lid on economic improvement. In stocks, Except for the Nikkei, which fell into the red at the end of trading, Asian equities were up yesterday, including the Shanghai Composite, which has been holding tight since last month’s presidential meeting.



The US Energy Administration yesterday reported a better than expected 3.6mB drawdown, but prices continue to crash, with WIT just above the $49 mark – this in spite of a still weakening US dollar! And Saudi Arabia is steadily losing market share to Iran and Iraq due to the production freeze agreement.



Twitter shares jumped after yesterday’s earnings announcement, which beat expectations; Fiat-Chrysler showed a 11% increase in Q1 revenues; and PayPal, with shares up 5.36% yesterday,  showed its best results since gaining independence from Amazon, which reports today and whose stocks are up 21% YoY.

Today expect quarterly results also for Lloyds banking, GoPro, Intel, Microsoft, Starbucks and Alphabet (Google), which disappointed analysts last quarter after 2 solid quarters of upbeat results.

Week’s Events

11:45 AM GMT EU: ECB Interest rate
12:00 Noon GMT Germany: CPIs
12:30 PM GMT US Jobless claims, Inventories & Trade Balance, followed by home sales at 2.
11:01 PM GMT UK: Consumer Confidence
11:30 PM GMT CPIs & unemployment, followed at 11:50 by Industrial production, retail sales & Household spending.


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