Daily News

Daily Briefing – Thursday, May 11, 2017

Europe

Greece’s stock market has been rising for 12 days in a row – its longest winning streak in over 25 years, in spite of the nation’s high court decision that pension cuts are unconstitutional. Elsewhere in Europe, indexes were pulled down by Italian banks and construction firms by about a tenth of a percent across the board. The FTSE gained 0.6% during the session. The GBP remains steady ahead of today’s interest rate decision as consumer inflation remained on target at 2.3% in March. And ECB President Draghi reiterated his disappointment in “subdued” inflation.

Asia

In spite of the Kushner family’s attempts to lure Chinese businessmen with 500k investor visas, apparently Chinese firms are scorning the Land of Opportunity for Israel. Whereas $26.3bn worth of deals in the US were scrapped in 2016, investments in Israel grew tenfold to $16.5 bn.  The Nikkei was up overnight after Japan reported a 200 billion yen shrinkage of its trade balance. The nation’s leading index increased to 105.5. The New Zealand dollar tumbled on the central bank’s dovish policy report overnight, after central bank governor Wheeler said that inflation increases were temporary.

US

US indexes started the day with a gap up yesterday, especially the Nasdaq on strong earnings; they then lost most of these earnings on reports of a new North Korean missile test. Canada’s central bank is attempting to make light of the nation’s housing bubble after Moody’s slashed the ratings of 6 of the largest banks. Amidst the retail crisis, German supermarket chain Aldi is entering a price war with Walmart. With 1600 stores throughout the US, the company is increasing its operations by 15% each year; Walmart’s expansion rests at 2% p.a. Meanwhile, Boston Fed President Eric Rosengren suggested that the US Fed should think about more than 3 interest rate hikes this year and begin to shrink its assets holdings.

Commodities

Last night’s EIA report confirmed the 5mB-plus draining of inventories, pushing oil up nearly ½ a percent (WTO currently at 47.54 and rising). And Bitcoin surged another $100 past 1`800 yesterday.

 

Shares

Snapchat’s first quarterly earnings report is being described as a disaster after a net loss of $2.2bn resulted from shares plunging 25% on missed user, EPS and revenue data.

 

 

Week’s Events

8:30 AM GMT UK: Manufacturing & industrial production & trade balance, followed at 11 by the BoE’s monetary policy & interest rate decision.
12:30 PM GMT US: PPIs and jobless claims
12:30 PM GMT Canada: New Housing Prices followed at 2:30 by the central bank’s review
2 AM GMT (+1) China: Foreign direct investments

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