Daily News

Daily Briefing – Tuesday, May 2, 2017

Europe

Greek markets rose after the country reached a bailout deal with its creditors; and the FTSE was up 0.6% on positive earnings from BP.  The Pound Sterling this morning rose to 1.29 after Markit’s manufacturing PMI soared to a 3-year high of 57.3. Italy’s number exceeded expectations but the EU fell to 56.7. Unemployment in the zone disappointed analysts by remaining steady at 9.5%,

US

Bank shares crashed yesterday after US President Donald Trump hinted that he was considering breaking up too-big-to-fail Wall Street banks, calling the Frank-Dodd ammendment “out of control”. The Dow Jones closed down 0.13%, while the Nasdaq rose by 0.73% thanks to upbeat tech shares – especially Apple, which closed up 2.1% yesterday at a record $141.6 per share and which reports quarterly earnings today. On the other hand, a survey from Northwest Mutual insurance estimates that 45% of Americans spend half of their income on credit card debt payments, excluding mortgages. Meanwhile, the ISM’s manufacturing PMI yesterday plunged to 54.8 from March’s 57.2 alongside personal income and spending.

In Canada, following the withdrawal of 70% of Home Capital Group’s deposit base, the mortgage run has now hit another lender – Equity Group.

Asia

Asian markets rose overnight thanks to strength in the technology sector. The Nikkei closed up 0.7% and the Hang Seng a third, pushing it to a 21-month high. Chinese benchmarks were slightly down after the nation’s Caixin manufacturing PMI overnight slowed from 51.7 in March o 50.3 – a 7-month low. Nevertheless, the number indicates a 10-month expansion in spite of contracting industrial product prices. Asian factory activity is up; and Australia’s central bank overnight decided to maintain present interest rates for the 9th month in a row, due to slow wage growth and a threatening property bubble.

Commodities

Oil is pushing upward this morning after BP reported positive earnings and tripled profits, and in spite of the weekend low created by Libya’s production recovery. Bitcoin pushed above $1500 yesterday amidst a buying frenzy in Hong Kong’s Bitfinex exchange, as Chinese traders shift their focus away from the Forex market. Wheat markets soared yesterday to $461 a bushel after a freak snowstorm hit the US Midwest causing substantial losses in the nation’s breadbasket.

Shares

As traders prepare for this afternoon’s quarterly earnings report, Apple reportedly earned $36 million per hour during last year’s final quarter! Its current holdings are estimated at $250 billion. Tomorrow, prepare for Tesla (now number 1 ahead of Ford) and Facebook, whose Instagram is still ahead of Snapchat by 40 million daily users.

Week’s Events

12:55 GMT

US Redbook Index

8:30 PM GMT

API Weekly Crude Oil Inventories

10:45 PM GMT

Australia: Employment, participation & labor cost indexes.

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