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Daily Briefing – Wednesday, April 26, 2017

Europe

The ECB is preparing to make lending more difficult for companies as demand for loans is expected to grow during Q2 thanks to continued negative interest rates. As the economy grows but inflation surprisingly drops in Q2, he bank goes into its 2-day meeting today at the end of which tomorrow it will update its monetary policy. In the UK, public sector borrowing dropped to a decade-long low in line with the Conservative Party’s goal of reducing the nation’s budget deficit.

 

US

The DOW was up 200 points yesterday – erasing a month of losses – on better-than-anticipated earnings for MacDonald and Caterpillar, the former whose shares jumped 3% and the latter which doubled its EPS. US new home sales soared by 5.8% in March to their highest since 2008. The conference board’s consumer confidence reading, on the other hand, dropped in April.

 

 

Asia

Asian markets, near 2-year highs, were upbeat for the 3rd session in a row this morning, with the Nikkei up 1.04% as the country’s all industry activity index rose nicely from 0.1% in January to 0.7% the month after and investors await tonight’s central bank interest rate policy. New Zealand’s Dow Jones up 1.51%, and Australia’s inflation soared overnight to a 3-year high from 1.6% to 1.9% in Q1, higher than expected.

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Commodities

Bitcoin is up for the 8th day in arrow after the US SEC announced it would review its rejection of the crypto currency. This would allow Bitcoin ETFs to be launched upon US financial markets. Oil was down again overnight after the API’s report of an 897KB build.

 

Shares

Credit Suisse in its earnings report yesterday topped expectations with earnings up n19% to 5.5 bn Francs, and profits doubled for Daimler in Q1 – especially on sales of Mercedes. Today’s earnings reports will be coming in from Bayer pharmaceuticals, PayPal, Twitter, Fiat/Chrysler and Yahoo.

 

Week’s Events

8 AM GMT Switzerland: ZEW Expectations
11 AM GMT US: Mortgage applications
12:30 PM GMT Canada: Retail Sales
2:30 PM GMT EIA Crude Oil Change
2 AM GMT (+1) Japan: Monetary Policy Statement & Interest rates

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