Stock markets started the week off on a positive note for the most part with the NASDAQ gaining nearly 1.0% while the Dow, Dax
and S&P rose 0.4%.
Traders appeared to take today’s merger news as a positive along with earnings reports. This was interesting considering the headline merger of the day had a mixed response. Time Warner remained way below AT&T’s $107.50 per share bit price trading in the mid $80s as traders speculated that the deal could run into a lot of opposition with even Donald Trump raising questions about concentration of power in the media/telecom sector.
Oil fell over 1% Monday taking W TI back toward $50.00 putting a headwind in front of the broader indices (NASDAQ which outperformed has a lighter weight in energy and a bigger focus on technology) The selloff was blamed on comments from Iraq wanting to be excluded from a production cap/cut deal while it is in the middle of trying to reconquer Mosul and surrounding oilfields, which if successful could help to restore lost production. Apparently Russia has also been non-committal again about whether it would participate. The OPEC meeting is still over a month away so speculation may continue to run rampant but for trading focus for the next couple of days may shift back to the weekly US inventory reports which have been running a trend of big drawdowns lately.
It’s a pretty light calendar for news but today Asia Pacific traders may continue to focus on trading China where the offshore Yuan has been in a nosedive (attracting accusations from Trump of being a currency manipulator) while the Hang Seng has been on the rebound. Traders may continue to speculate on the impact a higher Yuan (due to the US Dollar peg) relative to most other major currencies has had on the Chinese economy.
Visa $0.78 vs street $0.73
Significant announcements released overnight include:
US Markit flash manufacturing PMI 53.2 vs street 51.5
Canada wholesale sales 0.8% vs street 0.6%
France flash manufacturing PMI 51.3 vs street 50.0
France flash service PMI 52.1 vs street 53.0
Germany flash manufacturing PMI 55.1 vs street 54.4
Germany flash service PMI 54.1 vs street 51.5
UK CBI total orders (17) vs street (5)
UK CBI selling prices 8 vs previous 5
UK CBI business optimism (8) vs previous (47)
Upcoming significant economic announcements include:
(Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore)
9:00 am BST Germany IFO business climate street 109.6
9:00 am BST Germany IFO current assessment street 114.9
9:00 am BST Germany IFO expectations street 104.5
9:00 am BST Italy industrial sales previous (0.7%)
9:00 am BST Italy industrial orders previous (11.8%)
10:00 am EDT US consumer confidence street 101.5
10:00 am EDT US Richmond Fed street (4)
11:30 am EDT ECB Draghi speaking
1:00 pm EDT FOMC Lockhart speaking
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