The Daily Market Updates – 26th November 2015
Financial markets across the globe are very quiet today due to the US Thanksgiving holiday. The irregular trading hours for US markets are expected to affect markets throughout the rest of the day and tomorrow.
Overnight, Asian markets followed on from the ECB inspired gains seen by global equities. Markets rallied yesterday when sources quoted that the ECB will step up their bond buying program.
The Russian government have said that they are still weighing up potential retaliation against Turkey due to the downing of one of their aircrafts. They are awaiting a “realistic” response from Turkey, and no sanctions as of yet have not been considered, according to sources at the Kremlin.
The Daily Market Updates – 6th November 2015
In what was dubbed as ‘Super Thursday’ by traders, the BoE announced the decision from their monetary policy meeting and, as expected, there was no change to rates or quantitative easing. A dovish minutes and quarterly inflation report followed, dampening the outlook for higher interest rates. Short sterling futures are now not pricing the first rate hike until way into 2017.
A relatively uneventful session overnight as market participants look ahead at today’s Non-Farm Payrolls. The Shanghai composite did outperform most bourses globally this week with a very respectable 6.1% gain.
The monthly Industrial Production data release across Europe disappointed today, with both the UK and Germany missing expectations. The UK reported only a slight miss on its headline month on month figure, showing a contraction of -0.20% against estimates of -0.10%. Germany showed the biggest surprise, analysts were expecting a rise of 0.5% but the actual came in at -1.1%.
Todays eagerly awaited Non-Farm Payrolls is expected to show whether the Fed will make a move in December. Estimates from city analysts range from +75k to +250k new jobs added to the US economy. The unemployment rate is expected to hold around 5%.
The Daily Market Updates – 5th November 2015
The social media giant released their 3rd Quarter earnings after the bell yesterday, and they didn’t disappoint. The headline EPS figure topped analyst expectations with a figure of $0.57 versus the expected $0.52. Revenue also surprised with the company generating $4.5 billion. Daily active users now sit at 1.01 billion with nearly 900 million accessing the site from their mobiles. In the grey market shares have risen as much as 3 percent.
Federal Reserve Chairwoman Janet Yellen spoke yesterday and said that negative rates are not needed for now but does not rule them out for the future. Yellen also went on to reiterate that there still is a real possibility for a rate hike in December. The 30 day fed fund futures traded on the Chicago mercantile exchange (CME) are now pricing in over 60% chance of a rate hike in December.
Private payrolls in the US rose by 182k last month and last month’s figure was also revised upwards in a boost to the employment outlook. This figure was above the analyst estimates who were calling for an expansion of 180k. This figure comes out ahead of this Friday’s non-farm payroll data from the labour department.
The Reserve Bank of Australia Chief Stevens notes that any move in the current interest rate would be a cut but stated that it’s likely an accommodative stance will be appropriate for some time yet.
Asian equities traded mostly mixed overnight with the Shanghai Composite again outperforming following strength in the brokerage names and telecom sector.
German factory orders
An unexpected fall in factory orders extended a series of declines in Germany suggesting that there is a slump in demand for investment goods in the euro area, showing increasing risks for Europe’s largest economy. Demand fell by 1.7% in September which far below the estimated 1% increase.
Today sees the BoE conclude their monetary policy meeting as well as releasing the quarterly inflation report. What is being dubbed ‘Super Thursday’ by traders will no doubt inject some volatility into the sterling markets.
The Daily Market Updates – 4th November 2015
The Swiss National Bank (SNB) President Thomas Jordan reiterated their current dovish stance last night, saying the Swiss Franc remains overvalued and that they have been intervening in the foreign exchange market to push the value down. Jordan went on to say that the two pillars of the SNB monetary policy are made up of negative interest rates and FX interventions.
The European Central Bank (ECB) President spoke last night and reconfirmed the Banks plans to re-examine the current stimulus program at the December meeting. Analysts are forecasting a 10 basis point cut to the deposit rate before the end of the year.
UK PMI Services
Growth in the UK services industry rebounded in October, with a higher than expected reading. This will be encouraging for Bank of England policy makers who are meeting this Thursday for their regular rate setting policy meeting. The service sector makes up more than three quarters of the UK’s GDP.
The electric car giant posted their third quarter earnings after the bell yesterday, revealing an EPS of -$0.58 which was lower than analysts had expected. Tesla’s CEO Elon Musk did promise to speed up production of its cars, which has lifted the stock price in the grey markets, this comes despite the earnings release being the lowest in ten quarters.
The Daily Market Updates – 3rd November 2015
Reserve Bank of Australia
The RBA maintained interest rates at 2.0% in their current monetary policy meeting, disappointing investors who had hoped for a cut. The door to further easing has been left open amid the latest lower than expected third quarter inflation figures released on Wednesday.
The Asian focused British bank reported an unexpected loss in Q3, causing their stock price to fall up to 10%. The bank posted a loss of €139m in the third quarter, which was a big difference to the €1.53bn profit recorded a year earlier. Chief executive Bill Winters has cancelled the dividend for 2015 and will axe 15,000 jobs.
The Swiss banking giant saw a drop of almost 5% in its share price after softening its targets for profitability for the next few years, despite recording solid third quarter results. The bank believes it will be around 2018 before it reached its goal of having a 15% return on tangible common equity, a measure used to evaluate a financial institutions ability to deal with potential losses.
Asian equities traded positively overnight, following on from the positive Wall Street close. The most notable performers came from the energy and health care sectors.