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24 Hour Market News

European Closing Report

May 14, 2018

European cash equity markets are mostly lower at the closing bell although declines are relatively modest (FTSE -0.2%, DAX -0.2%, CAC 0.0%). Financial service stocks are leading declines while healthcare provided a bright spot after Trump unveiled his blueprint for lowering drug prices on Friday. Wall Street opened to the upside meanwhile with US-China trade talks in focus after the US President also threw a lifeline to Chinese telecoms giant ZTE. In the bond markets, both US and European yields have inched higher amid some hawkish central bank chatter from the ECB’s Villeroy and Cleveland Fed President Mester. Data releases were relatively sparse meanwhile. Turning to currencies, the Dollar Index is nursing a minor decline as last week’s CPI miss continues to weigh while Sterling sits towards the top of the G10 pile. The Norwegian Krone was boosted by hawkish remarks from Norges Bank Governor Olsen. Elsewhere, Italian President Mattarella was expected to hold government formation talks with the Five Star at 15:30 BST and League at 17:00 BST. Five Star leader Di Maio has since said he asked the President or more time to finalize a government. Still to come today, a US 10-year TIPS auction at 18:00 BST.

For a more detailed report please visit the ‘Market Research’ section.

US Closing Report

May 7, 2018

We saw gains on Wall Street evaporate in the latter stages of today’s session (DJIA +0.4%, S&P +0.3%, NASDAQ +0.8%). Energy stocks had led the broader market for most of the session but turned lower as oil prices did the same post-settlement after US President Trump confirmed he will be announcing his decision on the Iranian nuclear deal tomorrow. Elsewhere, US yields have turned higher, albeit slightly, as equities and oil declined. Comments from the FOMC provided no real surprises meanwhile with Richmond Fed President Barkin noting that he does not see outsized wage pressures while the US economy is on a good growth trajectory. Chicago’s Evans added that structural changes may create inflation headwinds. Switching to the ECB, Chief Economist Praet played down the drop in core inflation as a temporary due to a decrease in services inflation. Jan Smets meanwhile said the ECB are likely to move over the summer to gradually phase out its bond-buying program. On the data front, US consumer credit was lower-than-expected in March at $11.62 Bln (f/c. $16.20 Bln).

For a more detailed report please visit the ‘Market Research’ section.

European Closing Report

May 7, 2018

European cash equity markets have begun the week on a firm footing with broad gains at the closing bell (DAX +1.0%, CAC +0.2%, FTSEMIB +0.8%). Energy stocks have outperformed, boosted by further gains in oil prices with US crude futures adding around 1.5% at the highs. The French CAC 40 has lagged slightly amid heavy losses for Air France while UK markets remain closed for a bank holiday. We also saw a positive open on Wall Street with energy stocks again leading the broader market higher. We have seen some divergence in the bond market with US yields edging higher but German borrowing costs offside after some soft data releases earlier today including German factory orders, Euro Zone retail PMI and Sentix investor confidence. The data has also knocked the Euro in currency space while the Swiss Franc was hit by soft CPI data. The Dollar has risen against most of its G10 rivals meanwhile although has struggled against the pound with M&A news (Shire/Takeda) being cited. In recent trade, we heard from Atlanta Fed President Bostic repeated his view for two more rate increases this year. He also said he is comfortable with some degree of two-percent inflation overshoot. We do expect further Fed speak later today with Barkin, Evans and Kaplan all due to speak before the US close and US consumer credit data also due.

For a more detailed report please visit the ‘Market Research’ section.

US Closing Report

May 3, 2018

US cash equity markets are little changed at the closing bell having recovered off their worst levels this afternoon (DJIA 0.0%, S&P -0.2%, NASDAQ -0.2%). AIG, Tesla and Cardinal Health are all posting heavy declines after their respective corporate updates while Boeing and Microsoft are leading the Dow. Investors also have one eye on the US-China trade meetings that begun today and a White House official said talks so far have been pretty positive. Elsewhere, US yields have edged lower as market commentators continue to debate how to interpret yesterday’s FOMC statement. The Japanese Yen has been the outperform meanwhile, boosted by safe-haven demand which has also lifted gold prices. In energy space, US crude futures settled at $68.43 (+$0.50).

For a more detailed report please visit the ‘Market Research’ section.

European Closing Report

May 3, 2018

European cash equity markets are broadly lower at the closing bell (FTSE -0.6%, DAX +0.8%, CAC +0.6%). The German DAX is lagging its core counterparts, weighed by heavy losses for Adidas after their first-quarter earnings. We also saw a lower open on Wall Street as investors wait for news out of the trade meetings between US and Chinese officials that begin today. In the bond markets, US yields have retreated after some mixed macro releases – ISM non-manufacturing, unit labour costs and non-farm productivity all fell short of expectations while jobless claims and factory orders beat. Euro Zone yields also declined after Euro Zone CPI came in below forecasts with the core rate dropping to +0.7% (f/c. +0.9%) from +1.0%. UK yields were weighed by a soft service PMI print. In currency space, the Euro and Sterling were capped by the weaker data while the Yen has the man beneficiary from the risk adverse trading. Gold prices also added over ten-dollars at the highs while oil prices are nursing minor losses. Still to come today, SNB President Jordan speaks at 17:30 BST while we await earnings after the US close from Fluor, CBS and Xerox.

For a more detailed report please visit the ‘Market Research’ section.

US Closing Report

May 2, 2018

US cash equity markets moved lower this afternoon to close in negative territory (DJIA -0.7%, S&P -0.7%, NASDAQ -0.4%). Technology stocks have outperformed, led by Apple shares which have gained close to five-percent after they posted a stronger second-quarter report. We saw declines in both US government bond yields and the Dollar in response to the FOMC policy statement although the US currency has since bounced to new highs. Policymakers altered their language on inflation to note that they had moved close to two-percent although did also drop language that acknowledged the recent strengthening in the economic outlook. Elsewhere, oil prices turned higher with US crude futuers settling at $67.93 (+$0.68) despite the sizeable build in crude inventories reported by the DoE earlier today. In Europe, a UK government cabinet meeting ended without an agreement on the customs arrangement they want with the EU post-Brexit. BBC Political Editor Laura Kuenssberg said she heard the customs partnership model was rejected. ECB Governing Council member Weidmann said expectations for a rate increase in mid-2019 are realistic. We await earnings after the bell from Kraft Heinz, Mastercar, Metlife and AIG.

For a more detailed report please visit the ‘Market Research’ section.

European Closing Report

May 2, 2018

European cash equity markets are broadly higher at the closing bell as many markets returned from the Labour Day holiday (FTSE +0.4%, DAX +1.5%, CAC +0.2%). Technology stocks have outperformed, led by chipmakers after Apple posted a stronger second-quarter earnings report yesterday. Wall Street has seen a more subdued open meanwhile with modest losses for the major bourses ahead of the FOMC policy statement later today. In the bond markets, UK and German yields have risen supported by stronger prints for Euro Zone manufacturing and UK construction PMI. Euro Zone GDP was in line meanwhile at +0.4% QoQ and +2.5% YoY. US yields also edged higher, supported by a minor beat for the ADP employment change at +204K (f/c. +200K) and the Treasury quarterly refunding announcement. Turning to currencies, the US Dollar is leading the G10’s while Sterling did see a modest bid after the construction PMI print. We saw further losses in the Swedish Krona meanwhile after Riksbank Governor Ingves warned of the risks of hiking too early. Elsewhere, oil prices are lower following a sizeable build in DoE crude inventories of +6.2 Mln. Still to come today, the FOMC policy statement will be the main focus and is due for release at 19:00 BST (14:00 ET).

For a more detailed report please visit the ‘Market Research’ section.

US Closing Report

May 1, 2018

US cash equity market are mixed at the closing bell (DJIA -0.3%, S&P +0.2%, NASDAQ +0.9%). Technology stocks have outperformed, led by Apple shares which have jumped over two-percent ahead of their second-quarter earnings due at 21:30 BST. Meanwhile, heavy losses for Boeing, Merck and Pfizer following their respective updates have weighed on the Dow Jones Industrial Average while energy stocks have underperformed on lower oil prices – US crude futures settled at $67.25 (-$1.32). In the bond markets, US yields have edged higher today with investors looking ahead to the FOMC policy decision due tomorrow. The US Dollar has also gained in currency space with the Dollar Index at its highest level since the start of the year. We did also see some upside in the Canadian Dollar after Bank of Canada Governor Poloz said the view of the economy is quite good, even with the shadow cast by household debt. He added that the economic progress they have seen makes them confident that higher interest rates will be warranted over time. Elsewhere, US Trade Representative Lighthizer said he is always hoping but not always hopeful of a trade deal with China. He also said they are making good progress with the EU on steel and aluminium tariffs. The White House later said that the expect to complete negotiations with Canada, Mexico and the EU on aluminium and steel tariffs within thirty days.

For a more detailed report please visit the ‘Market Research’ section.

European Closing Report

May 1, 2018

Most of the major European cash equity markets were closed today for Labour Day while we saw muted price action for those that were open. The Euro Stoxx 600 lost 0.1% versus yesterday’s close while the FTSE was flat, supported by BP shares after they beat on Q1 earnings and a weaker pound. Sterling dropped in response to a soft print for UK manufacturing PMI while mortgage approvals and consumer credit were also below expectations. Elsewhere in FX, the Dollar Index has rallied to its best level since the turn of the year with little attention paid to soft ISM manufacturing and construction spending data. We saw a lower open on Wall Street with the DJIA extending declines to over one percent in recent trade although technology stocks have outperformed. Oil prices are also in the red with losses of over two-percent at the lows for US crude futures. Still to come today, possible comments from Bank of Canada Governor Poloz at 19:30 BST and earnings after the US close from Apple.

For a more detailed report please visit the ‘Market Research’ section.

US Closing Report

April 30, 2018

US cash equity markets are nursing modest losses at the closing bell (DJIA -0.6%, S&P -0.8%, NASDAQ -0.8%). Telecommunication stocks have underperformed, led by T-Mobile and Sprint amid their latest attempt at a merger. Healthcare stocks are also nursing heavy declines while energy stocks have provided a bright spot as oil prices gained. US crude futures settled at $68.57 (+$0.47) but did get up to $69.34 after Israeli PM Netanyahu said they have new and conclusive proof that Iran has been hiding its nuclear weapons activity and has moved its program to a secret location. President Trump said soon after that he thinks pulling out of the Iranian nuclear deal would send a positive message to North Korea. He did add that he would not rule out negotiating a new agreement with Iran. Elsewhere, the Dollar Index has held higher for the day while the Euro remains soft after Italian and German CPI fell short of expectations.

For a more detailed report please visit the ‘Market Research’ section

European Closing Report

April 30, 2018

European cash equity markets are broadly higher at the closing bell although gains are relatively modest (FTSE +0.2%, DAX +0.2%, CAC +0.6%). Retail stocks have outperformed, led by Sainsbury’s after news broke of a merger with Asda. Basic resources have provided a weight meanwhile as metal prices dropped. We also saw a positive open on Wall Street meanwhile as the US 10-year yield edges further below the three-percent level. Losses were seen in response to this afternoon’s US macro releases where core PCE stayed below the FOMC’s two-percent target at +1.9% YoY. Chicago PMI and pending home sales also came up short of expectations. In Europe, German yields are little changed but we have seen a notable pullback in the UK as investors pare back on bets for a May rate increase after Friday’s soft GDP data. Sterling had been one of the underperformers in currency space but has bounced back in recent trade while the Swedish Krona sits at the bottom of the G10 pile. Elsewhere, oil prices have pared earlier declines to trade slightly higher ahead of the close with investors looking ahead to comments from Israeli PM Netanyahu on the Iranian nuclear deal at around 18:00 BST.

For a more detailed report please visit the ‘Market Research’ section

European Closing Report

April 26, 2018

The European Central Bank stood pat on policy this afternoon as President Mario Draghi signalled confidence in the medium term outlook for both the economy and inflation. He did acknowledge incoming data signalled some moderation of the economy but still maintained that risks to the outlook were broadly balanced. The Euro was choppy during the press conference but has since moved to the downside alongside Euro Zone government bond yields. European equities have advanced meanwhile while Wall Street has also added to opening gains with technology shares showing notable outperformance. On the data front, US durable goods were flat MoM in March (ex. transport) versus estimates for a +0.5% gain, initial jobless claims slowed to 209K (f/c. 230K) from 233K and the advance goods trade deficit narrowed to -$68.4 Bln (f/c. -$74.80 Bln). Elsewhere in FX, the Dollar has advanced against all of its G10 rivals while the Swedish Krona remains at the bottom of the pile after a dovish message from the ECB. Oil has also been volatile with US crude futures moving off the lows in recent trade to add around 0.5%. Still to come today, a $28.0 Bln 7-year note auction at 18:00 BST.

For a more detailed report, please visit the ‘Market Research’ section

European Closing Report

April 26, 2018

European cash equity markets are broadly higher ahead of the midway stage although gains are relatively modest (FTSE +0.2%, DAX +0.2%, CAC +0.5%). Earnings impulses have been mixed with heavy losses for Nokia, Deutsche Lufthansa and to a lesser extent Royal Dutch Shell, while Volkswagen and Barclays have gained after their respective updates. We have seen a modest pullback in US government bond yields although the 10-year is still just above holding above the three-percent level that investors have been focused on of late. European yields have also retreated this morning with investors looking ahead to the European Central Bank policy announcements at 12:45/13:30 BST. The Riksbank left their benchmark rate on hold at -0.50% but pushed back their guidance for the next rate increases towards the end of the year which is somewhat later than previously forecast. The Swedish Krona subsequently fell to the bottom of the G10 pile while moves elsewhere in currency space have been muted; the Dollar Index is flat. On the data front, German GFK consumer confidence edged down to 10.8 (f/c. 10.8) from 10.9 while UK mortgage approvals beat at 37.6K (f/c. 37.2K). Elsewhere, oil prices are ahead with US crude futures adding close to one-percent at the highs while gold is flat. Looking ahead, futures are pointing to a slightly higher open on Wall Street with outperformance seen in the tech sector. The afformentioned ECB decision will be the main focus investors while US durable goods, wholesale inventories and jobless claims are also due.

For a more detailed report, please visit the ‘Market Research’ section

US Closing Report

April 25, 2018

US cash equity markets have recovered to close well off their worst levels this afternoon (DJIA +0.2%, S&P +0.2%, NASDAQ -0.1%). Boeing shares have led the Dow higher after they beat on first-quarter earnings and hiked their 2018 outlook. Investors are also keeping an eye on the Treasury market as US government bond yields continued to rise today – the 30-year yield rose to its highest level in two months. The $35.0 Bln 5-year note sales was well received with the yield stopping through to 0.4 basis points to 2.837%. Elsewhere, oil prices were choppy after initially falling on the DoE inventory report before settling at $68.05 (+$0.35). In currency space, the US Dollar has gained against all of its G10 rivals while the New Zealand Dollar and Norwegian Krone are the weakest. Elsewhere, the UK House of Lords has voted against the government for the sixth time in a week, this time over controls on new so-called “Henry VIII powers” for ministers to pass laws without full parliamentary consent after EU withdrawal.

For a more detailed report, please visit the ‘Market Research’ section

European Closing Report

April 25, 2018

European cash equity markets are firmly in the red at the closing bell (FTSE -0.7%, DAX -1.1%, CAC -0.6%). Basic resources and auto stocks are leading declines while Credit Suisse and Kering have outperformed on earnings. We have seen a choppy open on Wall Street meanwhile with markets paring opening losses to trade little changed in recent trade. Investors remain jittery as US yields continued to climb with the 10-year at a new multi-year high. European bonds appeared to have paused however and are little changed on the day with little macro data to dictate otherwise. Comments from ECB speakers did garner some attention however with Mersch noting that confidence on inflation has risen recently, and Vasiliauskas adding that he’s confident it’s time to transition from QE. In currency space, the US Dollar has gained against all of its G10 rivals the New Zealand Dollar and Norwegian Krone are the weakest, the latter losing ground amid reports that the Norwegian Parliament is seeking to reverse the decision to lower the Norges Bank inflation target. Elsewhere, oil prices did drop after a surprise build in US crude stocks although losses were trimmed relatively quickly. Still to come today, a $35.0 Bln 5-year note auction at 18:00 BST and possible comments from Bank of Canada Governor Poloz at 21:15 BST. Earnings after the Wall Street close include Ford, Visa, Facebook and AT&T.

For a more detailed report, please visit the ‘Market Research’ section

US Closing Report

April 24, 2018

US cash equity markets have nosedived this afternoon (DJIA -1.7%, S&P -1.3%, NASDAQ -1.7%). Investors appear to be spooked by rising borrowing costs as the ten-year yield crossed above three-percent for the first time since January 2014. Earnings are also in play with heavy losses for Alphabet, 3M, Caterpillar, Coca Cola and Travelers after their respective updates. Verizon is the only Dow component to have risen after reporting over the last twenty-four hours. Going back to the Treasury market, demand at the $32.0 Bln 2-year note auction was on the soft side with a 0.5 basis point tail and lowest cover since December. In currency space, the US Dollar has also declined this afternoon while the Japanese Yen has moved off its worst levels amid the decline in risk sentiment. This may also have been aided by reports via AP that Iran have threatened to abandon the nuclear deal if the US opts out. Elsewhere, US crude oil futures settled at $67.70 (-$0.94) ahead of the API inventory report after the bell. We also await earnings from Amgen, Chubb and Capital One.

For a more detailed report, please visit the ‘Market Research’ section

European Closing Report

April 24, 2018

US government bond yields continued their recent run higher this afternoon with the ten-year finally breaching the three-percent level – the first time it has done so since January 2014. A positive open on Wall Street provided the final push while stronger-than-expected readings for US consumer confidence and new home sales will also have provided support. Gains in US bourses have since faded however while European cash equity markets are also mostly lower at the closing bell (FTSE +0.2%, DAX -0.3%, CAC 0.0%). Earnings remain in focus with some big moves in the early exchanges including Alphabet and 3M who have both fallen sharply. Oil related stocks have outperformed meanwhile, boosted by gains in crude prices as tensions between Saudi Arabia and Yemen continue to escalate. In currency space, the Dollar Index is flat for the day while the Japanese Yen is the weakest of the G10 currencies. Elsewhere, German IFO data came up short of expectations as the ECB’s Villeroy said the Governing Council think the slowdown in the first quarter could be temporary. In Italy, the acting leader of the PD party said they are ready to look into government talks with the 5-Star, on the terms that they stop seeking a deal with the centre-right. Still to come today, a $32.0 Bln two-year note auction at 18:00 BST and earnings after the US close from Amgen, Chubb and Capital One.

For a more detailed report, please visit the ‘Market Research’ section

US Closing Report

April 23, 2018

US cash equity markets moved lower this afternoon, led by technology stocks and Apple whose shares dropped on reports of slowing demand for the iPhone X model (DJIA -0.1%, S&P 0.0%, NASDAQ -0.3%). Stocks have also been hampered by rising US government bond yields with 10-year borrowing costs flirting with the three-percent level after some stronger-than-expected US data today – manufacturing PMI, service PMI and existing home sales. This has kept the Dollar on the front foot in currency space where it has risen against all of its G10 rival while the Japanese Yen remains the weakest. The Canadian Dollar was largely unresponsive to comments from Bank of Canada Governor Poloz who said more economic capacity means the economy has more room to grow before inflationary pressures start to build. He also repeated that they will remain cautious with future rate moves, guided by data. Elsewhere, oil prices rebounded from earlier lows to settle at $68.64 (+$0.24. We await earnings after the bell from Alphabet and Whirlpool.

For a more detailed report, please visit the ‘Market Research’ section.

European Closing Report

April 23, 2018

European cash equity markets are mostly higher at the closing bell although gains are relatively modest (FTSE +0.3%, DAX +0.4%, CAC +0.5%). Investors have welcomed a further easing of geopolitical tensions over the weekend after North Korea pledged to halt its nuclear missile testing. Gains have been limited however by falling oil prices with US crude futures losing close to two-percent at the lows. We have also seen further gains in both European and US government bond yields with US 10-year borrowing costs flirting with the three-percent level. Incoming data will also have provided support with stronger-than-expected prints for both US manufacturing and service sector PMI and existing home sales. In currency space, the Dollar has been the best performer today as it rose against all of its G10 rivals while the Japanese Yen is at the bottom of the pile. Of note, Bank of Japan Governor Kuroda said Japan is not intentionally depreciating the currency. We also hear from San Francisco Fed President Williams who warned that a significant trade war would have very negative economic effects although it is still too soon to say if such a conflict will arise. Still to come today, possible comments from Bank of Canada Governor Poloz and earnings after the bell from Alphabet and Whirlpool.

For a more detailed report, please visit the ‘Market Research’ section.

US Closing Report

April 20, 2018

US cash equity markets have added to earlier declines this afternoon (DJIA -0.8%, S&P -0.9%, NASDAQ -1.3%). Technology stocks are leading losses with notable losses in Apple shares catching the eye today after a bearish note from Morgan Stanley. The Dollar has held on to its earlier gains meanwhile as US government bond yields continue their run higher – US 10 year borrowing costs rose above 2.95% this afternoon, their highest level since January 2014. At the Fed, both Chicago President Evans and San Francisco President Williams played down concerns surrounding the yield curve while Kashkari later said he was surprised Treasury yields have not gone higher. In commodity space, US crude futures settled at $68.38 (+$0.09) as the Baker Hughes oil rig count rose another 5 to 820. There was also another ECB sources story, this time suggesting that the recent weakening in Euro Zone data will not impact their plans to normalize policy.

For a more detailed report, please visit the ‘Market Research’ section.