Stock market snapshot as of [15/5/2019 1:43 PM]
- As prospects that the preeminent headwind against risk-taking—chiefly the rekindled U.S.-China trade dispute—might recede, stock markets fade Tuesday’s optimistic bounce
- Additionally, as Italy’s coalition government approaches half-way through a typical term, existing fractures are widening and bond market volatility resuming
- Deputy Prime Minister Matteo Salvini’s suggestion that Italy might purposefully flout EU fiscal prescriptions has swiftly triggered Italy’s key economic fault line of debt and their conduit to the stock market, under-capitalised and over-exposed banks
- Two-fisted aversion has thereby capped European indices all session
- Oil shares lose their early-week advantage after Tuesday’s American Petroleum Institute data showing inventories building; energy market participants are focusing more strongly on the EIA update that will be out shortly
- The dollar shows signs of resilience despite weak U.S. Retail Sales and disappointing Industrial Output. The greenback sees inverse help from a soft Canadian inflation print; also from a much better than expected read of the New York Fed’s economic region, where the output index hit 17.8% this month against 8 expected
- Kingfisher brought the standout set of corporate figures and they weren’t inspiring. Europe’s top DIY retailer failed to outpace ‘easy’ comparable sales from last year’s first quarter, sealing the likely fate of CEO Veronique Laury, who investors expect to step down this year
- Parts of the U.S. retail sector may contrast sharply with Europe, if Macy’s is a good indicator. The store operator’s Q1 comparable sales growth was more than double the 0.3% expected. Adjusted earnings were well above Wall Street views. The stock trades firmly in a falling S&P 500 index.
- NVIDIA will close out the Big tech earnings season tonight and expectations are low, with adjusted Q4 EPS seen slumping about 50%
Upcoming corporate highlights
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.