Markets update: trade talks and Brexit talk
- A third consecutive day of global stock market gains is on track after Washington signals that talks with Beijing are progressing, with a “little” slide of the 1st March deadline possible
- European shares hold firm as sectors sensitive to last year’s tariff hikes react well. Mining and metal and technology indices are up 1% to 1.5%
- Iberian shares lag; IBEX-35 falls 0.2%; PSI-20 off 0.9%. Region’s bond yields rise on higher chances of a snap Spanish election
- U.S. futures hold positive territory
- European indices → DAX: +0.2%; FTSE MIB: +0.6%; STOXX: +0.4%; FTSE: +0.5%;
- U.S. index futures → Dow: +0.3%; S&P: +0.3%; Nasdaq: +0.5%
Stock highlights
- European earnings take a turn for the better as Akzo Nobel, the Dutch chemical group beats forecasts, lifting its shares 3.4% and the chemical sector by 1%
- Smurfit Kappa has a similar impact on rival paper and packaging firms as the Irish group’s stock adds 4% on above-forecast earnings
- Investors are more optimistic about Europe’s corporate outlook as a weekly consensus forecast for Q4 rises for the first time since mid-November.
- The trend of less than solid banking earnings continues though. Loan losses drag ABN Amro’s Q4 results lower
FX
- Sterling stand outs, despite increasingly byzantine Brexit prospects and inflation at a two-year low. Fresh, albeit flimsy, Brexit delay talk sparked a 70-pip cable surge earlier and a 40-odd pip EUR/GBP run though a fade is now on
- NZD/JPY’s RBNZ-fuelled advance ran into offers near ¥76 echoing a ¥75.91 top that kicked off a correction a week ago
- The broader backdrop is a weakening dollar as its safe-haven trade-related appeal dwindle
- Most majors move off highs into the U.S. CPI release at the bottom of the hour
Remaining data/highlights
|
Local Time |
Country |
Indicator Name |
Period |
Reuters Poll |
Actual |
Prior |
Revised |
|
02:00 |
China (Mainland) |
Total Social Financing |
Jan |
3,250.00B |
1,589.80B |
||
|
09:30 |
United Kingdom |
CPI MM |
Jan |
-0.7% |
-0.8% |
0.2% |
|
|
09:30 |
United Kingdom |
CPI YY |
Jan |
1.9% |
1.8% |
2.1% |
|
|
09:30 |
United Kingdom |
RPI MM |
Jan |
-0.8% |
-0.9% |
0.4% |
|
|
09:30 |
United Kingdom |
RPI YY |
Jan |
2.6% |
2.5% |
2.7% |
|
|
09:30 |
United Kingdom |
RPIX YY |
Jan |
2.5% |
2.7% |
||
|
09:30 |
United Kingdom |
PPI Input Prices MM NSA |
Jan |
0.3% |
-0.1% |
-1.0% |
-1.6% |
|
09:30 |
United Kingdom |
PPI Input Prices YY NSA |
Jan |
3.8% |
2.9% |
3.7% |
3.2% |
|
09:30 |
United Kingdom |
PPI Output Prices MM NSA |
Jan |
0.0% |
0.0% |
-0.3% |
|
|
09:30 |
United Kingdom |
PPI Output Prices YY NSA |
Jan |
2.2% |
2.1% |
2.5% |
2.4% |
|
09:30 |
United Kingdom |
PPI Core Output MM NSA |
Jan |
0.2% |
0.4% |
0.2% |
0.1% |
|
09:30 |
United Kingdom |
PPI Core Output YY NSA |
Jan |
2.3% |
2.4% |
2.5% |
2.4% |
|
10:00 |
Euro Zone |
Industrial Production MM |
Dec |
-0.4% |
-0.9% |
-1.7% |
|
|
10:00 |
Euro Zone |
Industrial Production YY |
Dec |
-3.2% |
-4.2% |
-3.3% |
-3.0% |
|
13:30 |
United States |
Core CPI YY, NSA |
Jan |
2.1% |
2.2% |
2.2% |
|
|
13:30 |
United States |
CPI MM, SA |
Jan |
0.1% |
0.0% |
-0.1% |
0.0% |
|
13:30 |
United States |
CPI YY, NSA |
Jan |
1.5% |
1.6% |
1.9% |
|
|
13:30 |
United States |
Labor Costs Prelim |
Q4 |
1.7% |
0.9% |
||
|
13:30 |
United States |
Productivity Prelim |
Q4 |
1.7% |
2.3% |
2.2% |
|
|
23:50 |
Japan |
GDP QQ |
Q4 |
0.4% |
