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Market Morning Briefing for October 29th 2019

Market pulls back ahead of FOMC meeting

The S&P 500 futures trade eight points, or 0.3%, above fair value, as trade sentiment remains relatively upbeat while investors continue to monitor incoming earnings reports and the latest updates on Brexit. The benchmark index could also open the busy week near its record highs that it almost hit on Friday. 

Dow component Walgreens Boots Alliance (WBA 56.30, +0.88, +1.6%) is up nicely in pre-market action after it beat earnings expectations. Regarding Brexit, the EU has reportedly agreed to extend the Brexit deadline to Jan. 31 and would allow for an earlier exit if UK lawmakers approve the withdrawal plan in the interim.

Looking ahead, this week’s biggest events will include Alphabet’s (GOOG 1275, +9.87, +0.8%) earnings report after today’s close, followed by Apple’s (AAPL 247.40, +0.82, +0.3%) and Facebook’s (FB 187.25, -0.64, -0.3%) after Wednesday’s close; the FOMC’s rate decision on Wednesday; and the Employment Situation Report for October on Friday.

The docket will also include the Conference Board’s Consumer Confidence Index for October on Tuesday, the first estimate for Q3 GDP on Wednesday, and the Personal Income and Spending report for September on Thursday. Today will be limited to the Advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories for September at 8:30 a.m. ET. 

U.S. Treasuries have edged lower, pushing yields higher across the curve. The 2-yr yield is up one basis point to 1.64%, and the 10-yr yield is up three basis points to 1.83%. The U.S. Dollar Index is down 0.1% to 97.75. WTI crude is down 0.4%, or $0.23, to $56.43/bbl. 

In U.S. Corporate news:

  • AT&T (T 37.23, +0.32): +0.9% despite missing revenue estimates, although it did issue upside guidance for FY20. The company will also receive about $1.1 billion in cash and be relieved of a $575 million debt guarantee after Central European Media (CETV 4.60, -0.50, -1.1%) agreed to be acquired by PPF Group for $4.58/share in cash, or approximately $2.1 billion. 
  • Walgreens (WBA 56.30, +0.88): +1.6% after beating earnings estimates and increasing its annual savings target. 
  • Microsoft (MSFT 144.45, +3.72): +2.6% after being awarded a $10 billion DOD cloud computing contract.
  • Tiffany & Co. (TIF 126.47, +27.92): +28.4% after LVMH (LVMUY) confirmed that it has held preliminary discussions regarding a possible transaction with Tiffany. 

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region followed form with the U.S. market on Friday. Japan’s Nikkei +0.3%, Hong Kong’s Hang Seng +0.8%, China’s Shanghai Composite +0.9%, India’s Sensex closed for holiday South Korea’s Kospi +0.3%, Australia’s ASX All Ordinaries +0.02%.
    • In economic data:
      • China’s September Industrial Profits -2.1% yr/yr (expected -1.2%; last -1.7%)
    • In data:
      • Investor sentiment was boosted by a Xinhua press report that suggested the U.S. and China have made progress on the text of a “Phase One” trade agreement. This news overshadowed China reporting a weaker than expected drop in industrial profits in September, and just about everything else in a session that lacked meaningful news drivers.
      • The BOJ policy decision sits on the near horizon with an Oct. 30-31 meeting date. This decision will follow hot on the heels of the Oct. 29-30 FOMC meeting.
  • Major European indices aren’t showing a lot of vigor to start the new week, although the positive mood surrounding U.S-China trade talks has been a supportive factor on the margin. STOXX Europe 600 -0.1%, Germany’s DAX +0.4%, U.K.’s FTSE 100 -0.04%, France’s CAC 40 +0.1%, Italy’s FTSE MIB +0.1%, Spain’s IBEX 35 unch. 
    • In economic data:
      • Germany’s September Import Price Index +0.6% m/m (expected +0.2%; last -0.6%); -2.5% yr/yr (expected -2.9%; last -2.7%)
    • In news:
      • The EU has reportedly agreed to extend the Brexit deadline to January 31, with an opening for the UK to leave earlier if lawmakers there approve the withdrawal plan in the interim.
      • Parliament due to vote today on the issue of holding a general election on December 12.
      • S&P affirmed the UK rating at AA with a Negative outlook.
      • HSBC disappointed with its quarterly report and French luxury goods giant LVMH has approached Tiffany & Co. with a reported $14.5 billion takeover offer.

U.S. equity futures:

  • S&P 500 Futures -3 @ 3032
  • DJIA Futures -46 @ 27006
  • Nasdaq Futures -4 @ 8091

Overseas:

  • Europe: DAX -0.2%, FTSE -0.9%, CAC -0.1%
  • Asia: Nikkei +0.5%, Hang Seng -0.4%, Shanghai -0.9%

Commodities: 

  • Crude Oil -0.85 @ 54.96
  • Nat Gas +0.066 @ 2.621
  • Gold -6.20 @ 1489.40
  • Silver -0.161 @ 17.715
  • Copper +0.002 @ 2.685

U.S. Summary:

  • Earnings/Guidance:
    • A.O. Smith (AOS) reports EPS in-line, misses on revs; guides FY19 EPS below consensus  
    • AGCO Corp (AGCO) beats by $0.02, misses on revs; reaffirms FY19 EPS guidance  
    • Akamai Tech (AKAM) beats by $0.10, beats on revs; guides Q4 EPS, revs in-line with expectations; raises FY19 EPS, rev guidance   
    • Alexandria RE (ARE) misses by $0.01, reports revs in-line; guides FY19 FFO in-line  
    • Alphabet (GOOG) misses by $2.59, reports revs in-line  
    • Amkor (AMKR) beats by $0.15, beats on revs; guides Q4 EPS in-line, revs in-line  
    • AppFolio (APPF) beats by $0.05, beats on revs; guides FY19 revs just above consensus  
    • AutoNation (AN) misses by $0.02, beats on revs  
    • Avalon Bay (AVB) misses by $0.01  
    • Beyond Meat (BYND) beats by $0.02, beats on revs; guides FY19 revs above consensus; as expected, reports a quarterly profit for first time ever  
    • Blackbaud (BLKB) beats by $0.06, reports revs in-line; reaffirms FY19 EPS guidance, revs guidance  
    • BP (BP) beats by $0.02, beats on revs  
    • Brixmor Property (BRX) beats by $0.02, reports revs in-line; guides FY19 FFO in-line  
    • Brown & Brown (BRO) reports EPS in-line, beats on revs  
    • Cavco Industries (CVCO) reports Q2
    • CNX Resources (CNX) beats by $0.70, beats on revs  
    • Cognex (CGNX) beats by $0.04, beats on revs; guides Q4 revs below consensus, raises dividend by 10%  
    • Conoco Phillips (COP) beats by $0.08  
    • Corning (GLW) beats by $0.04, beats on revs; reaffirms full-year outlook  
    • Corp Office Props (OFC) beats by $0.01, beats on revs; guides Q4 FFO in-line  
    • Crane (CR) misses by $0.13, misses on revs; lowers FY19 EPS guidance below consensus  
    • Cummins (CMI) misses by $0.01, misses on revs; lowers FY19 revenue and EBITDA margin guidance  
    • Diebold Nixdorf (DBD) misses by $0.30, misses on revs; guides FY19 revs below consensus  
    • Encompass Health (EHC) beats by $0.04, reports revs in-line; reaffirms FY19 EPS guidance, revs guidance  
    • Encore Wire (WIRE) misses by $0.22, misses on revs  
    • Everest Re (RE) beats by $1.17, reports revs in-line  
    • ExlService (EXLS) beats by $0.09, misses on revs; raises FY19 EPS guidance; narrows FY19 revenue guidance  
    • Fresenius Medical (FMS) beats by EUR 0.11, reports revs in-line; confirms outlook  
    • Gardner Denver (GDI) beats by $0.03, misses on revs; lowers FY19 adjusted EBITDA guidance  
    • Grub Hub (GRUB) misses by $0.01, misses on revs; guides Q4 revs below consensus, guides Q4 EBITDA well below consensus  
    • Harmonic (HLIT) beats by $0.04, reports revs in-line; guides Q4 EPS in-line, revs above consensus  
    • Harsco (HSC) misses by $0.01, misses on revs; guides FY19 EPS in-line  
    • Healthcare Trust (HTA) reports FFO in-line, revs in-line; guides FY19 FFO in-line  
    • HEXO (HEXO) misses by CAD0.19; beats on revs  
    • Ingersoll Rand (IR) beats by $0.08, misses on revs; reaffirms FY19 EPS guidance  
    • Instructure (INST) beats by $0.08, reports revs in-line; guides Q4 EPS in-line, revs below consensus; raises FY19 EPS guidance above consensus, guides revs in-line; also announces retirement of CFO Steve Kaminsky, effective in 2020   
    • Intelsat (I) misses by $0.17, reports revs in-line; reaffirms FY19 revs/EBITDA guidance  
    • JBT Corp (JBT) beats by $0.20, misses on revs; guides FY19 EPS in-line  
    • Leggett & Platt (LEG) beats by $0.09, beats on revs; raises FY19 EPS guidance above consensus, lowers revenue guidance, still inline  
    • Leidos (LDOS) beats by $0.17, beats on revs; raises FY19 EPS and revenue guidance above consensus  
    • Lindsay Corp (LNN) beats by $0.19, misses on revs  
    • Marsh McLennan (MMC) beats by $0.07, reports revs in-line  
    • Martin Marietta (MLM) beats by $0.47, beats on revs; guides FY19 revs above consensus  
    • Medpace (MEDP) reports EPS in-line, revs in-line; guides FY19 EPS in-line, revs in-line  
    • Merck (MRK) beats by $0.28, beats on revs; raises FY19 EPS and rev above consensus  
    • NeoGenomics (NEO) beats by $0.01, beats on revs; guides FY19 revs above consensus  
    • Nomura Holdings (NMR) beats on top and bottom lines  
    • NXP Semi (NXPI) reports Q3 results, beats on revs, improves margins; guides Q4 revs in-line  
    • ONE Gas (OGS) reports EPS in-line; reaffirms FY19 EPS guidance  
    • OneMain Holdings (OMF) beats by $0.19  
    • Orange (ORAN) reports Q3 results; revs in-line  
    • Owens Illinois (OI) misses by $0.01, misses on revs; guides Q4 EPS below consensus; guides FY19 EPS below consensus; declares dividend  
    • Penske Auto (PAG) reports EPS in-line, beats on revs  
    • Pfizer (PFE) beats by $0.14, beats on revs; raises FY19 EPS guidance above consensus, increases midpoint of revenue outlook  
    • PotlatchDeltic (PCH) beats by $0.07, misses on revs  
    • S&P Global (SPGI) beats by $0.12, beats on revs; guides FY19 EPS above consensus  
    • Sanmina (SANM) beats by $0.04, misses on revs; guides Q1 EPS below consensus, revs below two analyst estimate; announces $200 mln share repurchase and company-wide right-sizing plan  
    • SBA Comm (SBAC) beats by $0.28, misses on revs; tightens FY19 FFO, raises low end of revs outlook  
    • Shopify (SHOP) misses by $0.39, reports adj. operating income and revenue above guidance; guides Q4 revs above consensus  
    • Simpson Manufacturing (SSD) beats by $0.07, beats on revs; reaffirms gross margin, op-ex  
    • South State (SSB) beats by $0.07, reports revs in-line; increases dividend  
    • Steven Madden (SHOO) beats by $0.08, beats on revs; guides FY19 EPS above consensus, revs in-line  
    • TCF Financial (TCF) beats by $0.04, misses on revs  
    • Texas Roadhouse (TXRH) beats by $0.06, reports revs in-line  
    • T-Mobile US (TMUS) beats by $0.03, misses on revs  
    • Transocean (RIG) misses by $0.01, beats on revs  
    • Trex (TREX) beats by $0.04, misses on revs; guides Q4 revs in-line  
    • True Blue (TBI) beats by $0.10, beats on revs; guides Q4 EPS below consensus, revs below consensus at midpoint  
    • U.S. Silica (SLCA) misses by $0.14, misses on revs; sees capex below guidance  
    • Varonis Systems (VRNS) beats by $0.18, beats on revs; guides Q4 EPS below consensus, revs below consensus  
    • Vornado Rlty (VNO) reports Q3 results, beats on revs  
    • Waddell & Reed (WDR) beats by $0.08, beats on revs  
    • Waste Connections (WCN) beats by $0.02, reports revs in-line; increases quarterly dividend 15.6%  
    • Waters (WAT) reports EPS in-line, misses on revs; guides Q4 EPS below consensus, revs below consensus  
    • Welltower (WELL) beats by $0.01, misses on revs; raises mid-point of FY19 FFO guidance  
    • Wyndham Hotels (WH) beats by $0.10, misses on revs; raises FY19 EPS guidance, lowers revs outlook   
    • Xerox (XRX) beats by $0.21, reports revs in-line; raises FY19 EPS above consensus  
    • XPO Logistics (XPO) beats by $0.16, misses on revs; guides FY19 revs below consensus  
    • Zebra Tech (ZBRA) beats by $0.15, reports revs in-line; guides Q4 EPS, revs in-line — company has begun diversifying sourcing of most of its U.S. volumes out of China  
  • General News:
    • USTR to consider extending certain tariff exclusions on $34 billion of Chinese imports
    • Lt. Col. Alexander Vindman of the Army will tell impeachment investigators that he reported concerns about President Trump’s tactics to pressure Ukraine to investigate his political opponents, according to the New York Times
    • Senator Marco Rubio (R-FL) will introduce legislation to block US government pension funds from investing in Chinese stock, according to Bloomberg
    • Amazon (AMZN) could challenge Pentagon’s decision to award cloud computing contract to Microsoft (MSFT) this week, according to Reuters
    • FGL Holdings (FG) and Talos Energy (TALO) to join S&P SmallCap 600, effective November 1
    • General Motors (GM), Fiat (FCAU), Toyota (TM), and others will support the Trump administration instead of California on fuel economy standards. Honda (HMC) and Ford (F) are still siding with California, according to the New York  Times
    • Johnson & Johnson (JNJ) received grand jury subpoenas related to opioid medication policies, according to Reuters
    • Lockheed Martin Aeronautics (LMT) awarded $7.0 bln Navy contract
    • Marathon Petroleum (MPC) preparing to spinoff chain of gas stations and change executive leadership, according to the Wall Street Journal
    • Mirati Therapeutics (MRTX) announces first clinical results from Phase 1/2 trial evaluating MRTX849 in patients with solid tumors expressing KRAS G12C mutations
    • PG&E (PCG) preparing to shut off power to 1.8 mln residents in California, according to Bloomberg
    • Sony (SNE) aiming to invest $1 bln to increase production of image sensors in Japan, according to Nikkei
  • M&A:
    • Community Health (CYH) to sell three Virginia hospitals; terms not disclosed  
    • IAMGOLD (IAG) acquires shares of INV Metals   
    • Moody’s (MCO) will acquire a minority stake in SynTao Green Finance, provider of environmental, social and governance data and analytics based in and serving China; terms not disclosed  
    • RR Donnelley’s (RRD) UK-based European Global Document Solutions business acquired by Paragon Group for an undisclosed amount  
    • Spark Therapeutics (ONCE) and Roche (RHHBY) further extend offering period for merger — tender offer now scheduled to expire on Monday, November 25  
    • TTEC Holdings (TTEC) acquired FCR, U.S.-based digitally enabled customer experience provider; anticipated to be immediately accretive   
  • Syndicate:
    • DTE Energy (DTE) commences public offering of approx. $300 mln of its common shares and 23 mln equity units  
    • Granite Constr (GVA) intends to offer $200 million aggregate principal amount of Convertible Senior Notes due 2024 in a private offering  
    • Winnebago (WGO) announces private offering of $270.0 mln in aggregate principal amount of convertible senior notes due 2025  
  • IPOs:
    • In the news:
      • Saudi Aramco planning to begin IPO on November 3, according to Reuters
      • Yandex N.V. (YNDX) and Uber (UBER) JV said in talks for dual-listing IPO, according to Bloomberg
    • Expected to trade this week:
      • Fangdd Network Group (Nasdaq: DUO): China-based developer of online and mobile real estate platform. 2.1 million initial shares. Initial price range $4.00-5.00
      • Oyster Point Pharma (Nasdaq: OYST): Clinical stage biopharmaceutical company developing therapies to treat ocular surface diseases. 5.0 million initial shares.Initial price range $16.00-18.00
      • RAPT Therapeutics (Nasdaq: RAPT): Clinical stage immunology-based biopharmaceutical company focusing on oncology and inflammatory diseases. 3.0 mln initial shares. Initial price range $12.00-$14.00

Gapping Up/Down

  • Gapping upMRTX +22.5%, AMKR +18.2%, VRNS +14.8%, TXRH +12.7%, FG +8.3%, TALO +6.7%, HLIT +6.6%, NXPI +5.4%, LDOS +4.6%, XRX +3.9%, EXLS +3.3%, AUDC +3.1%, TRTX +2.9%, I +2.9%, OMF +2.6%, APPF +2.6%, ZBRA +2.5%, ZBRA +2.5%, LEG +2.1%, RIG +1.9%, PCH +1.8%, SLCA +1.8%, DRNA +1.7%, IR +1.4%, INST +1.3%, RE +1.2%, WH +1.2%
  • Gapping downGRUB -35.8%, SANM -15.9%, BYND -13.4%, OFIX -12.8%, OI -11.7%, CR -11.3%, XNET -9.6%, HEXO -7.3%, TREX -4.3%, GDI -4.1%, CGNX -3.5%, BP -2.9%, WGO -2.8%, MEDP -2.6%, BRX -2.2%, TCF -2.1%, GOOG -1.9%, ORAN -1.7%, NOV -1.2%, CVCO -1.1%, SHOP -1%

Analyst Research:

  • Upgrades:
    • Ameren (AEE) upgraded to Buy from Neutral at UBS; tgt raised to $86
    • Amkor (AMKR) upgraded to Outperform from Neutral at Credit Suisse; tgt raised to $15
    • Citrix Systems (CTXS) upgraded to Hold from Underperform at Jefferies; tgt raised to $105
    • Owens Corning (OC) upgraded to Buy from Hold at Argus; tgt $72
    • QTS Realty Trust (QTS) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $65
    • Texas Roadhouse (TXRH) upgraded to Outperform from Mkt Perform at Raymond James; tgt $63
  • Downgrades:
    • Acushnet (GOLF) downgraded to Sell from Neutral at Compass Point; tgt raised to $23.50
    • Armstrong World Industries (AWI) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
    • Eversource Energy (ES) downgraded to Neutral from Buy at UBS; tgt $91
    • Golar LNG (GLNG) downgraded to Neutral from Buy at Citigroup
    • GrubHub (GRUB) downgraded to Neutral from Buy at Guggenheim
    • GrubHub (GRUB) downgraded to Hold from Buy at Gordon Haskett; tgt $45
    • GrubHub (GRUB) downgraded to Hold from Buy at Craig Hallum; tgt lowered to $40
    • GrubHub (GRUB) downgraded to Underperform from Buy at BofA/Merrill
    • Mercury General (MCY) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $50
    • Orthofix (OFIX) downgraded to Neutral from Overweight at Cantor Fitzgerald; tgt lowered to $48
    • Pennant Investment (PNNT) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $6
    • Tiffany & Co (TIF) downgraded to Perform from Outperform at Oppenheimer; tgt $126
  • Others:
    • Alcon (ALC) initiated with Equal-Weight at Stephens
    • Apache (APA) initiated with a Sector Weight at KeyBanc Capital Markets
    • Avalara (AVLR) initiated with Overweight at Piper Jaffray
    • Berry Global (BERY) added to US 1 List at BofA/Merrill
    • Canadian Nat’l Rail (CNI) initiated with a Market Perform at Wells Fargo
    • Coupa Software (COUP) initiated with Overweight at Piper Jaffray
    • CSX (CSX) initiated with a Market Perform at Wells Fargo
    • Dicerna Pharmaceuticals (DRNA) initiated with Outperform at Robert W. Baird
    • Elastic (ESTC) initiated with Overweight at Piper Jaffray
    • FedEx (FDX) initiated with an Outperform at Wells Fargo; tgt $12
    • KC Southern (KSU) initiated with an Outperform at Wells Fargo; tgt $73
    • MongoDB (MDB) initiated with Overweight at Piper Jaffray
    • Norfolk Southern (NSC) initiated with an Outperform at Wells Fargo; tgt $216
    • Slack (WORK) initiated with Overweight at Piper Jaffray
    • Theravance Biopharma (TBPH) initiated with a Buy at H.C. Wainwright; tgt $25
    • Twilio (TWLO) resumed with an Overweight at Piper Jaffray; tgt $141
    • Union Pacific (UNP) initiated with a Market Perform at Wells Fargo
    • UPS (UPS) initiated with an Outperform at Wells Fargo; tgt $138

Upcoming Events:

  • Econ Data:
    • 09:00 ET: S&P Case-Shiller Home Price Index for August (Briefing.com consensus +2.5%; prior +2.0%)
    • 10:00 ET: Consumer Confidence for October (Briefing.com consensus 127.5; prior 125.1)
    • 10:00 ET: Pending Home Sales for September (Briefing.com consensus +0.7%; prior +1.6%)
  • Earnings:
    • Monday (October 28)
      • Pre-Market: AMG AWI T AVX CTB L PHG QSR SPOT WBA
      • After-Hours: AKAM GOOG BYND BLKB CVCO CGNX WIRE OFIX OI SANM TMUS TXRH RIG VRNS VNO WCN WELL XPO
    • Tuesday (October 29)
      • Pre-Market: AN BP CIGI CVLT COP GLW CMI DBD ECL GRUB HUBB HCA I IPGP PAG MRK BTU SHOP WAT XRX
      • After-Hours: ATEN AMD AMGN CAKE DENN EA HLF MTDR MAT MOH MDLZ PAYC PSMT QUAD SYK VRSK VNOM YUMC ZEN
    • Wednesday (October 30)
      • Pre-Market: APTV BKR BDC EAT BG CRTO CROX DIN ETR EXTR GRMN GE HES LIVN MCK NLSN ORBC OSK SAIA RCL TMHC TUP WING YUM
      • After-Hours: ADTN DDD AKS ALSN AAPL AZPN ATRC BLDP CACI CATM CHEF CHDN CRUS CTSH EQIX ETSY FB FORM H HUBG KLAC TREE LYFT MLNX MUSA PCTY PPC QLYS RYN RBBN SKYW SFM SBUX TDOC TWLO OLED WDC INT ZNGA
    • Thursday (October 31)
      • Pre-Market: FLWS AKRX ALNY MO AMT APO ADM BWA BMY CWT CG CDW CRAI CHD CI CLX DNKN DD EXP ECA EXC FCAU FLIR IT GNRC GIL GPN HBI IDXX IMAX INGR IP NTLA KHC LNTH LITE MPC MGPI MUR NEWM NVCR PH PENN PWR SNY SNDR SIRI SPAR SPR SRCL TPX TRI BLD WAB W WWE XYL YETI ZIXI
      • After-Hours: AYX APPN ANET CAR BRKR CWST LOCO FTNT FNKO GLPI HTH LYV MELI MINI NPTN PINS QRVO WU PDFS
    • Friday (November 1)
      • Pre-Market: ABBV ASIX BABA CVX CL D XOM FND HAE HRC HMSY MD MGI NWL ROLL STX TPB X WPC
      • After-Hours: None of note

Asia & Europe detail:

Asia: Nikkei +0.5%, Hang Seng -0.4%, Shanghai -0.9%

Equity indices in the Asia-Pacific were mixed on Tuesday without a lot of news catalysts to drive things. Underlying optimism that the U.S. and China are reportedly on track with trade deal progress has helped sentiment. On a related note, the USTR said it is considering extending tariff exemptions on $34 billion of imported Chinese goods that would go into effect Dec. 28. Separately, Hong Kong leader Carrie Lam said she expects growth in Hong Kong to be negative in 2019. Tokyo’s core CPI came in softer than expected in October, with the effects of the sales tax hike garnering some attribution for the weakness.

  • In economic data:
    • South Korea’s November Manufacturing BSI Index 74 (last 73)
    • Tokyo October CPI +0.4% yr/yr (last +0.4%); Tokyo core CPI +0.5% yr/yr (expected +0.7%; last +0.5%)

—Equity Markets—

  • Japan’s Nikkei: +0.5%
  • Hong Kong’s Hang Seng: -0.4%
  • China’s Shanghai Composite: -0.9%
  • India’s Sensex: +1.5%
  • South Korea’s Kospi: -0.04%
  • Australia’s ASX All Ordinaries: +0.1%

—FX—

  • USD/JPY: unch at 108.92
  • USD/CNH: -0.03% to 7.0624
  • USD/INR: +0.2% to 70.898

Europe: DAX -0.2%, FTSE -0.9%, CAC -0.1%

Major European indices are experiencing modest losses, as buyers have been a reluctant bunch in today’s trading action. Earnings news has failed to whet their appetite, with oil giant BP and packaging firm Stora Enso among the luminaries weighing on the bourses after reporting results that failed to please investors. The Brexit saga continues with recent news that the Labour Party is now willing to support a Dec. 12 general election knowing that a no-deal Brexit isn’t in the cards for three months after the EU confirmed an Article 50 extension until January 31. The British pound had been weaker earlier, but has gained some ground following the report.

  • In economic data:
    • UK’s October Nationwide HPI +0.2% m/m (last -0.2%); +0.4% yr/yr (expected +0.2%; last +0.2%); BoE September Consumer Credit GBP0.828B (expected GBP0.88B; last GBP 0.969B)
    • France’s October Consumer Confidence 104 (expected 104; last 104)
    • Spain’s September Retail Sales +0.1% m/m (expected +0.5%; last +0.2%); +3.4% yr/yr (expected +3.2%; last +3.3%)
    • Italy’s September PPI +0.1% m/m (expected -0.1%; last -0.4%); -1.7% yr/yr (expected -0.9%; last -1.4%)

—Equity Markets—

  • STOXX Europe 600: -0.4%
  • Germany’s DAX: -0.2%
  • U.K.’s FTSE 100: -0.9%
  • France’s CAC 40: -0.1%
  • Italy’s FTSE MIB: -0.1%
  • Spain’s IBEX 35: -0.5%

—FX—

  • EUR/USD: -0.2% to 1.1080
  • GBP/USD: +0.03% to 1.2864
  • USD/CHF: +0.1% to 0.9956
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