May 14, 2019

Daily Market Review – Tuesday, May 14, 2019

Daily Market Review – Tuesday, May 14, 2019

Asia

Asian equities this morning are echoing yesterday’s US index bloodbath, the Hang Seng down 1.43%. Otherwise, the reaction has been muted, with mainland indexes skirting the zero from just below, and the Nikkei down a half percent on a risk-fed yen – now at a 14-week high despite continuing monetary stimulus. Trump’s latest tariffs will not apply to already-ship-laden goods, giving negotiators time to lessen the impact as they meet in Beijing; however, the upcoming Trump-Xi meeting for now is an uncertainty, and China’s end-of-month retaliatory tariffs are still in place. Meanwhile, Australia’s National Bank produced a 3 point index on business conditions in April (down from 7) and a flat reading of confidence, as the impact of a weakening economy takes hold.

Europe

European equity futures are up this morning after yesterday’s US-led plummet that cost the DAX 1.52% and the FTSE 0.55%. This morning’s consumer price indexes from Germany remained flat at 2% in April, wholesale prices up 2.1% from March’s 1.8%. The pound is slightly leading the Euro this morning following reports that Labour and government continue to seek a formula for Brexit

US

The dollar still buoyed by safe-haven flows into bonds, yesterday was not a good day for US equities. The Nasdaq starred with a 3.41% contraction, other benchmarks following its lead, pressed further down by Apple’s $13 loss after the Supreme Court opened the gates for over 100 mn US users to sue the company for anti-trust behaviour. Apple faces a charge of charging a 30% commission on apps in its store, imposed by force of monopolistic behaviour.

Commodities

Gold steeply added $20 per troy ounce yesterday on risk aversion while oil lost $2, as traders await tonight’s API report against a background of geopolitical stress. Iran is thought to be behind the attack on 2 Saudi tankers making their way towards the Gulf yesterday. Another beneficiary of the turmoil seems to be Bitcoin, which added another $1000 over the past 24 hours, thrice crossing the $8000 mar and currently settling just above.

Shares

Vodafone this morning announced a €7.6 bn loss on €43.7 bn of revenue, cutting dividends from 15 cents to 9 despite earlier promises to the contrary. Tomorrow – Cisco and Alibaba – both continuing to trade down since the beginning of the month.

Events

08:30 AM GMT – UK Unemployment Rate, Average Earnings Including Bonus (Mar), Claimant Count Rate (Apr)
09:00 AM GMT – German ZEW Economic Sentiment & Current Situation (May)
09:00 AM GMT – EU Industrial Production w.d.a. (YoY) (Mar) & ZEW Economic Sentiment (May)
10:00 AM GMT – US NFIB Business Optimism Index (Apr). Then Import & Export Price Indexes (Apr) at 12:30, & Redbook Index (May 10) at 12:55
20:30 PM GMT – OIL API Weekly Crude Oil Stock (May 10)
00:30 AM GMT (+1) – Australia Westpac Consumer Confidence (May), and Wage Price Index (Q1) at 1:30
02:00 AM GMT (+1) – China Retail Sales, Industrial Production, Foreign Direct Investment (Apr)
05:00 AM GMT – Japan Construction Orders & Housing Starts (Apr)

For more, visit our Economic Calendar