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Market Update - 04/01/17

Wednesday, January 4, 2017

Disclaimer: This is an informal commentary by one of our Market Analysts. It should not be taken as investment advice and is made available only on that basis.
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U.S. equities began 2017 on a strong note on Tuesday as major indexes rose on the back of strong data. (S&P 500 +0.85%)-Telecom (+1.59%), Tech (+1.34%), and Energy (+1.17%) outperformed, while Utilities (-0.25%), Cons Non-Cyclicals  (+0.44%), and Cons Cyclicals  (+0.71%) lagged.

FTSE reflect the shares in issue increase for TP ICAP (TCAP LN) following the distribution of new TCAP LN shares to MXG LN (new holding company) shareholders (ex on Friday). 

Next PLC in UK sees poor Q4 growth, -0.4% v 2.1%; FY pre tax numbers cut, pulls buyback .Stock trades -13%.

Ryanair traffic statistics for December: Passenger growth of +20% YoY (vs. +15% YoY in November and +13% YoY in October). Load factors also up +3% YoY (vs. +2% YoY in November vs. +1% YoY in October).

Stocks in Asia climbed and S&P futures pointed higher after data fueled confidence in the U.S. economy, and as equity traders in Tokyo returned from holidays with the yen in a four-day slump.Japanese equities were set for the biggest gain in two months with the Topix index climbing more than 2% on its first trading day of 2017. Chinese shares climbed for a third day, while Australian, Indian and South Korean shares edged higher and Hong Kong equities declined.

Large MOC imbalance on buy side at US close last night.

Intesa is  fully underwriting up to €5.2bn in Glencore-Qatar Rosneft deal.

A bank run by Steven Mnuchin, President-Elect Donald Trump’s pick to be Treasury secretary, may have engaged in “widespread misconduct” while foreclosing on homeowners, according to a leaked 2013 memo written by lawyers in the California attorney general’s office. Bloomberg piece

Post UK top official to EU resigning yesterday, calls now for replacement to have a more positive view on Brexit. Outgoing ambassador grew frustrated that his warnings on complexity of Brexit were being ignored.

Ford move to scrap plans for Mexican plant in favour of Michigan all over press today.

Applegreen acquisition of 50% share in Joint Fuels Terminal at Dublin Port for €15.7m from Topaz; due to complete in Q1

Davy New York conference starts today: AIB, BKIR, Permanent TSB, Food companies,,,,, among participants.

Bond managers hoping that unconstrained bond funds pick up in 2017: Bloomberg piece.

Hanjin Shipping  shares surged by their daily limit of 30% in Seoul after a local media report that the sale of the collapsed container mover’s U.S.-Asia assets to a unit of South Korea’s SM Group is approaching its completion.

Takata Corp. is rising by its daily limit in Tokyo for a third session. The advance of more than 65% over the past week comes after the Wall Street Journal reported the company is nearing a settlement with the U.S. Department of Justice to resolve allegations of criminal wrongdoing related to its faulty air bags.

China has studied possible scenarios for the yuan and capital outflows this year and is preparing contingency plans; Bloomberg

Syngenta - “In the context of the EU anti-trust review, ChemChina and Syngenta have requested a further 10 day extension of the review period until Apr12,” Syngenta says in statement; ChemChina and Syngenta remain fully committed to the transaction and are confident of its closure.

Markets opened better, Europe +10 Bps.