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Market Update - 17/10/16

Monday, October 17, 2016

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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US: Higher on the day but lower (-1%) on the week, as a slew of earnings reports were released from three large US banks.. Sector wise Tech (+0.41%), Materials (+0.36%), and Financials (+0.36%) were the day’s standouts. Meanwhile Healthcare (-0.72%), Utilities (-0.53%), and Energy (-0.41%) lagged.. Volumes -5% vs 20dma. VIX 16.12 -3.5%.

ASIA: HK/China area lower due to weakness in China, weakness in financials and energy. Real Estate stronger in Japan post positive Tokyo condominium sales

All European markets are open today. In other regions, Israel and Colombia are closed.

Moody’s affirms Greece’s government bond rating as Caa3.

Belgian debt agency raises 2016 bond issuance target to € 36.5bn.

Pearson reiterates ’16 outlook , EPS may rise if FX rate persists ( USD)

UK’s SFO questions ex and current Barclays management in Libor probe.

UK press says private equity owners of Misys which provides software to banks will lower price of flotation due next month.

Ladbrokes: conditional sale of 359 betting offices for £55m

Morgan Stanley says prospects of a Democratic sweep of US elections has risen with risks in regulation for financials , oils and pharma sectors.

The FT reports Britain would continue to pay billions of pounds into the EU budget after Brexit to maintain cherished single-market access for the City of London and other sectors under plans being discussed by Theresa May's cabinet.

BoJ Kuroda said the central bank will adjust monetary policy as needed to achieve its 2% inflation target with an eye on economic, price and financial developments.

Futures  in Europe: $37b notional in positions to be rolled this week which is a $2.3b increase vs the September expiry

Tepco -8% in Japan following the anti-nuclear candidate Yoneyamas win in regional elections.

EURUSD breaks through 1.10 at 1.0986.

Asian casino operators fell after China detained employees of Australia’s Crown Resorts.

Japan setting price of state owned Kyushu Railway at top end of range as investor demand very high.

Markets lower, Europe trades down 46 BPs after open.