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Market Update - 20/10/16

Thursday, October 20, 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: The SPX Index closed @ 2144.29, up 22bps for the session and down 3bps post the London close. Equity market volumes were up 2% vs. the 20 day moving average. DXY, Dollar Index closed @ 97.85, down 4bps for the day and down 1bps post the London close. WTI closed @ $51.43, up 2.27% but down 64bps post the London close. Sector wise, Energy the winner along with BANKS.. with defensives lagging (Utilities/Pharma down on day)

BAML reiterate Buy rating on Bank of Ireland, target 25c.

FED BEIGE BOOK - 11 of 12 districts see modest to moderate growth, labour markets remained tight with modest employment and wage growth, demand increased for business and consumer loans

EBay falls 8% after close on numbers, American Express +5%.

Irish Times story about Help to Buy scheme , cut in price limit from €600k to € 400k, LTV cut from 80% to 70%.

All markets remain open today.

Nestle has reduced its FY guidance for organic sales from 4.2% to 3.5%. This follows on from a disappointing Q3 performance. Q3 LFL volumes rose 1.9%, down from 2.5% growth in Q2 and 3% in Q1. Not good for Kerry Group.

Goodbody reiterates buy rating on Fyffes,  reduces price target from € 2.05 to € 1.85.

Asian markets followed the U.S. higher, with Japan, HK outperforming. 

Mexico’s peso rose after the US debate

TriState to buy some assets from Aberdeen Asset Management. Institutional accounts with $4b in client AUM expected to move from Aberdeen to Chartwell. No terms given.

Mohamed El-Erian says he favours cash at 30% in his portfolio as Central Banks distort markets.

European lenders have entered a bullish trend and could rally 50% by mid-2018 if the issues gripping some German and Italian firms are resolved, according to Barry Bannister, chief equity strategist at Stifel Nicolaus & Co.

Barclays  Chief Executive Officer Jes Staley cast a positive light on the progress he’s making in his turnaround program, as he reiterated his commitment to shedding lower-priority assets to bolster returns.

The 3rd and final US presidential debate has increased Clinton's lead in the polls to 6pts on average (with only the Washington Times saying he won last night's debate)

Markets flat, Eurostoxx + 10 BPs.