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Market Update - 21/09/16

Wednesday, September 21, 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 S&P closed +3bps, -0.21% from the London close, on volumes -7% vs. the 30 day average. The S&P made another attempt to rally before closing flat for the second day in a row. Volumes were muted in advance of the upcoming central bank bonanza, with SPX listed volume scraping the lows of the year. Yet once again, moves intraday were quite pronounced. To add to the Fed announcement, U.S. markets will look to economic releases in Building Permits and Housing Starts today. Health Care, Staples and Industrials led the market higher. Energy the greatest laggard, followed by Materials and Utilities. After hours: MSFT (+1%) plans to repurchase up to another $40bn in stock

ASIA: Very good reaction to BoJ move , in Japan, stocks bid with strong rally in both banks & insurers, 10-year yields rose, while the yen fell, rest of Asia better.

China will restructure its economy to sustain growth, Premier Li Keqiang said in a speech during a visit to New York.

Japan's poor exports performance continued in August, with shipments falling for an 11th straight month as a strong yen and tepid global economy undercut demand.

BoJ keeps negative rates at -0.10% and abandons monetary base target. Promises to keep 10 year yields at current levels and to maintain pace of JGB purchases. Monetary base may fluctuate to achieve yield curve control.

Lead FT article on how scale of disruption after Brexit could be severe for UK, 5,500 UK registered companies rely on passports to do business in other European countries.

Santander said to drop Williams & Glyn talks with RBS on price

Inditex First-Half Earnings Beat Estimates on Online Expansion

ENI delays $3 bln sale of retail arm over political turmoil

ABB to sell Cable business to NKT Cables for $934 Million

Hibernia REIT - Completed Cumberland House refurbishment and has let the remaining space to MTT - remainder of building let to Twitter - this lease brings HBRN's total contracted annual rent roll to over €45m

All markets are open today.

Despite a higher offer, Gecina’s bid for Fonciere de Paris  has failed as its offer only received acceptances of 13.61% at 15-Sep-16. (Gecina and shareholder body ADAM had asked AMF (Autorité des Marchés Financiers) to allow an offer extension, even filing with the Court of Appeal in Paris. The appeal was rejected). A rival offer from Eurosic (ERSC FP) has received acceptances of 76.7%.

Executives across the European Union are dismissing warnings from the U.K. that their companies will suffer if banks in London lose full access to the bloc after Brexit.

European stocks rose for the second time in three days amid optimism global central banks will stay supportive of growth. Eurostoxx +1.3%, Banks 2.44%, Autos +1.12%, Insurers +2%......