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Market Update - 23/01/17

Monday, January 23, 2017

The S&P closed +0.34%, -8bps from the London close, on volumes +14% vs. the 30 day average. U.S. Equities opened higher and held strong into the swearing in portion of the ceremony, only to drop (sharply by this year’s standard) on Trump’s speech and stay lower over the day. Stocks did manage to catch a bid into the close, brining INDU into positive territory on the year. Over the week SPX slid -0.2%, dragged down by Financials -1.6%, and Healthcare -1.5%, both of which benefited sharply from the Trump rally last year. The US Dollar had a busy day as it appreciated small pre-market, only to reverse course and devalue over the day, DXY -0.35%. Rates followed the same path with US 10Y Yield closing down -1bp to 2.47%.
AUS -80Bps, Japan underperforms, -1.3%, sharp move lower in USDJPY late in session.
Sunday Times piece - Schroder Investment Management, Bovis Homes’ second-biggest shareholder, is pushing to merge the homebuilder with a rival after its CEO resigned following a profit warning. Andy Brough, a fund manager at Schroder is said to have written to Berkeley Group’s board asking it to consider an all-share merger.
Allianz and Intesa Sanpaolo may be interested in Generali (Market cap €21bn ), according to Italian newspaper “La Stampa”. Intesa is studying a “possible operation” with regard to the Italian insurer
Barron's on Commodities: "Gold is starting to regain its lustre in the new year, reversing a long string of losses following the U.S. presidential election."
TUI - Sees strong '17 demand for German bookings.
Carrefour; French press saying 7 names short-listed to replace CEO
Small Index upweight in Forterra (FORT LN) in FTSE UK on Close .1.5 days volume
Paddy Power Betfair - Q4/FY update - guiding to mid-point of previous range (FY EBITDA €390-405m), they had upgraded by 6% at Q3 stage. This is despite the poor sports results in Q4 (estimated €40m rev lost) and the US election (5mln lost). Online Revs -3% yoy, Australia +18%
Theresa May’s visit to Washington this week,
French elections, next round on Sunday.
China easing control on companies’ cross-border borrowing.
UK Supreme Court to rule on Tuesday on who has the power to trigger Brexit.
JPMorgan is looking for locations in Germany, Poland and other central European countries to move London jobs, Warsaw-based Puls Biznesu reports.
President Donald Trump will meet separately with business and labour leaders at the White House on Monday as he seeks to show that U.S. job creation is at the top of his agenda in his first week in office, according to an administration official.
USD drops to 1.0740, Europe lower, -90 BPs.