Market Update 25/08/16

Thursday, August 25, 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 equities spent the day in the red as weakness came in healthcare on the back of negative pricing talk from Hilary Clinton; Utilities (unchanged), Telecom (-0.04%) and Financials (-0.12%) outperformed, while Healthcare (-1.61%), Materials (-1.16%), and Info Tech (-0.54%) underperformed.

Asia: China lower today, a  delayed reaction to the CIRC tightening as some local brokers said that Rmb 500-600bn of insurance funds may gradually leave market.-Hong Kong pulled back, underperforming the rest of the Asia region here today. -Japanese shares lower after overnight markets declined;

CRH still on track to be included in Euro Stoxx 50, stock ranks 43 after close, an automatic inclusion is reached when stock reaches rank above 40. Less than € 270m in terms of free float market cap between CRH and Unibail that ranks 40. Decision will be made on August 31st closing prices. Buying of stock if enters would be over 10 days volume. Trading update today, . EBITDA 2% ahead and FY guide inline with consensus

US nominates Kim for second World Bank term.

Colombia & Farc rebels sign agreement after 5 decades of fighting.

US launches 'attack' to dissuade European tax demand on Apple.

IFG sees strong H1 , cautious on outlook.

Cairn Homes - H1 results ahead, Revenue €16mln, with 39 new homes sales (38 forecast), €297k average price; In addition to this, the company has generated €3.8m in revenue from the sale of properties acquired as part of Project Clear, along with €0.6m in income from property rental.

Morgan Stanley and Handelsbanken were in the market last night with 29.37m Industrivarden A shares on behalf of Handelsbanken

Ahold Delhaize confident that will meet synergy target of €500m on an annual run rate basis by mid 2019.

Mylan traded -5% last night after Clinton asked company to lower voluntarily the price of EpiPen after price had gone up by 4X in the past few years.

Investors pulled an estimated $25.2bn from Hedge Funds last month, the biggest monthly redemption since February 2009. The withdrawals were the second straight month which saw $23.5bn pulled in June.

Phibro CEO ( Commodities firm that split from Citi a few years ago) recommends shorting crude at $50.

Hewlett Packard beat estimates last night but lowered guidance.

Markets lower , Europe -85 BPs. Oil flat at $49, market focus on Yellen speech tomorrow.