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Market Update - 26/09/16

Monday, September 26, 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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U.S. equities finished lower on Friday in the wake of a 3-day rally spurred by the optimism driven by the Fed for a lower rate period for longer. (S&P500 -0.57%)-Energy (-126 bps) drove the weakness while Tech (-96 bps) was the second biggest underperformer weighed down by Facebook (-163bps) and Apple (-167bps).

Asian stocks dropped by the most in two weeks and futures foreshadowed losses in European and U.S. equities as investors weighed prospects of major oil producers agreeing output curbs at talks this week. Crude rebounded following its steepest drop in two months and the yen gained earlier this morning.

Goldman Sachs adds Unicredit to their Conviction List, says the gains are worth the pain.

German IFO Business Survey due at 9am.

All markets are open today.

Irish Residential  REIT - Sunday Business Story that company has had it's 500 apartment scheme planning proposal knocked back by the planning authority (Dun Laoghaire Rathdown County Council)

Aryzta FY results revenues and numbers in line, free cash flow better, Q4 underlying growth in Europe +3% but US -21.%, guidance in line, stock was better on Friday +10% on new Chair, stock -3% at open.

Turkish Lira  fell as Moody's downgraded Turkey's sovereign ratings to Ba1 from Baa3 and assigned a stable outlook.

Spanish regional elections in Galicia and the Basque Country slightly strengthened PM Rajoy’s PP position. Country still without a government.

Market not sure if an output cut will happen this week at OPEC. Saudi offer in relation to Iran was rejected last week.

German Chancellor rules out state aid for Deutsche Bank.

Moodys estimates that contagion risks are rising at China’s smaller banks. Reliant on wholesale funding.

The FED proposed an aggressive limit on Wall Street’s commodity holdings.

Another shareholder opposes SAB Miller takeover by AB Inbev, this time Ash Park joins Aberdeen Asset and Vontobel in it’s opposition to the deal.

Saudi Arabia is supporting it’s banks by giving about $5.3bn to lenders in the form of time deposits on behalf of government entities.

Salesforce and Google may have to pay more than $16bn to acquire Twitter. Company itself seeking more than $30bn. Bloomberg reckons that company worth $16.7bn if same numbers used in LinkedIn deal by Microsoft.

US Presidential debate tonight.

Markets open lower, Europe -1.05%.