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  • Finance 0

    Morning Call For Friday, April 21

    OVERNIGHT MARKETS AND NEWS Jun E-mini S&Ps (ESM17 +0.12%) this morning are up +0.06% as better-than-expected quarterly earnings results from Honeywell and GE gives the overall market a boost. European stocks are little changed, down -0.06%, as the markets await Sunday’s first round of presidential elections in France that are too close to call. Losses in European stocks were limited after Eurozone Apr manufacturing activity unexpectedly expanded. Asian stocks settled mostly higher: Japan +1.03%, Hong Kong -0.06%, China +0.03%, Taiwan +0.88%, Australia +0.56%, Singapore +0.06%, South Korea +0.82%, India -0.19%. Japan’s Nikk...
    On April 21, 2017 / By
  • Finance 0

    Markets Enter Consolidative Mode Ahead Of Weekend

    Neither the terrorist attack in Paris nor the strong eurozone flash PMI has managed to shake investors. Judging from the social media, many suspect that the terrorist attack plays into Le Pen’s hands, but investors do not seem particularly concerned. The French interest rate premium over Germany has narrowed, and gold is flat. UK retail sales fell sharply, yet sterling is holding on to the bulk of this week’s gains, which are the most here in 2017.    The US 10-year yield is holding on to the lion’s share of its gains as well. It had bottomed on Tuesday near 2.16% and rose to 2.25% yesterday and is at 2.24% now. Tr...
    On April 21, 2017 / By
  • Finance 0

    Sensex Finishes Flat; HDFC Bank Surges 2.4% On Firm Q4 Results

    After a positive opening, Indian share markets witnessed selling pressure in the afternoon session to close marginally below the dotted line due to selling in FMCG stocks, healthcare stocks and metal stocks despite firm global cues. At the closing bell, the BSE Sensex stood lower by 57 points, while the NSE Nifty finished down 17 points. Meanwhile, the S&P BSE Mid Cap and the S&P BSE Small Cap finished up by 0.1% and 0.2% respectively. HDFC Bank share price surged 2.4% in today’s trade after the bank reported 18.25% YoY rise in net profit at Rs 39.9 billion for the quarter ended March 31, 2017. It had posted a ...
    On April 21, 2017 / By
  • Finance 0

    World Economic Growth Is Expected To Rise From 3.1 Percent In 2016 To 3.5 Percent In 2017

    from the International Monetary Fund Global economic activity is picking up with a long-awaited cyclical recovery in investment, manufacturing, and trade. World growth is expected to rise from 3.1 percent in 2016 to 3.5 percent in 2017 and 3.6 percent in 2018, slightly above the October 2016 World Economic Outlook (WEO) forecast. Stronger activity and expectations of more robust global demand, coupled with agreed restrictions on oil supply, have helped commodity prices recover from their troughs in early 2016. Higher commodity prices have provided some relief to commodity exporters and helped lift global headline inflation and reduce deflatio...
    On April 21, 2017 / By
  • Finance 0

    Weekend Reading: Trump Trade Runs Into Trouble

    On Tuesday, I discussed the issuance of the “weekly sell” signal and the implications for the markets over the intermediate term. However, I also stated the markets could well have a reflexive, oversold, bounce in the short-term with two potential outcomes. To wit: By the time weekly signals are issued on an intermediate-term basis, the market is generally oversold, with ‘bearish’ sentiment increasing, on a short-term (daily) basis. Given those short-term conditions, it is quite likely the markets will rally next week.” Chart updated through Thursday. Of course, it is the success or failure of that rally attempt that will d...
    On April 21, 2017 / By
  • Finance 0

    EUR/USD Drops Amid Paris Shootings

    Despite a quiet day, stock markets managed to edge higher yesterday, however sentiment is fragile ahead of the Presidential elections this Sunday in France, and a shooting having taken place in Paris which ISIS claimed responsibility for, adding further uncertainty. Major events of the day: Eurozone PMIs will be released in European session today while UK retail sales will be featured. Canada will release CPI. US will release PMIs and existing home sales. The USD was mixed with AUD outperforming and JPY the worst performer. BoJ Governor Kuroda’s comment that a strong Yen would delay achieving the Bank’s 2% inflation target saw JPY weaken...
    On April 21, 2017 / By
  • Finance 0

    European, US Stocks In Eerie Calm As French Vote Looms

    Global markets were oddly calm on Friday, the last day of trading before the first round of France’s closely fought presidential election, with European stocks posting modest declines ahead of Sunday’s main event, Asian shares rising, and set for first weekly gain in the past month, while U.S. futures were unchanged. French bond yields hit three-months low even as the euro has seen some recent weakness. The long awaited French Presidential Election is now nearly upon us with the first round taking place this Sunday. We’ll likely get exit polls soon after polls close at 7pm local time (8pm BST) with any delays caused by the f...
    On April 21, 2017 / By
  • Finance 0

    It’s A Tough Life For OPEC!

    The recent rally for crude oil, came to a shuddering halt this week with Wednesday’s wide spread down candle driving oil prices firmly back towards the $50 per barrel region, and wiping out much of the gains of the last few weeks. This was against the backdrop of the weekly oil inventories, and despite recording a draw in inventories of 1.0 million barrels which was slightly lower than the forecast of 1.2 million, oil prices fell sharply as oversupply continues to dominate the complex once again. The consequent build in gasoline inventories negated the positive effects of the draw in crude oil inventories. From a technical perspective, this...
    On April 21, 2017 / By
  • Finance 0

    EUR/USD, GBP/USD And EUR/CAD TA – April 21

    EUR/USD intra-day analysis   EUR/USD (1.0716): EUR/USD rallied to a fresh three week high yesterday at 1.0777 before giving up the gains towards the close. The single currency fell closer to the evening after news outlets reported a terrorist attack in France, just ahead of Sunday’s French elections. From a technical stand point, the failure to maintain gains above 1.0750 – 1.0740 means that EUR/USD could be looking to push lower towards the technical support seen at 1.0674. Establishing support here could keep EUR/USD poised for a move into Monday’s open following the results of the first round of voting. GBP/USD intra-day analysis G...
    On April 21, 2017 / By
  • Finance 0

    Preqin: Another Net Outflow Year Underway For Hedge Fund Industry

    In the February issue of its Hedge Fund Spotlight, Preqin looks into its crystal ball and tells us of its near term (2017) predictions for the hedge fund industry. The article begins with a simple observation: hedge funds saw net outflows of assets under management (AUM) in 2016. Likewise, 54% of all funds considered individually recorded net outflows of their own. Both credit and equity strategies sustained such outflows, although commodity trading advisors bucked the trend and saw net inflows. All this raises an obvious predictive question: will 2017 also be a down year for AUM? Investor Pullbacks versus Managerial ‘Animal Spirits’ ...
    On April 21, 2017 / By