Article / 09 February 2015 at 7:06 GMT

Market Open: EU Sentix confidence data, German trade balance in focus

TradingFloor.com Team / Saxo Bank
Denmark
  • Euro trading higher against major counterparts
  • US Department of Justice investigating Barclays, UBS Group AG 
  • DAX, CAC expected to open lower

Forex Overnight: EUR trading mostly higher
Currencies Intraday

 







Source: Bloomberg

The EUR is trading firmer against most of its major counterparts this morning. Later today, traders will keep a close eye on Eurozone Sentix investor confidence data, which are expected to show an improvement for February. 

Investors will also focus on German current account and trade balance figures for further direction. Additionally, French business sentiment data as well as a speech by the Bank of England’s governor, Mark Carney, will attract market attention. 

In a media interview on Sunday, the Greek finance minister, Yanis Varoufakis, stated that the currency bloc would collapse, if Greece is forced out of the Eurozone. On Friday, the USD strengthened against the EUR on the back of stronger-than-expected US employment data. 

At 06:00 GMT, the EUR has risen 0.2% and 0.1% against the USD and the GBP to trade at $1.1337 and GBP 0.7430, respectively.


UK Stocks: Expected to open in negative territory
FTSE 100

 







Source: Bloomberg

The FTSE 100 is likely to open 30 to 33 points in the red.

No key economic indicators are scheduled for release today.

Randgold Resources (RRS) and Renewable Energy Generation (WIND) are scheduled to report their results.

HSBC Holdings (HSBA) admitted that its Swiss banking arm helped wealthy customers evade taxes and conceal millions of dollars of assets. The bank acknowledged that it is accountable for past compliance and control failures.

The Financial Times reported that the US Department of Justice is investigating whether Barclays (BARC) and UBS Group AG misled clients in the marketing and selling of some foreign-exchange structured products.

Bloomberg reported that Tesco (TSCO) is under pressure to reduce the price of its data analysis business, Dunnhumby, which is up for sale. Warburg Pincus, Carlyle Group and TPG Capital are among those to have shown interest in the UK retailer’s unit.


Asia: Trading mostly lower
Nikkei 225

 







Source: Bloomberg

Asian markets are trading mostly weaker this morning. 

In Japan, Resona Holdings (8308) traded higher amid reports that Dai-ichi Life Insurance (8750) and Nippon Life Insurance are in discussions with the local banking group to buy a 5% stake worth about JPY 80 billion. 

Nippon Telegraph & Telephone (9432) rose on the back of better-than-expected third-quarter net income. Exporters, Funai Electric (6839) and Bridgestone (5108) advanced. However, Nikon (7731) and Sony (6758) retreated. At 06:00 GMT, the Nikkei 225 index rose 0.2% to trade at 17,683.1.

In South Korea, Hyundai Motor (005380) and Kia Motors (000270) lost value. In China, China Life Insurance (601628), China Pacific Insurance Group (601601) and Ping An Insurance Group Company of China (601318) advanced. 

In Hong Kong, China Construction Bank (939), Industrial & Commercial Bank of China (1398) and Bank of Communications (3328) edged down. Want Want China Holdings (151) plunged after the company issued a profit warning for 2014. 

Geely Automobile Holdings (175) also declined after the company announced that it would acquire a sedan and SUV plant from its parent company, Zhejiang Geely Holding Group, for CNY 1.1 bn.


US Stocks: Futures trading lower
S&P 500

 







Source: Bloomberg

At 06:00 GMT, S&P 500 futures were trading 8.1 points weaker.

Mortgage Bankers’ Association Mortgage Foreclosures and Mortgage Delinquencies are the key economic indicators scheduled for release today. 

Loews (L), CNA Financial (CNA), Masco (MAS), Randgold Resources (GOLD), Hasbro (HAS), TECO Energy (TE), Diamond Offshore Drilling (DO) and Dun & Bradstreet (DNB) are scheduled to report their results.

In the after-hours trading session on Friday, LinkedIn (LNKD) edged down 0.1%, reversing regular session gains which were triggered after the company’s fourth-quarter revenue and earnings surpassed analysts' expectations. 

 Energy sector stocks, SandRidge Energy (SD) and Sanchez Energy (SN) declined 1.8% and 1.4%, respectively. On the flipside, healthcare sector stocks, Enanta Pharmaceuticals (ENTA) and Pain Therapeutics (PTIE) advanced 4.1% and 4%, respectively, rebounding from regular session losses.

On Friday, the S&P 500 Index fell 0.3% in the regular trading session, reversing earlier gains which were triggered by data indicating a higher-than-expected increase in US nonfarm payrolls in January and a strong wage growth. 

Expedia (EXPE) plunged 11.5% as the company’s fourth-quarter results trailed market expectations. Gilead Sciences (GILD) shed 2.4%, hurt by a broker downgrade. 

A drop in copper prices led Freeport-McMoRan (FCX) to fall 3.8%. Intuit (INTU) slid 4.2% after the company announced that it had to halt e-filing of state tax returns due to fraud concerns. Marsh & McLennan Companies (MMC) edged down 0.7% after reporting a decline in fourth-quarter revenue. 

On the other hand, FLIR Systems (FLIR) and Moody's (MCO) surged 6.8% and 5.1%, respectively, as the companies reported fourth-quarter results above analysts’ estimates. Regions Financial (RF) and Bank of America (BAC) climbed 3.9% and 3.3%, respectively, as the US jobs report fuelled speculation of a possible interest rate hike later in 2015. 

Harris (HRS) climbed 9.6% after the company agreed to acquire the aerospace company, Exelis (XLS), for around $4.8 bn. Aon Plc (AON) gained 2.9%, buoyed by better-than-expected fourth-quarter earnings.

Under Armour (UA) rose 1.1% after the company acquired two online-based fitness communities, MyFitnessPal and Endomondo, for a total of around $560 million.


Europe Stocks: Likely to open in the red
EU Stoxx 50

 







Source: Bloomberg

The DAX and the CAC are expected to open 81 to 89 points and 39 points lower, respectively.

Key economic indicators scheduled for release today include Eurozone Sentix Investor Confidence, German Trade Balance and Current Account, French Business Sentiment and Portuguese Trade Balance.   

FinecoBank Banca Fineco SpA (FBK), Raiffeisen Bank International AG (RBI) and Alk Abello A/S (ALKB) are scheduled to report their results.

The General Administration of Quality Supervision, Inspection and Quarantine in China announced that Volkswagen AG’s (VOW) subsidiary, Porsche AG, would recall 14,571 cars in China due to defective camshaft adjusters.

The Wall Street Journal reported that Credit Suisse Group AG (CSGN) intends to launch a specialty finance company, Credit Suisse Park View BDC Inc., to invest in the unrated debt of small and medium-sized US enterprises.

In an interview with German newspaper Boersen-Zeitung, Fraport AG’s (FRA) chief financial officer, Matthias Zieschang, expressed his optimism that the new Greek government would honour the $1.4 bn agreement that would allow the company to manage 14 regional airports along with the Greek energy firm, Copelouzos.

Macro Update 

Fed on track to raise interest rates later this year, indicates Fed’s Lockhart

Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta, stated that the US Fed is on track to raise interest rates later this year considering the nation’s strong economic growth. However, he expressed concerns over the weak inflation and wage growth. He further projected that the economy would grow 3% each in 2015 and in 2016. 

US consumer credit advances less than expected 

Consumer credit in the US has risen by $14.8 bn in December, less than market expectations and compared with a revised increase of $13.5 bn posted in the previous month.

Focus should be on the price trends on a broader level, indicates BoJ's Morimoto

Yoshihisa Morimoto, a board member of the Bank of Japan, stated that the focus should be on the broader trend of prices and not just on the consumer price inflation. Further, he said that he expects a slowdown in the consumer inflation in the near term on account of falling oil prices. However, he emphasised that the inflation is likely to accelerate after the temporary slowdown.

Japan’s trade deficit narrows 

On a balance-of-payments basis, the trade deficit in Japan has narrowed to JPY 395.6 bn in December from a trade deficit of JPY 636.8 bn recorded in the preceding month.

Japan’s total current account surplus falls 

The non-seasonally adjusted current account surplus in Japan has fallen to JPY 187.2 bn in December from a current account surplus of JPY 433.0 bn posted in the preceding month.

China’s trade surplus widens 

The trade surplus in China has increased to $60.0 bn in January from a trade surplus of $49.6 bn posted in the previous month.


Economic Calendar


Country

GMT

Economic Indicator

Relevance

Consensus/*Actual

Previous

Frequency

Japan

01:30

BoJ Board Member Morimoto Speaks in Chiba

Low

-

-

-

Japan

04:30

Bankruptcies (YoY) (Jan)

Medium

 -16.55%*

-8.53%

Monthly

Japan

05:00

Consumer Confidence Index (Jan)

Medium

39.10*

38.80

Monthly

Japan

06:00

Eco Watchers Survey: Current (Jan)

Medium

45.60*

45.20

Monthly

Japan

06:00

Eco Watchers Survey: Outlook (Jan)

Medium

50.00*

46.70

Monthly

UK

06:40

BoE Governor Mark Carney Speaks

Low

-

-

-

Germany

07:00

Current Account n.s.a. (Dec)

Low

EUR20.80 bn

EUR18.60 bn

Monthly

Germany

07:00

Exports s.a. (MoM) (Dec)

Low

1.00%

-2.10%

Monthly

Germany

07:00

Imports s.a. (MoM) (Dec)

Low

0.20%

1.50%

Monthly

Germany

07:00

Trade Balance s.a. (Dec)

Medium

EUR16.00 bn

EUR17.70 bn

Monthly

France

07:30

Bank of France Business Sentiment (Jan)

Low

97.00

96.00

Monthly

Eurozone

09:30

Sentix Investor Confidence (Feb)

Medium

3.00

0.90

Monthly

Portugal

11:00

Global Trade Balance (3M) (Dec)

Low

-

-EUR2.77 bn

Monthly

Portugal

11:00

Trade Balance (Dec)

Low

-

-EUR0.80 bn

Monthly

Canada

13:15

Housing Starts s.a (Jan)

Medium

178.50 K

180.60 K

Monthly

US

21:00

Fed's Powell Speaks on Audit Proposals in Washington

Low

-

-

-

Japan

23:50

Housing Loans (YoY) (Q4)

Low

-

2.80%

Quarterly

Japan

23:50

Tertiary Industry Index (MoM) (Dec)

Medium

0.00%

0.20%

Monthly

Japan

23:50

Money Supply M3 (YoY) (Jan)

Low

2.90%

2.90%

Monthly

Japan

23:50

Money Supply M2+CD (YoY) (Jan)

Low

3.60%

3.60%

Monthly

US

-

Mortgage Delinquencies (Q4)

Low

-

5.85%

Quarterly

US

-

MBA Mortgage Foreclosures (Q4)

Low

-

2.39%

Quarterly


See today's events updated in real-time in our Financial Calendar on TradingFloor.com

Corporate Calendar


Country

Company Name

Index

Announcement

UK

Randgold Resources Ltd.

FTSE All Share

Final

US

Computer Sciences Corp.

S&P 500

Q3 Earnings Release

US

Diamond Offshore Drilling Inc.

S&P 500

Q4 Earnings Release

US

Dun & Bradstreet Corp.

S&P 500

Q4 Earnings Release

US

Hasbro Inc.

S&P 500

Q4 Earnings Release

US

Loews Corp.

S&P 500

Q4 Earnings Release

US

Masco Corp.

S&P 500

Q4 Earnings Release

US

TECO Energy Inc.

S&P 500

Q4 Earnings Release


— Edited by Michael McKenna

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