Article / 29 April 2015 at 6:10 GMT

Market Open: FOMC meeting in spotlight, busy economic calendar ahead

TradingFloor.com Team / Saxo Bank
Denmark
  • European markets are expected to open in the green
  • The FOMC interest rate decision will take the limelight
  • In the US, GDP and pending home sales data will attract market attention


Forex Overnight: USD trading mostly higher
Currencies Intraday

 







Source: Bloomberg

The US dollar is trading firmer against most of its major counterparts this morning. Later today, traders will closely watch the US Federal Open Market Committee interest rate decision along with US gross domestic product figures, which are expected to show that the US economy expanded in the first quarter of 2015, albeit at a slower pace. Furthermore, a report on US pending home sales will also attract market attention.

Market participants also look forward to Eurozone consumer confidence, economic and business sentiment indicators as well as the European Central Bank’s economic bulletin. Additionally, investors will focus on German consumer price inflation, Swiss UBS consumption indicator and UK Nationwide house prices data. At 05:00 GMT, the EUR had fallen 0.2% against the USD to trade at $1.0962, while the GBP had remained almost unchanged against the USD to trade at $1.5337.


UK Stocks: Expected to open in positive territory
FTSE 100

 







Source: Bloomberg

The FTSE 100 is likely to open 17 to 20 points in the green.

Key economic indicators scheduled for release today include GfK Consumer Confidence, Nationwide House Prices and Confederation of British Industry Distributive Trades Survey – Realised.

Barclays (BARC), TSB Banking Group (TSB) and Home Retail Group (HOME) are scheduled to report their results.

According to Sky News, Lloyds Banking Group’s (LLOY) subsidiary, Lloyds Development Capital, has emerged as the frontrunner to acquire Iglu.com, one of the UK’s fastest-growing travel companies, in a deal that could be valued at about £60 million.

Tobias Richter, the head of National Express Group (NEX) in Germany, said that the company is considering contesting a decision by the Bavarian state procurement chamber denying it permission to operate the Nuremberg S-Bahn services despite being named preferred bidder.


Asia: Trading lower
Nikkei 225

 
 






Source: Bloomberg

Asian markets are trading weaker this morning. Note that markets in Japan are closed for the Showa day holiday.

In South Korea, LG Electronics (066570), Hyundai Motor (005380) and Kia Motors (000270) declined. However, Samsung Electronics (005930) rose after it reported a first-quarter operating profit of KRW 6 trillion.

In China, Agricultural Bank of China (601288) and Bank of Communications (601328) lost value after reporting dismal first-quarter results. Likewise, Anhui Conch Cement (600585) tumbled after posting a decline in its first-quarter net income. In Hong Kong, China Minsheng Banking (1988) edged down. The company announced that its unit, CMBC International Holdings, has signed an agreement to acquire a majority stake in Quam Limited (952). Bank of China (3988) and China Construction Bank (939) also retreated.


US Stocks: Futures trading lower
S&P 500

 







Source: Bloomberg

At 05:00 GMT, S&P 500 futures were trading 2.5 points weaker.

Key economic indicators scheduled for release today include GDP, Personal Consumption Expenditure, Pending Home Sales and Mortgage Bankers’ Association Mortgage Applications. Additionally, investors look forward to the US Federal Reserve’s interest rate decision.

MasterCard (MA), Baidu (BIDU), Time Warner (TWX), Mondelez International (MDLZ) and NextEra Energy (NEE) are scheduled to report their results.

In the after-hours trading session yesterday, Express Scripts Holding (ESRX) advanced 1.7% as the company posted upbeat first-quarter revenue and raised its second-quarter earnings guidance. On the flipside, Wynn Resorts (WYNN) tumbled 10.2% after the company reported weaker than expected first-quarter results and cut its quarterly dividend. Kraft Foods Group (KRFT) fell 1%, hurt by lower-than-expected first-quarter revenue.

Yesterday, the S&P 500 Index rose 0.3% in the regular trading session. Merck & Company (MRK) jumped 5% after the company reported better-than-expected first-quarter results and raised its full-year net income guidance. United Parcel Service (UPS) climbed 3.4% as its first-quarter earnings beat analysts’ estimates. International Business Machines (IBM) advanced 1.9% after the company’s board raised its quarterly dividend by 18%. Ford Motor (F) rose 1% despite posting weaker-than-expected first-quarter results. Iron Mountain (IRM) gained 2.9% after it agreed to acquire Recall Holdings for about $2 billion.

On the other hand, Whirlpool (WHR) plummeted 7.1% after the firm lowered its full-year revenue and earnings forecast. Coach (COH) tumbled 6.3% as its third-quarter results fell short of market expectations. Apple (AAPL) shed 1.6% amid concerns that rapid iPhone growth might not continue. Biotechnology sector stocks, Biogen (BIIB) and Celgene Corporation (CELG) declined 3.8% and 1%, respectively. Pfizer (PFE) fell 0.3% after the company cut its full-year revenue and earnings outlook. Jacobs Engineering Group (JEC) dropped 5.7% as its second-quarter results came in below analysts’ estimates. Additionally, the company issued a tepid earnings outlook for 2015. Parker-Hannifin (PH) slid 3.7% after the company posted lower-than-expected third-quarter revenue and revised down its 2015 profit outlook.


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

 







Source: Bloomberg

The DAX and the CAC are expected to open nine to 14 points and 10 to 14 points higher, respectively.

Key economic indicators scheduled for release today include Eurozone Consumer Confidence Index, Business Climate Indicator, Economic Sentiment Indicator and M3 Money Supply, German Consumer Price Index, Italian Consumer & Business Confidence Indices, Swiss UBS Consumption Indicator and Spanish Retail Sales. Additionally, investors await the release of the economic bulletin in the Eurozone.

Volkswagen AG (VOW), Eni SpA (ENI), Deutsche Boerse AG (DB1), SGL Carbon SE (SGL), Banco Bilbao Vizcaya Argentaria SA (BBVA) and Iberdrola SA (IBE) are scheduled to report their results.

Bloomberg reported that Deutsche Bank AG (DBK) is set to name Ed Reardon from JPMorgan Chase & Company as the managing director of its US commercial-mortgage bond research.

According to Reuters, Hudson’s Bay is interested in acquiring GALERIA Kaufhof GmbH, the German department store chain owned by METRO AG (MEO).


Macro Update

Chinese consumer sentiment drops, says Westpac-MNI

The Westpac-MNI consumer sentiment index in China has declined to a reading of 111.1 in April from a reading of 114.7 posted in March.

New Zealand’s trade surplus widens

New Zealand’s trade surplus has widened to NZD 0.63 billion in March from a revised surplus of NZD 0.08 billion posted the previous month.

New Zealand’s business confidence deteriorates: ANZ Bank

ANZ Bank reported that net 30.2% of firms in April were optimistic about the general economy in New Zealand compared with a net 35.8% of respondents recorded in the preceding month.

New Zealand business activity outlook steady, indicates ANZ Bank

The ANZ Bank reported that a net 41.3% of respondents in April expected their own business activity to improve in the coming year compared with 42.2% posted in the previous month.


Economic Calendar




Country

GMT

Economic Indicator

Relevance

Consensus/*Actual

Previous/ **Previous Est.

Frequency

China

1:45

Westpac-MNI Consumer sentiment index (Apr)

Low

111.10*

114.70

Monthly

Switzerland

6:00

UBS Consumption Indicator (Mar)

Medium

-

1.19

Monthly

UK

6:00

Nationwide House Prices n.s.a. (YoY) (Apr)

Medium

4.10%

5.10%

Monthly

UK

6:00

Nationwide House Prices s.a. (MoM) (Apr)

Low

0.20%

0.10%

Monthly

Spain

7:00

Retail Sales (YoY) (Mar)

Low

3.60%

2.70%

Monthly

Eurozone

8:00

ECB's Hansson speaks on Eurozone, Estonian economy, outlook

Low

-

-

 -

Eurozone

8:00

M3 Money Supply (3m) (Mar)

Low

4.10%

3.80%

Monthly

Eurozone

8:00

M3 Money Supply (YoY) (Mar)

Low

4.30%

4.00%

Monthly

Eurozone

8:00

Private Loans (YoY) (Mar)

Low

0.10%

-0.10%

Monthly

Italy

8:00

Business Confidence (Apr)

Low

103.70

103.70

Monthly

Italy

8:00

Consumer Confidence (Apr)

Low

110.50

110.90

Monthly

Portugal

8:30

Business Confidence (Apr)

Low

-

0.60

Monthly

Portugal

8:30

Consumer Confidence (Apr)

Low

-

-19.20

Monthly

Eurozone

9:00

Economic Bulletin

Medium

-

-

 -

Eurozone

9:00

Business Climate Indicator (Apr)

Medium

0.20

0.23

Monthly

Eurozone

9:00

Consumer Confidence (Apr) (F)

Medium

-4.60

-4.60**

Monthly

Eurozone

9:00

Economic Sentiment Indicator (Apr)

Low

103.90

103.90

Monthly

Eurozone

9:00

Industrial Confidence (Apr)

Low

-2.90

-2.90

Monthly

Eurozone

9:00

Services Sentiment Indicator (Apr)

Low

6.00

6.00

Monthly

UK

10:00

CBI Distributive Trades Survey - Realised (Apr)

Low

25.00%

18.00%

Monthly

US

11:00

MBA Mortgage Applications (24-Apr)

Low

-

2.30%

Weekly

Germany

12:00

Consumer Price Index (MoM) (Apr) (P)

Medium

-0.10%

0.50%

Monthly

Germany

12:00

Consumer Price Index (YoY) (Apr) (P)

Medium

0.40%

0.30%

Monthly

Germany

12:00

Harmonised Index of Consumer Prices (HICP) (MoM) (Apr) (P)

Medium

-0.10%

0.50%

Monthly

Germany

12:00

Harmonised Index of Consumer Prices (HICP) (YoY) (Apr) (P)

High

0.20%

0.10%

Monthly

Canada

12:30

Industrial Product Price (MoM) (Mar)

Low

-0.10%

1.80%

Monthly

Canada

12:30

Raw Material Price Index (Mar)

Low

-2.00%

6.10%

Monthly

US

12:30

Gross Domestic Product Annualised (QoQ) (Q1) (P)

High

1.00%

2.20%

Quarterly

US

12:30

Gross Domestic Purchases Price Index (Q1) (P)

High

0.50%

0.10%

Quarterly

US

12:30

Personal Consumption (QoQ) (Q1) (P)

Medium

1.70%

4.40%

Quarterly

US

12:30

Personal Consumption Expenditure Core (QoQ) (Q1) (P)

Low

1.00%

1.10%

Quarterly

US

14:00

US Pending home sales (Mar)

Low

-

106.90

Monthly

US

14:00

Pending Home Sales (MoM) (Mar)

Low

1.20%

3.10%

Monthly

US

14:00

Pending Home Sales (YoY) (Mar)

Low

5.10%

12.00%

Monthly

US

18:00

Fed Interest Rate Decision

High

0.25%

0.25%

 -

UK

23:05

GfK Consumer Confidence (Apr)

Medium

-

4.00

Monthly

Japan

23:50

Industrial Production (MoM) (Mar) (P)

Low

-2.30%

-3.10%

Monthly

Japan

23:50

Industrial Production (YoY) (Mar) (P)

Medium

-3.40%

-2.00%

Monthly





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






Corporate Calendar




Country

Company Name

Index

Announcement

UK

Alent Plc

FTSE All Share

Trading

UK

Antofagasta Plc

FTSE All Share

Trading

UK

Avon Rubber Plc

FTSE All Share

Interim

UK

Barclays Plc

FTSE All Share

Q1 Earnings Release

UK

British American Tobacco Plc

FTSE All Share

Trading

UK

Development Securities Plc

FTSE All Share

Final

UK

Greggs Plc

FTSE All Share

Trading

UK

HellermannTyton Group Plc

FTSE All Share

Trading

UK

Home Retail Group Plc

FTSE All Share

Final

UK

London Stock Exchange Group Plc

FTSE All Share

Trading

UK

N Brown Group Plc

FTSE All Share

Final

UK

Next Plc

FTSE All Share

Trading

UK

Petropavlovsk Plc

FTSE All Share

Final

UK

Redefine International Plc

FTSE All Share

Interim

UK

Spirit Pub Company Plc

FTSE All Share

Interim

UK

Stagecoach Group Plc

FTSE All Share

Trading

UK

Standard Life Plc

FTSE All Share

Trading

UK

Weir Group Plc

FTSE All Share

Trading

Germany

Deutsche Boerse AG

DAX 30

Q1 Earnings Release

Germany

Volkswagen AG

DAX 30, EuroStoxx 50

Q1 Earnings Release

Spain

Banco Bilbao Vizcaya Argentaria SA

EuroStoxx 50

Q1 Earnings Release

Italy

Eni SpA

EuroStoxx 50

Q1 Earnings Release

Spain

Iberdrola SA

EuroStoxx 50

Q1 Earnings Release

US

ADT Corp.

S&P 500

Q2 Earnings Release

US

Ametek Inc.

S&P 500

Q1 Earnings Release

US

Anthem Inc.

S&P 500

Q1 Earnings Release

US

Avery Dennison Corp.

S&P 500

Q1 Earnings Release

US

CBRE Group Inc

S&P 500

Q1 Earnings Release

US

Eaton Corporation Plc

S&P 500

Q1 Earnings Release

US

Exelon Corp.

S&P 500

Q1 Earnings Release

US

Franklin Resources Inc.

S&P 500

Q2 Earnings Release

US

Garmin Ltd.

S&P 500

Q1 Earnings Release

US

General Dynamics Corp.

S&P 500

Q1 Earnings Release

US

Goodyear Tire & Rubber Co.

S&P 500

Q1 Earnings Release

US

Hess Corp.

S&P 500

Q1 Earnings Release

US

Hudson City Bancorp Inc.

S&P 500

Q1 Earnings Release

US

Humana Inc.

S&P 500

Q1 Earnings Release

US

International Paper Co.

S&P 500

Q1 Earnings Release

US

Lincoln National Corp.

S&P 500

Q1 Earnings Release

US

Macerich Co.

S&P 500

Q1 Earnings Release

US

Marriott International Inc.

S&P 500

Q1 Earnings Release

US

MasterCard Inc.

S&P 500

Q1 Earnings Release

US

MeadWestvaco Corp.

S&P 500

Q1 Earnings Release

US

Mondelez International Inc.

S&P 500

Q1 Earnings Release

US

Murphy Oil Corp.

S&P 500

Q1 Earnings Release

US

NextEra Energy Inc.

S&P 500

Q1 Earnings Release

US

Noble Corporation Plc

S&P 500

Q1 Earnings Release

US

Norfolk Southern Corp.

S&P 500

Q1 Earnings Release

US

Northrop Grumman Corp.

S&P 500

Q1 Earnings Release

US

PG&E Corp.

S&P 500

Q1 Earnings Release

US

Praxair Inc.

S&P 500

Q1 Earnings Release

US

QEP Resources Inc.

S&P 500

Q1 Earnings Release

US

Southern Co.

S&P 500

Q1 Earnings Release

US

Starwood Hotels & Resorts Worldwide Inc.

S&P 500

Q1 Earnings Release

US

Time Warner Inc.

S&P 500

Q1 Earnings Release

US

Unum Group

S&P 500

Q1 Earnings Release

US

Varian Medical Systems Inc.

S&P 500

Q2 Earnings Release

US

Vertex Pharmaceuticals Inc.

S&P 500

Q1 Earnings Release

US

Waste Management Inc.

S&P 500

Q1 Earnings Release

US

Williams Companies Inc.

S&P 500

Q1 Earnings Release

US

XL Group Plc

S&P 500

Q1 Earnings Release


– Edited by Robert Ryan

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