Article / 28 April 2015 at 5:56 GMT

Market Open: FOMC meets, US consumer confidence eyed

TradingFloor.com Team / Saxo Bank
Denmark
  • The FTSE 100, Dax and CAC are all expected to open in the red today
  • French consumer confidence and UK growth data will attract market attention
  • In the US, traders will track the Fed’s monetary policy meeting


Forex Overnight: USD trading mostly higher
Currencies Intraday

 







Source: Bloomberg

The US dollar is trading firmer against most of its major counterparts this morning ahead of the two-day US Federal Reserve’s monetary policy meeting beginning today. Investors will keep a close watch on the US consumer confidence data, which is expected to reveal an improvement in April. Additionally, reports on the S&P/Case-Shiller house prices and the Richmond Fed manufacturing activity will attract market attention.

Traders will keep watch on French consumer confidence and UK growth data, for further direction. Yesterday, ECB vice president Vitor Constancio expressed confidence in Greece reaching a debt deal with its international lenders. And the Greek government announced that a new team would be formed under deputy foreign minister, Euclid Tsakalotos, that would be responsible for handling crucial debt talks with international creditors. At 05:00 GMT, the EUR had fallen 0.2% against the USD to trade at $1.0874, while the GBP had declined marginally against the USD to trade at $1.5235.


UK Stocks: Expected to open in negative territory
FTSE 100

 







Source: Bloomberg

The FTSE 100 is likely to open 26 points in the red.

Key economic indicators scheduled for release today include GDPt, British Bankers’ Association Mortgage Approvals and Index of Services.

BP (BP/), Whitbread (WTB) and Xeros Technology Group (XSG) are scheduled to report their results.

According to Reuters, Mark Byrne has resigned from the SSA syndicate desk at Royal Bank of Scotland Group (RBS) and is likely to join the SSA desk at TD Securities.

The Times reported that Axa Investment Managers, one of Alliance Trust’s (ATST) biggest shareholders, has pressurised the company’s board to cut costs and improve the share price, ahead of its crucial annual general meeting tomorrow.


Asia: Trading mostly lower
Nikkei 225

 







Source: Bloomberg

Asian markets are trading mostly weaker this morning.

In Japan, FANUC (6954) rallied after the company announced that it would double its dividend payout to 60%. Inpex (1605) climbed following reports that it secured a 5% stake in Abu Dhabi Company for Onshore Oil Operations (ADCO). Among other gainers were Fast Retailing (9983), Honda Motor (7267) and Aeon (8267). On the other hand, Tokyo Electron (6301) slumped after the US firm, Applied Materials called off its acquisition of the former. At 05:00 GMT, the Nikkei 225 index had risen 0.6% to trade at 20,104.6.

In South Korea, Samsung Electronics (005930) and Samsung SDI (006400) retreated. In China, PetroChina (601857) declined after reporting weaker-than-expected first-quarter earnings. However, Bank of Communications (601328) and China Merchants Bank (600036) paced gains. In Hong Kong, China Petroleum & Chemical (386) lost value following reports that its president, Wang Tianpu was under investigation due to “severe violations of discipline and laws”.

On the flipside, China COSCO Holdings (1919) and China Shipping Container Lines (2866) advanced.


US Stocks: Futures trading lower
S&P 500

 







Source: Bloomberg

At 05:00 GMT, S&P 500 futures were trading 1.2 points weaker.

Key economic indicators scheduled for release today include Consumer Confidence Index, S&P/Case-Shiller Home Price Index and Richmond Fed Manufacturing Index.

Pfizer (PFE), Merck & Company (MRK), Bristol-Myers Squibb (BMY), United Parcel Service (UPS), Express Scripts Holding (ESRX) and Ford Motor (F) are scheduled to report their results.

In the after-hours trading session yesterday, Amkor Technology (AMKR) tumbled 9.2% after the firm issued a tepid revenue and earnings guidance for the second quarter. Container Store Group (TCS) plummeted 25.5% as its fourth-quarter results came in below analysts’ estimates. On the flipside, Apple (AAPL) rose 1.3% after the company reported better-than-expected second-quarter results and announced that it would expand its share buyback programme to $200 billion.

Yesterday, the S&P 500 Index fell 0.4% in the regular trading session, led by losses in biotechnology sector stocks. Mylan (MYL) dropped 5.7% after the company’s board unanimously rejected Teva Pharmaceutical Industries’ unsolicited $40 billion takeover offer. Amgen (AMGN) shed 3.3% as the US Food and Drug Administration staff reviewers stated that an accelerated review of its cancer-killing virus, T-Vec, cannot be considered at this time.

Among other healthcare sector stocks, Mallinckrodt (MNK) and Edwards Lifesciences (EW) eased 5.5% and 5.3%, respectively. Applied Materials (AMAT) plummeted 8.4% after the firm called off its $10 billion takeover of Tokyo Electron due to regulatory concerns. Laboratory Corporation of America Holdings (LH) slid 1% as its first-quarter revenue fell short of market expectations. On the other hand, E. I. du Pont de Nemours and Company (DD) jumped 4.6% after activist investor, Trian Fund Management won the backing of Institutional Shareholder Services Incorporation for two nominees on the company’s board.

Roper Industries (ROP) rose 1.6%, buoyed by stronger-than-expected first-quarter earnings. Freeport-McMoRan (FCX) climbed 4.8% following a rally in the price of precious metals. A broker upgrade led Newmont Mining (NEM) to advance 2.4%. QUALCOMM (QCOM) gained 1.5% following a report indicating that the company has launched a unit to help Chinese smartphone makers sell their products overseas.


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

 







Source: Bloomberg

The DAX and the CAC are expected to open 36 to 38 points and 26 to 27 points lower, respectively.

French Consumer Confidence Index and Spanish House Mortgage Approvals are the key economic indicators scheduled for release today.

Daimler AG (DAI), Koninklijke Philips NV (PHIA), Banco Santander SA (SAN), Total SA (FP), Orange SA (ORA) and MAN SE (MAN) are scheduled to report their results.

According to the Guardian, the UK prime minister David Cameron is set to announce a scheme for the unemployed today, under which proceeds from Deutsche Bank AG’s (DBK) Libor fine would be utilised to create 50,000 apprenticeships.

United Internet AG (UTDI) announced that it has, through its subsidiary, United Internet Ventures AG, contractually secured an equity stake of about 9.1% in Drillisch AG (DRI). However, the acquisition is subject to approval by Germany's Federal Cartel Office.


Macro Update

Japan’s retail trade declines more than expected

On an annual basis, retail trade in Japan has dropped 9.7% in March, higher than market expectations and compared with a revised decline of 1.7% posted in the previous month.

Top Japanese stores sales drop

On a monthly basis, large retailers’ sales in Japan fell 13.0% in March compared with a rise of 1.3% recorded in the preceding month.

Australia’s leading economic indicator rises

On a month-on-month basis, the Conference Board economic index in Australia has advanced 0.5% in February compared with an increase of 0.4% recorded in January.


Economic Calendar


Country

GMT

Economic Indicator

Relevance

Consensus/*Actual

Previous

Frequency

Japan

5:00

Small Business Confidence (Apr)

Low

47.40*

49.80

Monthly

France

6:45

Consumer Confidence (Apr)

Low

94.00

93.00

Monthly

Spain

7:00

Total mortgage lending YoY (Feb)

Low

-

11.90%

Monthly

Spain

7:00

House mortgage approvals YoY (Feb)

Low

-

20.00%

Monthly

UK

8:30

Index of Services (Feb)

Low

-

108.80

Monthly

UK

8:30

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

Medium

0.50%

0.60%

Quarterly

UK

8:30

Gross Domestic Product (YoY) (Q1) (P)

Medium

2.60%

3.00%

Quarterly

UK

8:30

Index of Services (3M/3M) (Feb)

Low

0.70%

0.80%

Monthly

UK

8:30

Index of Services (MoM) (Feb)

Low

0.50%

-0.20%

Monthly

UK

8:30

BBA Mortgage Approvals (Mar)

Medium

37.80 K

37.31 K

Monthly

US

12:55

Redbook Index (YoY) (24-Apr)

Low

-

0.80%

Weekly

US

12:55

Redbook Index s.a. (MoM) (24-Apr)

Low

-

0.10%

Weekly

US

13:00

S&P/Case-Shiller 20 City s.a. (MoM) (Feb)

Low

0.70%

0.87%

Monthly

US

13:00

S&P/Case-Shiller Composite-20 (YoY) (Feb)

Low

4.70%

4.56%

Monthly

US

13:00

S&P/Case-Shiller Home Price Index (Feb)

Low

173.13

172.94

Monthly

US

14:00

Consumer Confidence (Apr)

High

102.50

101.30

Monthly

US

14:00

Richmond Fed Manufacturing Index (Apr)

Low

-2.00

-8.00

Monthly

Eurozone

17:30

ECB's Weidmann Gives Speech in Essen, Germany

Low

-

-

-

China

-

Leading Index (Mar)

Medium

-

98.85

Monthly





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





Corporate Calendar


Country

Company Name

Index

Announcement

UK

BP Plc

FTSE All Share

Q1 Earnings Release

UK

Carpetright Plc

FTSE All Share

Trading

UK

Henderson Group Plc

FTSE All Share

Trading

UK

Rexam Plc

FTSE All Share

Trading

UK

Robert Walters Plc

FTSE All Share

Trading

UK

SEGRO Plc

FTSE All Share

Trading

UK

St James's Place Plc

FTSE All Share

Trading

UK

Standard Chartered Plc

FTSE All Share

Trading

UK

Whitbread Plc

FTSE All Share

Final

Germany

Daimler AG

DAX 30, EuroStoxx 50

Q1 Earnings Release

France

Orange SA

CAC 40, EuroStoxx 50

Q1 Earnings Release

France

Total SA

CAC 40, EuroStoxx 50

Q1 Earnings Release

Spain

Banco Santander SA

EuroStoxx 50

Q1 Earnings Release

Netherlands

Koninklijke Philips NV

EuroStoxx 50

Q1 Earnings Release

US

Aetna Inc.

S&P 500

Q1 Earnings Release

US

Affiliated Managers Group Inc.

S&P 500

Q1 Earnings Release

US

Aflac Inc.

S&P 500

Q1 Earnings Release

US

AGL Resources Inc.

S&P 500

Q1 Earnings Release

US

Akamai Technologies Inc.

S&P 500

Q1 Earnings Release

US

Boston Scientific Corp.

S&P 500

Q1 Earnings Release

US

Bristol-Myers Squibb Co.

S&P 500

Q1 Earnings Release

US

Cincinnati Financial Corp.

S&P 500

Q1 Earnings Release

US

Coach Inc.

S&P 500

Q3 Earnings Release

US

CONSOL Energy Inc.

S&P 500

Q1 Earnings Release

US

Corning Inc.

S&P 500

Q1 Earnings Release

US

Cummins Inc.

S&P 500

Q1 Earnings Release

US

Ecolab Inc.

S&P 500

Q1 Earnings Release

US

Edison International

S&P 500

Q1 Earnings Release

US

Entergy Corp.

S&P 500

Q1 Earnings Release

US

Equity Residential

S&P 500

Q1 Earnings Release

US

Express Scripts Holding Co.

S&P 500

Q1 Earnings Release

US

Ford Motor Co.

S&P 500

Q1 Earnings Release

US

Genworth Financial Inc.

S&P 500

Q1 Earnings Release

US

Hospira Inc.

S&P 500

Q1 Earnings Release

US

Jacobs Engineering Group Inc.

S&P 500

Q2 Earnings Release

US

Kraft Foods Group Inc.

S&P 500

Q1 Earnings Release

US

Masco Corp.

S&P 500

Q1 Earnings Release

US

McGraw Hill Financial Inc.

S&P 500

Q1 Earnings Release

US

Merck & Co. Inc.

S&P 500

Q1 Earnings Release

US

National Oilwell Varco Inc.

S&P 500

Q1 Earnings Release

US

Owens-Illinois Inc.

S&P 500

Q1 Earnings Release

US

Parker Hannifin Corp.

S&P 500

Q3 Earnings Release

US

Pfizer Inc.

S&P 500

Q1 Earnings Release

US

Range Resources Corp.

S&P 500

Q1 Earnings Release

US

TECO Energy Inc.

S&P 500

Q1 Earnings Release

US

Textron Inc.

S&P 500

Q1 Earnings Release

US

Total System Services Inc.

S&P 500

Q1 Earnings Release

US

United Parcel Service Inc.

S&P 500

Q1 Earnings Release

US

Valero Energy Corp.

S&P 500

Q1 Earnings Release

US

Waters Corp.

S&P 500

Q1 Earnings Release

US

Western Digital Corp.

S&P 500

Q3 Earnings Release

US

Whirlpool Corp.

S&P 500

Q1 Earnings Release

US

Wyndham Worldwide Corp.

S&P 500

Q1 Earnings Release

US

Wynn Resorts Ltd.

S&P 500

Q1 Earnings Release



– Edited by Robert Ryan

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail