Article / 27 April 2015 at 6:10 GMT

Market Open: US services PMI, Greece in spotlight

TradingFloor.com Team / Saxo Bank
Denmark
  • European markets are expected to open mixed on Monday
  • The ECB announcement of details of its asset purchases will attract attention
  • The Markit services PMI data will be the key US release

Forex Overnight: EUR trading on a weaker footing
Currencies Intraday

 







Source: Bloomberg

The EUR is trading weaker against its major counterparts this morning. Later today, investors will keep tabs on German import and export prices data as well as on the European Central Bank’s announcement of details of its asset purchases. Yesterday, Valdis Dombrovskis, the European Commission vice president, said that the EC intends to significantly revise down its growth forecast for Greece this year, as the country failed to make progress in its negotiations with its creditors on its debt-repayment plan. Furthermore, Eurozone finance ministers warned Greece on Friday that the country would not get any additional aid until it agrees to a complete reform plan.

In the US, traders will focus on US Markit services purchasing managers’ index data, which is expected to reveal a slower expansion in April. Moreover, investors look forward to the US Federal Open Market Committee interest rate decision on Wednesday. At 05:00 GMT, the EUR had fallen 0.2% and 0.1% against the USD and the GBP to trade at $1.0854 and GBP 0.7152, respectively.


UK Stocks: Expected to open flat
FTSE 100

 







Source: Bloomberg

The FTSE 100 is likely to open flat.

Key economic indicators scheduled for release today include Confederation of British Industry Industrial Trends Survey - Selling Prices and Orders and CBI Business Optimism Index.

CSR Plc (CSR), Lok'n Store Group (LOK) and Lifeline Scientific (LSIC) are scheduled to report their results.

According to the Financial Times, the UK government has warned BP (BP/) that it would oppose any potential takeover of the company, even if it involves Royal Dutch Shell (RDSA), since it wants the country to have two big global oil companies.

According to the Sunday Times, HSBC Holdings (HSBA) is considering plans for a £20 billion spin-off of its UK retail bank.

BHP Billiton (BLT) stated that it is contesting the Australian Taxation Office assessments after being hit with a $522 million bill for tax avoidance through its Singapore marketing operations.


Asia: Trading mixed
Nikkei 225

 







Source: Bloomberg

Asian markets are trading mixed this morning.

In Japan, Nintendo (7974) and Mitsubishi Electric (6503) declined. Sony (6758) tumbled despite a report indicating that the company’s operating profit would reach about ¥300 billion for the fiscal year ended March 31, 2015. Mazda Motor (7261) edged down after the firm projected a lower-than-expected operating profit for the full year. On the other hand, Panasonic (6752) and Nikon (7731) advanced. At 05:00 GMT, the Nikkei 225 index had fallen 0.3% to trade at 19,954.8.

In South Korea, Samsung Electronics (005930) and Hyundai Motor (005380) lost value. In China, China Minsheng Banking (600016) and China Construction Bank (601939) advanced. PetroChina (601857) and China Petroleum & Chemical (600028) paced gains amid reports that the Chinese government has been mulling a merger between the two companies. In Hong Kong, Hong Kong Exchange & Clearing (388) rose as a report indicated that the Hong Kong market led the world in IPO fund-rasing for the year to date, with total funds raised at around $7.04 billion. However, China Vanke (2202) fell after reporting a sharp decline in its first-quarter core profit.


US Stocks: Futures trading higher
S&P 500

 







Source: Bloomberg

At 05:00 GMT, S&P 500 futures were trading 0.7 points stronger.

Key economic indicators scheduled for release today include Markit Services PMI, Markit Composite PMI and Dallas Fed Manufacturing Business Index.

Apple (AAPL), Mylan (MYL), General Growth Properties (GGP), Southern Copper (SCCO), AvalonBay Communities (AVB) and Boston Properties (BXP) are scheduled to report their results.

In the after-hours trading session on Friday, Uranium Energy (UEC) and Take-Two Interactive Software (TTWO) advanced 7.4% and 3.7%, respectively, reversing their regular session losses. On the flipside, Akorn (AKRX) plummeted 13.4% after the company announced that it would restate its previously issued financial statements that would reduce reported revenue for the final three quarters of 2014. Marvell Technology Group (MRVL) dropped 4.9% after issuing a warning on its first-quarter revenue.

On Friday, the S&P 500 Index rose 0.2% in the regular trading session, lifted by strong corporate results from technology giants. Microsoft (MSFT) surged 10.5% after its third-quarter revenue and earnings surpassed analysts’ estimates. Amazon.com (AMZN) and Juniper Networks (JNPR) rallied 14.1% and 8.9%, respectively, after posting higher-than-expected first-quarter revenue. Additionally, the latter issued a strong revenue and earnings outlook for the second quarter.

Google (GOOG) advanced 3.3% despite reporting first-quarter results below market expectations. Starbucks (SBUX) climbed 4.9% after its second-quarter revenue came in above analysts’ expectations. Mylan (MYL) gained 3.2% after the company raised its unsolicited takeover offer for Perrigo (PRGO) to about $33 billion. LyondellBasell Industries (LYB) and American Airlines Group (AAL) rose 3.3% and 2.4%, respectively, as their first-quarter earnings beat market expectations. A broker upgrade led Mattel (MAT) to gain 4.4%.

On the other hand, Hanesbrands (HBI) and Biogen (BIIB) dropped 6.8% and 6.6%, respectively, hurt by weaker-than-expected first-quarter results. Xerox (XRX) tumbled 8.8% after the firm posted first-quarter revenue below analysts’ estimates and lowered its full-year earnings guidance. Tyco International (TYC) plunged 6% after it issued a tepid earnings outlook for the third quarter and full year.


Europe Stocks: Likely to open mixed
EU Stoxx 50

 







Source: Bloomberg

The DAX is expected to open 22 points up, while the CAC is likely to open seven points down.

Key economic indicators scheduled for release today include German Import & Export Price Indices and Retail Sales.

GDF Suez (GSZ), Trigano SA (TRI), ASK SA (ASK) and Bankia SA (BKIA) are scheduled to report their results.

Volkswagen AG (VOW) announced that its chairman, Ferdinand Piech, has stepped down from all posts at the company with immediate effect.

The South Korean Ministry of Land, Infrastructure and Transport stated that the local unit of Daimler AG’s (DAI) subsidiary, Mercedes-Benz Korea, would recall about 2,800 cars in 11 models due to an oil leak.

Deutsche Bank AG (DBK) announced that its first-quarter net profit dropped to €559 million due to hefty litigation costs. However, the bank reported a 24% rise in its revenue.


Macro Update

Chinese industrial profits drop, indicates NBS

The National Bureau of Statistics of China reported that, on an annual basis, industrial profits in China have fallen 2.7% in the period from January to March compared with a drop of 4.2% recorded in the period from January to February.


Economic Calendar


Country

GMT

Economic Indicator

Relevance

Consensus/*Actual

Previous

Frequency

China

1:30

Industrial Profits (YTD) (YoY) (Mar)

Medium

-2.70%*

-4.20%

Monthly

China

1:30

Industrial Profits (YoY) (Mar)

Medium

-0.40%*

-4.20%

Monthly

Germany

6:00

Import Price Index (MoM) (Mar)

Low

0.40%

1.40%

Monthly

Germany

6:00

Import Price Index (YoY) (Mar)

Low

-2.00%

-3.00%

Monthly

Eurozone

7:00

EU's Hill, SSM's Nouy Speak at Conference in Brussels

Low

-

-

-

Eurozone

8:30

ECB's Coeure, Constancio, Nouy speak in Brussels

Low

-

-

-

Eurozone

9:00

SSM's Nouy, SSB's Koenig on Panel at Conference in Brussels

Low

-

-

-

UK

10:00

CBI Trends Selling Prices (Apr)

Medium

2.00

4.00

Monthly

UK

10:00

CBI Business Optimism (4/)

Low

19.00

15.00

Quarterly

UK

10:00

CBI Industrial Trends Survey - Orders (Apr)

Low

4.00

0.00

Monthly

Eurozone

12:00

ECB's Constancio Speaks at Conference in Brussels

Low

-

-

-

US

13:45

Markit Composite PMI (Apr) (P)

Medium

-

59.20

Monthly

US

13:45

Markit Services PMI (Apr) (P)

Medium

58.80

59.20

Monthly

Eurozone

13:45

ECB Announces Asset Purchases

High

-

-

-

US

14:30

Dallas Fed Manufacturing Business Index (Apr)

Low

-12.00

-17.40

Monthly

Japan

23:50

Large Retailer's Sales (Mar)

Medium

-11.30%

1.30%

Monthly

Japan

23:50

Retail Trade (YoY) (Mar)

Medium

-7.50%

-1.80%

Monthly

Japan

23:50

Retail Trade s.a (MoM) (Mar)

Low

0.60%

0.70%

Monthly

Germany

-

Export price index (Mar)

Low

-

104.70

Monthly






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





Corporate Calendar


Country

Company Name

Index

Announcement

UK

Centrica Plc

FTSE All Share

Trading

UK

CSR Plc

FTSE All Share

Q1 Earnings Release

UK

Playtech Plc

FTSE All Share

Trading

France

GDF Suez

CAC 40, EuroStoxx 50

Q1 Earnings Release

US

Apple Inc.

S&P 500

Q2 Earnings Release

US

AvalonBay Communities Inc.

S&P 500

Q1 Earnings Release

US

Boston Properties Inc.

S&P 500

Q1 Earnings Release

US

C.H. Robinson Worldwide Inc.

S&P 500

Q1 Earnings Release

US

Dun & Bradstreet Corp.

S&P 500

Q1 Earnings Release

US

General Growth Properties Inc.

S&P 500

Q1 Earnings Release

US

Hartford Financial Services Group Inc.

S&P 500

Q1 Earnings Release

US

Laboratory Corporation of America Holdings

S&P 500

Q1 Earnings Release

US

Mylan Inc.

S&P 500

Q1 Earnings Release

US

Plum Creek Timber Company Inc.

S&P 500

Q1 Earnings Release

US

Roper Industries Inc.

S&P 500

Q1 Earnings Release


– Edited by Robert Ryan


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