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Market Review: Mixed macroeconomic data across the globe

Forex: EUR trading higher
Currencies Intraday
Source: Bloomberg

The EUR is trading higher against USD and the JPY amid upbeat Eurozone Sentix confidence data for November and improved manufacturing activity in Eurozone and Germany. However, gains remained capped amid continued speculation that the European Central Bank might take further easing steps at its monetary policy meeting scheduled later in the week. The USD is trading lower against its major counterparts following downbeat US factory orders data for September. Additionally, the greenback weakened after the St. Louis Fed president, James Bullard, indicated that low inflation in the US would not lead the Fed to rush to scale back its monthly asset purchase programme. The GBP has gained against the USD following upbeat UK construction activity data for October. The EUR is trading 0.2 percent and 0.1 percent higher against the USD and the JPY, respectively, while it is trading flat against the GBP.

UK Stocks: Close higher
FTSE 100 Intraday
Source: Bloomberg

UK stocks finished in the green following better than expected UK construction activity data and amid higher risk appetite amongst investors.

The FTSE 100 gained 0.4 percent to close at 6763.6 and the FTSE 250 advanced 0.3 percent to settle at 15503.1.

HSBC Holdings (HSBA) gained 2.3 percent after the lender posted a significant rise in its third quarter pre-tax profit.

Miners, Rio Tinto (RIO), Antofagasta (ANTO) and BHP Billiton (BLT) added between 1.6 percent and 3.3 percent.

BP (BP/) rose 0.9 percent following a broker upgrade to equalweight from underweight.

On the downside, Weir Group (WEIR) slumped 3.7 percent after the company lowered its full year revenue and pre-tax profit forecast and following a broker downgrade to add from buy.

EasyJet (EZJ) and IAG SA (IAG) declined 5.1 percent and 0.6 percent, respectively, after peer, Ryanair Holdings cut its full year net profit outlook.

Meggitt (MGGT) lost 3 percent, extending Friday’s losses, following a cut to its full year sales forecast.

US Stocks: Trading in a narrow range
Dow Jones Intraday
Source: Bloomberg

US stocks are trading in a tight range amid continued uncertainty about the future course of the US Federal Reserve’s monetary policy and as investors tracked corporate earnings reports.

The Dow Jones has fallen 0.1 percent to trade at 15599.3 while the S&P 500 has gained a marginal 0.5 points to trade at 1762.1.

United States Steel (X) has jumped 5 percent after a broker upgraded its rating on the stock to buy from sell, citing an improvement in its earnings and cost cutting efforts.

Sysco Corporation (SYY) has gained 4.4 percent after the company posted upbeat fiscal first quarter adjusted earnings per share.

Kellogg (K) has climbed 3 percent following the announcement that it would reduce its global workforce by 7 percent as part of a four-year cost saving plan.

On the flipside, downbeat third quarter revenue has led CME Group (CME) to drop 2.5 percent.

European Stocks: Finish in the green
EU Stoxx50 Intraday
Source: Bloomberg

European markets closed higher following positive Eurozone factory activity and consumer confidence data and amid expectations of additional monetary stimulus from the ECB at its policy meeting later in the week.

The DAX rose 0.3 percent to end at 9037.2 and the CAC advanced 0.4 percent to close at 4288.6.

K+S AG (SDF) rallied 9.3 percent following broker upgrades.

A rise in its third quarter operating profit sent Fuchs Petrolub SE (FPE3) 5.8 percent higher.

PostNL NV (PNL) soared 7.8 percent after the company hiked its full year cash operating profit outlook.

On the downside, a cut to its full year net profit guidance sent Ryanair Holdings (RYA) 12.6 percent lower.

Credit Suisse Group AG (CSGN) and UBS AG (UBSN) dropped 6.7 percent and 5.3 percent, respectively, after the Swiss finance minister, Eveline Widmer-Schlumpf, indicated that these lenders might have to pull out of investment banking business if their leverage ratios increase.

Asia: Indices end mostly lower
Nikkei 225 Intraday
Source: Bloomberg

Asian markets closed mostly in the red after the Federal Reserve Bank of Dallas president, Richard Fisher, indicated that the US central bank should end its monetary stimulus programme as soon as possible and ahead of a raft of central bank meetings across the globe scheduled later this week.

Markets in Japan were closed today on account of a holiday.

In China, Beijing Orient National Communication Science & Technology (300166) tumbled 10 percent after the company received an approval for a private placement. Property sector stocks, China Vanke (000002) and Poly Real Estate Group (600048) declined 2 percent and 1.2 percent, respectively, amid reports that Shenzhen, a Chinese city, would increase minimum down payment required for the purchase of second home by 10 percent. In Hong Kong, HSBC Holdings (5) lost 0.4 percent ahead of the release of its quarterly results scheduled after the close of trading today. In South Korea, Kia Motors (000270) slipped 1.5 percent following a decline in its US new vehicle sales in October.

Commodities: Trading mixed

The Gold futures contract is trading 0.4 percent higher at USD 1318.4 per ounce amid continued uncertainty over the direction of US Fed’s monetary policy after the St. Louis Fed president, James Bullard, stated that the central bank does not need to rush to scale back its monthly bond buying programme due to low inflation.

The Brent crude one-month futures contract is trading 0.1 percent lower at USD 105.8 per barrel amid ongoing concerns over rising US crude oil inventories and as Libya prepared to resume exports from two of its terminals. However, losses remained capped as the US dollar weakened against its major peers.

Macro Update

  • US factory orders rise less than expected in September
  • Eurozone investor confidence jumps sharply in November, indicates Sentix
  • UK construction activity improves unexpectedly in October
  • German manufacturing PMI upwardly revised in October
  • Eurozone manufacturing activity rises as expected in October

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous/
**Previous Est.

Frequency

US

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21:00

Fed's Rosengren Speaks on Economy in Boston

Low

-

-

-

Japan

23:50

Monetary Base (YoY) (Oct)

Low

-

46.10%

Monthly

UK

0:01

BRC Retail Sales Monitor - All (YoY) (Oct)

Low

1.10%

0.70%

Monthly

China

1:45

HSBC Services Purchasing Managers' Index (Oct)

Medium

-

52.40

Monthly

Japan

5:30

BOJ Governor Kuroda Speaks to Business Leaders in Osaka

Low

-

-

-

Japan

7:45

BOJ Governor Kuroda Holds Press Conference in Osaka

Low

-

-

-

Spain

8:00

Unemployment Change (Oct)

Low

-

25.57K

Monthly

Eurozone

8:00

ECB's Constancio Speaks in Madrid

Low

-

-

-

Switz-erland

8:15

CPI - EU Harmonised (YoY) (Oct)

Medium

-

0.20%

Monthly

Switz-erland

8:15

CPI - EU Harmonised (MoM) (Oct)

Medium

-

0.50%

Monthly

Switz-erland

8:15

Consumer Price Index (MoM) (Oct)

Medium

0.10%

0.30%

Monthly

Switz-erland

8:15

Consumer Price Index (YoY) (Oct)

Medium

-0.10%

-0.10%

Monthly

UK

9:30

Official Reserves (Changes) (Oct)

Medium

-

-USD 188.00mn

Monthly

UK

9:30

Markit Services Purchasing Managers' Index (Oct)

Medium

60.00

60.30

Monthly

Eurozone

10:00

European Commission Releases Economic Growth Forecasts

Medium

-

-

-

Eurozone

10:00

Producer Price Index (YoY) (Sep)

Medium

-0.80%

-0.80%

Monthly

Eurozone

10:00

Producer Price Index (MoM) (Sep)

Low

0.20%

0.00%

Monthly

Eurozone

13:30

ECB President Draghi Speaks in Frankfurt

Low

-

-

-

US

13:55

Redbook Index s.a. (MoM) (27-Oct)

Low

-

-1.30%

Weekly

US

13:55

Redbook Index (YoY) (27-Oct)

Low

-

3.60%

Weekly

Eurozone

14:00

ECB's Asmussen Speaks in Stockholm

Low

-

-

-

US

15:00

ISM Non-Manufacturing Purchasing Managers' Index (Oct)

Medium

54.00

54.40

Monthly

US

15:00

IBD/TIPP Economic Optimism (MoM) (Nov)

Low

42.00

38.40

Monthly

For more events see TradingFloor.com's real-time financial calendar.


Author SaxoBankUK, Saxo Capital Markets UK
Topics NI225, CAC40, Materials and Mining, Financial Services and Banking, Motor Vehicles and Parts, SP500, DAX, DJI, FTSE 100

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