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Finance Update – A Day to Trade

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Americas – America Votes

With America voting, US indices started the week nicely, the DOW adding 1.6% and the NASDAQ 0.4%.

The dollar reacted weakly to a 1-tick increase in Markit’s manufacturing PMI but ISM’s 4-point increase to a staggering 59.3.

Europe – Europe manufacturing excels

European indices are capturing the voting spirit, all indices closing green yesterday led by Poland’s WIG20’s 2.65% rise.

The Dax stopped just short of the 2% mark, and the FTSE added an unassuming 1.39%. Manufacturing PMIs yesterday all surprised to the upside.

Asia – BoA Drops rates

Asian indices this morning were led up by the Hang Seng’s 2.2% increase.

The Australian dollar is showing some backwind after the nation’s central bank – as expected – dropped interest rates by 15 basis points to 0.1%, Governor Lowe mentioning better-than-expected economic data but the threat of continued high unemployment.

Commodities – WTI hoping for OPEC+

WTI yesterday briefly dropped beneath $34 before shaking it off and quickly soaring to above $37 per barrel on hopes of an extended production agreement between Russia and OPEC+.

Gold arrested a 3-day rise yesterday hitting 1900 before regressing to 1889, as the IMF officially advised the G20 to keep supporting individuals, businesses and the healthcare sector. Previously, the IMF threatened a 4.4% global drop in GDP, which would not recover before 2022.

Corporate – Aramco profits plummet

PayPal yesterday reported an amazing 121% increase in earnings to 86c per share on a 25% increase in revenues YoY to $5.46 bn. ARAMCO (+0.88%) this morning reported a 44.6% drop in quarterly profits at $11.79 bn. In Europe, Bayer reported a 5% drop in sales YoY to €8.5 bn, and NBP Paribas’ net income fell 2.3% to €1.89 bn.

Still ahead today, earnings reports from Crédit Agricol, Exelon, Ferrari, Pandora, Jyske Bank, Humana, Prudential Financial, Fox and Eaton.

Events

01:55 PM GMT US Redbook Index, business & economic sentiment at 2:45, factory orders at 3, vehicle sales at 9:30 and elections throughout the day.
08:30 PM GMT OIL API Weekly Crude Oil Inventories
09:30 PM GMT Australia Construction index. Composite & services PMIs at 10, and retail sales at 0:30 AM (+1)
09:45 PM GMT NZ Unemployment, participation & labour cost.
01:45 AM GMT (+1) China Services PMI

Analysis

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