Global News April 19, 2016

  1. Bloomberg News
  2. Global News April 19, 2016

Bloomberg Business

-Stocks: The Stoxx Europe 600 Index jumped 1.4 percent as a measure of energy shares snapped a two-day decline, tracking oil higher. Fresnillo Plc and Anglo American Plc led commodity producers higher with gains of at least 3.3 percent. L’Oreal rallied 4.8 percent after its quarterly sales beat analysts’ estimates. Standard & Poor’s 500 Index futures rose 0.5 percent, indicating U.S. equities will extend gains after reaching their highest level since Dec. 1. Goldman Sachs’s earnings follow results from JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley that helped fuel a rally in financials.

-Currencies: The MSCI Emerging Markets Currency Index rose 0.7 percent, poised for the highest since July 31 based on closing prices. South Korea’s won rose to a five-month high as the Bank of Korea held its benchmark rate at a record low for a 10th consecutive month, saying consumption and economic sentiment appear to be improving. The euro rose 0.3 percent to $1.1342, after climbing 0.3 percent on Monday amid speculation the European Central Bank will refrain from further monetary easing at an April 21 policy meeting. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months ahead, advanced to 11.2 in April, the highest since December. The yen weakened 0.6 percent to 109.47 per dollar, extending its retreat from a 17-month high of 107.63 reached last week.

-Commodities: Crude oil climbed 1.7 percent to $43.62 a barrel in London, after sliding almost 7 percent intraday on Monday after the world’s biggest producers failed to reach an agreement to limit supplies. A labor strike that started Sunday in Kuwait, OPEC’s fourth-biggest member, reduced the nation’s output by 60 percent to 1.1 million barrels a day. Silver soared 3 percent to $16.7065 per ounce, the highest since June 2. The metal has gained 21 percent this year, the best performing asset in the Bloomberg Commodity Index.

-Bonds: The cost of insuring corporate debt against default was at the lowest in about a month. The Markit iTraxx Europe Index of credit-default swaps on investment-grade companies fell for the seventh time in eight days, declining one basis points to 70 basis points.  Treasuries declined, pushing the 10-year yield up two basis points to 1.79 percent. Yields on similar-maturity debt in Italy increased by five basis points to 1.39 percent after the nation’s finance ministry said that it plans to sell new 20-year debt via banks in the near future.



CNN Money

-Stocks boosted by oil: U.S. stock futures are rising ahead of the open and European markets are making solid gains. Key indexes like the Dax in Germany and the CAC 40 in France are up by 1.3%. Most Asian markets also closed the day in positive territory. Market sentiment is being buoyed as traders watch oil prices recover. Prices plunged on Monday after many of the world’s biggest oil producers failed to freeze production. Crude oil futures are now trading around $40 per barrel. «The oil market’s willingness to get back to business as usual has been greeted by a loud cry of ‘Party On, Dudes’ in equity markets,» noted Kit Juckes, a global strategist at Societe Generale. Oil will remain in focus as President Obama visits the world’s biggest oil exporter — Saudi Arabia — Tuesday.

– Earnings season: Earnings will be coming thick and fast on Tuesday. Goldman Sachs (GS), Harley-Davidson (HOG), Johnson & Johnson (JNJ) and TD Ameritrade (AMTD) are among the main companies reporting earnings ahead of the open. Tech giants Intel (INTC, Tech30) and Yahoo (YHOO, Tech30) are reporting results after the close. Investors are also hoping for more information from Yahoo about its future. Verizon (VZ, Tech30) is widely expected to have made an offer for Yahoo. Intel is also in the spotlight after it was reported to be planning to lay off thousands of employees.

-Stock market movers — Netflix, L’Oreal: Shares in Netflix (NFLX, Tech30) are tanking premarket after the company said second quarter subscriber growth would be below industry expectations. Shares in L’Oreal (LRLCY) are shooting higher after the French cosmetics group reported better-than-expected earnings and issued a sunny growth forecast. «[L’Oreal] management hosted an upbeat conference call reiterating confidence in the group’s ability to outperform the market once again in 2016,» noted equity analysts at Liberum.

– Monday market recap: The Dow Jones industrial average crossed the 18,000 mark on Monday for the first time since July 2015. The index closed at 18,004 after rising by 0.6% over the course of the day. It’s a pretty sweet milestone considering the Dow plunged to just 15,451 in January as Wall Street freaked out over the oil price crash and China’s slowdown. The S&P 500 also jumped by 0.7% on Monday and the Nasdaq moved up by 0.4%.