INVESTMENT-GRADE BONDS EDGED OUT its high-yield counterparts in net prices linked to actual trades
. Equities continue to fight for guidance
as investors keep a keen eye on the U.S. and China trade dispute. The
10-year
Gilt declined 5.6 basis points.
FTSE 100 -1.61%,
German DAX -1.80%,
CAC 40 +1.7%,
STOXX Europe 600
-1.47%.
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EUROPEAN SHARES SLIPPED UPON A SPARK
in geopolitical risk as the U.S. affirmed a rise in tariffs on China claiming a
slowdown in trade talks. Automakers BMW, Daimler, and Volkswagen took a
significant hit losing between 2 and 3 percent following
the escalation of trade tensions.
German DAX -1.38%,
CAC 40 -1.43%,
STOXX Europe 600
-1.09%.
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BRITAIN’S SERVICES SECTOR EXPANDED IN APRIL despite weak demand and
ongoing uncertaintyaround Brexit; the
PMI index rose to 50.4 from last month’s two year low of 48.9. European equities bounce back supported by
solid bank earnings,
Societ General soared 4 percent
as the bank’s capital ratio held steady at 11.7
offsetting a 26 percent nosedive in net profit. The
10-year
Gilt rose 1.9 basis points.
FTSE 100 +0.48%,
German DAX +0.40%,
CAC 40 +0.12%,
STOXX Europe 600
+0.38%.
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LLOYDS BANK REPORTED STRONG FIRST QUARTER EARNINGS
but
shares fell
due to a decline in home loans and borrowing from businesses as
confidence softens. European equities settled lower after the
U.S. Fed’s dovish tone yesterday
announcing “
transitory factors”
caused subdued inflation. The
10-year
Gilt rose 0.3 basis points.
FTSE 100 -0.38%,
German DAX +0.17%,
CAC 40 -0.64%,
STOXX Europe 600
-0.46%.
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EUROPEAN EQUITIES SETTLED MIXED with light trading volumes as European markets are observing Labour Day. The European Central Bank fears
Deutsche Bank is at risk of failing U.S. stress tests. The bank has struggled to
appease investors after unproductive merger
talks
with Commerzbank. The
10-year
Gilt lost 2.3 basis points.
FTSE 100 -0.35%,
German DAX +0.13%,
CAC 40 +0.10%,
STOXX Europe 600
-0.05%.
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EUROZONE ECONOMY EXPANDED in the first quarter of 2019 shaking off a rough finish to 2018
easing fears of a recession. GDP rose 1.2 percent year-over-year with preliminary estimates of 0.4 percent, analysts expect the
GDP to waver around 0.3 percent for the remainder of the year. The
10-year
Gilt rose 4.2 basis points.
FTSE 100 -0.53%,
German DAX -0.15%,
CAC 40 -0.34%,
STOXX Europe 600-0.23%.
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EUROPEAN EQUITIES WHIPSAW on data revealing economic sentiment
declined for the tenth straight month. The euro edged higher against the dollar
meanwhile lost against the British pound. The
10-yearGilt settled 1.3 basis points higher.
FTSE 100 +0.19%,
German DAX +0.09%,
CAC 40 +0.14%,
STOXX Europe 600
+0.07%.
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NORTHERN IRELAND AND UK ANNOUNCED A FIVE-WEEK PROCESSS aimed at
restoring
the Northern Ireland
Executive
and
Assembly. The main political parties in Northern Ireland, the
UK and Irish governments will all be involvedto
re-establish
full operation of the democratic institutions. This follows statements from
Varadkar
that a no-deal scenario would put
Ireland in a difficult situation. Senior Conservative Party members are
calling on May to limit the Irish backstop
to one year or remove it completely.
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EUROPEAN EQUITIES EDGED LOWER ON THURSDAY following
mixed earnings
and weak economic data.
Commerzbank in Germany
fell 3 percent after
Deutche bank decided to discontinue
early talks regarding a merger or acquisition.
Barclays
sank 4 percent after reporting
disappointing earnings revealing
first-quarter profit declined 10 percent
year-over-year. The
10-year
Gilt settled 2.1 basis points lower.
FTSE 100 -0.73%,
German DAX -0.38%,
CAC 40 -0.47%,
STOXX Europe 600
-0.35%.
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GERMAN BUSINESS CONFIDENCE PLUMMETS to the lowest level in three years implying the European economy is experiencing a further slowdown. The business index dipped to 103.3 despite an estimate of 103.6, "Companies are less satisfied with their current business situation”. France’s manufacturing confidence dropped for the first time in five months hitting a two-and-a-half year low. Equities pulled back from eight-month highs as investors are concerned with China slowing the stimulus. The 10-year Gilt sank 4.5 basis points. FTSE 100 -0.63%, German DAX +0.52%, CAC 40 -0.36%, STOXX Europe 600 -0.08%.
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