Written by Gary
U.S. stock index futures are higher today ahead of data that is expected to show demand for U.S. manufactured goods rose in March.
The good news for stocks started overnight when the final Chinese HSBC Manufacturing PMI printed well below the 49.4 expected, or at 48.9, the biggest contraction in one year, which meant calls for more easing would be imminent.
Here is the current market situation from CNN Money
European markets are higher today as French and German shares show gains. The CAC 40 is up 1.11% while the DAX is up 1.48%. The British FTSE 100 is closed.
What Is Moving the Markets
|Here are the headlines moving the markets.|
Bank of America said it will give shareholders the chance to vote on the board’s decision in October to give the chairmanship to CEO Brian Moynihan.
BEIJING (Reuters) – China’s factories suffered their fastest drop in activity in a year in April as new orders shrank, a private business survey showed on Monday, hardening the case for fresh stimulus measures to halt a slowdown in the world’s second-largest economy.
BERLIN/HAMBURG (Reuters) – Volkswagen’s supervisory board will on Monday discuss finding a new chairman to fill the void left by Ferdinand Piech’s shock departure last month, sources told Reuters.
Private equity firm KKR & Co. is selling down Hong Kong-listed equipment leasing company Far East Horizon shares to raise around US$200 million in a share placement.
(Reuters) – U.S. stock index futures were higher on Monday ahead of data that is expected to show demand for U.S. manufactured goods rose in March, sending factory orders up and signaling that the sector is strengthening despite a stronger dollar.
NEW YORK (Reuters) – Billionaire investor Warren Buffett defended some of his core holdings in a televised interview on Monday, but reiterated that equities in general would look expensive in an environment with normal interest rates.
Having called for the end of the great Bund rally (and so far nailed it in dramatic fashion), Janus’ Bill Gross sees more exuberance coming to an end soon,
Having turned the corner on my 70th year, like prize winning author Julian Barnes, I have a sense of an ending. Death frightens me and causes what Barnes calls great unrest, but for me it is not death but the dying that does so. After all, we each fade into unconsciousness every night, do we not? Where was “I” between 9 and 5 last night? Nowhere that I can remember, with the exception of my infrequent dreams. Where was “I” for the 13 billion years following the Big Bang? I can’t remember, but assume it will be the same after I depart – going back to where I came from, unknown, unremembered, and unconscious after billions of future eons. I’ll miss though, not knowing what becomes of “you” and humanity’s torturous path – how it will all turn out in the end. I’ll miss that sense of an ending, but it seems more of an uneasiness, not a great unrest. What I fear most is the dying – the “Tuesdays with Morrie” that for Morrie became unbearable each and every day in our modern world of medicine and extended living; the suffering that accompanied him and will accompany most of us along that downward sloping glide path …
Warren Buffett has frequently touted Berkshire Hathaway’s partnership with private-equity firm 3G Capital. At Berkshire’s annual meeting, he was forced to defend it.
Quickly looking at the potential market moving events this week, US payrolls on Friday will be the clear focus. In terms of expectations, our US colleagues are expecting a +225k print which matches the current Bloomberg consensus, while they expect the unemployment rate to drop one-tenth to 5.4%. Elsewhere, Thursday’s UK Election will be closely followed while Greece will once again be front and center.
We kick off this morning in Europe with the final April manufacturing PMI readings for the Euro area, Germany and France. The May Sentix investor confidence reading for the Euro area is also due today also. Over in the US this afternoon, focus will be on the ISM New York followed closed by factory orders data.
Moving to Tuesday, the European Commission Economic Forecasts will be of some interest in the morning session, while data wise it’s fairly quiet in Europe with just Euro-area PPI due. It’s busier in the US however, with trade data, the IBD/TIPP economic optimism survey as well as the final April composite and services PMI’s and preliminary ISM non-manufacturing print due.
Wednesday’s early attention will be on the April services and composite PMI readings which are scheduled for China (preliminary) as well as the UK (preliminary), Euro-area, Germany and France (all final). March retail sales for the Euro-area will also be of some focus. Over in the US on Wednesday, the April ADP employment change print will be an important prelude for Friday, while we are also due nonfarm productivity and unit labour costs. It’s fairly quiet data-wise on Thursday, with just French industrial and manufacturing production and German factory orders scheduled, however much focus will be on the UK General Election.
We’ve got more employment data due in the US on Thursday meanwhile with Challenger job cuts and initial jobless claims readings expected as well as consumer credit. It’s a busy end to the week on Friday with industrial pro …
ATHENS/BRUSSELS (Reuters) – Wide differences over pension and labor reforms continued to dog intensive negotiations between Greece’s leftist government and its international creditors despite progress in other areas as the country’s cash position becomes increasingly critical.
Goldman Sachs is trying to sell at a loss coal mines it owns in Colombia, which would end its involvement in raw-materials production.
The IMF is close to declaring China’s yuan fairly valued for the first time in more than a decade, a milestone in the country’s efforts to open its economy.
Thailand’s baht slumped as measures to boost the faltering economy took hold.
Win or lose, Cameron’s political career hangs by a thread (Reuters)
Greece aims for deal with lenders, IMF hard on reforms: minister (Reuters)
Greek Jobless Legacy Adds Danger for Tsipras as Funds Dry Up (BBG)
U.S. Will Change Stance on Secret Phone Tracking (WSJ)
China April HSBC PMI shows biggest drop in factory activity in a year (Reuters)
Goldman Sachs in Talks to Sell Its Coal Mines (WSJ)
Takeover Fuel Begins to Flow as S&P 500 Bull Run Makes History (BBG)
Jim Beam’s New Owner Mixes Global Cocktail (WSJ)
Buffett Says Minimum Wage Increase Isn’t Answer to Income Gulf (BBG)
IMF to Brighten View of China’s Yuan (
European stocks rose, supported by robust manufacturing data across the region.
LONDON (Reuters) – Oil rose to a 2015 high of $67 a barrel on Monday, supported by expectations the supply glut will ease and after weak Chinese factory activity reinforced views that stimulus measures would be rolled out.
ATHENS (Reuters) – Greece intends to meet debt payments this month and reach a deal with its international lenders to unlock remaining bailout aid, but the International Monetary Fund insists on tough labor reforms, the country’s labor minister said on Monday.
Futures Levitate Following Worst Chinese Mfg PMI In One Year, Brent At 2015 Highs; Bund Slide Continues
The good news for stocks started overnight when the final Chinese HSBC Manufacturing PMI printed well below the 49.4 expected, or at 48.9, the biggest contraction in one year, which meant calls for more easing would be imminent. And naturally, after starting off eark, the Shanghai Composite closed near its highs, up 0.9%. However, the good news (for stock) out of China’s deteriorating economy was partially overshadowed by “bad news” for stocks following the final Eurozone Mfg PMI which rose from 51.9 to 52.0, with Germany rebounding from 51.9 to 52.1 even as France missed expectations and continued contracting at a 48.0 PMI.
Finally, a more positive tone out of the Greek negotiations ahead of the country’s May 6 payment to the IMF, should have pushed the Stoxx into the red (because a “fixed” Greece means less ECB liquidity injections and intervention) but a nearly 100 pip swing lower in the EURUSD on no news and no volume to its day lows at 1.113 appears to have kept the sellers in check.
But the best news is twofold: volumes continue to be lethargic with both the UK (May Day bank holiday) and Japan closed until Thursday (Golden Week), while the bulk of the S&P500 has now exited the stock buyback quiet period. As such, ignore record equity outflows – all the matters is that corporate CFOs, flush with brand news bond issuance cash, will tell their favorite Wall Street trading desk to buy stocks at just the right inflection point sending the market surging just as shorts once again test the downtrend and the 50 DMA.
Meanwhile, the bond (and Bund) rout continues, with the 10Y Bund trading wide of 0.40% at last check as Mario Draghi is delighted that he will be able to continue QE much longer than if the entire German curve was trading at -0.2% and thus no longer eligible for purchases.
A deeper look at global markets shows Asian equities mostly rose with Chinese bourses at the forefront in the wake of disappointing C …
Studies show men and women could learn from the other’s approach to investing and retirement.
LONDON (Reuters) – European shares rose on Monday, led higher by Germany after upbeat factory activity, while the dollar steadied following signs the U.S. economy may be emerging from a recent soft patch.
Comcast may find that the single life suits it after the Time Warner Cable deal is shelved.
LOS ANGELES (Reuters) – Tesla Motors Inc’s plan to generate new revenue by repackaging electric car batteries as home and business power storage systems faces stiff competition for both customers and the government subsidies that are critical to the market’s growth.
The report on first-quarter results comes after the company abandoned its attempt to take over Time Warner Cable.
ZURICH (Reuters) – (In last paragraph, corrects to show Knight Vinke’s stake is below the disclosure threshold so cannot be verified; also adds Knight’s confirmation of comments in May 3 story)
NEW YORK (Reuters) – Qatar Airways on Monday said it plans to expand its services to the United States, in a move that likely will trigger a backlash from U.S. airlines that accuse it of competing unfairly through state subsidies.
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