Market News & Analysis
European Equity Market Handover: “Successful” rebound looks set to fade
Ken Odeluga May 14, 2019 11:42 PM
Stock market snapshot as of [14/5/2019 2:45 PM]
- Volatile gyrations require markets to go up as well as down; Tuesday brings the upswing
- Nobody believes tariff turmoil is done; it would be difficult to do so given Washington’s signal that a further barrage of new 25% duties on $300bn of Chinese goods is in the works
- Partly on a perceived discount following recent selling; partly on residual optimism about potentially “very successful” talks in the near term, risk appetite is making what is likely to be a relatively short-lived reappearance
- Treasuries stabilise, the dollar advances; removing some of the chill from the safe-haven yen’s recent rally; oil remains buoyed by further murky incidents involving Saudi Arabian oil assets
- Bitcoin rises to $8,000, extending a winning streak to the longest since 2013, and remaining as decoupled from conventional news flow as ever
- Resurgent upside momentum also drowns out the reality of further unsatisfactory earnings from European heavyweights. Even after reporting its second consecutive multibillion euro annual loss, missing revenue forecasts and slashing its dividend 40%, Vodafone shares managed to advance almost 5%. But they only erased Monday’s slump of a similar magnitude temporarily, eventually trading 3% lower. The hope is that reduced pay outs will leave more cash available for 5G, retaining market share, though flawless execution will be needed
- Possible U.S. standout stocks include AbbVie, after Boehringer Ingelheim agreed to pay royalties to the larger group for licensing arthritis drug HUMIRA
Upcoming corporate highlights
BMO: before market open AMC: after market close
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.