In Portfolioticker today
- Today at the stock market
- The portfolio today
- EU: Labour Costs. 2017
- Energy: Oil and Gas Futures
- Japan Update
- China Update
Today at the stock market
“Wall Street’s major indexes rose on Monday as a softer stance by U.S. policymakers on China tariffs powered a rebound from last week’s selloff, but stocks pared much of their gains late in the session after a report that the Federal Bureau of Investigation raided the office of President Donald Trump’s lawyer.
Technology and health stocks led the benchmark S&P 500’s major sectors. Merck & Co Inc was the biggest boost to the Dow, while gains in Apple shares led the Nasdaq index.
Stocks climbed after Trump’s new economic adviser Larry Kudlow told CNBC that the president may be open to forming an international coalition to grapple with trade issues involving China. Bloomberg Report Investors will look for further signs of China’s stance on trade relations when Chinese President Xi Jinping speaks at the Boao Forum economic conference on Tuesday.
But stocks began paring gains late in the afternoon, a downward trend that accelerated after a report that the FBI had raided the New York office of Michael Cohen, Trump’s personal lawyer, upon a referral by Special Counsel Robert Mueller. Bloomberg Report
“Even if it ultimately ends up being nothing, the initial reaction is almost always negative in the market,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
AveXis Inc rose 81.6% after Swiss drugmaker Novartis offered to buy the gene therapy company for $8.7 billion.
Merck shares rose 5.2% after its blockbuster cancer drug, Keytruda, met the main study goal of helping previously untreated lung cancer patients live longer.
Shares of Leucadia National Corp rose 11.6% after the company said it would sell most of its non-financial assets to focus on investment banking and advisory services.
Earnings report season
Investors are looking forward to the start of earnings season to provide a sustained lift to U.S. stocks, with big banks, such as JPMorgan Chase, Citigroup and Wells Fargo, set to report first-quarter results on Friday.
Analysts expect quarterly profits for S&P 500 companies to rise 18.5% from a year ago, which would be the biggest gain in seven years, according to Thomson Reuters I/B/E/S.” Reuters
^ S&P500 Index today (mouseover for 12 month view) [Chart: Google Finance]
|Index||Ticker||Today||Change||31 Dec 17||YTD|
|S&P 500||SPX (INX)||2,613.16||+0.33%||2,673.61||-2.27%|
^ USD and AUD denominated indices over the past 52 weeks Chart: Bunting
|Index||Currency||Today||Change||31 Dec 17||YTD|
Portfolio stock prices
|Stock||Ticker||Today||Change||31 Dec 17||YTD|
^ Bloomberg Dollar Spot Index (DXY) movements today (mouseover for 12 month view) Chart: Bloomberg
“ The Bloomberg dollar spot index (DXY) fell 0.2%
The EUR rose 0.3% to USD 1.2321.
Japan’s JPY rose 0.2% to 106.76 per USD.
Britain’s GBP rose 0.3% to USD 1.4132.
Russia’s RUB fell 3.9% to 60.3579 per USD, the biggest decrease since Jun 2015.
The yield on 10-year Treasuries added 1 basis point to 2.7753%.
Britain’s 10-year yield increased 1 basis point to 1.407%.
Germany’s 10-year yield climbed 1 basis point to 0.504%.” Bloomberg
^ AUD movements against the USD today (mouseover for 12 month view) Chart: xe.com
Oil and Gas Futures
Prices are as at 15:47 EDT
- NYMEX West Texas Intermediate (WTI): $63.35/barrel +2.08% Chart
- ICE (London) Brent North Sea Crude: $68.59/barrel +2.21% Chart
- NYMEX Natural gas futures: $2.70/MMBTU -0.11% Chart
EU: Labour Costs. 2017
Press Release Extract [eu_labour]
In 2017, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €26.8 in the European Union (EU) and €30.3 in the euro area. However, this average masks significant gaps between EU Member States, with the lowest hourly labour costs recorded in Bulgaria (€4.9), Romania (€6.3), Lithuania (€8.0), Latvia (€8.1), Hungary (€9.1) and Poland (€9.4), and the highest in Denmark (€42.5), Belgium (€39.6), Luxembourg (€37.6), Sweden (€36.6) and France (€36.0).
Hourly labour costs in industry were €27.4 in the EU and €33.4 in the euro area. In services, they were €26.6 and €29.3, respectively. In construction, hourly labour costs were €23.7 in the EU and €26.7 in the euro area. In the mainly non-business economy (excluding public administration), they were €27.2 and €30.1, respectively.
Labour costs consist of wages & salaries and non-wage costs (e.g. employers’ social contributions). The share of non-wage costs in total labour costs for the whole economy was 24.0% in the EU and 25.9% in the euro area. It ranged from 6.7% in Malta to 32.8% in France.
These estimates are issued by Eurostat, the statistical office of the European Union. Data cover enterprises with 10 or more employees and are based on Labour Cost Survey data for 2012, which are extrapolated through the Labour Cost Index.
In 2017, compared to previous year, hourly labour costs in the whole economy expressed in € rose by 2.3% in the EU and by 1.9% in the euro area.
When comparing labour cost estimates over time, levels expressed in national currency should be used to eliminate the influence of exchange rate movements.
Within the euro area, the largest increases were recorded in the Baltic Member States: Lithuania (+9.0%), Estonia (+7.4%) and Latvia (+7.0%). The only decrease was observed in Finland (-1.5%).
For Member States outside the euro area in 2017, the largest increase in hourly labour costs in the whole economy, expressed in national currency, were observed in Romania (+17.1%) and Bulgaria (+12.0%).”
Eurostat, “Labour costs in the EU: Hourly labour costs ranged from €4.9 to €42.5 across the EU Member States in 2017“, 9 Apr 2018 More
^ JPY movements against the USD over the past month (mouseover for inverse) Chart: xe.com
Stockmarket: Nikkei 225
^ Nikkei 225 movements over the past week [Chart: Google Finance]
^ CNY movements against the USD over the past month (mouseover for inverse) Chart: xe.com
“China is evaluating the potential impact of a gradual CNY depreciation, people familiar with the matter said, as the country’s leaders weigh their options in a trade spat with U.S. President Donald Trump that has roiled financial markets worldwide.
Senior Chinese officials are studying a two-pronged analysis of the CNY that was prepared by the government, the people said. One part looks at the effect of using the CNY as a tool in trade negotiations with the U.S., while a second part examines what would happen if China devalues the CNY to offset the impact of any trade deal that curbs exports.
The analysis doesn’t mean officials will carry out a devaluation, which would require approval from top leaders, the people said, asking not to be named as the information is private.” Bloomberg
^ CSI 300 movements over the past week [Chart: Google Finance]