Varied returns seen on the day with little in the way of moves away from the flat line. However markets moved from positive to negative throughout the session with strength from the EU Industrial Production readings giving way to weakness on disappointing progress concerning Brexit. Most sectors finished slightly up with Basic Resources up on higher gold and copper prices today. Banks slipped just over 60bps.
In contrast to the earlier IEA headlines OPEC this morning said they see the inventory glut gone in a year with balances returning to 5 year averages by later next year. Before the US close the DOE reported bullish headlines with a draw of 2.7M for crude vs the 1.5M drawdown expected.
A panel of German judges announced they will most likely dismiss an investor lawsuit related to Porsche’s +5.2% failed takeover of VW +1% citing market manipulation. Volkswagen is also being sued as well for €2.3B with expectations it will be dismissed as well.
HSBC -.5% has officially named John Flint as its next CEO taking the post in February of next year.
Zurich Insurance +.5% finished higher today with Lloyds Banking -.3% acquiring their pension/savings unit.
Lufthansa’s +2.3% CEO said the company will spend €210M to acquire Air Berlin’s Niki unit along with a regional operator and 81 planes. EasyJet +2.5% is expected to be acquiring many if not all of the balance of AB’s planes.
It was a sour day for Suedzucker ‘s -2.4% shareholders. The company warned poor weather conditions are having a negative effect on crop yields.
The names we highlighted this morning ended the day as follows: Sanofi -.3%, Vivendi +.8%, Havas +2.1%, Sky +1.4% and Dong Energy -4.4%.
Tomorrow, watch for German CPI & PPI. Over the next day or two we’ll see Trade data out of China along with FDI and New Yuan loans.