A couple of late session headlines boosted indices in Europe to close better on the day. First, WH Econ Adviser Kudlow made comments on CNBC that discussions with China are back on, inline with yesterday’s headlines. Second, the UK Times said a high level cabinet meeting will occur tomorrow ahead of a larger meeting in what could be a signing off of the Brexit deal. Post the close headlines note a deal is quite possibly imminent but comments from conservatives and Boris Johnson show not all are onboard.
The Pound was a steady gainer today, blipping higher on the headlines and regaining the 1.30 level. On the session the FTSE 100 closed flat, helped by the strong performance in Vodafone +7.8%. The sentiment extended to the Euro as well as the currency held the 1.12 level. The rebound in tech names and automakers pushed the DAX to lead on the session. Across the region Travel names were also in the mix of winners with all but a few sectors higher. On continued weakness in oil prices Energy finished down 1.8% on the day.
Tobacco names continued south today in face of the FDA’s focus on menthol flavoring in cigarettes. BATS -4.3%, Imperial Brands -2.2%, and Swedish Match -7.4%.
Retailer Ahold Delhaize +2.5% today noted encouraging views going forward including FCF annually of ~€2B for the next three years along with target savings of €1.8B.
From earlier: Bayer -2.9%, Experian +4.5%, and Telecom Italia +1.4%.
Tonight China releases Industrial Production, Retail Sales, FDI, and Fixed Asset growth. Japan releases GDP readings along with Industrial Production while SK is out with unemployment. EZ Industrial Production joins GDP and Employment for the 3Q with German GDP expected as well. Inflation data is due in the UK, France, and Spain.