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International Summary

"CAPIS EU Close – 12/12/2018"

posted by Clayton Duff on 12/12/2018 at 12:48 pm

by Clayton Duff

12/12/2018 at 12:48 pm

Europe managed to string together two back to back days of gains on broad gains today.  546 names in the Stoxx 600 finished better with volume on the session up 4%.  All sectors finished to the upside with Basic Resources and Banks finishing up shy of 3%.  Energy gave up some gains after DOE readings showed a smaller draw than expected, down 1.2M vs the expected 3M barrel draw.

On encouraging US/China-related trade snippets markets are attempting to work off of lows.  This includes the Huawei CFO being offered bail in Canada despite being retained in the country.  Additional headlines only fueled bids with Italy said to propose a budget deficit/GDP of 2% for next year. Later comments walked that back somewhat with an official stating the country is trying to reach a deal with the EU with a target of 2% to 2.2% of GDP.   This matches the EU’s target.  On that Italy outperformed on the day, closing up 1.91% with their 10 year moving below 3% for the first time since September. France too is working to cut their budget deficit with plans to lower spending to move their budget deficit to GDP to under 3%.

PM May continues to be under attack with FTSE underperforming today on stronger Sterling.   There exists enough backing now to call for a no-confidence vote against her however 158 Conservatives stating they will back her which insulates her against being voted out of the job.   She did though note post the close she will not run in the next election in 2022.

Deutsche Bank finished up 5.8% on headlines the German government is working on a merger between them and Commerzbank +5.6%.  While the press has floated the idea it is unlikely the government will take a stake in Deutsche Bank. Related, headlines hit that Germany’s financial regulator is taking a look into their ADR biz.

Elsewhere, ABB +4.1% ticked up on word they are speaking with Japan’s Hitachi to sell their power grid unit.

Tonight, South Korea reports import/export trade prices followed by consumer inflation readings in Europe.

About the Author

Clayton Duff headshot
ClaytonDuffFVP,Senior International Trader

Clayton Duff joined the firm in 2008. He has worked in the industry since 1994 and held various trading and sales positions before CAPIS, including four years as a trader for First Southwest. He earned his bachelor’s degree from the University of Texas Arlington. Clayton maintains Series 3,...

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