Post the sharp move higher just before lunch prompted by Germany’s Seibert in relation to reviewing any Brexit delay request from the UK, indices trailed off from there. Indices though still retained gains on the day with some decent returns seen. On the week the FTSE 100 finished up 1.75% with the DAXI up 1.99% and the CAC up 3.33%. Today, all sectors expect Basic Resources, Media, and Energy were up with solid gains seen in several sectors. Tech names led with strength in chipmakers, specifically in France. Telcos, Insurers, and Financials joined Personal Goods and Construction in gains of over a percent. The auto industry hung in well with new car registrations seeing a contraction in weakness in February vs January’s 4.6% drop.
In the face of the US’ push to get manufacturing back into the States, STMicroelectronics +5% rallied today post yesterday’s plan announcement by France. The country is looking to incentivize chipmakers and their suppliers to locate factories in France with a €1B grant. The French Ministry noted STM is among the recipients along with Soitec +2.6%. The move is part of a bigger plan titled Nano 2022 that will see a total of €5B allocated to industrial investment and public works to support a new generation of electronic components.
To the downside H&M fell 5% despite solid 1Q sales. However, the better sales were fueled by pricing cuts of merchandise worrying investors concerning earnings. Favorable currency moves also contributed to the better sales number.
From earlier: BMW +.4%, VW +.1%, and UBS -1.1%.
Sunday night Japanese trade is out along with Industrial Production and Capacity Utilization. The EU follows with its Trade Balance with the UK out with employment info.
Note that Monday Mexico is shut for trading.