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Registered: ‎20-09-2016

EMEA Morning Call 16.05.18

UK, US and Europe: Asian markets were mainly in the red once more overnight, as fears over the prospective US-North Korean talks emerged after Wednesday’s pan-Korean meeting was cancelled by Kim Jong-Un. The prospect of a climb-down from the recent improvements in relations, coupled with a rise in US 10Y yields provided a bearish backdrop for Asian stocks, with the FTSE 100 expected to follow suit. On the data front, Japanese Q1 GDP tumbled into negative territory, yet was saved by a upward revision to the Q4 2017 figure (0.4% from 0.1%).

Looking ahead, a handful of mid-sized economic releases see a focus on crude inventories as the main market mover. The final eurozone CPI reading certainly grabs the attention for the morning session, while US housing starts in particular provides a notable US economic release for the afternoon. However, with the US decision to impose sanctions upon Iran and ensuing rise in crude prices, the latest inventories figure from the EIA is likely to peak the market interest later in the day.

 

2018-05-16 08_07_41-Forex Economic Calendar.png

Source Daily FX Economic Calendar (times BST)

 

Corporate News

Paddy Power Betfair said that it was in talks to buy fantasy sports site FanDuel, to target the US sports betting market.  

Burberry reported a 5% rise in adjusted operating profit at constant exchange rates, to £467 million, but revenue was down 1% at £2.73 billion. 

Mondi reported a 15% rise in earnings in the first quarter, thanks to higher average selling prices that offset rising operating costs.  

Moss Bros said that like-for-like sales fell 5% in the 15 weeks to mid-May, an improvement on the previous period’s 6.5% fall. However, the overall environment remains ‘tough’. 

 

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