EUROPEAN CLOSING REPORT
MONDAY – 27TH – NOVEMBER – 2017
Risk sentiment has soured in the latter stages of today’s European trading session as reports circulated that North Korea may be preparing for another ballistic missile launch. Both US Treasuries and the Japanese Yen rose to new daily highs while other perceived safe-haven assets such as the Swiss Franc and gold have received a boost. In equity space, European bourses are mostly lower at the closing bell with Swiss private banking group Julius Baer leading declines after the surprise resignation of their CEO. Crude prices have also dropped this afternoon which has weighed on oil related stocks. US bourses meanwhile did open to the upside with new record intraday levels for the DJIA and S&P 500 but have fallen into the red in recent trade. Macro data failed to prompt much reaction with US new home sales rising to 685K (f/c. 625K) while Dallas Fed Manufacturing Activity slipped to 19.4 (f/c. 24.0). German Chancellor Merkel said this afternoon that there will need to be some compromise in coalition talks while SPD leader Schulz said no options were off the table. In Ireland, PM Varadkar said he does not want there to be a new election as it would not change anything. Ahead, US two and five year note auctions at 16:30 GMT and 18:00 GMT respectively while BoE’s Ramsden speaks at 18:30 GMT.
* @realDonaldTrump: The Tax Cut Bill is coming along very well, great support. With just a few changes, some mathematical, the middle class and job producers can get even more in actual dollars and savings and the pass through provision becomes simpler and really works well!
* OPEC Secretary General Barkindo said OECD oil stocks fell to 140 Mln barrels above the five-year average in October. He also noted that determination and hard work in oil supply cuts are paying off.
* Spokesman for UK PM May said talks on Irish border will continue until the December EU summit, adding that they can only conclude issues finally in context of future relationship.
* Irish PM said he does not want there to be a new election as it would not change anything.
* Irish Foreign Minister said there needs to be more progress on the Irish border, adding that Brexit talks will not move on otherwise.
* German Chancellor Merkel said she takes on board the view of the FDP that a coalition between the Conservatives, Greens and Liberals will not happen. She did add that an offer for coalition talks is on the table for the SPD and they mean it seriously, while they know that talks will require compromise.
* German SPD Leader Schulz said no one can say where Thursday’s talks with the Conservatives will lead. He said no options were off the table regarding government talks
* Bank of England’s Haldane said the MPC’s policy actions in November were described as “taking its foot off the accelerator” to hold the car within its “speed limit” . . . This was intended to convey the sense of monetary policy slowing the economy slightly, towards its lower potential growth rate, while still propelling it forward overall.
* ECB data shows they bought €12.4 Bln of public-sector bonds last week, up down from €12.2 Bln prior
* US New Home Sales (Oct) 685K versus 625K expected, previous 667K revised to 645K
* Dallas Fed Manufacturing Activity (Nov) 19.4 versus 24.0 expected, previous 27.6
* Japanese media reported that the government has received signals from North Korea that they are preparing a ballistic missile launch.
FC: EUROPEAN CLOSING REPORT: MONDAY – 27TH – NOVEMBER – 2017 November 27, 2017 at 04:33PM