• US stock market, economy and companies update (June 16, 2015)

    European indices saw a steady rally after working through another round of dicey Greece headlines earlier today, while US stocks have just about filled the gap from the big slide lower Monday morning. As of writing, the DJIA is up 0.42%, the S&P500 is up 0.30% and the Nasdaq is up 0.26%.

    Greece is again the central concern for global markets this morning, with ominous tones heard in the rhetoric on both sides. PM Tsipras was claiming that Greece's creditors want to humiliate it and the ECB was insisting on asphyxiating Athens over recent months. While Chancellor Merkel diplomatically said that Europe would do everything in its power to keep Greece in the Eurozone, Finland PM Sipila warned that the possibility of Greece default was discussed at the EU summit last weekend, while EU Commissioner Dombrovskis said he "wouldn't elaborate" on contingency planning on Greece (more or less confirming that a Plan B is in the works). The 10-year bund came in as much as 10 basis points after Greece headlines (and the OMT ruling), but gave up most of these gains to trade around 0.811% as of writing.

    The euro saw a big move higher after the European Court of Justice ruled in favor of the ECB's OMT bond buying facility, stating that the plan is in line with EU law and within ECB monetary policy mandate. German parliamentarians had brought the suit in the first place, in an attempt to curb the ECB's backup emergency policy bazooka for any peripheral European crisis. EUR/USD spiked as high as 1.1230 but quickly gave up gains and dropped to 1.1210 ahead of the US open.

    May housing starts declined somewhat from the seven-year highs seen in the April numbers. Meanwhile, the May building permits rose to an eight-year high, topping the April figures by 12% or so. Most of the surprise was in the volatile multi-family component, where permits rose to a 25-year high of 592K, largely reflecting a doubling y/y in the Northeast region. Single-family permits were only up 2.6% y/y, just shy of the cycle high of 685K seen in December. Major homebuilder stocks are in the red this morning, down one or two percent a piece.

    Shares of Coty are up 20% on reports that the firm has auction for assets being spun out by P&G. The deal would be for three P&G's hair-care lines - including the Wella, Max Factor and CoverGirl brands - in a transaction valued up to $12 billion. P&G put the three business lines on the block earlier this year to concentrate on its core operations.

    ***Looking Ahead***
    - 13:00 (US) Treasury to sell 10-Year TIPS Reopening
    - 16:30 (US) Weekly API Petroleum Inventories
    - 17:00 (CO) Colombia Apr Retail Sales Y/Y: 3.0%e v 3.4% prior
    - 17:00 (CO) Colombia Apr Industrial Production Y/Y: -0.4%e v -0.1% prior
    - 18:45 (NZ) New Zealand Q1 Current Account Balance (NZD): -0.3Be v -3.2B prior; Current Account GDP Ratio YTD : -3.8%e v -3.3% prior
    - 19:50 (JP) Japan May Trade Balance: -258.8Be v -53.4B prior; Adj Trade Balance: -184.0Be v -208.7B prior; Exports Y/Y: 3.0%e v 8.0% prior; Imports Y/Y: -7.5%e v -4.2% prior

    ***Economic Data***
    - (IL) Israel Q1 Preliminary GDP Annualized: 2.1% v 2.5% advance
    - (BR) Brazil Jun FGV Inflation IGP-10 M/M: 0.6% v 0.5%e
    - (US) Goldman Economist Chain Store Sales w/e Jun 12th w/w: +0.2%; y/y: +1.9%
    - (PL) Poland May CPI Core M/M: 0.0% v 0.0%e; Y/Y: 0.4% v 0.4%e
    - (BR) Brazil Apr Retail Sales M/M: -0.4% v +0.7%e; Y/Y: -3.5% v -1.8%e
    - (BR) Brazil Apr Broad Retail Sales M/M: -0.3% v -0.5%e; Y/Y: -8.5% v -8.0%e
    - (US) May Housing Starts: 1.036M v 1.090Me; Building Permits: 1.275M v 1.100Me
    - (CA) Canada Apr Int'l Securities Transactions: C$12.9B v C$5.0Be
    - (US) Weekly Redbook Sales w/e Jun 12th: +1.1% y/y, Jun MTD m/m: -1.7%; Jun MTD y/y: +1.2%
    - (RU) Russia May Industrial Production Y/Y: -5.5% v -3.8%e

    [I]Contributed by Trade The News[/I]
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