Analytics, 05 September 2019
Daily comment Sep 6
Daily comment Sep 6
- Wall St opens higher following mixed US jobs report.
- FB -0.8% on antitrust probe
- BABA -0.9% on Kaola purchase from NTES; Kellogg +2.2% on rating upgrade
- US jobs growth fell short of expectations
- German IP unexpectedly fell; PBOC cuts reserve ratio
- WTI dropped
Market movers:
- Facebook (-0.8%) after NY State Attorney General James launched investigation for possible antitrust violations. The probe will be joined by the AGs of some other states. (https://on.ny.gov/2lG1unu)
- Alibaba (-0.9%) acquired NetEase’ business unit Kaola for $2bn. Potential Kaola integration into Tmall could create the largest e-commerce platform in China. (https://cnb.cx/2kvDMdx)
- Kellogg (+2.2%) after Goldman Sachs upgraded the stock to “buy”, raising TP to $72 from $58 (14% upside). (https://bit.ly/2kvFVG7)
Macro:
- US jobs report for Aug: Nonfarm payrolls +130k vs est. +160k (+159k revised for Jul). Unemployment rate 3.7% (in line with est.) (https://cnb.cx/2lCuEUN)
- German IP for Jul -0.6% m/m vs est. +0.4%. (https://bloom.bg/2kyeewe)
- PBOC cut reserve ratio by 0.5% potentially releasing ~$126bn in money market. (https://bloom.bg/2knlr2r)
Commodities:
- WTI (-2.3%): US inventory -4.77mn bls last week (est. -2.0mn). -EIA. (https://bit.ly/1V2gPZQ)
- US oil producers cut their budgets amid oil and gas prices concerns. (https://reut.rs/2lYJqVS)
Coming up:
- Fed’ Chair Powell will give a speech in University of Zurich at 12:30 PM (EST).