Turnaround the european operation. Morning. Ery good this is daybreak europe. Lets talk about the asian equities session. Another boy in story for stocks. Japanese returning to the market. Msci asia pacific up. 3 . T is not all positive samsung is one of the negatives over on the seoul market. Their Earnings Report suffering a little bit because of the dollar weakness. That is weighing on the equitys story a little bit in south korea. Our focus on south korea and north korea is around geopolitics. More details of that in the samsung story. Lets talk about what is going on in fx markets. Later our attention will return to fed speakers. Today lets focus in on the yen and euro because interesting moves in both of them. The yen, and overnight story. We see the yen gaining this morning as the boj trimmed some of its bond purchasing. A small tweet to the long ticket buying. Governor kuroda told us there is nothing to see in terms of expecting to see any big changes in policy. Plenty discuss
Freely u. N. Trade more and u. N. Falls against the dollar. An interesting shift in the market. David they dont have to worry out it like they did. Breaking news. Continental is in talks with advisers saying it is going to explore a possible holding structure. This could be the biggest overhaul ever for this very large Auto Component maker. Tos appears to be an attempt break it up so the individual parts of the company could trade separately. They be some of the tire manufacturer could rise on the news and it is tied perhaps to the move to Autonomous Vehicles and the electric vehicles. Ag will be exploring a holding structure. Alix those are the super fancy tires. David they are very nice tires. Time for the morning brief. At 10 00 this morning Minneapolis Federal reserve chair Neel Kashkari ways in from minnesota. President trump meets with bipartisan members of the senate on immigration issues. At 1 00 tonight states auctions 24 billion in threeyear notes. Alix heres emma chandra. Th
Driving the market for these gains. Inhave the dow up the most the three major averages. The nasdaq on pace for its best when streak since the beginning of october. Lots of optimism and one driver could be earnings. The Fourth Quarter Earnings Growth in a yearoveryear basis should come in at 11. 9 to thats the best since the First Quarter of last year but we see 2017 very strong relative to Earnings Growth. Could be one reason the s p 500 had its best year last year since 2013. Suggesting the strength we are seeing could just continue in 2018. Another driver on the day, oil. Up 2. 3 . There is optimism that supply will be tight and taking oils to level oil to levels last seen in december. E have one bearish patch take a look at express and urban outfitters. All of these companies plunging week disappointing holiday comps. Got real weakness for some of these retailers. Very interesting is the fact that the recent Holiday Season is considered to be the best in a decade. Not seeing its wi
The rise in inflation we heard about this morning the Consumer Price index, cpi, up from a month before meaning grosh groceries to gasoline are more expensive, transportation to retail to restaurants, we have the impact in a moment, but, first, lets get to bob pasani and talk about the surge for stocks, bob, what happened what whang changed . Look at the vix, it was down even this morning when the markets were down prior to the open on concerns about the cpi better than expected all the people who panicked had to unwind with the option explorations telling you they are not as worried about volatility in the next 30 days as what the vix measures, a good sign traders believe theres less panic in the market. Number one number two, look at the groups moving yes, inflation is a concern, but rates move up, banks outperformed here today, outperforming again. We see Interest Rate stocks sell off, and that happened in january, going into february as well, so, again today, utilities are down, at
S p 500 down four out of the last five days following the last week weekly decline for the s p 500, the first time it happened in nine weeks. , we are seeingne it in stocks. In a small way. Uncertainty around tax reform and a massive move higher with some investors wondering whether valuation is justified. It has been a long time since a bigger pullback for the s p 500. This is 2622. The bars represent the degree of the move either up or down with the yellow line is one person up and one person down. In the 51st day without a greater than half a percent move down. Earlier, the s p 500 at the lows had been down a 10th of 1 but similar to yesterday, some of intraday volatility usually does lead to closing volatility. A good chart in the bloomberg that suggests we will see some more closing volatility for the major averages. , as is 8927, a highyield default swap index. That is insurance against the possibility that high yields issuances could default. It is used by sophisticated investor