US equity markets finished the week on a rather flat note following Snap’s IPO excitement, however the well-received listing buoyed technology names, helping the tech-focused Nasdaq to outperform peers, up 0.2%. Both the Dow Jones and S&P 500 closed flat, with retailers Nike and Wal-Mart dragging on the former, while Airlines helped the latter to stay only a single point in the green.
An empty economic calendar left Deutsche Bank firmly in the spotlight this Monday morning, the German lender plunging 5% after the bell.
Spreadex Analyst, Connor Campbell explained – “The reason behind the bank’s drop is two-fold. Firstly, the company is reportedly facing yet another legal challenge, this time over ‘last look’ trades related to the forex market. Secondly, Deutsche Bank announced it was aiming to raise €8 billion through a huge share sale, the fourth time it has announced such a plan since 2010 and something that contradicts comments from CEO John Cryan, who has previously stated the bank would not need to turn to the markets for another cash injection.”
As for the pound, the currency was stuck at a firm near-7 week nadir against the dollar (though it avoided repeating the more excessive intraday slump seen last Friday), while it lost another 0.3% against the euro, pushing it to a fresh 6 week low. Sterling may get a boost on Wednesday when Philip Hammond plunges billions of pounds into a Brexit impact fund in his first Spring Budget; for now, however, it remains in the doghouse.
Accendo Markets Analyst, Mike Van Dulken commented – “FTSE sentiment is sure to be impacted by an £11bn merger of Standard Life (SL) and Aberdeen Asset Management (ADN) to create an investment powerhouse. BT has secured exclusive rights to broadcast all UEFA Champions League and Europa League matches in the UK through 2020/21 for £394m while Informa says it is set for further progress in 2017 after posting 2016 underlying profits growth.”
In focus today
Given the light macro calendar for data, the fallout from a busy weekend for corporate news will be on the agenda with a proposed £11bn merger of Standard Life and Aberdeen Asset Management, Deutsche Bank preparing for an €8bn capital increase and France’s PSA is snapping up GM’s Opel/Vauxhall for €2.2bn.
Data-wise, this morning’s Eurozone Sentix Investor Sentiment is expected to be improved in March, before Greek GDP is likely confirmed slower in Q4. Elsewhere, Eurozone Retail PMIs and UK New Car Registrations both act as gauges for consumer confidence in both economies. This afternoon’s data is limited to what is forecast as solid US Factory Orders and a rebound in Durable Goods Orders.