Monthly Archives: April 2016

US stocks in worst week since February

©AP People pass a Wall Street subway stop, in New York’s Financial District. A two-day sell-off in US equity markets has put the benchmark S&P 500 nearer to negative territory for the year as the momentum that boosted the index near its peak has faded. The index — which counts $2.1tn of investments linked directly to it — suffered its…

Exxon beat fails to bolster energy stocks

©AP Despite jumping above analysts’ low expectations hurdle, ExxonMobil’s 63 per cent fall in first-quarter earnings set the tone for an energy sector unable to buck US equities’ losing session. The S&P 500 energy sector ended Friday down 0.1 per cent, diminishing its weekly gain to 0.5 per cent. Oil and gas producers are big winners on the index this…

Japanese equity funds hit by outflows

©Bloomberg The rapid ascent of the yen has fuelled a retreat from Japanese equity funds, with portfolio managers suffering seven consecutive weeks of outflows as investors shift into US stocks. Japanese equity funds were hit with $2bn of redemptions in the latest week, tipping fund flows for the year into negative territory after nearly $10bn of inflows at the start…

The yen in the era of Abenomics: charts

©Bloomberg The Bank of Japan confounded most investors’ expectationson Thursday by leaving its policy unchanged, sending the yen surging and the country’s stock market tumbling. Since the election of Shinzo Abe as Japanese prime minister in December 2012, the BoJ has aggressively added monetary stimulus in a bid to kick-start inflation and economic growth . The following charts show how…

China’s bond market is on edge

©Dreamstime Stand easy — or easier, at least. Ten basis points might not be the biggest one-day change for borrowing costs in China’s vast $7tn bond markets, but it was enough on Monday to push the country’s closely watched onshore repo rate back from an eight-month high. That offers a little breathing space for investors to ponder what next for…

Dell’s SecureWorks unit IPO disappoints

Dell computer cyber security SecureWorks, the cyber security division of Dell, raised less than expected with the first technology initial public offering of 2016 casting doubt on the outlook for future deals. The company sold 8m shares at $14 a piece, according to a person familiar with the deal, for $112m. That is down from the 9m shares it had…

SEC extends test of investor safeguards

©Bloomberg The Securities and Exchange Commission on Thursday extended a pilot scheme for rules intended to protect investors during times of market stress, to fine-tune them after they were put to the test during volatility last August. So called limit up, limit down rules allow for trading suspensions during sharp moves in stocks and exchange traded funds. The rules, implemented…

US equity funds suffer more outflows

©Bloomberg US equity funds continue to bleed money as investors fearful of weak company earnings and wavering oil prices remain unconvinced by the market’s strong rally over the past week. Globally, equities lost $7.3bn for the week ending Wednesday, with the US responsible for $4.2bn of outflows, taking total outflows in the US to just shy of $50bn this year….

Saga hit as parent prepares to sell stake

Saga group head office near Folkestone, Kent. Saga, the over-50s insurer and travel agent, was among Thursday’s fallers as its biggest shareholders prepared to sell a £700m stake. After the close, Saga’s private equity-controlled parent company Acromas said it was selling its entire 31.5 per cent holding. Sole bookrunner Numis Securities was said to be offering the stock to institutional…

Investors’ hopes rest on resilient oil

©Bloomberg Refinery operated by MOL in Szazhalombatta, Hungary We are all oil traders at the moment. The resilience of crude prices in the wake of a failed production freeze deal in Doha firmly illustrates the importance of black gold for sentiment across the broader financial system at the moment. Talk of a freeze in recent weeks propelled the robust recovery…