The markets saw only a brief respite from selling pressure paring some losses after the Goldman Sachs earnings out in the States this morning. That move petered out right after the U.S open and the markets moved to their lows of the day with about a half hour left in the session. Market internals were terrible with only 13 members in the Eurostoxx600 advancing on the day. That was actually an improvement from earlier in the session, believe it or not. Today's losses put the FTSE100 and Eurostoxx600 in bear territory.
Basic resources and energy fell by more than 5% with losses among banks and insurers exceeding 4%. The 'best' performing sector tech was off by 1.6%. Even the travel/leisure sector suffered heavily today despite crude seeing multiple % point declines. Volumes waned from earlier in the session. They had been up c. 25.0% vs. the 5 damvg. but ended the day 5% lower.
The insurance sector was led lower by Zurich Ins. -10.8% after issuing a profit warning for its general insurance unit due to storm losses from December in the U.K.
ASML +4.6% was an outperformer following results and led the tech sector. While Q1 guidance was below consensus, Q4's were strong and Q2 could amount to a record quarter. The company also announced €1b buyback through FY '17.
The names we highlighted this morning ended the day as follows: BMPS -22.0%, Intesa SanPaulo -5.5%, RD Shell -7.0%, Genel Energy -14.3%, Bouygues -3.0% and WH Smith +5.8%.
Core European bond yields improved between 4 to 8 bps on the day.
CAPIS - Capital Institutional Services Inc. issued this content on 2016-01-20 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-20 18:53:18 UTC
Original Document: https://www.capis.com/news/trading-desk/international-summary/2016/01/20/8436/
