Archives of “April 25, 2019” day

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EUR traders heads up – Friday could be a big day – Italy credit rating review

  
Analysis, Forex

Standard and Poors will release its updated assessment of Italy’s sovereign rating.

Currently:
  • Fitch and S&P have Italy at IG status, but a negative outlook
  • Moody’s has Italy on an IG rating also, but with a stable outlook
S&P’s announcement will impact on holders of Italian sovereign binds, BTPs.
  • ECB & Bank of Italy hold around EUR375bn (circa 19% of total outstanding)
  • Foreign ownership is around 32% (down from around 47% in 2011)
A downgrade from S&P would have a negative impact on EUR. An upgrade to the outlook would be a positive.

South Korea GDP growth in Q1 2019 was the worst since the GFC

  
Analysis, Economy

South Korean economic growth data for the January  – March quarter of 2019

GDP (sa) -0.3% q/q (expected +0.3% q/q)

  • worst since Q4 of 2008

+1.8 % for the y/y (vs. expected of +2.5%)

  • slowest since Q3 of 2009

Private consumption (sa) +0.1% q/q

  • slowest since Q1 2016

Construction investment (sa) -0.1 % q/q

Facility investment (sa) -10.8% q/q

  • worst since Q1 1998

Its not surprising growth is slow in Korea (well, negative q/q), what with the trade wars and such. But, yeah, these are horrible numbers.

South Korean economic growth data for the January  - March quarter of 2019 

Strong earnings so far with Visa, Microsoft and Facebook all higher

  
Analysis, US Market

Solid gains

It looks like a good day for earnings with Visa, Microsoft and Facebook all beating estimates.
Microsoft:
  • Rev $30.6B vs $29.9B expected
  • EPS $1.14 vs $1.00 estimate
  • Cloud computer also beat
Shares at $128.00 versus $125.30 at the close.
Facebook:
  • Revenue $15.08B vs $14.97B exp
  • Daily active users 1.56B vs 1.56B exp
  • Takes $3B legal expense
  • Shares up to $191 vs $182 at the close
Excluding the legal expense, it would have been a bigger win.
Visa:
  • EPS $1.31 vs $1.24 estimate
  • Operating revenue $5.5B vs $5.47B estimate
  • Shares $161.65 vs $161.50 at the close
This should be a tailwind for USD/JPY in the day ahead as money keeps flooding into US stocks (and out of Europe).
On the flipside, shares of Chipoltle were down despite some seemingly great earnings (it’s had a monster run this year). Paypal and some others are still to come. It’s a busy, busy day for earnings.

US Indices end lower on the day with modest declines. Nasdaq makes a new all time intraday high but closes lower

  
Analysis, US Market

Some selling into the close ahead of lots of data

The US stocks are ending the session lower on the day with modest declines. There were more selling into the close that tipped the indices lower. There a lot of earnings after the close and tomorrow.
The final numbers show:
  • S&P down -6.43 points or -0.22% at 2927.25
  • Nasdaq fell -18.806 at 8102.01 after making a new all time highs and falling off. The high reached 8139.55.
  • Dow fell 59.34 points or  -0.22% at 26597.05
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