Disclaimer: This is an informal commentary by one of our Market Analysts. It should not be taken as investment advice and is made available only on that basis.
You must first read and ensure you agree to all our terms and conditions.
U.S. equities fell sharply on Tuesday to close at session lows following weakness overseas and the US Treasury’s move to limit tax inversions. (S&P 500 -1.01%)-Utilities (-188 bps) and Financials (-144 bps), Industrials (-57 bps).
ASIA: China: A share market opened lower and consolidated around 3050 after trading at early Jan highs. HK: Markets in HK finished the day a small better today even though HSBC finished -1.6% as an index heavy weight after a broker downgraded the name.
Japan: Lack of catalysts saw an unchanged open with continued retail selling Mothers -2% early after posting -6% yesterday
Pfizer decided to terminate it’s $160bn merger with Allergan, PFE will need to pay a $400m fee to Allergan for breaking the deal. New US tax moves the cause of deal breaker. Allergan fell 15% in session yesterday as market expected news, stock actually rose 55 BPs on news after close.
Valeant rose 10% yesterday on statement that they have not found any more irregularities, stock rose from a very low base though.
The Chinese government is reportedly planning an Rmb 1tr debt-to-equity swap over 3 years, essentially giving banks some breathing space.
BAML positive on US$, says ready for a short term bullish move.
US mutual fund performance data yesterday, worse quarter since 1998 for Active managers.
Shire Pharma says Baxalta deal not an ‘inversion’ deal, says will take time to study the US tax laws change.
Market says that Allergan will still get $40bn from sale of it’s generic business to Teva, may go on an acquisition spree itself.
View that Halliburton deal for Baker Hughes may fail, US anti trust officials have prepared a lawsuit to stop the merger. Baker Hughes will get a $3.5bn break up fee if it fails.
Odds of a contested Republican convention in July grow after Wisconsin primary result.
Directors and managers sold stock in Auto Trader post IPO lock up in March.
Reuters article on idea of Italian bad bank being discussed again.
Soc Gen refutes claims surrounding tax evasion activity related to Panama leak.
Some investors doubt the benefits of LSE Deutsche Boerse deal.
Crude Oil extended gains after API stats were interpreted as bullish, Brent + 1.7% at $38.5.
Glencore trades +1.3% after selling $2.5bn stake in Agriculture unit. Keeps trying to reduce it’s debt burden.
Markets trade better, +0.5%.