Lunch wrap: bulls limp, pound holds losses
Bulls have been a bit limp, stumbling out of the gate with
their tails up but quickly getting bogged down on decidedly heavy going turf.
European markets perked up early but ran out of steam heading towards
lunch. Having initially popped higher the Euro Stoxx 600 turned negative,
sliding 0.3%, while the DAX edged 0.4% lower before paring losses a touch.
The FTSE 100 held onto slim gains as sterling softened as the odds shortened
considerably on the Bank of England cutting interest rates this month.
trade delegation is said to have left Beijing, on their way to Washington to
sign phase one deal.
GBPUSD is softer, beating a retreat under
1.30 as markets aggressively reprice for a BoE rate cut this month following
comments from rate setter Vlieghe and weak eco data (See earlier note, BoE:
Stitch in time saves 9). EURUSD has been steady at 1.112 but USDJPY is
firming with the pair crossing key resistance around the 200-week moving
average around 109.70/80, to hit 109.9
Crude oil is steady at $59 with little in the
way of catalysts. Lots on the wires from Saudi Arabia on production but
long and short is they are looking to extend output curbs agreement come
March. Likewise, gold held the line around $1550 but is showing no
US stock futures indicate a solid open with the Dow eyeing
a c70pt gain, having earlier looked at a triple-digit gain when the
cash equity market opens.
Lululemon shares rose c2% pre-mkt after it said
raised its guidance, saying Q4 revenues would be between $1.37bn and $1.38bn,
from previous guidance of $1.32bn to $1.33bn.
Alphabet is on the verge of joining the $1
trillion market cap club. Shares were a little higher pre-mkt after Evercore
ISI raised their price target on the stock to $1600 from $1350.
Tesla bears are throwing in the towel. Shares
were up 2% pre-mkt to $488 after Oppenheimer raised its price target to a
Street high $612 from $385. Microsoft price target raised to
$180 from $155 at Credit Suisse, whilst Apple’s price
target was raised to $375 from $300 at Davidson.