European Equity Market Handover Italy Deja vu times two

Stock market snapshot as of [15/5/2019 1:43 PM]

As prospects that the preeminent headwind against risk-taking—chiefly the rekindled U.S.-China trade dispute—might recede, stock markets fade Tuesday’s optimistic bounce
Additionally, as Italy’s coalition government approaches half-way through a typical term, existing fractures are widening and bond market volatility resuming
Deputy Prime Minister Matteo Salvini’s suggestion that Italy might purposefully flout EU fiscal prescriptions has swiftly triggered Italy’s key economic fault line of debt and their conduit to the stock market, under-capitalised and over-exposed banks
Two-fisted aversion has thereby capped European indices all session
Oil shares lose their early-week advantage after Tuesday’s American Petroleum Institute data showing inventories building; energy market participants are focusing more strongly on the EIA update that will be out shortly
The dollar shows signs of resilience despite weak U.S. Retail Sales and disappointing Industrial Output. The greenback sees inverse help from a soft Canadian inflation print; also from a much better than expected read of the New York Fed’s economic region, where the output index hit 17.8% this month against 8 expected

Corporate News

Kingfisher brought the standout set of corporate figures and they weren’t inspiring. Europe’s top DIY retailer failed to outpace ‘easy’ comparable sales from last year’s first quarter, sealing the likely fate of CEO Veronique Laury, who investors expect to step down this year
Parts of the U.S. retail sector may contrast sharply with Europe, if Macy’s is a good indicator. The store operator’s Q1 comparable sales growth was more than double the 0.3% expected. Adjusted earnings were well above Wall Street views. The stock trades firmly in a falling S&P 500 index.
NVIDIA will close out the Big tech earnings season tonight and expectations are low, with adjusted Q4 EPS seen slumping about 50%

Upcoming corporate highlights

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.