"Apparently shrugging off geopolitical tensions and a batch of disappointing macro releases, US traders yesterday instead chose to concentrate on the release of quarterly corporate earnings. This allowed US equities to bounce quite decisively, with the S&P500 off the two-month low recorded in its previous session with banks and tech shares leading a broad rally. Having seen Citigroup and JP Morgan the first beat consensus quarterlies last week, hopes are also high today for Goldman Sachs while Morgan Stanley and Blackrock follow tomorrow; tech investors are similarly optimistic that results will justify the sector's recent run with Amazon last night's largest gainer amongst the blue chips. By the close of business, all three principal US indices closed near their highs of the day, despite poor data from the National Association of Home Builders and an unexpected dip in retail sales. Yet with US and North Korea exchanging harsh warnings as rising tensions between the two powers resulted in an envoy from the Peninsular telling the US President that "Nuclear war may break out at any moment ", traders can be expected to remain touch-sensitive with safe-haven assets, such as the Yen, Gold and Triple A-rated government bonds, likely to return to favour at a moment's notice. The US$, which normally enjoys default status amongst international currencies during time of uncertainty, however, remained out of favour in response to comments last week from Donald Trump forcing the Greenback to a 5-month low against the Yen, after he suggested it was "getting too strong" and that he preferred a low interest rate policy. Indeed, his apparent recent preference for a dovish Fed, has been enough for some to suggest that Janet Yellen may, after all, be invited to remain the Reserve's Chairwomen. Asia this morning ended mostly down with only the Nikkei recovering slightly from recent falls despite the impact of Yen strength, while other regional bourses not surprisingly weakened amid rising local tensions. Europe's opening this morning is likely to focus on the French Presidential Election which is now less than a week away. Recent strength of far-left Jean-Luc Mélenchon and the accompanying decline of Emmanuel Macron has left traders concerned that the expected 7th May run-off could even end up being fought between two relatively extremist parties positioned at either side of the political spectrum, neither of which would be considered good for either the Euro or long-term survival of the EU. There are no significant UK or EU macro releases due today, although the US is due to provide March building Permits, its Redbook Index, Industrial Production and Capacity Utilisation. The only UK corporate due to report earnings or trading updates is Headlines
Weetabix to be sold to US company Post Holdings
UK cereal firm Weetabix is to be bought by US firm Post Holdings for $1.8bn (£1.4bn), its owner has confirmed. Weetabix - made in the UK since 1932 - was put up for sale in January by China's Bright Food, which bought a 60% stake in 2012. Bright's acquisition was the largest by a Chinese firm at the time, but it is believed to have struggled to build significant market share in China. Chinese consumers prefer a hot, rice-based breakfast to cold cereal. While Weetabix doubled sales in China in 2016, the UK still accounts for the majority of its sales. Post Holdings is the third-largest cereal firm in the US and owns brands including Great Grains, Golden Crisp and Cocoa Pebbles. Some of the world's biggest names in food, including the UK's Associated British Foods and Italy's Barilla, had been named as possible suitors for Weetabix. Northamptonshire-based Weetabix, which has a royal warrant, was family-owned until 2004, when it was bought by private equity firm Lion Capital. (LON:ASHM). With few other significant new drivers, caution is expected to reign on this morning's openings right across Europe, with London for once not expected to simply take its lead from the US close. The FTSE100 is seen down 10 to 15 points in early trading."
- Barry Gibb, Research Analyst
Markets
Europe
The FTSE-100 finished Thursday's session 0.29% lower at 7,327.59 whilst the FTSE AIM All-Share index added 0.47% to stand at 946.43. In continental Europe, the CAC-40 finished down 0.59% at 5,071.10 whilst the DAX was 0.38% lower at 12,109.00.
Wall Street
In New York last night, the Dow Jones rose 0.90% to 20,636.92, the S&P-500 added 0.86% to 2,349.01 and the Nasdaq rose 0.89% to 5,856.79.
Asia
In Asian markets this morning, the Nikkei 225 had risen 0.35% to 18,418.59, while the Hang Seng shed 0.82% to 24,062.97.
Oil
In early trade today, WTI crude had fallen 0.15% to $52.57/bbl and Brent had declined 0.14% to $55.28/bbl.
Headlines
Weetabix to be sold to US company Post Holdings
UK cereal firm Weetabix is to be bought by US firm Post Holdings for $1.8bn (£1.4bn), its owner has confirmed. Weetabix - made in the UK since 1932 - was put up for sale in January by China's Bright Food, which bought a 60% stake in 2012. Bright's acquisition was the largest by a Chinese firm at the time, but it is believed to have struggled to build significant market share in China. Chinese consumers prefer a hot, rice-based breakfast to cold cereal. While Weetabix doubled sales in China in 2016, the UK still accounts for the majority of its sales. Post Holdings is the third-largest cereal firm in the US and owns brands including Great Grains, Golden Crisp and Cocoa Pebbles. Some of the world's biggest names in food, including the UK's Associated British Foods and Italy's Barilla, had been named as possible suitors for Weetabix. Northamptonshire-based Weetabix, which has a royal warrant, was family-owned until 2004, when it was bought by private equity firm Lion Capital.