Ion-Marc Valahu répond à Bloomberg – 03.06.2014
“All eyes are on the ECB meeting on Thursday,” Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail. “Equities are mostly down as investors do not think that the ECB will do enough.”
+——————————————————————————+
Stocks Fall, Euro Rises After Inflation Data; Treasuries Retreat
2014-06-03 14:59:43.180 GMT
By Joseph Ciolli
June 3 (Bloomberg) — U.S. and European stocks fell, while the euro rose as data showed slower euro-area inflation before the region’s central bank meeting this week. Treasuries slid for a fourth day, the longest drop since October.
The Standard & Poor’s 500 Index retreated 0.3 percent as of
10:55 a.m. in New York. The Stoxx Europe 600 Index dropped 0.5 percent. The euro advanced 0.2 percent to $1.3625, appreciating against 13 of its 16 most-traded counterparts. The yield on 10- year Treasury notes increased four basis points to 2.57 percent.
Copper fell 1 percent. The MSCI Emerging Markets Index added 0.5 percent, climbing for a second day.
Euro-area inflation slowed more than economists forecast in May, raising pressure on the European Central Bank to deploy measures as soon as this week to kindle prices and drive growth.
U.S. stocks pared losses after better-than-estimated data on factory orders. Reports later this week will probably show the American unemployment rate last month remained near its lowest level since September 2008.
“Traders are sitting on their hands, waiting for the response from the ECB before setting their bets up,” Chad Morganlander, a fund manager at Stifel Nicolaus & Co., which oversees $160 billion, said by phone from Florham Park, New Jersey. “There’s an overall anticipation that the ECB will be aggressive and that the jobs numbers on Friday will be better than expected.”
ECB Meeting
With ECB President Mario Draghi warning about the risk of a negative price spiral, the Governing Council is considering measures from negative interest rates to conditional liquidity for banks. The central bank has prepared investors for the prospect of stimulus when it announces its rate decisions on June 5. “We are ready to act,” ECB Vice President Vitor Constancio said on May 30.
Anemic growth in the euro zone has added to the case for ECB stimulus, as policy makers continue to struggle with the legacy of the debt crisis. The inflation rate fell to 0.5 percent from 0.7 percent in April, the European Union’s statistics office said.
“All eyes are on the ECB meeting on Thursday,” Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail. “Equities are mostly down as investors do not think that the ECB will do enough.”
The Stoxx 600 slipped after closing at its highest level since January 2008 yesterday. All 19 industries in the stocks gauge fell, led by raw-material producers and media companies.
Krispy Kreme
In the U.S., Krispy Kreme Doughnuts Inc. dropped 13 percent after cutting its earnings forecast because of mounting costs and slow first-quarter sales. Quiksilver Inc. slumped 44 percent after the surfwear retailer posted a wider loss than analysts had predicted. Hillshire Brands Co. jumped 8.9 percent after confirming that Pilgrim’s Pride Corp. has increased its bid for the food producer.
A Commerce Department report showed factory orders climbed
0.7 percent in April. Economists estimated a rise of 0.5 percent. A release tomorrow may show companies added fewer workers in May.
Investors in Treasuries have increased bets the prices of securities would drop in value to the most since May 2006, according to a survey by JPMorgan Chase & Co. The proportion of net shorts or bets the price of the securities will decrease, was 29 percentage points in the week ending yesterday, up from
18 percentage points the previous week, according to JPMorgan.
Germany’s bund yield increased three basis points to 1.40 percent and the rate on similar-maturity U.K. gilts jumped four basis points to 2.65 percent.
World Cup
Qatar stocks dropped as concern deepened that the nation may lose the right to stage the 2022 soccer World Cup. The benchmark QE Index tumbled as much as 3.3 percent, the most since August. A panel looking into the awarding of the tournament said yesterday it will issue a report in July into the possibility of corruption in the process.
The Hang Seng China Enterprises Index of mainland companies in Hong Kong added 1.2 percent as trading resumed after a holiday. The HSBC and Markit Economics PMI was at a four-month high of 49.4 in May, up from 48.1 in April. At the same time, the number was below the 49.7 median forecast in a Bloomberg News survey of analysts.
Thailand’s SET Index rose 0.9 percent, heading for the highest close since Oct. 29, and the baht rose for the first time in seven days. The junta pledged this week to step up investment to help spur economic growth and said it will relax a curfew in some tourist areas that was imposed following the May
22 coup.
For Related News and Information:
Developed Market View: DMMV
Graphing: GRAPH
Feature stories on stocks: TNI STK GREET
MXAP
Equity screening: EQS
Top Stocks News: TOP STK
–With assistance from Emma O’Brien in Wellington, Adam Haigh in Sydney, Kyungji Cho in Seoul, Kana Nishizawa and Nick Gentle in Hong Kong, Cecile Vannucci, Claudia Carpenter, Stephen Kirkland and Paul Dobson in London and Jonathan Morgan in Frankfurt.
To contact the reporter on this story:
Joseph Ciolli in New York at +1-212-617-3928 or jciolli@bloomberg.net To contact the editors responsible for this story:
Lynn Thomasson at +1-212-617-0506 or
lthomasson@bloomberg.net
Neal Armstrong