Weekly Digest - INVESTEC
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Wall Street ended last week on a positive note, buoyed by a 12% surge in Disney (following setting out details of their competitor service to Netflix) and a broadly encouraging start to the US results season, with JP Morgan gaining 4.7%. Wells Fargo was less impressive, with the shares down 2.6%. Citigroup and Goldman Sachs picked up the baton today, with shares in the latter trading down 3.0% at the time of writing. Visa will report later on today, after the US market close, whilst in France Vivendi issued a positive update, particularly about its Universal Music Group business.
The scheduled corporate release schedule builds momentum over the course of the week. On Wednesday, there are releases scheduled from Bunzl, Danone and Pepsi. Thursday will see updates from Unilever, Nestle and Pernod.
From a macroeconomic perspective, the highlight will be Wednesday’s Chinese data release, with industrial production and GDP data due. UK employment data is released tomorrow, with inflation data to follow on Wednesday. The latest manufacturing data releases for both the US and the Eurozone are scheduled for Thursday.
Elsewhere, the oil price remains well supported above $70/barrel whilst US 10-year Treasury yields started the week at 2.56% and the equivalent UK Gilt at 1.22%.