World Markets Live - April 24 - CNBC Live Events

CNBC Live Events

World Markets Live - April 24

We’ll be updating you throughout the day with essential breaking news, data alerts, earnings reports and all the major market movements.

    CNBC's Karen Tso is reporting from Paris today, bringing us the latest news following the French presidential election, as well as taking in the sights of the city.
    Comment ()
    The spread between the French and German 10 year yield is shrinking as investors breath a sigh of relief, while the euro has bounced on confidence around Emmanuel Macron's lead going into the second round.
    Euro Zone money market prices have also indicated a higher chance of an ECB rate hike by early 2018 after the election results. 
    Here's a look at how the spread has moved over the past 30 days.
    Comment ()
    Reporting from Paris, CNBC’s Karen Tso says it is a new dawn in French politics.
    I think markets were too relaxed about the French election at the start of the year. Some investment managers thought it would be a snooze fest, but it is a new dawn in politics here in France today. We now have many voters considering a centrist independent and some of his policies to bring about an open and inclusive France.
    Very different from the opposite candidate he will face in the second round of the campaign, who wants a closed France, who wants a separation of France from European partners if there isn’t renegotiation. So two very different policies
    Comment ()
    Philippe Bodereau, global head of financials at Pimco, says the French election has weighed on the stock market this year.
    Some people have been facing pretty good data, macro data surprising on the upside in the middle of the year and you haven’t really seen that being followed through in the stock market for instance, because everybody was kind of paralyzed by this left-tail risk of a bad outcome in France.
    Now that we have some clarification around that, now that we can see that the polls, which were much vilified, have been very accurate, almost to the decimal in their forecasts, I think it’s fair to say the risk of a Le Pen election is now low probability.
    Comment ()
    Shares in Jimmy Choo are up 6 percent today, as the U.K. fashion brand announces it is considering a forrmal sale process as part of a strategic review to maximise shareholder value.
    The company said it has not received any offers so far.
    Comment ()
    Consolidated Instrastructure Group reports full year revenue is up 29 percent to 2.7 billion rand, up from 2.1 billion last year.
    However, the South African firm said headline earnings per share was down 18.5 percent to 111.1 cents per share, from 136.3 cents per share last year.
    Comment ()
    Markets are rallying on the result of the French presidential election. This is because the negative market scenarios priced in over recent weeks are now coming off, according to Timothy Graf, head of macro strategy EMEA, for State Street Global Markets.
    With Macron heavily favoured in head-to-head polling against Le Pen, it seems most likely that the negative market scenarios – priced in over recent weeks – will recede between now and the run-off. As volatility subsides, spreads between French and German yields should narrow and we look for the euro to build on its recent stability against the dollar.
    Comment ()
    These are the top headlines for the hour.
    • The French election result sparks a rally across Europe, sending bank shares higher after Emmanuel Macron goes through to the second round with a comfortable lead over Marine Le Pen. 
    • The CAC outperforms in Paris and the spread between the French and German 10 year yields shrinks as investors breathe a sigh of relief. 
    • Philips keeps its 2017 guidance unchanged despite a jump in earnings and income in the first quarter. The CEO tells this show the company is well positioned for the year ahead.
    • Jimmy Choo puts its best foot forward, rallying in London, after the luxury shoe maker puts itself up for sale - looking for a buyer that fits.
    Comment ()
    The IFO says German business morale rose in April.
    The IFO business climate index rose to 112.9 in April, beating forecasts.
    Also, the IFO current conditions index rose to 121.1 in April, beating forecasts of 119.2. 
    The reading for expectations for 105.2 in April, slightly lower than forecasts of 106.0.
    The IFO says the German economy is growing strongly.
    Comment ()
    The French CAC 40 is up 4 percent since the market open on the result of the French presidential election.
    Investor relief at the outcome of the vote, which showed the liberal, centrist candidate Emmanuel Macron won the election, is leading European equities higher.
    Comment ()
    Polls indicate that Emmanuel Macron is going into the second round of the Presidential election with a comfortable majority, after coming out ahead in the first round with his far-right rival Marine Le Pen. 
    Here's a summary of the centrist candidate's policies. The second round of the election is expected to focus more on policy and less on  personality.
    Comment ()
    Salman Ahmed, chief strategist at Lombard Odier IM, says there’s a collective sigh of relief from markets today at the result of the French presidential election.
    The key sustained trend we see is European equities. It gives a big boost to European equities; there has been a valuation gap between European equities and U.S. equities that is likely to close.
    There are problems on the U.S. as well, because the quality of the recovery is deteriorating, and there’re problems on the legislative agenda, so I think from both sides you are getting a positive for European equity outperformance.
    Comment ()
    Germany's Ifo business index climate rose in April to 112.9, roughly in line with a Reuters forecast of 112.5. 
    Clemens Fuest, president, of the Ifo Institute for Economic Research, comments on the results.
    I think we have a solid upswing in the German economy and it is broadening. A year ago it was mostly driven by domestic demand and now it’s broader and the export industry is part of it. The German economy is strong at the moment. 
    He says Macron's win in the first round of the French presidential election is important and adds this is a good result from a German and European perspective. However, he says Macron is unlikely to win a majority in the upcoming parliamentary election.
    Comment ()
    U.K. energy providers Centrica and SSE are languishing at the bottom of Europe's Stoxx 600 after Theresa May's Conservative party vowed to cap energy prices if it was re-elected in June.
    Secretary of State for Work and Pensions Damian Green announced the manifesto pledge over the weekend, which, according to the Sunday Times, could cut costs by £100 a year for 17 million families. 
    Centrica shares are down 5 percent today.
    Comment ()
    LafargeHolcim CEO Eric Olsen will resign in July. This despite the company's board concluding he was not responsible for any wrongdoing in relation to the cement maker's activities in Syria. The company revealed last month that it paid protection money to armed groups in Syria in order to keep its local factory running.
    However, LafargeHolcim did find that members of group management were aware that violations had taken place.
    Shares are down 1 percent on the news.
    Comment ()
    President Donald Trump is expected to reveal tax reform proposals on Wednesday. Salman Ahmed, chief strategist at Lombard Odier IM, says we should be skeptical about U.S. tax reform.
    There has been a massive recalibration of expectations of size, scope and timing of the fiscal bazooka, if you will, coming from the Trump administration.
    I think the House remains very, very divided and I think the legislative constraints means moderate corporate tax cut is something at best we should hope for in the next few months.
    Comment ()
    Expectations of 30-day market volatility has dropped to multi-month lows on the back of the French election results.
    The VIX volatility is down to 11.46 percent, its biggest fall since early November.
    Comment ()

    Speaking at his Paris headquarters, far-left candidate Jean-Luc Melenchon said he wasn't ready to throw his weight behind either Macron or Le Pen.

    Comment ()
    Laurence Haim, spokesperson for En Marche and Emmanuel Macron, says the centrist candidate represents the best of France and Europe.
    He believes in democracy, he believes in the power of people, he’s 39 years old and speaks fluently English, he has a direct way to communicate with leaders from all over the world and that’s what matters at this moment.
    Comment ()
    Dealmaking is set for a strong start to 2017, with near-term M&A expected to remain at high levels. This is according to EY's Global Capital Confidence Barometer, which found that more than half of global executives intend to acquire in the next year.
    Steve Krouskos, global vice-chair of transaction advisory services at EY, discusses the company’s findings and which geopolitical events are weighing on M&A decision making.
    If you look primarily in the U.S. but also globally you’ll see more saying they see the Trump presidency being good for M&A than they see being bad for M&A, but in terms of Brexit and the EU it was pretty much split. There was really no consensus, as many saw it positive as negative, so the net-net was no impact.
    Steve says technological change is driving M&A activity. Here are two graphics summarising some of EY's finding.
    Comment ()
    U.S. Secretary of Defense Jim Mattis has arrived in Afghanistan for an unannounced visit, where he will meet with top Afghan officials and US troops in Kabul. 
    Mattis has met with leaders across the Middle East over the past week, traveling to Iraq, Israel, Saudi Arabia and Egypt, bearing President Trump's message of reassurance that the US remains a strong ally. 
    Mattis speaking at Camp Lemonnier in Ambouli, Djibouti
    Comment ()
    The result of the French election has cheered markets.
    Germany's DAX stock index hit a fresh all-time high of 12,398.05 on the result, while the French CAC 40 has hit its highest level in more than 9 years, up more than 4 percent.
    Comment ()
    Banking stocks are one of the big winners following the French election results.
    French bank stock prices saw double digits gains early in the session. Meanwhile, the banking sector of the pan-European Stoxx 600 is up more than 4 percent today.
    Comment ()
    The Stoxx 50 index of blue chip Eurozone shares is on course for its best day since August 2015, up around 3.8 percent.
    Markets are pleased with the success of Emmanuel Macron. His success means the "worst case scenario" of far-right candidate Marine Le Pen running against far-left candidate Jean-Luc Mélenchon has been avoided.
    Comment ()
    Market focus now turns to the second round of the French presidential election between Macron and Le Pen, which will be held on Sunday May 7th. 
    Bill Street, head of investments for EMEA at State Street Global Advisors, expects Emmanuel Macron to win.
    Le Pen will almost certainly be defeated in two weeks time, and equities can continue to rally going into 2018 as non-existential risks can be absorbed. The global economy might not be booming, but growth is returning.  Some of the moderate risk premia in the bond market will also disappear, and this would most likely benefit lower-quality assets the most. 
    There could be more surprises to come in an event-packed European calendar however - U.K. elections, Greek debt talks, German elections, and the possibility of Italian elections in the not-so-distant future are enough to keep markets busy. Downside protection strategies are crucial given that the environment is likely to remain volatile.
    Comment ()
    Far-right presidential candidate Marine Le Pen has already kicked off campaigning for the second round of the election.
    She says her opponent Emmanuel Macron is "weak" in the face of Islamic terrorism and says he has no programme to defeat it, according to Reuters.
    Comment ()
    The euro is the big mover on forex markets today, as worries about the French election deflate following the results of Sunday's vote.
    Comment ()
    The results of the French election have caused the euro to jump to around a 5 month high and stock markets to rally; the German DAX hit an all-time high earlier.
    Andrew Wilmont, senior portfolio manager for European high yield strategies at Neuberger Berman, says the decision by a large proportion of the French electorate to vote for Emmanuel Macron has been met with relief by markets.
    However, Marine Le Pen’s strong showing in second place will keep investors on their toes as they nervously await the outcome of the second round on the 7th May. Socialist candidate Jean-Luc Mélenchon enjoyed a late surge, but it was only enough to push him into fourth place, behind the Conservative candidate, Francois Fillon, who came third.    
    As we saw in the run-up to the Dutch election, European government bonds and risky assets in Europe are likely to be somewhat jumpy over the next two weeks. Currencies may also experience some volatility – at least in the short term. 
    Wilmont adds that his company's base case scenario for Europe remains positive due to the economy's recovery, but French, German and U.K. elections could derail this recovery.
    Against this backdrop, investors may wish to consider volatility-capture strategies. These might include various currency strategies and also index option writing, which can offer limited downside protection (although with limited upside) and be used to generate income.
    Comment ()
    Safe-haven assets are coming off today as the French election result revives risk-on sentiment. 
    For instance, gold is down almost 1 percent as the victory of Emmanuel Macron in the first round of the presidential election removes some of the suspense and risk-off sentiment that came into play last week.
    Comment ()
  • Strong gains are expected for U.S. stock markets at the open, according to future values.
    European markets are also rising as the results from the first round of the French elections ease investor concerns and encourage risk-on sentiment.
    Dow, S&P and Nasdaq futures are up about 1 percent.
    Comment ()
    Emmanual Macron's success in reaching the second round of the presidential election against Marine Le Pen was the market's preferred outcome for the election, according to John Wyn-Evans, head of investment strategy at Investec Wealth & Investment. 
    The expectation now is that M Macron will prevail in the second round. His policies cleverly appeal to both sides of the political spectrum, and they are succinctly described by the Financial Times as a “business-friendly agenda coupled with Nordic-style welfarism”, encompassing, for example, labour market deregulation, lower corporation tax, and no social security contributions for those on the minimum wage.
    He is also a strong supporter of the European Union, although a full exposition of his EU policies might have to wait until we know who wins the German election later this year.
    Wyn-Evans also summarised today's market reaction to the French election results.
    The immediate result is a 3 percent-plus mark-up for equities in Europe this morning, with French banks leading the charge, up around 7 percent. There are also some big moves in the sovereign bond market, with a strong bid for French bonds and for those of the riskier peripheral countries while safe havens sell off.
    There has been a 16 basis point reduction in the spread between the French and German 10-year bonds. The euro is around 1 percent percent higher against the U.S. dollar, although it was as much as 2 percent higher in overnight trading. 
    Comment ()
    The centrist candidate Emmanuel Macron is seen beating far-right candidate Marine Le Pen in run-off of the French presidential election vote by 61 percent to 39 percent, according to the latest Opinionway poll.
    Faith in polling data was slightly restored by the outcome of the first round of the French election, with polls predicting more-or-less the correct result.
    Comment ()
    U.S. stock index futures pointed to a higher open on Monday with the Dow Jones industrial average poised for triple-digit gains as the market's favored candidate progressed through to the second round of the French election and sparked a significant unwinding of safe-haven trades.
    Comment ()
    Deutsche Bank's U.S.-listed shares up 10 percent at $18.15 premarket after Kepler Cheuvreux re-initiates coverage on stock with "buy" rating.
    Comment ()
    EU's Mogherini says cannot pretend Russia's annexation of Crimea did not happen, sanctions to continue. That's according to Reuters.
    Comment ()
    PPG submits revised proposals to Akzonobel to combine companies. The revised proposal includes increased price of Eur 96.75 per Akzonobel share, an increase of EUR 6.75 per share.
    PPG is prepared to commit to a significant reverse break-up fee to demonstrate confidence that required antitrust approvals can be obtained.
    PPG believes its revised proposal is vastly superior to Akzonobel's new standalone plan, as articulated on April 19, 2017
    Comment ()
    Italian economy minister Padoan says is confident Italy reform programme will help calm anti-EU sentiment in country. That's according to Reuters.
    Comment ()
    Akzo Nobel jump 4.7 percent to hit all-time high after PPG Industries offer to buy company:
    Comment ()
    Italian Economy Minister Pier Carlo Padoan welcomed on Monday the victory of centrist Emmanuel Macron in the first round of France's presidential race and said he hoped Italy's anti-euro parties could be beaten back.

    "It is good news that Macron has won the first round ... because he has a very strong pro-Europe and pro-market programme," Padoan told CNBC television.

    He said it was "worrying" that there were so many euro-sceptic parties in Italy, but added that it was not certain they would ever be in a position to push for, and win, a referendum on the subject.

    I am still confident that the reform programme the government has been implementing will gain consensus so that this risk is avoided, he said.
    Comment ()
    European banking stocks soared after the first round of French presidential election was won by centrist Emmanuel Macron. While it is still a long road ahead for Macron as he gets ready to challenge Marine Le Pen in the second round on May 7, European bank investors seem to have made up their mind.

    The pan-European Euro Stoxx Banks Index rose above 6 percent in morning trade, hitting its highest level since December 2015 and putting it on course for the biggest one-day rise April 2016. The index is still trading about 4 percent higher led by Unicredit that is up 10 percent this morning. There is a splash of green across the board for all major European banks. But will this rally last?

    European banks rally on French election relief but set for a tough week ahead

    CNBCEuropean banking stocks soared after the first round of French presidential election was won by centrist Emmanuel Macron. But will this rally last?
    Comment ()
    The euro is trading sharply higher against the dollar after results of the first round of French presidential elections showed Macron as the winner:
    Comment ()
    Moody's says will assess credit implications associated with French election once the outcome is known. Fiscal and economic policies likely to be key rating drivers under the next French Presidency given debt and growth challenges.
    Comment ()
    Kremlin, in comments on French election, says it never interfered in other countries' elections. Kremlin dismisses allegations Russia hacked Danish military, says Russia as a state is not engaged in computer hacking. That's according to Reuters.
    Comment ()

    Macron vs. Le Pen — meet the next president of France

    CNBCCNBC takes a look at what separates Macron from Le Pen, and why a victory for the former might not be so straight forward.
    Comment ()
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