Wednesday, 4 November 2015

Financial Orbit wrap 04/11/15

Five sentences or graphics which sum up the Financial Orbit output over the last 24 hours across the website, twitter account and anything else thought about...

1. Services PMI day - According to two surveys compiled by Markit, the service sectors in China and Japan each picked up momentum in October. The purchasing managers' index for China rose from a 14-month low of 50.5 in September to 52.0, the best score since July.  The survey provider even said China did not need more stimulus help…which I find unlikely.

And that is even before we appraise why the Chinese market rose today despite the comical mis-information rumour about the Hong Kong Connect which boosted the market in the morning session. 

2. Interesting on the European PMIs:

Don't be fooled by the list of 'highs'. Implied GDP growth numbers correctly described as 'somewhat lacklustre'

3. As for global composite PMIs the metrics did improve a little...but the overall numbers are not that strong even if four sub-metrics are up and two down sequentially.  

Generally markets do not remain easy...a weaker euro and hence stronger dollar implies to me more volatility scope...and the VIX has pushed up to a 10 day high above the 15 level...

4. I review a couple of spin-offs from ING Group, NN Group and Voya concluding both remain interesting especially as the latter has performed poorly over recent weeks (link here). 

5. Staying with spin-offs, I remain unconvinced about Citizens Financial (link here) despite the share price being clearly lower than a year ago. 

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