With Russian President Vladimir Putin set to meet with his
Ukrainian counterpart Petro Poroshenko on Tuesday, tension in
Ukraine looked ready to boil over this weekend as the country's
Independence Day celebrations set the stage for more hostility.
Ukrainian forces marched through the streets of Kiev in a show
of solidarity against pro-Russian separatists. Rebel groups
responded with a parade of captured soldiers through Donetsk,
proving that the conflict is far from over.
Western leaders are hoping that Tuesday's meeting will provide a
jumping off point to forge an agreement that will ensure lasting
peace and end the growing sanctions war between Russia and the
However, German Chancellor Angela Merkel, who will be present,
has said the divide runs too deep to believe there is any hope of
resolution at this one meeting. Instead, she said she hopes it will
open a dialogue for the future.
In other news around the markets:
After months of poor economic data proved that France is in need of
a change, the nation's Prime Minister, Manuel Valls, formally
resigned his government from office on Monday. The nation is
expected to form a new government on Tuesday. At the Jackson Hole
summit, European Central Bank President Mario Draghi surprised
investors by departing from the speech released on the bank's
website and admitting that inflation expectations have declined for
the short, medium and longer term. Draghi said the bank is prepared
to use all of its available tools to combat the falling inflation,
and that the bank is planning to address these problems at its
September 4 meeting. On Sunday, Islamic State militants overtook a
Syrian air base, further expanding their stronghold in Syria and
northern Iraq. The battle for the base was one of the bloodiest
since the war in Syria began, killing more than 500 people. This
was the third Syrian military base that ISIS has acquired in the
past month. Burger King Worldwide (NYSE:
) has begin negotiations to acquire Canadian doughnut chain Tim
). The deal would allow Burger King some tax breaks, as it would
move its base to Canada, something that could attract criticism
since the company is well known as an American brand. If the two
can come to an agreement, the acquisition would create the
third-largest fast food chain in the world.
Asian markets were mixed; the Shenzhen composite and the
Shanghai composite fell 0.84 percent and 0.51 percent respectively,
but the NIKKIE gained 0.48 percent, the KOSPI rose 0.20 percent and
the Hang Sheng index was up 0.22 percent.
European Markets were up across the board with the exception of
the FTSE, which lost 0.04 percent. The STOXX 600 gained 0.65
percent, the DAX was up 1.15 percent, the CAC 40 rose 1.07 percent
and the MIB was up 0.96 percent.
Energy futures were lower; Brent futures lost 0.06 percent and
WTI futures were down 0.12 percent. Gold and silver lost 0.17
percent and 0.20 percent, respectively, but industrial metals were
mixed. Zinc fell 0.42 percent and tin lost 0.34 percent, but copper
was up 0.02 percent and aluminum rose 0.19 percent.
The euro began the week on the back foot, falling 0.37 percent
against the dollar. The common currency also lost 0.55 percent
against the pound, 0.25 percent against the yen and 0.13 percent
against the franc. The dollar gained 0.11 percent against the yen
and 0.24 percent against the franc, but lost 0.05 percent against
Notable earnings released on Friday included:
Foot Locker (NYSE:
) reported EPS of $0.64 on revenue of $1.64 billion, compared to
last year's EPS of $0.46 on revenue of $1.45 billion. ANN\ (NYSE:
) reported EPS of $0.70 on revenue of $648.70 million, compared to
last year's EPS of $0.76 on revenue of $638.20 million.
Stocks moving in the Premarket included:
) was up 1.34 percent in premarket trade after gaining 2.25 percent
last week. Wells Fargo (NYSE:
) gained 0.63 percent in premarket trade after rising 1.93 percent
over the past five days. Apple (NASDAQ:
) was up 0.54 0ercent in premarket trade after gaining 3.41 percent
last week. Procter & Gamble (NYSE:
) was down 0.84 percent in premarket trade after rising 1.97
percent last week.
Notable earnings expected on Monday include:
OSI Systems (NASDAQ:
) is expected to report fourth quarter EPS of $1.17 on revenue of
$245.99 million, compared to last year's EPS of $1.02 on revenue of
$227.90 million. Adept Technology (NASDAQ:
) is expected to report fourth quarter EPS of $0.02 on revenue of
$16.22 million, compared to last year's EPS of $0.00 on revenue of
Monday's economic calendar will include U.S. new-home sales,
Germany's Ifo business climate index and Spanish PPI.
For a recap of Friday's market action, click .
Tune into Benzinga's pre-market info show with Anne-Marie
Baiynd, Kenny Glick, Kristin Bentz & Tim Melvin
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Free Trading Education -
Check out the free events taking place on Marketfy
this week. Spaces are limited. Sign up today.