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RANsquawk – Today’s Trading Edge

TIME: 1802GMT/1302EST
NEWS: OPEC unlikely to cut ceiling at Thursday’s meeting, according to three OPEC delegates
REACTION: In an immediate reaction WTI crude futures fell USD 0.27 from USD 74.01 to USD 73.74 and Brent crude futures fell USD 0.27 from USD 78.16 to USD 77.89. Over the following 10 minutes both WTI and Brent crude futures continued to decline with WTI falling a total of USD 0.49 and Brent falling a total of USD 0.63.

TIME: 1658GMT/1158EST
NEWS: DSW (DSW) upgraded at Sterne Agee
REACTION: In an immediate reaction DSW shares rose 1.1% from USD 34.62 to USD 35.01

TIME: 1608GMT/1108EST
NEWS: FCC’s (FCC SM) main shareholder in deal with Mexico’s Slim over debt refinancing, according to a report
REACTION: In an immediate reaction FCC SM shares rose 1.1% for EUR 15.32 to EUR 15.48

TIME: 1511GMT/1011EST
NEWS: Tesoro Logistics (TLLP) vice president buys 3,300 shares in the company, according to a filing
REACTION: In an immediate reaction TLLP shares rose 2.0% from USD 60.50 to USD 61.69 before moving higher by a further 0.7% to USD 62.13, taking the total size of the move to 2.7%

TIME: 1339GMT/0839EST
NEWS: Uniqa (UQA AV) cuts 2015 pre-tax profit target to EUR 425-450mln
REACTION: In an immediate reaction UQA AV shares fell 1.9% from EUR 8.82 to EUR 8.65

TIME: 1250GMT/0750EST
NEWS: ECB sources say prefer additional time to assess current measures and QE ‘only option left’ if new measures needed. RANsquawk analysts were quick to point out that the key takeaway was that the ECB say they would prefer additional time to assess current measures and thus downplaying the immanency of an ECB QE programme
REACTION: In an immediate reaction the Dec’14 DAX future fell 48 ticks from 9916.00 to 9868.00, in a 7 minute reaction Dec’14 Bund futures fell 8 ticks from 152.37 to 152.29 and in the same time period EUR/USD rose 21 pips from 1.2466 to 1.2487

TIME: 1200GMT/0700EST
NEWS: Deere (DE) Q4 EPS USD 1.83 vs. Exp. EPS USD 1.57 AND 2015 EPS view about USD 5.36 vs. Exp. USD 6.34. RANsquawk analysts were quick to point out that the Co. lowering their guidance could of importance for their European competitor CNH Industrial (CNHI IM)
REACTION: Following RANsquawk analysts pointing out the relevance for CNH Industrial, CNHI IM shares failed to move for a full two minutes, following which they fell a total of 5.4% from EUR 6.73 to EUR 6.37 before being halted.

TIME: 0801GMT/0301EST
NEWS: Seadrill (SDRL NO) Q3 EBITDA USD 842mln vs. Exp. USD 637.4mln, Co. suspends dividends, says is focusing on debt reduction; suspends dividend payments to strengthen balance sheet
REACTION: Over the following 41 minutes, SDRL NO shares fell a total of 18.9% from NOK 143.12 to NOK 116.17

TIME: 0743GMT/0243EST
NEWS: Saudi Arabia’s Naimi says Saudi, the US and others should not cut output
REACTION: Over the following two minutes Jan’15 WTI crude futures fell USD 0.22 from USD 74.08 to USD 73.84

TIME: 0422GMT/2322EST
NEWS: Toshiba (6502 JT) to develop tool to detect Ebola in 20 minutes
REACTION: In an immediate reaction, 6502 JT shares rose 1.2% from JPY 508.61 to JPY 514.52

(RANsquawk)

MERGERS AND ACQUISITIONS UPDATE: flow from the US session

•    Discovery (DISCA) and Foxtel not seen bidding above AUD 0.26/shr for Ten Networks, according to AFR.
•    Apollo Global (APO) is in the lead to acquire Presidio, according to sources.
•    Analysts at Jefferies believe Mylan (MYL), following its combination with Abbott’s Developed Markets Established Products business, is now the most likely takeover target of Pfizer (PFE).
•    Zoetis (ZTS) – Analysts at Jefferies see a potential acquisition of the co. by another industry player like Bayer as a “highly probable” event during 2015. 

(RANsquawk)

US MARKET WRAP – A slew of downbeat US data and comments from oil ministers ahead of OPEC’s meeting tomorrow dictated the state of play in a quiet trading session before the US Thanksgiving Holiday

US equities traded mostly in minor positive territory despite disappointing US data, in which US Pending Home Sales (-1.1% vs. Exp. 0.5%), New Home Sales (458K vs. Exp. 471K), University of Michigan Confidence (88.8 vs. Exp. 90.0) and Chicago PMI (60.8 vs. Exp. 63.0) all fell below analyst’s estimates, while Initial Jobless Claims (313K vs. Exp. 288K) came in higher-than-expected. However, the Nasdaq-100 outperformed as Analog Devices announced positive earnings after-market yesterday alongside takeover talk for Mylan, who could be Pfizer’s next target, according to analysts at Jefferies. The DJIA underperformed, with McDonald’s among firms weighing on the index as they will be going ex-dividend. 

In terms of fixed income, US Treasuries were supported by the disappointing data, however came under some minor selling pressure after a lacklustre 7-year auction, in which the yield tailed the WI at the bidding deadline. Heading towards the close, treasuries ticked higher amid month-end demand and short-covering ahead of the Thanksgiving weekend. 

In the energy sector, market participants shrugged off the larger-than-expected build in today’s DoE report (1946K vs. Exp. 250K), focusing instead on comments from oil ministers gathered in Vienna ahead of tomorrow’s OPEC meeting. Saudi Oil Minister Al-Naimi said OPEC has to sit together on output limit and said gulf countries have reached a consensus on output policy, while 3 OPEC delegates said the cartel are unlikely to cut output at tomorrow’s meeting, leading Brent and WTI crude futures lower. 

Finally, the DJIA finished up 0.07% at 17827.75, the S&P 500 finished up 0.28% at 2072.79 and the NASDAQ 100 finished up 0.69% at 4317.98

(RANsquawk)