CAPIS Capital Institutional Services : EU Close 1/4/2017

Following a positive open most European bourses were unable to hold gains and moved lower. The Stoxx600 -.12% rallied off lows going into the close. Basic Resources -1.12% and Retail -1.36% sectors were all off more than one percent. Commodities are trading higher across the board on the back of a weaker USD. WTI +1.55% is trading near its highs around $53.20 while Brent -1.30% has been trading lower all session. Volume were inline with 20-average.

Michelin -2.30% shares pumped the brakes Wednesday after the co. was downgraded from buy to hold at SocGen -.88%. Staying in the space auto sales in the US have been coming in better than expected across the board, though Fiat-Chrysler +.71% saw a decline in sales, but by less than expected. VW -.73% also lost ground after being ordered in a German court to buy back an owners car which could open up the company to addition adverse findings in similar court cases.

In the chemicals space the European commission has extended it deadline to review of ChemChina's $43b bid for Syngenta +.15%.

Novartis -.93% is under investigation by Greek authorities for alleged bribery to officials which led to a raid on their Athens offices. For its part Novartis said in a statement that it take these allegation seriously and will cooperate fully with investigators.

STMicro -.73% shares moved lower this session following the rating cut to underweight at Morgan Stanley.

Intesa Sanpaolo +1.44% shares moved higher on the reports the bank agreed to loan $5.4b to Glencore .89% and Qatar's sovereign wealth fund to assist in their purchase of a stake in Rosnef -3.63%.

Eco Thursday: ADP Employment Change, US Markit PMI, US Initial/Continuing Claims, Japan Vehicle Sales, Japan Nikkei PMI, China Caixin PMI, Ireland Investec PMI and retail sales, Eurozone Markit PMI, Eurozone PPI, and more….