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Forex Flash: Twitter exudes its influence on S&P – Deutsche Bank

FXstreet.com (Barcelona) - Yesterday, “the European session cleared the way for a positive start in the US, which lasted throughout the day, only to be briefly interrupted by a fake Associated Press tweet that two explosions had hit the White House.” notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

AP later clarified that its twitter account has been hacked and the tweet was bogus. Nonetheless it caused a short-lived panic, which saw the S&P 500 plunge 1% in the afternoon before recovering in the next few minutes to eventually close 1% higher on the day.

Meanwhile, US sentiment was supported by the better-than-expected new home sales print (1.5% vs 1.1% expected) even though the Markit US PMI Preliminary (52.0 vs 53.9 expected) and Richmond Fed survey (-6 vs +2 expected) for April were both below market estimates. It was also a mixed day for earnings as strong EPS beats was again met by disappointing top line performances. Of the 36 companies that reported yesterday, 26 of those topped EPS consensus but only 10 of those came ahead of sales estimates.

Fundamental Morning Wrap

A quiet morning wrap today, shows that institutional focus is firmly placed on Europe, with the prospective pending ECB rate cut most in focus, alongside the Italian political mechanics and the plunge in German economic sentiment.
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