TUESDAY 4/21/15; Cascading Global Rally; Kaisa Default; BHI; DD; ITW; KSU; LMT; TRV; UA; UTX; VZ; BRCM; NBR; YHOO; YUM

Asian indexes perform the reverse of yesterday up across the board except for South Korea that finishes a touch lower. Global stocks run higher due to the PBOC cutting the reserve requirement ratios for banks on the weekend. Increased bank lending should spur global economic activity. NIKK +1.4%. SPASX200 +0.7%. KOSPI -0.1%. The SSEC gains +1.8% above 4294. The HSI catapults +2.7% above 27850.

Japan stocks such as Mitsubishi Electric and TM gain +3.5% and +2.2%, respectively. RBA meeting minutes show that Australian bankers want to wait for more economic data before committing to interest rate cuts. Aussie dollar 0.7696. The KOSPI takes a rest down marginally ending a seven-day winning streak. South Korean brokerage companies such as Samsung Securities and Hundai Securities are each down -3%.

The Shanghai Index is at new seven-year highs. Chinese real estate developer Kaisa defaults on two debt payments for 2017 and 2018. Investors are increasingly concerned over the debt problems that may surface for Chinese companies. Kaisa is the first Chinese property developer to default on US debt.

European indexes open for trading and launch higher feeding off the rally in Asia. The DAX is up over +1% in quick order and the CAC climbs over +0.5%. The ECB is preparing for curbs on Greek banks. Greece is cash deficient instructing all nation banks to provide available cash to the government. The deadlines continue to extend with July now targeted as the date that Greece will be completely out of money. Nonetheless, Greece is running out of time and has to choose its path forward during the coming weeks. Former ECB-head Jean-Claude Trichet says, “No one is optimistic about Greece.” Greece ASE is down -3.2%.

EU leaders meet today to discuss the humanitarian situation where migrants are fleeing war torn areas such as Libya and end up dying in the Mediterranean Sea from overloaded and unstable ships. The ship tragedy on the weekend killing hundreds is forcing leaders to step in and find a solution to the growing refugee problem from ongoing Middle East regional wars.

TEVA is up +2% and MYL gains +10% on news that Teva Pharma will make a formal bid for Mylan. It would be the largest takeover deal of the year but Mylan has already downplayed the potential takeover. Cosmetic maker L’Oreal reports strong sales. Sky Plc gains +5% after reporting the strongest sales in a decade and high demand for its pay-TV offerings. Credit Suisse faces challenges moving forward as the CEO change occurs over the next couple months. CS trades down -3%.

The DOJ wants five large banks including JPM, BCS, C, RBS and UBS to resolve the litigation concerning foreign exchange market manipulation. Each bank would be expected to pay $1 billion or more in fines. An Egypt court sentences ex-president Mursi to 20 years in prison.

At 3:49 AM, European stocks are running higher with the DAX up +1.4%, CAC +0.9% and FTSE +0.6%. S&P futures +12. Dow +111. Nasdaq +29. Euro 1.0676. Dollar/yen 119.56. Pound 1.4877. Aussie dollar 0.7707.

WTIC crude oil 56.02. Brent oil 62.99. Natural gas is up +1% to 2.56. Gold 1195. Silver 15.95. Copper is down -0.7% to 2.7105.













[Text is Redacted: Purchase April 2015-04 to Read the Complete Chronology]























NBR beats on EPS expectations but misses on the top line. Nabors has canned nearly one in every five global employees ending last year. Nabors axed over 40% of its workforce in the US drilling operations and 26% at Canadian drill rigs. Rental company URI beats on the top and bottom lines an encouraging sign for economic activity.