Asian indices closed with a slight negative bias while the Nikkei outperformed posting a flat close to the session. China had several economic bits out to kick off the session with FDI a notable laggard. On a sector basis, IT and Materials were up small in Japan with Utilities and Energy lagging. Consumer goods were to the upside in Hong Kong with Autos again better bid. With oil pulling back a bit, Energy names weighed in Australia.
Both the Shanghai and Shenzhen closed just off lows with many names lower on the lackluster economic releases. Retail sales showed a slight slowdown in October with Industrial Production readings on a YoY basis as expected for the most part. Foreign Direct Investment for October though grew at 5.0%, well light of the 17.3% increase prior. Casino names were flat on the day despite Credit Suisse noting the first week and a half in November saw a 20-22% uptick in revenue for Macau gaming vs the +15% expected. In the auto space, China said they may consider allowing new permits for EV’s next year, just in time for Ford and Tesla to kick off endeavors there. Also, Citi initiated coverage in the space with Great Wall -.8% named a sell with BYD -1.3% and Brilliance China +4.5% called buys. Note home sales value fell over 3% in October which was the largest drop in over 2 years. Also, power output growth eased to +2.5% in October from the prior +5.3%.
After the close, Hon Hai reported 3Q results that were sharply under estimates with gross margins at 5.83% well below the 7.49% expected. Sales were inline.
Ahead of a slew of economic releases tonight, Japan finished flat with several banks to report earnings later along with many other firms. E-commerce firm Rakuten fell 6% despite beating esimatess. Investment gains spurred results but investors are concerned with their core e-commerce biz. Toshiba +4.7% ticked higher with word they may wrap up their dispute with Western Digital allowing for further production of chips together. Softbank -1.5% weighed as it erases much of October’s gains. The firm said it may not invest in Uber if the terms are not satisfactory.
Down Under, chemical firm Incitec +4.8% rallied on FY results and plans for a stock buyback but CS lowered the name to Underperform post the close. Woodside Petroleum fell 3.2% today on massive volume on word RD Shell would sell their 8.5% stake in the firm.
MSCI announced changes to indices worldwide post the US close yesterday with changes to be made November 30th on the close. France and Germany are expected to see the most inflow with the UK losing.
Moves in Europe as subdued as well with little direction away from the flatline thus far. The balance of sectors up vs. down is fairly even with Telcos leading while miners and energy names pull back. Ecocomic readings are out with EZ results as expected while GDP in Germany was to the upside. Inflation readings in the UK were a touch light.
And speaking of the UK, PM May will allow parliament to vote on the Brexit agreement and the implementation of it in an appeasement to the Labour party as well as pro-EU Tories. The £ is unchanged on the session as it hovers precariously near recent resistance above a downsloping 400 dmvag.
The FTSE is a small outperformer with Telco giant Vodafone +4.7% upping their FY organic ebitda view to €14.75-14.95B vs the prior €14-14.5B. Service revenue was ratcheted a hair lower, to +1.3% from +1.4% despite customers spending more on pricier data plans.
Food retailers are to the upside with solid 12 week gains seen across the board. Tesco +5.8% saw sales up 2.3%. The firm also received the ok to acquire Booker +6% with the deal expected to close early next year.
Bovis Homes +1% is leading the sector after noting they should meet FY17 profit forecasts noting average selling prices are up. Berkeley Group +1.3%, Crest Nicholson +.7%.
|AU||23)||ANZ Roy Morgan Weekly Consumer Confidence Index||12-Nov||—||114.8||112.6||—|
|AU||24)||NAB Business Conditions||Oct||—||21||14||—|
|AU||25)||NAB Business Confidence||Oct||—||8||7||8|
|CH||26)||Retail Sales YoY||Oct||10.50%||10.00%||10.30%||—|
|CH||27)||Retail Sales YTD YoY||Oct||10.40%||10.30%||10.40%||—|
|CH||28)||Fixed Assets Ex Rural YTD YoY||Oct||7.30%||7.30%||7.50%||—|
|CH||29)||Industrial Production YoY||Oct||6.30%||6.20%||6.60%||—|
|CH||30)||Industrial Production YTD YoY||Oct||6.70%||6.70%||6.70%||—|
|CH||31)||Foreign Direct Investment YoY CNY||Oct||—||5.00%||17.30%||—|
|SW||32)||Maklarstatistik Swedish Housing Price Data|
|IN||34)||Wholesale Prices YoY||Oct||3.01%||3.59%||2.60%||—|
|NO||36)||GDP Mainland QoQ||3Q||0.50%||0.60%||0.70%||0.60%|
|FI||39)||GDP Indicator WDA (YoY)||Sep||—||3.80%||2.70%||3.70%|
|GE||40)||GDP SA QoQ||3Q P||0.60%||0.80%||0.60%||—|
|GE||41)||GDP WDA YoY||3Q P||2.30%||2.80%||2.10%||2.30%|
|GE||42)||GDP NSA YoY||3Q P||2.00%||2.30%||0.80%||1.00%|
|GE||43)||CPI MoM||Oct F||0.00%||0.00%||0.00%||—|
|GE||44)||CPI YoY||Oct F||1.60%||1.60%||1.60%||—|
|GE||45)||CPI EU Harmonized MoM||Oct F||-0.10%||-0.10%||-0.10%||—|
|GE||46)||CPI EU Harmonized YoY||Oct F||1.50%||1.50%||1.50%||—|
|SP||47)||CPI Core MoM||Oct||0.10%||0.60%||0.00%||—|
|SP||48)||CPI Core YoY||Oct||1.20%||0.90%||1.20%||—|
|SW||49)||Valueguard Swedish Housing-Price Data|
|SP||50)||CPI MoM||Oct F||0.90%||0.90%||0.90%||—|
|SP||51)||CPI YoY||Oct F||1.60%||1.60%||1.60%||—|
|SP||52)||CPI EU Harmonised MoM||Oct F||0.60%||0.60%||0.60%||—|
|SP||53)||CPI EU Harmonised YoY||Oct F||1.70%||1.70%||1.70%||—|
|SZ||54)||Producer & Import Prices MoM||Oct||—||0.50%||0.50%||—|
|SZ||55)||Producer & Import Prices YoY||Oct||—||1.20%||0.80%||—|
|UK||57)||U.K. Economic Forecasts: Bloomberg Monthly Survey (Table)|
|NE||58)||GDP QoQ||3Q P||0.40%||0.40%||1.50%||—|
|NE||60)||GDP Constant Price NSA YoY||3Q P||3.40%||3.00%||3.30%||—|
|SW||62)||CPI CPIF MoM||Oct||0.10%||-0.10%||0.20%||—|
|SW||63)||CPI CPIF YoY||Oct||2.00%||1.80%||2.30%||—|
|IT||65)||GDP WDA QoQ||3Q P||0.50%||0.50%||0.40%||0.30%|
|IT||66)||GDP WDA YoY||3Q P||1.70%||1.80%||1.50%||—|
|SW||67)||Swedish FSA Mortgage Margin Report|
|PO||68)||GDP QoQ||3Q P||0.70%||0.50%||0.30%||—|
|PO||69)||GDP YoY||3Q P||2.80%||2.50%||2.90%||—|
|UK||73)||CPI Core YoY||Oct||2.80%||2.70%||2.70%||—|
|UK||74)||Retail Price Index||Oct||275.5||275.3||275.1||—|
|UK||77)||RPI Ex Mort Int.Payments (YoY)||Oct||4.20%||4.20%||4.10%||—|
|UK||78)||PPI Input NSA MoM||Oct||0.80%||1.00%||0.40%||0.20%|
|UK||79)||PPI Input NSA YoY||Oct||4.80%||4.60%||8.40%||8.10%|
|UK||80)||PPI Output NSA MoM||Oct||0.30%||0.20%||0.20%||—|
|UK||81)||PPI Output NSA YoY||Oct||2.90%||2.80%||3.30%||—|
|UK||82)||PPI Output Core NSA MoM||Oct||0.20%||0.10%||0.00%||-0.10%|
|UK||83)||PPI Output Core NSA YoY||Oct||2.20%||2.10%||2.50%||—|
|UK||84)||House Price Index YoY||Sep||—||5.40%||5.00%||4.80%|
|EC||85)||Industrial Production SA MoM||Sep||-0.60%||-0.60%||1.40%||—|
|EC||86)||Industrial Production WDA YoY||Sep||3.20%||3.30%||3.80%||3.90%|
|CC||87)||GDP NSA YoY||3Q P||—||3.80%||3.60%||—|
|CC||88)||GDP QoQ||3Q P||—||0.90%||0.90%||—|
|GE||89)||ZEW Survey Current Situation||Nov||88||88.8||87||—|
|EC||90)||ZEW Survey Expectations||Nov||—||30.9||26.7||—|
|GE||91)||ZEW Survey Expectations||Nov||19.5||18.7||17.6||—|
|EC||92)||GDP SA QoQ||3Q P||0.60%||0.60%||0.60%||—|
|EC||93)||GDP SA YoY||3Q P||2.50%||2.50%||2.50%||—|
|IT||94)||CPI EU Harmonized YoY||Oct F||1.10%||1.10%||1.10%||—|
|IT||95)||CPI FOI Index Ex Tobacco||Oct||—||100.9||101.1||—|
|PO||96)||Labour Costs YoY||3Q||—||-1.10%||2.90%||3.10%|
|DE||100)||GDP Indicator SA QoQ||3Q||—||-0.30%||0.50%||—|