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02.23.2018 19 new International Summary posts under International Summary (18) and General (1)

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International Summary

"CAPIS Global Recap 2/13/2018"

posted by Matt Kiselica on 02/13/2018 at 6:48 am

by Matt Kiselica

02/13/2018 at 6:48 am

Asian Headlines

Most of Asia traded to the upside; however, Japan gave back earlier gains.  Sectors were mostly higher with IT and real estate better by more than 1%.  Telcos fell by c. 0.5% and industrials were also red.

Japan reopened from its three day weekend to the upside.  However, a strengthening ¥ weighed upon exporters which dragged the indices lower.  The currency rose when PM Abe told Parliament he had not officially renominated BoJ Gov. Kuroda to retain his current position.  This was a surprise given recent reports he had done so.  Mr. Kuroda is still expected to retain his post.  Gov. Kuroda did speak to parliament essentially saying current policy to remain in place.  A worry to current policy are polls showing PM Abe’s approval rating is at an all-time low.

Other snippets include:

  • While continuing to refrain from OMOs, the PBoC injected CNY 393b via a 1 yr. medium term lending facility.  The central bank also asked banks to defer loans until after the new year.
  • Tencent +3.1% has slightly increased it holding in Tesla and now possesses a 4.97% passive stake.
  • Both Pioneer -10.0% and Renesas Elec. -4.0% disclosed disappointing outlooks while NTT’s -4.4% NI missed.
  • Carl Icahn urged Xerox shareholders to reject Fujifilm’s -3.2% takeover attempt.
  • Lotte Group Chairman Shin was sentenced to 30 months in prison for corruption charges.

European Headlines

Europe started to the upside but quickly turned red and the region has remained lower with U.S. futures also to the downside.  One of the factors weighing this morning is currency concerns.  DXY is off about 0.5%.  Most sectors trade lower but travel and leisure gains, as does materials.  Those two sectors have helped the FTSE hold steady and outperform the other indices.

To underscore the aforementioned currency concerns, Michelin -1.6% noted FX headwinds coupled with rising input costs will erode margins.  Operationally, their commentary was rather upbeat.

TUI +4.0% has provided the boost for the travel & leisure sector.  The travel booking company reports strong Q1 sales and summer reservations have had a solid start.

The IEA declared the OPEC led coalition has almost cleared the global oil surplus.  However, it tempered the statement by indicating the rise in prices and corresponding surge in shale output could result in rising inventories again.  Crude is currently down small.

On our side of the pond, plenty of earnings out this morning and the WSJ reported Walgreens Boots Alliance is conducting initial talks to acquire AmerisourceBergan.

Brazil remains closed for Carnival.

Market Levels and Macro Data

 

Event Survey Actual Prior Revised
SK Import Price Index YoY Jan -2.40% -1.00% -0.90%
SK Import Price Index MoM Jan 0.70% -0.80% -0.70%
SK Export Price Index YoY Jan -3.50% -2.10% -2.00%
SK Export Price Index MoM Jan -0.40% -1.60% -1.50%
AU ANZ Roy Morgan Weekly Consumer Confidence Index 11-Feb 119.5 122.7
JN PPI YoY Jan 2.80% 2.70% 3.10% 3.00%
JN PPI MoM Jan 0.30% 0.30% 0.20% 0.10%
AU NAB Business Conditions Jan 19 13
AU NAB Business Confidence Jan 12 11 10
SK Money Supply L SA MoM Dec 0.30% 0.40%
SK Money Supply M2 SA MoM Dec 0.40% 0.20%
JN Machine Tool Orders YoY Jan P 48.80% 48.30%
FR Wages QoQ 4Q P 0.20% 0.10% 0.30%
FR Private Sector Payrolls QoQ 4Q P 0.30% 0.30% 0.30%
SP House transactions YoY Dec 9.20% 18.10%
UK CPIH YoY Jan 2.80% 2.70% 2.70%
UK CPI MoM Jan -0.60% -0.50% 0.40%
UK CPI YoY Jan 2.90% 3.00% 3.00%
UK CPI Core YoY Jan 2.60% 2.70% 2.50%
UK Retail Price Index Jan 276.2 276 278.1
UK RPI MoM Jan -0.70% -0.80% 0.80%
UK RPI YoY Jan 4.00% 4.00% 4.10%
UK RPI Ex Mort Int.Payments (YoY) Jan 4.10% 4.00% 4.20%
UK PPI Input NSA MoM Jan 0.60% 0.70% 0.10% 0.60%
UK PPI Input NSA YoY Jan 4.10% 4.70% 4.90% 5.40%
UK PPI Output NSA MoM Jan 0.20% 0.10% 0.40%
UK PPI Output NSA YoY Jan 3.00% 2.80% 3.30%
UK PPI Output Core NSA MoM Jan 0.20% 0.30% 0.30% 0.20%
UK PPI Output Core NSA YoY Jan 2.30% 2.20% 2.50% 2.40%
UK House Price Index YoY Dec 4.90% 5.20% 5.10% 5.00%
US NFIB Small Business Optimism Jan 105.3 106.9 104.9

About the Author

MattKiselicaFVP,Manager International Trading

Mr. Kiselica has over 20 years of industry experience. Prior to joining CAPIS, he was Vice President of Cazenove’s global sales trading desk, in New York. He earned his bachelor degree from Rutgers University. Mr. Kiselica maintains Series 3, 7, 24, 55, and 63 licenses.

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