Another solid finish in Asia today with broad sector gains both in China and Japan. The ¥ was steady with the BoJ leaving rates unchanged as their excess reserve rate was retained at -.1%. The pace of JGB and ETF purchases were kept as-is as well. Post the Saudi comments yesterday Energy led on the session in Japan with Industrials and RE also post solid gains. Consumer names led in Hong Kong with Health Care and Energy posting gains of 2.5% or more. In Shanghai Energy and RE were also at the top of the leaderboard with markets shaking off the tariffs imposed by China against the US.
South Korea underperformed despite the meeting with the North and a military agreement to pare tensions between the two. President Trump said a trade deal with Korea has been met with the deal to be signed at the UN General meeting later this month.
Back to China Premier Li said the country will look to increase outside involvement in their economy at a quicker pace amid the row with the US. Concerning exports he again said the yuan will not be devalued to up shipments.
- Tencent +1.1% rose with Reuters reporting Tencent Music Entertainment is looking to IPO in the States in a bid to raise $2B.
- Post the FY loss by Esprit after the close yesterday the stock fell 3% on the day with further disappointment on the unsurprising announcement of no divi.
European indices are trading near flattish levels today despite strength in Basic Resources, Chemicals, and Autos. EU27 New Car Registrations ticked up over 31% in August. The Pound lurched higher after UK inflation rose .7% MoM vs the expected .5% uptick but gains were short-lived with PM May said to have rejected the EU’s revised Irish Border offer. Additionally, both Retail Price and House Price Index readings saw a larger than expected increase as well. PM May noted in a press story earlier an exit deal is “virtually agreed” adding there is no need for a second Brexit vote.
In individual names Adecco is off 4.8% after noting September volume trends lend to a slight deceleration in revenues. The firm had seen revenues up 2% both in July and August but softer markets are weighing.
Home improvement firm Kingfisher -3.3% disappointed with poor results in France. 1H profit there fell to £122M from £174M with logistics and stock inefficiencies cited.
As we highlighted yesterday TomTom -5.2% is again on the downslide with the newspaper Telegraaf reporting Google is no longer interested in the firm nor is a private equity firm. Their CFO though stated the new relationship between Google and Renault in their space does have an effect on TomTom’s order intake but no immediate impact on revenues.
|JN||15)||Trade Balance Adjusted||Aug||-¥144.1b||-¥190.4b||-¥45.6b||-¥102.3b|
|AU||18)||Bloomberg Sept. Australia Economic Survey (Table)|
|AU||19)||Westpac Leading Index MoM||Aug||—||0.06%||0.01%||0.02%|
|AU||20)||Skilled Vacancies MoM||Aug||—||0.60%||0.20%||0.10%|
|JN||21)||BOJ Policy Balance Rate||19-Sep||-0.10%||-0.10%||-0.10%||—|
|JN||22)||BOJ 10-Yr Yield Target||19-Sep||0.00%||0.00%||0.00%||—|
|SZ||23)||SECO September 2018 Economic Forecasts (Table)|
|FI||24)||Current Account Balance||Jul||—||0.05b||-0.44b||-0.18b|
|EC||25)||EU27 New Car Registrations||Aug||—||31.20%||10.50%||—|
|EC||26)||ECB Current Account SA||Jul||—||21.3b||23.5b||23.8b|
|IT||27)||Current Account Balance||Jul||—||8607m||5135m||5309m|
|GR||28)||Current Account Balance||Jul||—||1577m||210m||—|
|UK||32)||CPI Core YoY||Aug||1.80%||2.10%||1.90%||—|
|UK||33)||Retail Price Index||Aug||283.4||284.2||281.7||—|
|UK||36)||RPI Ex Mort Int.Payments (YoY)||Aug||3.20%||3.40%||3.30%||—|
|UK||37)||PPI Input NSA MoM||Aug||0.50%||0.50%||0.50%||0.00%|
|UK||38)||PPI Input NSA YoY||Aug||9.10%||8.70%||10.90%||10.30%|
|UK||39)||PPI Output NSA MoM||Aug||0.20%||0.20%||0.00%||—|
|UK||40)||PPI Output NSA YoY||Aug||2.90%||2.90%||3.10%||—|
|UK||41)||PPI Output Core NSA MoM||Aug||0.20%||0.10%||0.00%||0.10%|
|UK||42)||PPI Output Core NSA YoY||Aug||2.10%||2.10%||2.20%||2.30%|
|UK||43)||House Price Index YoY||Jul||2.70%||3.10%||3.00%||3.20%|
|HK||44)||Composite Interest Rate||Aug||—||0.66%||0.63%||—|
|EC||45)||Construction Output MoM||Jul||—||0.30%||0.20%||0.70%|
|EC||46)||Construction Output YoY||Jul||—||2.60%||2.60%||3.00%|