Post the encouraging late-day rebound in the States Asian indices closed mostly higher with the Nikkei ending slightly lower on the session. Japan saw Industrial Production weaken in November albeit less than expected while retail sales eased from better levels. Trading in Japan is done for 2018 with their market to not reopen until next Friday. Industrial Production fell 1.7% in South Korea but the Kospi managed a small gain on the day.
From a meeting on the 20th the BoJ said they see global economic risks increasing adding yields should be allowed to be under zero at least temporarily. They added that inflation is not moving higher as expected with falling oil prices to delay achieving price targets. At one point today the yield on their 10 year bond moved to zero.
Chinese indices finished up with Hong Kong flat ahead of official PMI readings due this weekend there. Expectations are that Manufacturing will hold steady right at the expansion/contraction line with non-Manu holding at 53.2. On the Shanghai, Consumer Staples led with alcohol producers rallying as Utilities and RE names finished better as well. Energy slipped despite strength in crude. To note, local press reported officials see FY18 industrial production growth pulling back to only +6.3% YoY.
Sinopec -5.1% again underperformed, hitting fresh 52 week lows. On reports of large losses on crude oil futures trading at Unipec, Citi estimated a 7% hit to FY earnings using a $1B loss estimate. CICC speculated losses could have been generated from put sells on crude.
Toshiba finished up 3.5% with a larger shareholder calling for ¥1.1T in share buybacks while also encouraging them to sell the TEC business.
European indices have steadily risen throughout the morning with solid gains seen throughout the region. All sectors are up over a percent with almost half seeing gains of over two percent. Energy leads with the aforementioned strength in oil prices with Tech also strong.
German regional CPI readings are generally lighter than previous results ahead of the national view expected later this year. ECB banker Knot today seemed to dismiss the slowing of growth noting “a large part of the world economy is now operating at full capacity”. He alluded to the fact that growth will ebb and flow and that while core inflation for the region is not on the upswing future QE moves should be restrained for deflationary moves only.
And speaking of Knot, he also today focused on the lack of AML oversight at banks adding they have minimized compliance costs to boost profits. He highlighted ING +1.9%, stating they chose profit over compliance and risk management allowing criminal money to circulate throughout the economy. Danske +2.1% and Deutsche Bank +3.6% have also faced AML concerns.
On light news headlines building material firm CRH +3% is up today on its commencement to repurchase €200M of shares.
Note that Monday France, the Netherlands, Belgium, Ireland, Italy, the UK, and Spain will be open a half day for trading with the balance of markets shut through Tuesday. Switzerland will reopen Thursday.
|SK||13)||Business Survey Non-Manufacturing||Jan||—||72||74||—|
|SK||14)||Business Survey Manufacturing||Jan||—||71||71||—|
|SK||15)||Industrial Production SA MoM||Nov||-0.20%||-1.70%||1.00%||1.30%|
|SK||16)||Industrial Production YoY||Nov||1.40%||0.10%||10.70%||10.90%|
|SK||17)||Cyclical Leading Index Change||Nov||—||-0.2||-0.4||—|
|JN||20)||Tokyo CPI YoY||Dec||0.50%||0.30%||0.80%||—|
|JN||21)||Tokyo CPI Ex-Fresh Food YoY||Dec||0.90%||0.90%||1.00%||—|
|JN||22)||Tokyo CPI Ex-Fresh Food, Energy YoY||Dec||0.60%||0.60%||0.60%||—|
|JN||23)||Japan Buying Foreign Bonds||21-Dec||—||-¥312.2b||¥63.3b||¥107.3b|
|JN||24)||Japan Buying Foreign Stocks||21-Dec||—||-¥179.6b||-¥63.0b||—|
|JN||25)||Foreign Buying Japan Bonds||21-Dec||—||-¥2205.0b||¥1607.4b||¥1627.9b|
|JN||26)||Foreign Buying Japan Stocks||21-Dec||—||-¥496.4b||-¥166.9b||-¥171.6b|
|JN||27)||Industrial Production MoM||Nov P||-1.50%||-1.10%||2.90%||—|
|JN||28)||Industrial Production YoY||Nov P||0.60%||1.40%||4.20%||—|
|JN||29)||Retail Trade YoY||Nov||2.10%||1.40%||3.50%||3.60%|
|JN||30)||Retail Sales MoM||Nov||-0.40%||-1.00%||1.20%||1.30%|
|JN||31)||Dept. Store, Supermarket Sales||Nov||-0.40%||-2.20%||-0.80%||—|
|JN||32)||Vehicle Production YoY||Oct||—||6.30%||-5.30%||-5.30%|
|NE||33)||Producer Confidence Index||Dec||—||7.5||7.2||—|
|NO||34)||Retail Sales W/Auto Fuel MoM||Nov||0.80%||0.90%||-0.20%||—|
|FI||35)||House Price Index MoM||Nov||—||0.70%||-1.00%||—|
|FI||36)||House Price Index YoY||Nov||—||1.00%||0.40%||0.20%|
|SZ||37)||KOF Leading Indicator||Dec||98.8||96.3||99.1||98.9|
|GE||38)||CPI Saxony MoM||Dec||—||0.40%||-0.10%||—|
|GE||39)||CPI Saxony YoY||Dec||—||1.90%||2.10%||—|
|SP||40)||GDP QoQ||3Q F||0.60%||0.60%||0.60%||—|
|SP||41)||GDP YoY||3Q F||2.50%||2.40%||2.50%||—|
|SP||42)||CPI MoM||Dec P||-0.10%||-0.40%||-0.10%||—|
|SP||43)||CPI YoY||Dec P||1.50%||1.20%||1.70%||—|
|SP||44)||CPI EU Harmonised MoM||Dec P||-0.10%||-0.50%||-0.20%||—|
|SP||45)||CPI EU Harmonised YoY||Dec P||1.60%||1.20%||1.70%||—|
|GE||49)||CPI Hesse MoM||Dec||—||-0.10%||0.30%||—|
|GE||50)||CPI Hesse YoY||Dec||—||1.40%||2.10%||—|
|GE||51)||CPI Bavaria MoM||Dec||—||0.00%||0.30%||—|
|GE||52)||CPI Bavaria YoY||Dec||—||2.20%||2.70%||—|
|NO||53)||Norges Bank Daily FX Purchases||Jan||—||-350m||-350m||—|
|SP||54)||Current Account Balance||Oct||—||0.3b||0.9b||0.7b|
|GE||55)||CPI North Rhine Westphalia MoM||Dec||—||0.00%||0.30%||—|
|GE||56)||CPI North Rhine Westphalia YoY||Dec||—||1.80%||2.40%||—|
|UK||57)||UK Finance Loans for Housing||Nov||38925||39403||39697||39640|
|GE||58)||CPI Baden Wuerttemberg MoM||Dec||—||0.00%||0.30%||—|
|GE||59)||CPI Baden Wuerttemberg YoY||Dec||—||2.00%||2.70%||—|
|PO||60)||Industrial Production MoM||Nov||—||-2.40%||-0.90%||-0.50%|
|PO||61)||Industrial Production YoY||Nov||—||-2.90%||-0.30%||-0.10%|
|PO||62)||Retail Sales MoM||Nov||—||1.60%||2.30%||2.80%|
|PO||63)||Retail Sales YoY||Nov||—||4.10%||—||5.60%|
|GE||64)||CPI MoM||Dec P||0.30%||—||0.10%||—|
|GE||65)||CPI YoY||Dec P||1.90%||—||2.30%||—|
|GE||66)||CPI EU Harmonized MoM||Dec P||0.40%||—||0.10%||—|
|GE||67)||CPI EU Harmonized YoY||Dec P||1.90%||—||2.20%||—|