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04.18.2019 21 new posts under Morning Note (9), International Summary (7), General (3), and 1 more category

International Summary

News Trading Desk

International Summary

"CAPIS EU Close – 3/27/2019"

posted by Clayton Duff on 03/27/2019 at 1:04 pm

by Clayton Duff

03/27/2019 at 1:04 pm

Post the mixed session in Asia Europe followed up with like action.  Indices saw light losses in the morning but ticked up sharply at 8:30 EST.  Headlines include a press story concerning the ECB planning to return interest made on excess funds held there by member banks.  At the same time the US reported a trade deficit $6B less than expected with the balance vs China narrowing by$5B. Sentiment of course was higher on hopes the White House will lighten up against their largest trading partner.

Bonds are trading up today sans the UK gilt and the Pound firms above 1.32. Germany issued 10 bunds today, yielding a negative .05%, its first negative rate since 2016.  On the Brexit front it is not completely clear at this point but indications are that PM May may step down from her PM position once she gets the Brexit plan where she wants to be.  Her intent is to put her plan back to a vote in Parliament but will not make the attempt until she is more confident of a win.

In the tech space Infineon fell over 5% after paring their FY19 revenue view and lowering their segment result margin to 16% from 17.5% prior.  Names in the space fell: STMicro -6.6%, Dialog Semi -4.6%, and AMS -6.2%.  On that the tech sector was off 1.2% on the day.

On AML concerns Swedbank fell 12% today with it now tied to Danske Bank +.4%.  The firm is now being alleged to have funneled up to €20B a year between 2010 and 2016.  Their HQ was raided with several high-profile names being mentioned as having been involved.

The auto sector led on the day with strength in several names.  Renault +2.8% led with talks to resume on a merger with Nissan.  If a deal is reached the FT said Fiat Chrysler +2.6% could then be their target.

BT Group +1% worked higher post word they are in talks to pare their workforce by 25% over the next 5 years.  On automation and business disposals the firm could go from 100k down to 75k employees.

Debenhams rallied another 27% with Sport Direct said to consider a 5 pence bid for the firm.

Business Survey data is due out tonight in Korea followed by Confidence data in the EU and in the UK.  Consumer inflation readings are expected in Germany.

About the Author

ClaytonDuffFVP,Senior International Trader

Clayton Duff joined the firm in 2008. He has worked in the industry since 1994 and held various trading and sales positions before CAPIS, including four years as a trader for First Southwest. He earned his bachelor’s degree from the University of Texas Arlington. Clayton maintains Series 3,...

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