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International Summary

News Trading Desk

International Summary

"CAPIS Global Markets 4/2/2019"

posted by Matthew Kiselica on 04/02/2019 at 7:39 am

by Matthew Kiselica

04/02/2019 at 7:39 am

Asian Markets

Most of the regions core markets had minimal moves following yesterday’s strong gains.  Peripherals are outperformers.   Consumer staples fell by c. 1% and defensives remain out of favor.  Materials and IT gained c. 0.5%.  Semiconductor names saw buying interest following a Digitimes report chips prices will rebound during the second half of the year.

Down Under, the RBA left its benchmark rate unchanged at 1.5%, as expected.  Overall, the central bank remained balance noting areas of strength and weakness in the overall economy.  The AUD gained following the countries budget which is projecting an A$7.1b surplus for FY20.

European Markets

Europe had a sluggish start but moved to the highs after about three hours into the trading session.  The markets are currently holding the highs of the day.  The auto sector is the standout better by more than 1%.  Tech, media, insurance, food/bevies and banks are all better by more than 0.5%.  Telecoms and healthcare are down small and retail has lagged all session.

Currency Markets

Bitcoin has surged more than 20.0% during Asian trading.  However, there was no fundamental trigger scene.  Speculation it was a significant buy order but that is not conclusive.  It has pared some of the advance but still strong on the day.

The £ has been trading lower as Parliament once again fails to come to consensus on the Brexit issue.  One member of the Tory Party has resigned due to what he called a failure to compromise.  PM May is holding a cabinet meeting once again on the matter.

Important International Corporate Headlines

  • Ahold -1.7% and peers with U.S. exposure are lower with Amazon having Whole Foods cut prices.
  • Singapore Airlines +0.4% grounded two planes citing “premature blade deterioration” in their Rolls Royce -1.5% engines.
  • Sources allege Tencent +0.3% plans to raise $5b via a US$ bond issue tomorrow.  If so, it will be largest US$ bond issue in Asia outside of Japan thus far for the year.
  • TPG sold the majority of its stake in China Intl Capital -2.7% for HK$2.38b.  This ends a ten year investment earning them a c. 40% return.

On Our Side of the Pond

  • Walgreens Boots Alliance is cutting its FY outlook.  Declining prescription reimbursement is eroding margins.
  • In the MLP space, UGI is acquiring Amerigas Partners.

Markets & Macro

Markets Shapshot

Event Survey Actual Prior Revised
AU ANZ Roy Morgan Weekly Consumer Confidence Index 31-Mar 114.7 111.8
SK CPI MoM Mar 0.20% -0.20% 0.40%
SK CPI YoY Mar 0.70% 0.40% 0.50%
SK CPI Core YoY Mar 1.30% 0.90% 1.30%
JN Monetary Base YoY Mar 3.80% 4.60%
JN Monetary Base End of period Mar ¥506.3t ¥497.3t
AU Building Approvals MoM Feb -1.80% 19.10% 2.50% 2.40%
AU Building Approvals YoY Feb -27.00% -12.50% -28.60% -28.90%
AU RBA Cash Rate Target 2-Apr 1.50% 1.50% 1.50%
IN Nikkei India PMI Mfg Mar 52.6 54.3
SP Unemployment MoM Net (‘000s) Mar -28 -34 3.3
UK Markit/CIPS UK Construction PMI Mar 49.8 49.7 49.5
EC PPI MoM Feb 0.20% 0.10% 0.40% 0.30%
EC PPI YoY Feb 3.10% 3.00% 3.00% 2.90%
US Durable Goods Orders Feb P -1.80% -1.60% 0.30% 0.10%
US Durables Ex Transportation Feb P 0.10% 0.10% -0.20% -0.10%
US Cap Goods Orders Nondef Ex Air Feb P 0.10% -0.10% 0.80% 0.90%
US Cap Goods Ship Nondef Ex Air Feb P -0.10% 0.00% 0.80% 1.00%

About the Author

Matthew Kiselica headshot
MatthewKiselicaFVP,Manager of International Trading

Matthew Kiselica joined CAPIS in 2010 and has over twenty-five years of industry experience. Prior to CAPIS, he was vice president of Cazenove’s global sales trading desk in New York. Matthew is a board member for the National Psoriasis Foundation. He earned his bachelor’s degrees in fina...

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