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International Summary

News Trading Desk

International Summary

"CAPIS Global Markets 4/9/2019"

posted by Matthew Kiselica on 04/09/2019 at 7:21 am

by Matthew Kiselica

04/09/2019 at 7:21 am

Asian  Markets

Lackluster trading with mixed performance across the region and also within countries.  For example, Chinese and Japanese markets saw varied moves across their related indices.  As a result, sectors were also mixed.  Real estate, healthcare and consumer discretionary improve about 1%.  Materials saw profit taking and gave way c. 1% while utilities end the day off c. 0.5%.

Important Headlines

  • Sony +9.3% is one of the day’s stars.  This was in response to yesterday’s report activest investor Thirdpoint is building a stake in the company.
  • Gree Appliance +10.0% is limit up.  Its parent company intends to sell a 15.0% stake.  The general commentary is this will improve corporate structure and operational efficiency.
  • Wynn Resorts is conducting talks to acquire Crown Resorts +19.7%.  The deal is said to put a valuation on Crown of c. A$10b and is A$14.75 per share.  That is c. 26.0% premium to yesterday’s close and will put quite a few shrimp on the bar-b.
  • The Chinese auto sector had a number of important headlines.  Byd’s +1.2% new energy vehicle sales improve by 116.0% y/y during March.  Total sales are 8.5% higher.  Geely Auto’s +0.9% are 3% to the upside and the company saw a double upgrade at BoAML.  The sales increases buck the trend for the industry.  The Passenger Care Assoc. says overall sales for the month are lower by 12.0% y/y.
  • After the local close, Japan’s Ministry of Finance confirmed a Nikkei report the government will reduce its stake of Japan Post Holding.  The government currently holds c. 57.0% and will place roughly $12b worth of stock, possibly by September.  The nation will retain a stake exceeding 1/3 which is required by law.

European Markets

After a sluggish start, the region moved to highs on Brexit headlines which we will outline below.  The markets are slowing fading from the day’s highs and is now flat.  Pres. Trump has tweeted about more tariffs (see Airbus below).  Banks are higher c. 1% being followed by insurance, healthcare, telecoms and energy.   Technology creates the biggest drag off more than 0.5%.  Travel/leisure, industrials, travel/leisure and autos weighing.

The Brexit news is a BBC report stating German Chancellor would be willing to put a 5 year time limit on the Irish backstop.  This has not been confirmed.   PM May is scheduled to meet with Chanc. Merkel and French Pres. Macron today.  She will make her case for another delay to her nation’s withdrawal from the EU.  An emergency EU meeting is schedule for tomorrow in Brussels.  Another item said to be on the meeting’s agenda, is a joint EU/Chinese statement regarding the US tariff actions.

There is other news on the political front.  Israel holds elections in a hotly, contested race.  If reelected, PM Natanyahu would hold the office for a record 5th term.   In Turkey, Pres. Erdogan’s party is demanding a rerun of the Istanbul mayoral elections.

Important Snippets

  • Airbus -1.7% suffers with Pres. Trump directing his cross-hairs at the company.  He is threatening to impose tariffs c. $11b on European goods because of subsidies for the plane maker.
  • The Novartis -1.4% spin-off of Alcon +6.0% occurs today in Switzerland.  The shares will also commence trading on the NYSE.
  • The shares of Debenhams are halted. Talks with Sports Direct +2.4% has concluded without a deal.  This leaves the troubled retailer with few options to resolve its credit woes.
  • The demand for Aramco’s $1ob USD denominated bond is now said to exceed $100b.

On Our Side of the Pond

  • CEOs of various pharmacies and health care management companies present on Capitol Hill today.
  • Earnings due this morning include Shaw Comm. with Levi Strauss due after the close.
  • Not much on the macro front but the JOLTS data is due and API crude data after the close.

Markets and Macro

Markets Snapshot

Event Survey Actual Prior Revised
UK BRC Sales Like-For-Like YoY Mar -0.80% -1.10% -0.10%
AU ANZ Roy Morgan Weekly Consumer Confidence Index 7-Apr 113.2 114.7
AU Home Loans MoM Feb 0.50% 0.80% -1.20% -0.80%
AU Owner-Occupier Loan Value MoM Feb 1.00% 3.40% -1.30% -0.90%
AU Investment Lending Feb -1.00% 0.90% -4.10% -3.80%
IT Istat Publishes Revisions to GDP, Deficit, Debt for 2018, 2017
IT Retail Sales MoM Feb -0.20% 0.10% 0.50% 0.60%
IT Retail Sales YoY Feb 0.90% 1.30% 1.20%
US NFIB Small Business Optimism Mar 102 101.8 101.7
US JOLTS Job Openings Feb 7550 7581

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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