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06.18.2019 19 new International Summary posts under Morning Note (10) and International Summary (9)

International Summary

News Trading Desk

International Summary

"CAPIS Global Markets 6 11 2019"

posted by Matthew Kiselica on 06/11/2019 at 6:45 am

by Matthew Kiselica

06/11/2019 at 6:45 am

Asian Markets

Another solid day for the region with each of the core markets building upon yesterday’s gains.  The Mainland Chinese markets were the stars.  China is permitting local governments to use proceeds from special bond sales to fund “qualified major projects.”  This should boost infrastructure spending.  Australia needed to play catch up following yesterday’s holiday.

All the major sectors close to the upside with Chinese names providing impetus.  Materials improved by 2% followed by consumer staples, IT and industrials.

Other Important Headlines

  • Another news item that caught Chinese investors eye is a report indicating the White House acting budget head is asking for a delay to the Huawei Tech business ban.
  • The markets paid little attention to Pres. Trump saying he will impose additional tariffs on Chinese goods if Pres. Xi doesn’t meet with him at the G-20 meeting.
  • Alibaba is said to have selected CICC and Credit Suisse as brokers for its Hong Kong listing.  The company is expected to officially file in the next “few weeks.”
  • Down Under, AGL Energy -7.2% is proposing to purchase Vocus Group +8.8% at A$4.85 per share.  That is a 27.0% premium to Friday’s close (market was closed yesterday).  The prior bid by EQT which ended without a deal was A$5.25 per share.
  • After the local close, China’s Passenger Car Assoc. stated auto sales declined for the 12th consecutive month.  The fall during May is 12.5%.

European Markets

Europe is trading very well and currently the markets are near highs.  Remember, a number of markets need to play catch up following yesterday’s holiday including Germany and Switzerland.  The majority of sectors are higher by at least 1%.  Basic resources surge more than 2.5% with autos trading shy of +2.o%.  Utilities, travel/leisure and food/bevies have been down small most of the session.

The commodities markets are seeing iron ore surging due to the Chinese news noted in our Asian Markets section.  Gasoline futures are also seeing strong gains.  A fire occurred yesterday evening at the Philadelphia Energy Solutions refinery.  It is largest such facility on the East Coast.

In the U.K., while not as crowded as the U.S. Democrat Presidential field, 10 Conservatives have thrown their hat in the ring to lead the party.  This link has the full list along with related videos.   The first round of voting will be Thursday.

Corporate Snippets

  • Handelsblatt says ING +0.9% has stepped away from any tie up with Commerzbank +1.2%.
  • Ted Baker -28.6% is having a brutal day.  The company has issued its third profit warning noting “extremely difficult trading conditions” which are negatively affecting sales and margins.  Brokers are cutting estimates.
  • In addition to playing catch-up, Novo Nordisk +5.9% is benefiting from comments by Barclays.  The broker says study data regarding the cariovascular benefits of Eli Lilly’s Trulicity are “underwhelming.”  The results were presented at the American Diabetes Assoc. conference and Lilly’s shares were down 3.7% yesterday.

On Our Side of the Pond

  • The NY Post claims a Federal judge will rule against the CVS/Aetna merger.
  • Apollo Global has agreed to purchase Shutterfly for $1.74b.  The cash bid of $51 per share is a 31.0% premium to yesterday’s close.

Markets & Macro

Markets

Event Survey Actual Prior Revised
JN Money Stock M2 YoY May 2.50% 2.70% 2.60% 2.50%
JN Money Stock M3 YoY May 2.20% 2.30% 2.20%
CH Manpower Survey 3Q 8% 6%
AU Manpower Survey 3Q 11% 10%
IN Manpower Survey 3Q 13% 13%
JN Manpower Survey 3Q 25 27
AU NAB Business Conditions May 1 3
AU NAB Business Confidence May 7 0
HK Manpower Survey 3Q 16% 19%
JN Machine Tool Orders YoY May P -27.30% -33.40%
FR Bank of France Ind. Sentiment May 100 99 99
UK Claimant Count Rate May 3.10% 3.00%
UK Jobless Claims Change May 23.2k 24.7k 19.1k
UK Average Weekly Earnings 3M/YoY Apr 3.00% 3.10% 3.20% 3.30%
UK Weekly Earnings ex Bonus 3M/YoY Apr 3.20% 3.40% 3.30%
UK ILO Unemployment Rate 3Mths Apr 3.80% 3.80% 3.80%
UK Employment Change 3M/3M Apr 4k 32k 99k
EC Sentix Investor Confidence Jun 2.5 -3.3 5.3
US NFIB Small Business Optimism May 102 105 103.5
US PPI Final Demand MoM May 0.10% 0.20%
US PPI Ex Food and Energy MoM May 0.20% 0.10%
US PPI Ex Food, Energy, Trade MoM May 0.20% 0.40%
US PPI Final Demand YoY May 2.00% 2.20%
US PPI Ex Food and Energy YoY May 2.30% 2.40%
US PPI Ex Food, Energy, Trade YoY May 2.20%

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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