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07.18.2019 14 new posts under Morning Note (9), International Summary (4), Compliance Docs. (1)

International Summary

News Trading Desk

International Summary

"CAPIS Global Markets 6 12 2019"

posted by Matthew Kiselica on 06/12/2019 at 6:43 am

by Matthew Kiselica

06/12/2019 at 6:43 am

Asian Markets

Following the losses in the West on trade concerns, the most of the region’s markets gave ground today.  Hong Kong suffered the most as citizens continue to protest a proposed extradition bill.  This is driving Hibor rates higher.  They are currently at levels not seen since 2008.   We all remember how well that year went.

Most sectors end the day red.  Real estate, especially in Hong Kong and IT fell more than 1%.  Materials managed an advance of c. 0.25%.

Important Headlines

  • Chinese inflation data for both overall CPI and PPI were inline with expectations.  Food prices continue to accelerate gaining 7.7% y/y vs. the prior reading of 6.1%.
  • Softbank -2.4% reacted to yesterday’s news a consortium of states filed an antitrust suit to block the T-Mobile/Sprint merger.
  • China Tobacco +9.6% was on fire in its trading debut on the Hong Kong Exchange.
  • After the local close, China released various lending data.  New CNY loans for May are below expectations.

European Markets

The European markets have been lower since the open.  Any attempts to pare the declines have faltered at c. 0.3%.  They are currently trading near the lows.

Boris Johnson “officially” declared his candidacy to head the U.K.’s conservative party.  That is certainly no surprise or that matter, a secret.  He caused the markets to wobble when he said a “no deal Brexit” is still an option.  However, he went on to say that is not the preferred outcome.

The commodity markets are seeing crude tumble.  The API data released after yesterday’s close showed an unexpected build in inventories of 4.85m barrels.

Corporate Snippets

  • Growth at BATS -5.0% for growth of e-cigarettes and other “next generation products” fell short of its FY guidance of 30-50% growth.  The company says they “approached” the target during the H1 of the year and will accelerate during the H2.
  • Q1 NI at Inditex-flat is inline with expectations.  The company sees its FY LFL sales growing 4-6%.
  • Reckitt Benckiser +1.4% is snagging Laxman Narasimhan from Pepsico to be its next CEO.  He will replace Rakesh Kapoor effective Sept. 1st.

On Our Side of the Pond

  • France’s Dassault Systemes -0.9% has agreed to purchase clinical trial software company, Medidata Solutions.  The all cash bid is $92.25 per which below yesterday’s close of $94.75.  However, the shares have risen from below $79 per share back in April when word the companies were conducting talks hit the tape.
  • Lululemon’s results are due.
  • U.S. DoE crude inventories and CPI are due.

Markets & Macro

Markets

Event Survey Actual Prior Revised
SK Unemployment rate SA May 4.10% 4.00% 4.10%
AU ANZ Roy Morgan Weekly Consumer Confidence Index 9-Jun 114.6 116.9
JN PPI MoM May 0.00% -0.10% 0.30% 0.40%
JN PPI YoY May 0.70% 0.70% 1.20% 1.30%
JN Core Machine Orders MoM Apr -0.80% 5.20% 3.80%
JN Core Machine Orders YoY Apr -5.30% 2.50% -0.70%
AU Westpac Consumer Conf Index Jun 100.7 101.3
AU Westpac Consumer Conf SA MoM Jun -0.60% 0.60%
CH CPI YoY May 2.70% 2.70% 2.50%
CH PPI YoY May 0.60% 0.60% 0.90%
SK Money Supply L SA MoM Apr 0.80% 1.30%
SK Money Supply M2 SA MoM Apr 0.50% 0.80%
SK Bank Lending To Household Total May KR843.6t KR838.6t
FR Private Sector Payrolls QoQ 1Q F 0.30% 0.50% 0.30%
FR Total Payrolls 1Q 0.20% 0.40% 0.20% 0.30%
SP House transactions YoY Apr -3.10% 6.80%
SP CPI Core MoM May 0.10% 1.10%
SP CPI Core YoY May 0.70% 0.90%
SP CPI MoM May F 0.20% 0.20% 0.20%
SP CPI YoY May F 0.80% 0.80% 0.80%
SP CPI EU Harmonised MoM May F 0.20% 0.20% 0.20%
SP CPI EU Harmonised YoY May F 0.90% 0.90% 0.90%
CH Aggregate Financing CNY May 1450.0b 1400.0b 1360.0b 1359.2b
CH Money Supply M2 YoY May 8.60% 8.50% 8.50%
CH New Yuan Loans CNY May 1300.0b 1180.0b 1020.0b
CH Money Supply M0 YoY May 3.50% 4.30% 3.50%
CH Money Supply M1 YoY May 3.20% 3.40% 2.90%
US MBA Mortgage Applications 7-Jun 26.80% 1.50%
IN CPI YoY May 3.05% 2.92%
IN Industrial Production YoY Apr 0.60% -0.10%
US CPI MoM May 0.10% 0.30%
US CPI Ex Food and Energy MoM May 0.20% 0.10%
US CPI YoY May 1.90% 2.00%
US CPI Ex Food and Energy YoY May 2.10% 2.10%
US CPI Core Index SA May 262.28 261.735
US CPI Index NSA May 256.179 255.548
US Real Avg Hourly Earning YoY May 1.20%
US Real Avg Weekly Earnings YoY May 0.90%
US Monthly Budget Statement May -$199.5b -$146.8b
UK RICS House Price Balance May -21% -23%

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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