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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 Recap – 6/14/2019"

posted by Clayton Duff on 06/14/2019 at 6:46 am

by Clayton Duff

06/14/2019 at 6:46 am

Asian Headlines

Mainland China led to the downside today, selling off in the afternoon hours on weakness in the IT and Communication space. Turnover was flat ahead a slew of data released after the close and noted below.  Hong Kong fell again with same sectors weak as some previously closed bank branches reopened.  The Nikkei conversely saw mild gains with the Energy sector leading as related names played catch to the attack headlines that hit post yesterday’s close.  Australia closed just above flat with Materials and Energy leading as iron ore continues to strengthen. The AUD$ fell with both National Australia Bank and Royal Bank of Canada both noting they see additional rate cuts ahead.  The Kiwi Dollar also fell on disappointing Manufacturing PMI data.

  • Post the close Chinese Industrial Production grew at 5.0% in May, light of estimates and at the slowest pace in 17 years. Retail sales results were encouraging, ahead of estimates with Property Investment slowing a bit.
  • Sony rallied 3% with a fund investing $1.5B into it with a push coming to offload their semiconductor unit.
  • Bank of East Asia fell 9% on warnings of a “material decrease” in 1H NI, citing an expected impairment loss based on HK$6.2B of downgraded Chinese property loans. Both CICC and Citi cut forecasts and reduced price targets on the name.
  • Japanese shipping names fell with Morgan Stanley expressing concern on the space in light of continued US/Chines trade concerns. Kawasaki Kisen -1.4%, Mitsui OSK -.4%, and Nippon Yusen -1.7%.

European Headlines

European indices opened lower and have edged down since.  Apart from Utilities all sectors are lower with a move lower 6 EST on a press report India is considering higher tariffs on US goods.  On possibly an encouraging move the US is aid to have asked the WTO to pause their investigation into China intellectual property violations until December. Tech, Autos, Basic Resources, and Banks are lower by at least a percent with just under 100 names in the Stoxx 600 up today.  Volumes are lower by nearly 20%.

After Broadcom missed 2Q revenue and cut expectations for FY revenues peers in Europe are leading to the downside today.  STMicro and Dialog Semi are both off over 4% with AMS and Infineon down 7% and 6% respectively.

Volkswagen -1.6% plans to IPO its heavy truck unit Traton, hoping to reap €1.9B.  The plan is to sell shares between €27-33 which would value the unit as much as €16.5B.   The unit sells Scania and MAN trucks along with VW-branded vehicles in Brazil.

Event Survey Actual Prior
SK 23) Export Price Index MoM May 2.60% 0.50%
SK 24) Export Price Index YoY May 0.40% -0.40%
SK 25) Import Price Index YoY May 4.60% 4.80%
SK 26) Import Price Index MoM May 2.20% 1.50%
JN 27) Bloomberg June Japan Economic Survey (Table)
NE 28) Trade Balance Apr 4.2b 5.3b
NE 29) Retail Sales YoY Apr 4.70% 1.10%
JN 30) Industrial Production MoM Apr F 0.60% 0.60%
JN 31) Industrial Production YoY Apr F -1.10% -1.10%
JN 32) Capacity Utilization MoM Apr 1.60% -0.40%
FI 33) CPI MoM May -0.20% 0.60%
FI 34) CPI YoY May 1.20% 1.50%
FI 35) Current Account Balance Apr -4.24b -0.47b
FI 36) GDP Indicator WDA (YoY) Apr 2.80% 1.10%
GE 37) Wholesale Price Index YoY May 1.60% 2.10%
GE 38) Wholesale Price Index MoM May 0.30% 0.60%
IN 39) Wholesale Prices YoY May 3.03% 2.45% 3.07%
FR 40) CPI EU Harmonized MoM May F 0.20% 0.10% 0.20%
FR 41) CPI EU Harmonized YoY May F 1.10% 1.10% 1.10%
FR 42) CPI MoM May F 0.20% 0.10% 0.20%
FR 43) CPI YoY May F 1.00% 0.90% 1.00%
FR 44) CPI Ex-Tobacco Index May 103.93 103.86 103.76
CH 45) Fixed Assets Ex Rural YTD YoY May 6.10% 5.60% 6.10%
CH 46) Industrial Production YoY May 5.40% 5.00% 5.40%
CH 47) Industrial Production YTD YoY May 6.10% 6.00% 6.20%
CH 48) Retail Sales YoY May 8.10% 8.60% 7.20%
CH 49) Retail Sales YTD YoY May 8.00% 8.10% 8.00%
CH 50) Surveyed Jobless Rate May 5.00% 5.00%
CH 51) Property Investment YTD YoY May 11.20% 11.90%
CH 52) China’s May Industrial Production, Retail Sales Data: TOPLive
SW 53) CPI MoM May 0.10% 0.30% 0.70%
SW 54) CPI YoY May 2.00% 2.20% 2.10%
SW 55) CPIF MoM May 0.10% 0.30% 0.60%
SW 56) CPIF YoY May 1.90% 2.10% 2.00%
SW 57) CPIF Excl. Energy MoM May 0.10% 0.30% 0.60%
SW 58) CPIF Excl. Energy YoY May 1.50% 1.70% 1.60%
SW 59) CPI Level May 334.55 334.95 334.11
IT 60) Industrial Sales WDA YoY Apr -0.70% 1.30%
IT 61) Industrial Sales MoM Apr -1.00% 0.30%
IT 62) Industrial Orders NSA YoY Apr -0.20% -3.60%
IT 63) Industrial Orders MoM Apr -2.40% 2.20%
HK 64) Industrial Production YoY 1Q 1.40% 1.30%
HK 65) PPI YoY 1Q 0.80% 0.30%
MB 66) CPI EU Harmonized YoY May 1.70% 1.70%
MB 67) CPI EU Harmonized MoM May 1.40% 3.00%
IC 68) International Reserves May 767b 756b
IT 69) CPI FOI Index Ex Tobacco May 102.7 102.6
IT 70) CPI EU Harmonized YoY May F 0.90% 0.90% 0.90%
CC 71) CPI Harmonized YoY May 0.20% 1.20%
CC 72) CPI Harmonized MoM May 0.30% 1.30%
IR 73) Trade Balance Apr 5355m 4093m
PO 74) CPI MoM May F 0.10% 0.10%
PO 75) CPI YoY May F 0.40% 0.50%
PO 76) CPI EU Harmonized MoM May F 0.30% 0.30%
PO 77) CPI EU Harmonized YoY May F 0.30% 0.40%
IC 78) Unemployment Rate May 3.70%
BE 79) Trade Balance Apr -636.1m

About the Author

Clayton Duff headshot
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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