09.23.2022 11 new Morning Note posts under Morning Note (10) and CAPIS Insights (1)

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International Summary

"CAPIS Global Recap – 6/20/2019"

posted by Clayton Duff on 06/20/2019 at 6:48 am

by Clayton Duff

06/20/2019 at 6:48 am

Asian Headlines

It was a risk-on day in China today with broad gains across the board today.  Gains were not limited to that market with all the Asian majors seeing a decent day.  Turnover on the mainland was strong but both Japan and Hong Kong lagged in that regard. The sectors of Consumer Staples and Financials both finished up over 3% in Shanghai with Communication and the RE sector up over a percent in Japan.

This after the BoJ left rates and their policy for now unchanged. They reiterated rates will continue at an extremely low level for an extended period, through at least next spring. Also on the central bank front the RBA’s Lowe said a further reduction in the cash rate was “not unrealistic”.  He added that it was not “unrealistic” to think a single 25bp move would alter the growth path.  Despite the comments the $AUD has been to the upside vs the Dollar overnight.

WTI is up ~3% today after the DOE reported a 3.1M barrel draw but the focus is more so on headlines that Iran shot down a US drone over the Strait of Hormuz.  The US has denied Iran’s assertion the drone violated Iranian air space.

PM Abe will meet with France’s Macron to discuss Nissan/Renault with the US Envoy to NK noting he expects constructive dialogue between China’s Xi and NK on Xi’s trip to Pyongyang.

In individual names Rio Tinto closed down 4% Down Under post its FY iron ore output estimate cut.  On operational challenges the hit is especially tough as iron ore prices continue to work higher.  Several analysts were noted as saying Rio’s woes will somewhat offset Vale’s restart of a facility with iron ore prices still to be better bid.

Back to Nissan -.1% Renault’s CEO will reportedly get an audit committee seat on Nissan’s board as the two sides work through issues.  To note, the two firms signed an agreement with Waymo to research driverless services both in Japan and France.


European Headlines

European indices are mostly higher with Spain flat on the session.  Tech names lead after a good report yesterday from Oracle with Autos and Industrials leading to the upside.  Travel is off over a percent with Banks also weaker.

The BoE voted 9-0 to to leave both rates and asset purchases as-is.  They see inflation as well-anchored adding their view for gradual rate increases on a smooth Brexit are being slowly diminished on global growth concerns.  Norway upped their deposit rate to 1.25%, as expected, from the prior 1.00% level. On that the Krone is working higher on the day.

The ECB is evidently not lowering the boom on Italy just yet but Conte is working to get more time. He sent a letter addressing the possible sanctions adding he is seeking €2B in spending cuts.

To the downside Dixon’s Carphone is off 10%, off 25% earlier, on warnings of losses next year in the mobile space.  FY revs currently missed estimates with LfL’s only up 1%.

Industrial product supplier Premier Technical is up 140% on a bid by Macquarie Group.  A bid of 210.1 pence per share is on the table.

Rocket Internet +8% better as their CEO mulls taking the firm private and delisting the stock.

Event Survey Actual Prior Revised
SK 38) PPI YoY May 0.40% 0.60%
JN 39) Japan Buying Foreign Bonds 14-Jun ¥327.3b ¥1736.0b ¥1739.7b
JN 40) Japan Buying Foreign Stocks 14-Jun ¥232.5b ¥30.6b
JN 41) Foreign Buying Japan Bonds 14-Jun ¥471.7b ¥589.5b ¥590.0b
JN 42) Foreign Buying Japan Stocks 14-Jun -¥95.4b -¥148.0b
AU 43) Bloomberg June Australia Economic Survey (Table)
AU 44) RBA FX Transactions Market May A$1384m A$873m
AU 45) RBA FX Transactions Government May -A$1526m -A$993m
AU 46) RBA FX Transactions Other May A$1831m -A$4677m
JN 47) Bank of Japan June Monetary Policy Decision and Briefing
JN 48) BOJ Policy Balance Rate 20-Jun -0.10% -0.10% -0.10%
JN 49) BOJ 10-Yr Yield Target 20-Jun 0.00% 0.00% 0.00%
NE 50) Unemployment Rate May 3.30% 3.30%
NE 51) Consumer Confidence Index Jun 0 -3
NE 52) Consumer Spending YoY Apr 1.80% 1.10% 1.00%
JN 53) All Industry Activity Index MoM Apr 0.70% 0.90% -0.40% -0.30%
DE 54) Consumer Confidence Indicator Jun 5.8 5.9
SZ 55) Exports Real MoM May -1.20% -0.60% -0.30%
SZ 56) Imports Real MoM May 0.70% 1.50%
SZ 57) Swiss Watch Exports YoY May 11.40% -0.40% -0.30%
JN 58) Machine Tool Orders YoY May F -27.30% -27.30%
JN 59) Convenience Store Sales YoY May 1.70% 1.30%
NO 60) Deposit Rates 20-Jun 1.25% 1.25% 1.00%
EC 61) ECB Publishes Economic Bulletin
UK 62) Retail Sales Ex Auto Fuel MoM May -0.40% -0.30% -0.20% -0.30%
UK 63) Retail Sales Ex Auto Fuel YoY May 2.50% 2.20% 4.90% 4.70%
UK 64) Retail Sales Inc Auto Fuel MoM May -0.50% -0.50% 0.00% -0.10%
UK 65) Retail Sales Inc Auto Fuel YoY May 2.70% 2.30% 5.20% 5.10%
CH 66) FX Net Settlement – Clients CNY May 31.8b -53.1b
UK 67) Bank of England Bank Rate 20-Jun 0.75% 0.75% 0.75%
UK 68) BOE Corporate Bond Target Jun 10b 10b 10b
UK 69) BOE Asset Purchase Target Jun 435b 435b 435b
BE 70) Consumer Confidence Index Jun -5
EC 71) Consumer Confidence Jun A -6.5 -6.5

About the Author

Clayton Duff headshot
ClaytonDuffDir,Director of International Trading

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. Clayton was promoted to manager of international trading in 2019. He earned his bachelor’s degree f...

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