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09.20.2019 14 new International Summary posts under Morning Note (10) and International Summary (4)

International Summary

News Trading Desk

International Summary

"CAPIS Global Markets 8/21/2019"

posted by Matthew Kiselica on 08/21/2019 at 7:13 am

by Matthew Kiselica

08/21/2019 at 7:13 am

Markets Overview

The Asian markets held up very well despite the Italian worries that spurred yesterday’s sell off in Europe and the States.  The majority of the key indices recorded minimal moves on the day.  Most sectors were down with materials, utilities and energy off by 0.5% or more.  Real estate and IT managed modest advances.

Europe has been trading better since the open.  While the markets are currently slightly off their highs, merger speculation in the auto space has helped.  Also, Italian Pres. Mattarella is conducting talks to form a new coalition government as opposed to calling for new elections.  All major sectors are green.  Autos, energy, industrials, personal goods and tech are higher by more than 1.5%.  However, autos have pared gains of more than 2%.  Many others are improving more than 1%.

In the debt markets, Germany held a 30 year bond auction that results in yield of -0.11%.  That is a new record low.

Corporate Headlines

  • The M&A mentioned above is regarding Fiat Chrysler +4.2% and Renault +5.0%.  Il Sole is reporting the companies continue to have merger talks.
  • Clayton’s favorite pallet company, Brambles -9.8% is cutting its FY outlook.  The company notes slowing organic growth in European markets, rising costs and uncertainty due to the Chinese/U.S. trade talks.
  • Xiaomi’s -5.0% Q2 NI is below consensus.  The company is seeing slower smartphone demand in China.  Sales are skewing towards lower margin products in that space.
  • Sales at Hong Kong & China Gas -5.3% are also below expectations.  The company is seeing downgrades from a number of brokers post the numbers.
  • Alcon  -1.8% results are viewed to be largely in line with expectations.  The shares have had a nice advance into the numbers and is seeing some profit taking.
  • China Vanke’s +1.4% H1 NP is better by 30.0% y/y.

On Our Side of the Pond

  • Target is indicating to open at a record high.  The retailer beat with EPS and is raising its FY EPS view.  It now sees FY adj. EPS in the range of $5.90 to $6.20 vs. the prior guidance of $5.75 to $6.05.
  • Royal Bank of Canada and Lowe’s also post EPS ahead of consensus.
  • Pembina Pipeline is purchasing Kinder Morgan’s Canadian unit along with a portion of the Cochin Pipeline.  The price tag is C$ 4.25b.
  •  Keep an eye on Apple suppliers.  The tech giant is said to be close to securing a deal for advanced iPhone screens from Chinese listed BOE Tech.
  • Reports allege Alibaba is delaying the HK IPO due until October citing the current political unrest in there.
  • Fed Minutes due later today.   We will see if they discussed a 100 basis points cut at the last meeting.

Markets & Macro

Markets

Event Survey Actual Prior Revised
SK PPI YoY Jul -0.30% 0.10%
SK Exports 20 Days YoY Aug -13.30% -13.60%
SK Imports 20 Days YoY Aug -2.40% -10.30%
AU Bloomberg Aug. Australia Economic Survey (Table)
AU Westpac Leading Index MoM Jul 0.14% -0.08% -0.07%
AU Skilled Vacancies MoM Jul 0.40% -0.60% -0.20%
SK Short-Term External Debt 2Q $140.0b $129.4b
JN Supermarket Sales YoY Jul -7.10% -0.50%
JN Nationwide Dept Sales YoY Jul -2.90% -0.90%
JN Tokyo Dept Store Sales YoY Jul -2.70% -1.30%
UK Public Finances (PSNCR) Jul -13.5b 15.2b
UK Central Government NCR Jul -8.1b 13.5b
UK Public Sector Net Borrowing Jul -3.4b -2.0b 6.5b 5.7b
UK PSNB ex Banking Groups Jul -2.9b -1.3b 7.2b 6.3b
SP Trade Balance Jun -1533m -2110m
US MBA Mortgage Applications 16-Aug -0.90% 21.70%
CA CPI NSA MoM Jul 0.20% -0.20%
CA CPI YoY Jul 1.70% 2.00%
CA Consumer Price Index Jul 136.6 136.3
CA CPI Core- Median YoY% Jul 2.10% 2.20%
CA CPI Core- Common YoY% Jul 1.80% 1.80%
CA CPI Core- Trim YoY% Jul 2.00% 2.10%

 

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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