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10.15.2019 14 new posts under Morning Note (10), CAPIS Headlines (3), International Summary (1)

International Summary

News Trading Desk

International Summary

"CAPIS Global Recap – 9/18/2019"

posted by Clayton Duff on 09/18/2019 at 6:39 am

by Clayton Duff

09/18/2019 at 6:39 am

Asian Headlines

Mainland China and South Korea outperformed on small gains today while losses elsewhere were subdued. Energy names of course pulled back on the Saudi news pertaining to renewed production with that sector down 4%.  Insurers slipped as well with scant moves in most sectors.  Focus was on weaker trade data for August in Japan even as their trade deficit shrunk as well as the BoJ meeting and today’s US Fed. Back in China Energy was lower while defensive names worked higher. Real Estate names finished better on hopes of less government curbs post easing of prices.  Talks between them and the US are expected to resume as well buoying sentiment.  The much-watched Power Consumption number rose 3.6% YoY in August.   Down Under, IT and Industrial names crept a bit higher.

On the energy front Iran has supposedly sent a letter to the White House claiming they have no responsibility in Saturday’s refinery attack while Saudi Arabia prepares for a presser outlining proof they did.  TTN noted a story that China has expanded their investment into the Iranian oil complex to the tune of $290B which is netting them a 12% discount on their energy imports.

  • AAC Tech rallied 10% on word iPhone pre-orders have been strong. Short covering was said to boost returns today.
  • Anta Sports ran up 3.8% with the government said to be planning fitness and sports-related investments. Focus will be on winter sports with a gov statement noting the sector will grow to 800B Yuan by 2022.  Li Ning +3.6%, Xtep +3.7%.
  • With further rate cuts possible by the BoJ, Sumitomo Mitsui Bank said they may impose account fees with much of the sector no doubt to follow if that occurs.
  • Hyundai Motor +1.2% has reportedly ordered more parts from Japanese suppliers as tension between the two countries ramps.

European Headlines

After a flattish start indices have moved slightly higher with leading.  The skew of sectors is to the upside with Energy, Autos, and Utilities leading while Personal Goods a seeing small losses.  Ahead of the Fed turnover on the Stoxx 600 is running inline.  Economic-related headlines include EU new car registrations off 8.4% in August after a slight rise in July with July construction output also disappointing.  Consumer inflation met estimates in the EU, up .9% in August, but was slightly off vs expectations in the UK. On that, the Pound is trading lower today.

  • Utility service firm Orsted -2.1% is down on word they will sell units to SEAS-NVE for ~$3.15B.  SEAS-NVE is already a large stakeholder in Orsted, holding 9.5%, with the country of Denmark holding 50%.
  • Defense contractor Cobham -.5% is lower with the UK gov looking into their firm’s acquisition by PE firm Advent International. National security issues are in play but the firm is hoping the US-based Advent will give it further inroads into business in the States.
  • Dovetailing with the pull back in new car registrations Pendragon is off 9% after the firm said FY adjusted losses will be at the bottom of the range as the firm cancels its dividend. The 2H is seen as challenging with Brexit weighing on customer’s confidence.  The firm is performing a strategic review in its Car Store business with several locations to be shut.
  • Luxury names are mostly weaker with UBS downgrading Richemont -2.5% after it has outperformed this year.

Event Survey Actual Prior Revised
SK 10) Export Price Index MoM Aug 1.50% -0.20% -0.30%
SK 11) Export Price Index YoY Aug -3.90% -5.30% -5.40%
SK 12) Import Price Index YoY Aug 0.00% -1.30% -1.10%
SK 13) Import Price Index MoM Aug 0.90% 0.60% 0.80%
JN 14) Trade Balance Aug -¥365.4b -¥136.3b -¥249.6b -¥250.7b
JN 15) Trade Balance Adjusted Aug -¥160.7b -¥130.8b -¥126.8b -¥104.0b
JN 16) Exports YoY Aug -10.00% -8.20% -1.60% -1.50%
JN 17) Imports YoY Aug -10.70% -12.00% -1.20%
AU 18) Westpac Leading Index MoM Aug -0.28% 0.14% 0.15%
EC 19) EU27 New Car Registrations Aug -8.40% 1.40%
AS 20) CPI MoM Aug 0.10% -0.40%
AS 21) CPI YoY Aug 1.50% 1.40%
IT 22) Industrial Sales WDA YoY Jul -0.60% -0.80%
IT 23) Industrial Sales MoM Jul -0.50% -0.50% -0.70%
IT 24) Industrial Orders NSA YoY Jul -1.00% -4.80% -4.90%
IT 25) Industrial Orders MoM Jul -2.90% -0.90% -1.00%
EC 26) ECB’s Guindos Speaks in Madrid
UK 27) CPIH YoY Aug 1.90% 1.70% 2.00%
UK 28) CPI MoM Aug 0.50% 0.40% 0.00%
UK 29) CPI YoY Aug 1.90% 1.70% 2.10%
UK 30) CPI Core YoY Aug 1.80% 1.50% 1.90%
UK 31) Retail Price Index Aug 291.4 291.7 289.5
UK 32) RPI MoM Aug 0.70% 0.80% 0.00%
UK 33) RPI YoY Aug 2.60% 2.60% 2.80%
UK 34) RPI Ex Mort Int.Payments (YoY) Aug 2.50% 2.60% 2.70%
UK 35) PPI Input NSA MoM Aug -0.20% -0.10% 0.90% 0.60%
UK 36) PPI Input NSA YoY Aug -0.10% -0.80% 1.30% 0.90%
UK 37) PPI Output NSA MoM Aug 0.20% -0.10% 0.30%
UK 38) PPI Output NSA YoY Aug 1.70% 1.60% 1.80% 1.90%
UK 39) PPI Output Core NSA MoM Aug 0.20% 0.20% 0.40%
UK 40) PPI Output Core NSA YoY Aug 2.00% 2.00% 2.00%
UK 41) House Price Index YoY Jul 0.60% 0.70% 0.90% 1.40%
EC 42) Construction Output MoM Jul -0.70% 0.00% 0.60%
EC 43) Construction Output YoY Jul 1.10% 1.00% 1.60%
EC 44) CPI Core YoY Aug F 0.90% 0.90% 0.90%
EC 45) CPI MoM Aug 0.20% 0.10% -0.50%
EC 46) CPI YoY Aug F 1.00% 1.00% 1.00%
IT 47) Trade Balance Total Jul 7631m 5728m 5701m
IT 48) Trade Balance EU Jul 3575m 1876m 1848m
MB 49) CPI EU Harmonized MoM Aug 0.80% 0.30%
MB 50) CPI EU Harmonized YoY Aug 1.90% 1.80%
CC 51) CPI Harmonized YoY Aug 0.60% 0.10%
CC 52) CPI Harmonized MoM Aug 1.70% -0.40%
PO 53) PPI MoM Aug -0.50% 0.00%
PO 54) PPI YoY Aug -1.10% -0.40%

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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