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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

"Autumnal Equinox Global Markets 9/23/2019"

posted by Matthew Kiselica on 09/23/2019 at 7:11 am

by Matthew Kiselica

09/23/2019 at 7:11 am

Global Markets

The Greater Chinese markets traded lower following Friday’s report a Chinese agricultural delegation cancelled scheduled meetings in the States.  China’s Agricultural Minister downplayed the matter but investors still took it as an overall negative.  Additionally, the deputy level Sino-U.S. trade talks had no real information for traders to sink their teeth into.  Rate cut hopes gave Australia a small bid and India continues to move ahead following last week’s corporate tax news.  Japan was closed for the Autumnal Equinox.

All the major sectors in Asia end the day lower to one extent or the other.  Real estate and healthcare end the day off c. 0.8%.  Financials and consumer staples led with modest declines.

The European markets have been lower since the open.  Both German and Eurozone Markit manufacturing readings show additional erosion, falling further below the key 50 level.  Furthermore, both reading are below consensus.   The German result is a 10 yr. low and the Eurozone reading a 7 year low.  The Egyptian market saw heavy selling pressure yesterday due to local unrest.  It is lower again today but has pared losses.  The country is seeing a wave of protests against Pres. Sisi’s government.  Elsewhere on the political front, Israeli Pres. Rivlin will meet with various parties this week in his process to decide which candidate has the best chance to form a coalition.

Following the German macro data, the auto sector has been off 2% or more all session.  Chemicals, industrials, construction, technology and energy trade off by at least 1%.  Food/beverages are improving by c. 0.5% while healthcare and travel/leisure make small advances.

 

Corporate Headlines

  • Thomas Cook (suspended) is filing for insolvency after negotiations with various parties including Fosun Tourism Grp -4.7% failed.  The company’s debt is plunging.  The collapse of the 178 year old U.K. firm has caused thousands of travelers to be stranded across the globe.  The U.K. government is taking steps to assist them.  Rival TUI 6.7% advances on the news along with some other players in the sector.
  • Deutsche Bk -3.0% will transfer its prime brokerage unit to BNP -3.0% over the next several years.  This includes roughly $80b in assets and c. 1,000 employees.
  • Vonovia -0.15% and a Blackstone Group unit will acquire a 61.2% stake in Sweden’s Hembla +11.5%.  The price of SEK 215 per Hembla share equates to an 11.5% premium to Friday’s close.

On Our Side of the Pond

  • Fairly quiet start to the week.
  • Various investors include Softbank founder Son is pushing to oust WeWork CEO Neumann.
  • The Chicago Fed and U.S. Markit PMI readings are due.

Markets and Macro

Markets Snaphot

Event Survey Actual Prior Revised
JN Nationwide Dept Sales YoY Aug 2.30% -2.90%
JN Tokyo Dept Store Sales YoY Aug 4.70% -2.70%
GE PPI MoM Aug -0.20% -0.50% 0.10%
GE PPI YoY Aug 0.60% 0.30% 1.10%
FR Wages QoQ 2Q F 0.50% 0.50% 0.50%
JN Convenience Store Sales YoY Aug 0.80% -2.50%
HK CPI Composite YoY Aug 3.10% 3.50% 3.30%
CA Retail Sales MoM Jul 0.60% 0.40% 0.00% -0.10%
CA Retail Sales Ex Auto MoM Jul 0.30% -0.10% 0.90%
EC Consumer Confidence Sep A -7 -6.5 -7.1
US Household Change in Net Worth 2Q $1830b $4691b $5311b
AU CBA Australia PMI Mfg Sep P 49.4 50.9
AU CBA Australia PMI Services Sep P 52.5 49.1
AU CBA Australia PMI Composite Sep P 51.9 49.3
SK Exports 20 Days YoY Sep -21.80% -13.30%
SK Imports 20 Days YoY Sep -11.10% -2.40%
FR Markit France Manufacturing PMI Sep P 51.2 50.3 51.1
FR Markit France Services PMI Sep P 53.2 51.6 53.4
FR Markit France Composite PMI Sep P 52.6 51.3 52.9
GE Markit/BME Germany Manufacturing PMI Sep P 44 41.4 43.5
GE Markit Germany Services PMI Sep P 54.3 52.5 54.8
GE Markit/BME Germany Composite PMI Sep P 51.5 49.1 51.7
EC Markit Eurozone Manufacturing PMI Sep P 47.3 45.6 47
EC Markit Eurozone Services PMI Sep P 53.3 52 53.5
EC Markit Eurozone Composite PMI Sep P 52 50.4 51.9
SP Trade Balance Jul -2486m -1533m
IT Italy Releases Revised National Accounts to 2018
HK BoP Current Account Balance 2Q $37.77b $36.57b $35.11b
HK BoP Overall 2Q $28.32b $32.96b
US Chicago Fed Nat Activity Index Aug 0 -0.36
CA Wholesale Trade Sales MoM Jul 0.00% 0.60%
US Markit US Manufacturing PMI Sep P 50.4 50.3
US Markit US Services PMI Sep P 51.5 50.7
US Markit US Composite PMI Sep P 50.7
CA Bloomberg Nanos Confidence 20-Sep 56.7

 

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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