Trading Desk

1911 total posts

CAPIS EU Close – 4/18/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/18/2019 at 12:42 pm
by Clayton Duff on 04/18/2019

European indices closed mixed on the session with several markets closing early or not even opening today.  On the week the UK FTSE 100 closed up 57bps with France up 1.73% and Germany up 2.41%.  Most sectors finished higher, led by Autos and Tech names.  Healthcare again moved off.  Volume in Europe was off 11%. The Media space was supported by Mediaset +3.6%, with their board preventing Vivendi from participating in their AGM. Engineering firm Arcadis rallied 10% on solid 1Q results. One broker sees margin improvement ahead despite tough sledding in Asia, Latin America, and the Middle East. Other names seeing earnings include Unilever +3%, Nestle +.8%, and Pernod Ricard -1%. On concerns Bain Capital and Carlyle may not complete their takeover of the firm, Osram Licht fell 5.5%.  Both investors are expressing concerning post weaker earnings at the firm. Cigarette firms turned lower post headlines that Senator Mitch McConnell seeks to raise the tobacco age in the US to 21 from the current 18. The move would include vaping devices.   Imperial Brands fell .8% with BATS off 1.4%.  ***Note that only mainland China, Japan, South Korea, Taiwan, Thailand, and Turkey are open Friday.*** Monday, Canada and Mexico are open…

European indices closed mixed on the session with several markets closing early or not even opening today.  On the week the UK FTSE 100 closed up 57bps with France up 1.73% and Germany up 2.41%.  Most sectors finished higher, led by Autos and Tech names.  Healthcare again moved off.  Volume in Europe was off 11%. The Media space was supported by Mediaset +3.6%, with their board preventing Vivendi from participating in their AGM. Engineering firm Arcadis rallied 10% on solid 1Q results. One broker sees margin improvement ahead despite tough sledding in Asia, Latin America, and the Middle East. Other names seeing earnings include Unilever +3%, Nestle +.8%, and Pernod Ricard -1%. On concerns Bain Capital and Carlyle may not complete their takeover of the firm, Osram Licht fell 5.5%.  Both investors are expressing concerning post weaker earnings at the firm. Cigarette firms turned lower post headlines that Senator Mitch McConnell seeks to raise the tobacco age in the US to 21 from the current 18. The move would include vaping devices.   Imperial Brands fell .8% with BATS off 1.4%.  ***Note that only mainland China, Japan, South Korea, Taiwan, Thailand, and Turkey are open Friday.*** Monday, Canada and Mexico are open…

CAPIS EU Close – 4/16/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/16/2019 at 12:53 pm
by Clayton Duff on 04/16/2019

Post positive comments and the PBoC’s OMO action overnight mainland markets there finished with gains of over 2%.  Gains were seen in most Asian locales with better sentiment moving into Europe. The US has eased a bit on demands with China over industrial firm subsidies giving hopes to a deal sooner than later.   The AUD$ slipped with dovish RBA comments. While higher, European gains were tepid with roughly 2/3rds of sectors to the upside.  Financials and Insurers finished up by over a percent with Utilities and Energy off (despite higher oil prices). Asset manager Ashmore Group rallied 6.3% on word they saw inflows of over $5B in the 1Q, up 10x’s what was seen in the 4Q of last year. In addition to the inflows customer activity picked up as well. Rio Tinto fell .6% after iron shipments disappointed for the 1Q with full year estimates reduced down. After the close L’oreal +.8% said 1Q LfL’s rallied 7.7% in the 1Q vs the estimate of +6.4%.   They see another year of growth in 2019 with Asia Pacific seen up 23%.  The firm and the Bettencourt family also said they will donate €200M to rebuild the Notre-Dame cathedral. Economic releases are…

Post positive comments and the PBoC’s OMO action overnight mainland markets there finished with gains of over 2%.  Gains were seen in most Asian locales with better sentiment moving into Europe. The US has eased a bit on demands with China over industrial firm subsidies giving hopes to a deal sooner than later.   The AUD$ slipped with dovish RBA comments. While higher, European gains were tepid with roughly 2/3rds of sectors to the upside.  Financials and Insurers finished up by over a percent with Utilities and Energy off (despite higher oil prices). Asset manager Ashmore Group rallied 6.3% on word they saw inflows of over $5B in the 1Q, up 10x’s what was seen in the 4Q of last year. In addition to the inflows customer activity picked up as well. Rio Tinto fell .6% after iron shipments disappointed for the 1Q with full year estimates reduced down. After the close L’oreal +.8% said 1Q LfL’s rallied 7.7% in the 1Q vs the estimate of +6.4%.   They see another year of growth in 2019 with Asia Pacific seen up 23%.  The firm and the Bettencourt family also said they will donate €200M to rebuild the Notre-Dame cathedral. Economic releases are…

CAPIS EU Close – 4/10/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/10/2019 at 12:50 pm
by Clayton Duff on 04/10/2019

European indices closed mixed with most markets near flat on the session.  Sweden closed with a decent gain as did Germany.   Roughly 2/3rds of sectors closed better with strong gains in Retail +1.33% and Basic Resources +1.01%.  Healthcare and Banks slipped on the day. The Euro sold off on Draghi’s post-ECB-rate-announcement-presser.  As expected rates were left as-is with levels to remain there until at least through the end of the year. QE debt is expected to continue to be rolled over, even after their first rate hike.  Draghi provided no update on TLTRO’s, noting it was too early to provide any details.  The € did manage to rebound and wipe away much of the pullback. Heavyweight Reckitt Benckiser fell 6.5% as it may very well incur liabilities from US government prosecution over Suboxone Film that was produced by Indivior -72%, which it used to own.  In addition to possible government actions the firm may face lawsuits with the opioid manufacturer space under attack. Logitech +1.5% worked higher with positive sentiment in the name after their CEO said a big acquisition for the company is “conceivable”. Post the close Louis Vuitton +.8% said organic revenues rose 15% in their fashion &…

European indices closed mixed with most markets near flat on the session.  Sweden closed with a decent gain as did Germany.   Roughly 2/3rds of sectors closed better with strong gains in Retail +1.33% and Basic Resources +1.01%.  Healthcare and Banks slipped on the day. The Euro sold off on Draghi’s post-ECB-rate-announcement-presser.  As expected rates were left as-is with levels to remain there until at least through the end of the year. QE debt is expected to continue to be rolled over, even after their first rate hike.  Draghi provided no update on TLTRO’s, noting it was too early to provide any details.  The € did manage to rebound and wipe away much of the pullback. Heavyweight Reckitt Benckiser fell 6.5% as it may very well incur liabilities from US government prosecution over Suboxone Film that was produced by Indivior -72%, which it used to own.  In addition to possible government actions the firm may face lawsuits with the opioid manufacturer space under attack. Logitech +1.5% worked higher with positive sentiment in the name after their CEO said a big acquisition for the company is “conceivable”. Post the close Louis Vuitton +.8% said organic revenues rose 15% in their fashion &…

CAPIS EU Close – 4/9/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/09/2019 at 12:47 pm
by Clayton Duff on 04/09/2019

Apart from Switzerland most European indices finished at or near lows on the day.  Losses were broad with Tech, Retail, and Autos seeing losses of over a percent.  President Trump’s threat of tariffs on several European export categories weighed with traders a bit touchy anyway considering the months long rebound.  Overhead resistance levels are slowing the advance higher with the Stoxx 600 up ~18% since its December low.  Volumes today too were lackluster, off 16% from recent turnover. In addition to the $11B in tariffs that may hit European tariffs other headlines include PM May’s meeting today with Merkel and France’s Macron.  The World Bank and IMF kick off a spring get-together, no doubt to decry protectionism.   Italy pared their FY19 GDP growth view from 1% down to .1% while upping their budget deficit estimate.  Tomorrow, the ECB meets with the post-announcement presser sure to be watched and scrutinized closely. Earlier we mentioned the interest of Wynn Resorts into Crown Resorts. Evidently the fact that the  preliminary discussions were leaked though caused Wynn to discontinue the conversation. SAP -3.4% led the tech space lower on a downgrade by UBS and HSBC with further margin expansion questioned.  The strong move in…

Apart from Switzerland most European indices finished at or near lows on the day.  Losses were broad with Tech, Retail, and Autos seeing losses of over a percent.  President Trump’s threat of tariffs on several European export categories weighed with traders a bit touchy anyway considering the months long rebound.  Overhead resistance levels are slowing the advance higher with the Stoxx 600 up ~18% since its December low.  Volumes today too were lackluster, off 16% from recent turnover. In addition to the $11B in tariffs that may hit European tariffs other headlines include PM May’s meeting today with Merkel and France’s Macron.  The World Bank and IMF kick off a spring get-together, no doubt to decry protectionism.   Italy pared their FY19 GDP growth view from 1% down to .1% while upping their budget deficit estimate.  Tomorrow, the ECB meets with the post-announcement presser sure to be watched and scrutinized closely. Earlier we mentioned the interest of Wynn Resorts into Crown Resorts. Evidently the fact that the  preliminary discussions were leaked though caused Wynn to discontinue the conversation. SAP -3.4% led the tech space lower on a downgrade by UBS and HSBC with further margin expansion questioned.  The strong move in…

CAPIS Global Markets 4/9/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 04/09/2019 at 7:21 am
by Matthew Kiselica on 04/09/2019

Asian  Markets Lackluster trading with mixed performance across the region and also within countries.  For example, Chinese and Japanese markets saw varied moves across their related indices.  As a result, sectors were also mixed.  Real estate, healthcare and consumer discretionary improve about 1%.  Materials saw profit taking and gave way c. 1% while utilities end the day off c. 0.5%. Important Headlines Sony +9.3% is one of the day’s stars.  This was in response to yesterday’s report activest investor Thirdpoint is building a stake in the company. Gree Appliance +10.0% is limit up.  Its parent company intends to sell a 15.0% stake.  The general commentary is this will improve corporate structure and operational efficiency. Wynn Resorts is conducting talks to acquire Crown Resorts +19.7%.  The deal is said to put a valuation on Crown of c. A$10b and is A$14.75 per share.  That is c. 26.0% premium to yesterday’s close and will put quite a few shrimp on the bar-b. The Chinese auto sector had a number of important headlines.  Byd’s +1.2% new energy vehicle sales improve by 116.0% y/y during March.  Total sales are 8.5% higher.  Geely Auto’s +0.9% are 3% to the upside and the company saw a…

Asian  Markets Lackluster trading with mixed performance across the region and also within countries.  For example, Chinese and Japanese markets saw varied moves across their related indices.  As a result, sectors were also mixed.  Real estate, healthcare and consumer discretionary improve about 1%.  Materials saw profit taking and gave way c. 1% while utilities end the day off c. 0.5%. Important Headlines Sony +9.3% is one of the day’s stars.  This was in response to yesterday’s report activest investor Thirdpoint is building a stake in the company. Gree Appliance +10.0% is limit up.  Its parent company intends to sell a 15.0% stake.  The general commentary is this will improve corporate structure and operational efficiency. Wynn Resorts is conducting talks to acquire Crown Resorts +19.7%.  The deal is said to put a valuation on Crown of c. A$10b and is A$14.75 per share.  That is c. 26.0% premium to yesterday’s close and will put quite a few shrimp on the bar-b. The Chinese auto sector had a number of important headlines.  Byd’s +1.2% new energy vehicle sales improve by 116.0% y/y during March.  Total sales are 8.5% higher.  Geely Auto’s +0.9% are 3% to the upside and the company saw a…

CAPIS EU Close – 4/8/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/08/2019 at 12:43 pm
by Clayton Duff on 04/08/2019

European indices gave up midday highs (which only got markets to flattish levels) to close just above day’s lows.  Finishing levels though were not that bad with moves away from flat pretty benign.  The Stoxx 600 saw 189 names better with 398 down on volume 26% weaker.  The same concerns continue to get regurgitated with global slowing along with Brexit and the US/China trade deal noted. Despite the lackluster trading the Energy sector rallied nearly 90bps with oil continued to work higher on the aforementioned woes in the middle East. Several defensive sectors also saw small gains while Travel and Media names slipped. Keep an eye on Sony (ADR’s +7.5%) tonight after Reuters reported Third Point is increasing their holdings in the name.  Reuters said Third Point is looking for an investment vehicle to provide $500M to $1B as they want the company to consider offloading their movie studio to the likes of Amazon or Netflix. Exploration firm Equinor rallied 2.6% despite word Norway’s political leadership is denying support to develop an Arctic sight that could produce 1-3B barrels of oil.  the Lofoten site has been off limit to development for years but as other field slowly pare down supplies…

European indices gave up midday highs (which only got markets to flattish levels) to close just above day’s lows.  Finishing levels though were not that bad with moves away from flat pretty benign.  The Stoxx 600 saw 189 names better with 398 down on volume 26% weaker.  The same concerns continue to get regurgitated with global slowing along with Brexit and the US/China trade deal noted. Despite the lackluster trading the Energy sector rallied nearly 90bps with oil continued to work higher on the aforementioned woes in the middle East. Several defensive sectors also saw small gains while Travel and Media names slipped. Keep an eye on Sony (ADR’s +7.5%) tonight after Reuters reported Third Point is increasing their holdings in the name.  Reuters said Third Point is looking for an investment vehicle to provide $500M to $1B as they want the company to consider offloading their movie studio to the likes of Amazon or Netflix. Exploration firm Equinor rallied 2.6% despite word Norway’s political leadership is denying support to develop an Arctic sight that could produce 1-3B barrels of oil.  the Lofoten site has been off limit to development for years but as other field slowly pare down supplies…

CAPIS Global Markets 4/08/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 04/08/2019 at 7:08 am
by Matthew Kiselica on 04/08/2019

Asian Markets A mixed day for the region with mostly modest moves.  The mainland Chinese markets initially traded well following their three day weekend.  However, they were unable top maintain those gains.  Australia bounced after lagging last week. Sectors were fairly split.  Basic materials are the day’s clear winner better by  more than 1% with energy improving c. 0.5%.  To the downside by c. 0.5% are consumer discretionary and utilities. There are a number of reports indicating the PBoC may once again make “targeted” decreases to the reserve-ratio requirement this month.  The central bank will also make use of its medium term lending facility with CNY 367b in such loans maturing. Other Important Headlines Press reports indicate BHP +1.7% is preparing to cut more than 700 white collar jobs. Jefferies initiated coverage on a number of Macau gaming names but it didn’t help their trading performance.  Sands China -1.4% and Wynn Macau -0.5% are rated buys while MGM China -2.5% and Galaxy Ent. -2.4% are holds. The U.K. is reviewing the gaming renewal practices of Sony -0.2% and Nintendo -1.8% for potential competition and fairness violations. Shinsegae Grp Vice Chair Chung will increase his stake in E-Mart +5.25% to 10.3%…

Asian Markets A mixed day for the region with mostly modest moves.  The mainland Chinese markets initially traded well following their three day weekend.  However, they were unable top maintain those gains.  Australia bounced after lagging last week. Sectors were fairly split.  Basic materials are the day’s clear winner better by  more than 1% with energy improving c. 0.5%.  To the downside by c. 0.5% are consumer discretionary and utilities. There are a number of reports indicating the PBoC may once again make “targeted” decreases to the reserve-ratio requirement this month.  The central bank will also make use of its medium term lending facility with CNY 367b in such loans maturing. Other Important Headlines Press reports indicate BHP +1.7% is preparing to cut more than 700 white collar jobs. Jefferies initiated coverage on a number of Macau gaming names but it didn’t help their trading performance.  Sands China -1.4% and Wynn Macau -0.5% are rated buys while MGM China -2.5% and Galaxy Ent. -2.4% are holds. The U.K. is reviewing the gaming renewal practices of Sony -0.2% and Nintendo -1.8% for potential competition and fairness violations. Shinsegae Grp Vice Chair Chung will increase his stake in E-Mart +5.25% to 10.3%…

CAPIS EU Close – 4/5/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/05/2019 at 12:52 pm
by Clayton Duff on 04/05/2019

Most European indices held gains on sentiment fueled trade talk advances made between President Trump and China’s Vice Premier Liu. Better German MoM Industrial Production also helped as well.  On the day, the FTSE 100 led with the weaker Pound (approaching 1.30) helped.  Moves away from the UK continued to be as scant as they were this morning.  On the week though we saw solid gains with the UK up 2.3%, Germany up 4.2%, and France +2.35%.  Volume today was off 16% per the Stoxx 600. On the sector front Energy led, up .88%, with Brent up to levels not seen since last November and through the 200 day level.  As with West Texas Intermediate moves higher appear imminent. AB Inbev rallied 1.9% with BofAML upgrading their view of the firm’s organic growth.  However they do not see much of a bigger move with eps estimates for next year below estimates. Post the close Engie is said to be near a deal to buy Petrobras’ pipeline unit for $9B. The deal will see Engie and the Canadian pension fund Caisse de Deport et Placement du Quebec acquiring 90% of their 2800 mile pipeline network in Brazil called TAG. Japan will…

Most European indices held gains on sentiment fueled trade talk advances made between President Trump and China’s Vice Premier Liu. Better German MoM Industrial Production also helped as well.  On the day, the FTSE 100 led with the weaker Pound (approaching 1.30) helped.  Moves away from the UK continued to be as scant as they were this morning.  On the week though we saw solid gains with the UK up 2.3%, Germany up 4.2%, and France +2.35%.  Volume today was off 16% per the Stoxx 600. On the sector front Energy led, up .88%, with Brent up to levels not seen since last November and through the 200 day level.  As with West Texas Intermediate moves higher appear imminent. AB Inbev rallied 1.9% with BofAML upgrading their view of the firm’s organic growth.  However they do not see much of a bigger move with eps estimates for next year below estimates. Post the close Engie is said to be near a deal to buy Petrobras’ pipeline unit for $9B. The deal will see Engie and the Canadian pension fund Caisse de Deport et Placement du Quebec acquiring 90% of their 2800 mile pipeline network in Brazil called TAG. Japan will…

CAPIS EU Close – 4/4/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/04/2019 at 1:03 pm
by Clayton Duff on 04/04/2019

European markets closed mixed with markets there spending the session shaking off early lows.  On the sector front only Autos saw notable gains, finishing up 71bps, while Banks and Personal Goods were only slightly green. Basic Resources fell over a percent while Energy slipped less than percent on flattish oil prices today.  Copper is currently off over a percent today. During its investor day Michelin +.6% reaffirmed their growth objectives for next year and announced they will undergo a €500M share buyback.  On that the name moved off of earlier lower levels to close up small.  The company said while Chinese new car sales are expected to rise in the 2H new car sales in March declined again. In the retail space Casino fell 3.5% after Morgan Stanley expressed concern about their debt load. Competition and modest cost-savings were highlighted with the broker noting the company has few levers to pull to right the ship. Also weighing in the retail space, home appliance-seller AO World fell 5.7% on word they adjusted ebitda is expected at the lower end of expectations.  The company booked a loss-making contract in Germany and is unable to terminate it.  The firm is evidently unable to…

European markets closed mixed with markets there spending the session shaking off early lows.  On the sector front only Autos saw notable gains, finishing up 71bps, while Banks and Personal Goods were only slightly green. Basic Resources fell over a percent while Energy slipped less than percent on flattish oil prices today.  Copper is currently off over a percent today. During its investor day Michelin +.6% reaffirmed their growth objectives for next year and announced they will undergo a €500M share buyback.  On that the name moved off of earlier lower levels to close up small.  The company said while Chinese new car sales are expected to rise in the 2H new car sales in March declined again. In the retail space Casino fell 3.5% after Morgan Stanley expressed concern about their debt load. Competition and modest cost-savings were highlighted with the broker noting the company has few levers to pull to right the ship. Also weighing in the retail space, home appliance-seller AO World fell 5.7% on word they adjusted ebitda is expected at the lower end of expectations.  The company booked a loss-making contract in Germany and is unable to terminate it.  The firm is evidently unable to…

CAPIS EU Close – 4/2/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/02/2019 at 12:34 pm
by Clayton Duff on 04/02/2019

Most markets saw slight gains with the UK outperforming as the Pound fell.  The Auto sector finished north of a percent with solid gains seen in Insurers, Media, and Banks.  443 members of the Stoxx 600 ended higher on volume 10% lower. While the IMF said they do not expect a recession they did add that a rebound in growth this year is seen as “precarious”.  Trade risks, Brexit, and the unease in financial markets was all cited.  Lagarde though was a bit more positive, noting the 2H of the year looks better even though the global economy is losing momentum currently.   On the Brexit font France’s Macron said further UK parliament rejection of plans to move forward is putting them on a path to a Hard Brexit. Standard Chartered closed up 3.4% on hopes of finalizing the Iran-related scandal with the US government.  The US extended their deferred prosecution agreement another two weeks but the monitorship by the US ended Sunday.  A large fine by the US is expected soon which should put a bow on the investigation as the firm put away $900M in February in anticipation. Atos finished off 2% but had been down more earlier after…

Most markets saw slight gains with the UK outperforming as the Pound fell.  The Auto sector finished north of a percent with solid gains seen in Insurers, Media, and Banks.  443 members of the Stoxx 600 ended higher on volume 10% lower. While the IMF said they do not expect a recession they did add that a rebound in growth this year is seen as “precarious”.  Trade risks, Brexit, and the unease in financial markets was all cited.  Lagarde though was a bit more positive, noting the 2H of the year looks better even though the global economy is losing momentum currently.   On the Brexit font France’s Macron said further UK parliament rejection of plans to move forward is putting them on a path to a Hard Brexit. Standard Chartered closed up 3.4% on hopes of finalizing the Iran-related scandal with the US government.  The US extended their deferred prosecution agreement another two weeks but the monitorship by the US ended Sunday.  A large fine by the US is expected soon which should put a bow on the investigation as the firm put away $900M in February in anticipation. Atos finished off 2% but had been down more earlier after…

CAPIS Global Markets 4/2/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 04/02/2019 at 7:39 am
by Matthew Kiselica on 04/02/2019

Asian Markets Most of the regions core markets had minimal moves following yesterday’s strong gains.  Peripherals are outperformers.   Consumer staples fell by c. 1% and defensives remain out of favor.  Materials and IT gained c. 0.5%.  Semiconductor names saw buying interest following a Digitimes report chips prices will rebound during the second half of the year. Down Under, the RBA left its benchmark rate unchanged at 1.5%, as expected.  Overall, the central bank remained balance noting areas of strength and weakness in the overall economy.  The AUD gained following the countries budget which is projecting an A$7.1b surplus for FY20. European Markets Europe had a sluggish start but moved to the highs after about three hours into the trading session.  The markets are currently holding the highs of the day.  The auto sector is the standout better by more than 1%.  Tech, media, insurance, food/bevies and banks are all better by more than 0.5%.  Telecoms and healthcare are down small and retail has lagged all session. Currency Markets Bitcoin has surged more than 20.0% during Asian trading.  However, there was no fundamental trigger scene.  Speculation it was a significant buy order but that is not conclusive.  It has pared some…

Asian Markets Most of the regions core markets had minimal moves following yesterday’s strong gains.  Peripherals are outperformers.   Consumer staples fell by c. 1% and defensives remain out of favor.  Materials and IT gained c. 0.5%.  Semiconductor names saw buying interest following a Digitimes report chips prices will rebound during the second half of the year. Down Under, the RBA left its benchmark rate unchanged at 1.5%, as expected.  Overall, the central bank remained balance noting areas of strength and weakness in the overall economy.  The AUD gained following the countries budget which is projecting an A$7.1b surplus for FY20. European Markets Europe had a sluggish start but moved to the highs after about three hours into the trading session.  The markets are currently holding the highs of the day.  The auto sector is the standout better by more than 1%.  Tech, media, insurance, food/bevies and banks are all better by more than 0.5%.  Telecoms and healthcare are down small and retail has lagged all session. Currency Markets Bitcoin has surged more than 20.0% during Asian trading.  However, there was no fundamental trigger scene.  Speculation it was a significant buy order but that is not conclusive.  It has pared some…

CAPIS EU Close – 3/29/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/29/2019 at 12:50 pm
by Clayton Duff on 03/29/2019

Sweden continued to underperform with banks there again lower.  Other markets though in Europe finished to the upside with gains seen on the week.  Despite PM May losing her Brexit vote today the FTSE100 finished a percent better on the week with the DAX up 1.42% and CAC40 up 1.53% for the same period.   On the Brexit front, Sky News is reporting ministers are meeting with PM May adviser her to forget a soft Brexit and instead push for a no-deal Brexit.  We’ll see new votes next week. On the sector front all but Telcos and Utilities finished better with Basic Resources and Tech names leading.   Homebuilders were weak with disappointing house price/mortgage approvals in the UK. Proton therapy-equipment installer Ion Beam rallied 14% after it won a Shenzhen tender contract for their system. Contract negotiations are still underway but a deal of €90M is expected. After noting they see next year’s profit weaker than expected Renewi fell over 21% at the open.  However, by the day’s end the stock was only off 2.7%.  The firm is undergoing tests required by the Dutch gov concerning their treated soil product. The firm said they feel they will adhere to banking covenants…

Sweden continued to underperform with banks there again lower.  Other markets though in Europe finished to the upside with gains seen on the week.  Despite PM May losing her Brexit vote today the FTSE100 finished a percent better on the week with the DAX up 1.42% and CAC40 up 1.53% for the same period.   On the Brexit front, Sky News is reporting ministers are meeting with PM May adviser her to forget a soft Brexit and instead push for a no-deal Brexit.  We’ll see new votes next week. On the sector front all but Telcos and Utilities finished better with Basic Resources and Tech names leading.   Homebuilders were weak with disappointing house price/mortgage approvals in the UK. Proton therapy-equipment installer Ion Beam rallied 14% after it won a Shenzhen tender contract for their system. Contract negotiations are still underway but a deal of €90M is expected. After noting they see next year’s profit weaker than expected Renewi fell over 21% at the open.  However, by the day’s end the stock was only off 2.7%.  The firm is undergoing tests required by the Dutch gov concerning their treated soil product. The firm said they feel they will adhere to banking covenants…

TGIF Global Markets 3/29/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/29/2019 at 7:19 am
by Matthew Kiselica on 03/29/2019

Asian Markets Word of progress in the Sino-US trade talks lifts equities.  Most of the major indices recorded significant gains with the Chinese markets leading the way.  Surprisingly, Australia lagged with utilities and energy among others holding the ASX200 back.  For the region, all major sectors end the day better.   Consumer staples, financials, healthcare and real estate improve by c. 2%. European Markets Europe is also trading well and currently near highs of the day.  Sweden lags the as the anti-money laundering scandal continues to weigh upon the banks.  Basic resources area head by c. 2%.  Retail, autos, technology, financials and constructions improve by c. 1.0% or more.  with most other sectors to the upside.  Defensives and travel/leisure lag. We couldn’t go a day without mentioning Brexit. Parliament will have a third vote regarding PM May’s Brexit plan.  However, today’s vote will only be for a portion of the existing deal she has hammered out with the EU.  Debate is occurring as we to to press with the tally scheduled for 10:30 AM Eastern. Other Important International Headlines ICBC -0.8% did not take part in today’s rally following results out after yesterday’s close.  FY 18 NI is CNY 297.7b vs.…

Asian Markets Word of progress in the Sino-US trade talks lifts equities.  Most of the major indices recorded significant gains with the Chinese markets leading the way.  Surprisingly, Australia lagged with utilities and energy among others holding the ASX200 back.  For the region, all major sectors end the day better.   Consumer staples, financials, healthcare and real estate improve by c. 2%. European Markets Europe is also trading well and currently near highs of the day.  Sweden lags the as the anti-money laundering scandal continues to weigh upon the banks.  Basic resources area head by c. 2%.  Retail, autos, technology, financials and constructions improve by c. 1.0% or more.  with most other sectors to the upside.  Defensives and travel/leisure lag. We couldn’t go a day without mentioning Brexit. Parliament will have a third vote regarding PM May’s Brexit plan.  However, today’s vote will only be for a portion of the existing deal she has hammered out with the EU.  Debate is occurring as we to to press with the tally scheduled for 10:30 AM Eastern. Other Important International Headlines ICBC -0.8% did not take part in today’s rally following results out after yesterday’s close.  FY 18 NI is CNY 297.7b vs.…

CAPIS EU Close – 3/28/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/28/2019 at 1:06 pm
by Clayton Duff on 03/28/2019

European indices closed mixed with the UK’s FTSE100 the clear winner as the Pound fell today.  There, health care and consumer staples led while Chemicals ultimately led in the region.  Roughly 2/3rds of the sectors finished lower with Banks and Telcos down over a percent.  Concerning the Stoxx600 members up vs down was evenly split while volume was down by 20% today. While most names finished nicely higher Infineon continued to fall, down another 2%, after paring their FY19 outlook yesterday.  Morgan Stanley called the move “an important reality check” for the semi space. As noted in our morning blurb Swedbank -7.8% continues lower with their CEO ousted amid their continuing AML woes.  SEB -7%, Nordea Bank -2.6%. SMA Solar fell 17% despite confirming their FY2019 sales and earnings.  The firm sees a 1Q loss of between €5M to flat.  The firm lost money last year. China’s BoP current account is due overnight along with a slew of Japanese data.  Jobs data, Tokyo inflation, Industrial Production, Retail Sales, and Vehicle Production is due, mostly just before the open.  Industrial Production is due in Korea.  Home prices and mortgage approvals are out in the UK along with GDP for the 4Q. …

European indices closed mixed with the UK’s FTSE100 the clear winner as the Pound fell today.  There, health care and consumer staples led while Chemicals ultimately led in the region.  Roughly 2/3rds of the sectors finished lower with Banks and Telcos down over a percent.  Concerning the Stoxx600 members up vs down was evenly split while volume was down by 20% today. While most names finished nicely higher Infineon continued to fall, down another 2%, after paring their FY19 outlook yesterday.  Morgan Stanley called the move “an important reality check” for the semi space. As noted in our morning blurb Swedbank -7.8% continues lower with their CEO ousted amid their continuing AML woes.  SEB -7%, Nordea Bank -2.6%. SMA Solar fell 17% despite confirming their FY2019 sales and earnings.  The firm sees a 1Q loss of between €5M to flat.  The firm lost money last year. China’s BoP current account is due overnight along with a slew of Japanese data.  Jobs data, Tokyo inflation, Industrial Production, Retail Sales, and Vehicle Production is due, mostly just before the open.  Industrial Production is due in Korea.  Home prices and mortgage approvals are out in the UK along with GDP for the 4Q. …

CAPIS EU Close – 3/27/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/27/2019 at 1:04 pm
by Clayton Duff on 03/27/2019

Post the mixed session in Asia Europe followed up with like action.  Indices saw light losses in the morning but ticked up sharply at 8:30 EST.  Headlines include a press story concerning the ECB planning to return interest made on excess funds held there by member banks.  At the same time the US reported a trade deficit $6B less than expected with the balance vs China narrowing by$5B. Sentiment of course was higher on hopes the White House will lighten up against their largest trading partner. Bonds are trading up today sans the UK gilt and the Pound firms above 1.32. Germany issued 10 bunds today, yielding a negative .05%, its first negative rate since 2016.  On the Brexit front it is not completely clear at this point but indications are that PM May may step down from her PM position once she gets the Brexit plan where she wants to be.  Her intent is to put her plan back to a vote in Parliament but will not make the attempt until she is more confident of a win. In the tech space Infineon fell over 5% after paring their FY19 revenue view and lowering their segment result margin to…

Post the mixed session in Asia Europe followed up with like action.  Indices saw light losses in the morning but ticked up sharply at 8:30 EST.  Headlines include a press story concerning the ECB planning to return interest made on excess funds held there by member banks.  At the same time the US reported a trade deficit $6B less than expected with the balance vs China narrowing by$5B. Sentiment of course was higher on hopes the White House will lighten up against their largest trading partner. Bonds are trading up today sans the UK gilt and the Pound firms above 1.32. Germany issued 10 bunds today, yielding a negative .05%, its first negative rate since 2016.  On the Brexit front it is not completely clear at this point but indications are that PM May may step down from her PM position once she gets the Brexit plan where she wants to be.  Her intent is to put her plan back to a vote in Parliament but will not make the attempt until she is more confident of a win. In the tech space Infineon fell over 5% after paring their FY19 revenue view and lowering their segment result margin to…

CAPIS EU Close – 3/26/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/26/2019 at 12:58 pm
by Clayton Duff on 03/26/2019

European indices ended with a positive bias, holding steady over the afternoon.  Autos and Banks ended down small with 1+% gains in Healthcare, Foods, Tech, Financials, Personal Goods, and Media names.  Stoxx 600 members were to the upside at a rate of two to one with volume off 17%.  Moves in bonds were scant in the afternoon with the UK Gilt seeing some selling, yielding at 1%.   Ahead of tomorrow’s Brexit-alternative vote in Parliament the Pound today held in, continuing to trade just under the 400 day. Bang & Olufsen ended down over 26% after they sharply cut their FY outlook and put a stop to their buyback program. Revenues are seen off 10% YoY with consumer’s move to personal devices weighing.   Sales of their $15k TV’s are weak with traditional stereo-type systems not as much in demand. Debenhams rallied 42% with Sports Direct said to be interested.  SD’s CEO Mike Ashley is a large holder already in Debenhams and is hoping that creditors do not end up with the firm. Several UK builders gained today, led by Crest Nicholson +5%, with the firm noting trading has been resilient.  Markets are encouraged by the new CEO as well.  Bovis Homes…

European indices ended with a positive bias, holding steady over the afternoon.  Autos and Banks ended down small with 1+% gains in Healthcare, Foods, Tech, Financials, Personal Goods, and Media names.  Stoxx 600 members were to the upside at a rate of two to one with volume off 17%.  Moves in bonds were scant in the afternoon with the UK Gilt seeing some selling, yielding at 1%.   Ahead of tomorrow’s Brexit-alternative vote in Parliament the Pound today held in, continuing to trade just under the 400 day. Bang & Olufsen ended down over 26% after they sharply cut their FY outlook and put a stop to their buyback program. Revenues are seen off 10% YoY with consumer’s move to personal devices weighing.   Sales of their $15k TV’s are weak with traditional stereo-type systems not as much in demand. Debenhams rallied 42% with Sports Direct said to be interested.  SD’s CEO Mike Ashley is a large holder already in Debenhams and is hoping that creditors do not end up with the firm. Several UK builders gained today, led by Crest Nicholson +5%, with the firm noting trading has been resilient.  Markets are encouraged by the new CEO as well.  Bovis Homes…

CAPIS Global Markets 3/26/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/26/2019 at 7:04 am
by Matthew Kiselica on 03/26/2019

The Sovereign Debt Markets Most yields are rising today.  Japan’s benchmark yield higher c. 2 basis points and Australia’s 4.5.  New Zealand continues to see yield declines with a widening deficit not helping.  The German Bund yield remains negative. The US 10 yr. yield advances c. 5 basis points. Asian Markets Most of the region saw a rebound with Japan leading the way.  This was despite a key profit warning in the tech sector which we will address below.  The Chinese markets gave ground on growth concerns.  Specifically, a Bloomberg survey shows analysts are cutting their respective Chinese GDP estimates.  The survey results show consensus for Q1 Chinese GDP is now 6.2% from the prior result of 6.3%. Led by Japanese names, most sectors end the day higher.  Consumer staples gained more than 1%.  Chinese names helped with local investors rotating into more defensive plays.  IT was flat, as was energy. Important Headlines Samsung Elec. -0.5% created the underperformance in the IT sector.  The company sees Q1 earnings below expectations.  They cite low chip prices along with weak display demand.  The shares recouped about 2/3 of the day’s initial losses. Wesfarmers -3.5% is making a bid for rare-earth miner Lynas…

The Sovereign Debt Markets Most yields are rising today.  Japan’s benchmark yield higher c. 2 basis points and Australia’s 4.5.  New Zealand continues to see yield declines with a widening deficit not helping.  The German Bund yield remains negative. The US 10 yr. yield advances c. 5 basis points. Asian Markets Most of the region saw a rebound with Japan leading the way.  This was despite a key profit warning in the tech sector which we will address below.  The Chinese markets gave ground on growth concerns.  Specifically, a Bloomberg survey shows analysts are cutting their respective Chinese GDP estimates.  The survey results show consensus for Q1 Chinese GDP is now 6.2% from the prior result of 6.3%. Led by Japanese names, most sectors end the day higher.  Consumer staples gained more than 1%.  Chinese names helped with local investors rotating into more defensive plays.  IT was flat, as was energy. Important Headlines Samsung Elec. -0.5% created the underperformance in the IT sector.  The company sees Q1 earnings below expectations.  They cite low chip prices along with weak display demand.  The shares recouped about 2/3 of the day’s initial losses. Wesfarmers -3.5% is making a bid for rare-earth miner Lynas…

CAPIS EU Close – 3/25/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/25/2019 at 12:48 pm
by Clayton Duff on 03/25/2019

After gapping lower European indices worked a bit higher, staying in a fairly tight range the balance of the session.  Losses were slight with sector moves a bit more pronounced. Media slipped nearly 1.5% with Financials and Tech names down 80bps.  Only the Chemical sector logged a gains, up a tepid 8bps. On the Brexit front PM May still does not have enough support in parliament to pass her deal thus a third vote at this point is on hold. Bayer fell 2.9% after they and JNJ settled a $775M suit associated with internal bleeding for some users of their blood-thinner Xarelto. The drug is their top seller, racking up over $4B in sales last year. Airbus -.5% moved a bit closer to flat on headlines they have secured a long-awaited deal with China. On the Boeing 737 Max issues Airbus was pressing to win the deal with China’s President in France.   Post the close an announcement to buy 290 A320 planes along with 10 A350S jets was reported with a value of $35B. South Africa’s Naspers -1.6% said they will spin off its internet unit and list it in the Netherlands.  Most of the unit’s value though is reflected in…

After gapping lower European indices worked a bit higher, staying in a fairly tight range the balance of the session.  Losses were slight with sector moves a bit more pronounced. Media slipped nearly 1.5% with Financials and Tech names down 80bps.  Only the Chemical sector logged a gains, up a tepid 8bps. On the Brexit front PM May still does not have enough support in parliament to pass her deal thus a third vote at this point is on hold. Bayer fell 2.9% after they and JNJ settled a $775M suit associated with internal bleeding for some users of their blood-thinner Xarelto. The drug is their top seller, racking up over $4B in sales last year. Airbus -.5% moved a bit closer to flat on headlines they have secured a long-awaited deal with China. On the Boeing 737 Max issues Airbus was pressing to win the deal with China’s President in France.   Post the close an announcement to buy 290 A320 planes along with 10 A350S jets was reported with a value of $35B. South Africa’s Naspers -1.6% said they will spin off its internet unit and list it in the Netherlands.  Most of the unit’s value though is reflected in…

Global Markets 3/25/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/25/2019 at 6:44 am
by Matthew Kiselica on 03/25/2019

Sovereign Debt Markets The global fall in bond yields continued in Asia.  Australia’s 10 yr. yield is lower by more than 5 basis points reaching an all time low.  Japan’s 10 yr. yield is off 1.4 basis points.  Europe is stemming the tide.  The debt markets  are rising there but the German 10 yr. Bund still has a negative yield. The U.S. 10 yr. yield is higher by c. 3 basis points. Asian Markets Following Friday’s losses in the West and the inversion of the U.S. yield curve, Asian markets saw heavy selling across the board.  There may be one “silver lining” in today’s trading activity.  Many of the local exchanges saw turnover well below the 20 dmavg.  Japan and Hong Kong are exceptions to that statement. All the major sectors are lower.  Financials, industrials, telcos, consumer staples and healthcare end the day off 2% or more. European Markets Europe opened to the downside with the Euro Stoxx 600 hitting a low of c. 0.8%.  However, the index pared more than half of the advance but the rally has petered out.  Italy and Spain try to cling to earlier gains. Most sectors are in the red.  Media, retail and technology…

Sovereign Debt Markets The global fall in bond yields continued in Asia.  Australia’s 10 yr. yield is lower by more than 5 basis points reaching an all time low.  Japan’s 10 yr. yield is off 1.4 basis points.  Europe is stemming the tide.  The debt markets  are rising there but the German 10 yr. Bund still has a negative yield. The U.S. 10 yr. yield is higher by c. 3 basis points. Asian Markets Following Friday’s losses in the West and the inversion of the U.S. yield curve, Asian markets saw heavy selling across the board.  There may be one “silver lining” in today’s trading activity.  Many of the local exchanges saw turnover well below the 20 dmavg.  Japan and Hong Kong are exceptions to that statement. All the major sectors are lower.  Financials, industrials, telcos, consumer staples and healthcare end the day off 2% or more. European Markets Europe opened to the downside with the Euro Stoxx 600 hitting a low of c. 0.8%.  However, the index pared more than half of the advance but the rally has petered out.  Italy and Spain try to cling to earlier gains. Most sectors are in the red.  Media, retail and technology…

TGIF Global Markets 3/22/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/22/2019 at 6:57 am
by Matthew Kiselica on 03/22/2019

Asian Markets A push across as the region as most of the markets record minimal moves in the last trading day of the week.  Falling bond yields remain a trend.  Japan’s 10 yr. yield reached its lowest level since 2016, New Zealand’s an all time low and Australia’s approaching it. Sectors were were mixed.  IT once gain led but today buy only 0.5%.  Healthcare was lower by  about that mark. Important Headlines Tencent’s +0.5% results are providing some relief to investors.  Gaming revenues slumped but Jefferies sees them rebounding this year.  Also, it is managing to grow other business lines such as cloud and fintech. The crude sector saw results from both CNOOC +0.6% and Petrochina -2.0%. Both CK Asset +1.5% and CKH Holdings +1.3% traded well following their earnings. Elliott Management saw its dividend proposals defeated by shareholders of both Hyundai Motor -0.8% and Hyundai Mobis +0.5%. Eisai spent the entire session limit down following yesterday’s Biogen-aducanumab news.  The company was co-developing the Alzheimer treatment with Biogen. European Markets The region started to the upside for the first 30 minutes or so.  However, the markets fell into the red after German Markit Manuf. PMI was well below consensus.  Additionally,…

Asian Markets A push across as the region as most of the markets record minimal moves in the last trading day of the week.  Falling bond yields remain a trend.  Japan’s 10 yr. yield reached its lowest level since 2016, New Zealand’s an all time low and Australia’s approaching it. Sectors were were mixed.  IT once gain led but today buy only 0.5%.  Healthcare was lower by  about that mark. Important Headlines Tencent’s +0.5% results are providing some relief to investors.  Gaming revenues slumped but Jefferies sees them rebounding this year.  Also, it is managing to grow other business lines such as cloud and fintech. The crude sector saw results from both CNOOC +0.6% and Petrochina -2.0%. Both CK Asset +1.5% and CKH Holdings +1.3% traded well following their earnings. Elliott Management saw its dividend proposals defeated by shareholders of both Hyundai Motor -0.8% and Hyundai Mobis +0.5%. Eisai spent the entire session limit down following yesterday’s Biogen-aducanumab news.  The company was co-developing the Alzheimer treatment with Biogen. European Markets The region started to the upside for the first 30 minutes or so.  However, the markets fell into the red after German Markit Manuf. PMI was well below consensus.  Additionally,…

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