CAPIS Global Recap – 2/3/2020
News Trading Desk International Summary
International Summary
posted by Clayton Duff on 02/03/2020 at 6:54 am
by Clayton Duff on 02/03/2020
Asian Headlines China’s markets reopened today after being shut since January 23rd with unsurprising weakness. The Shanghai closed down 7.72% with the Shenzhen off 8.41%. Losses were broad with IT, Communication, Real Estate, Industrials, and Discretionary names off 9% or more. Health Care outperformed as you might imagine, down less than 3%. Note that over the same time period Hong Kong was off 7% with the US S&P down ~3.5%. The rest of Asian did not escape losses with the Nikkei easing lower on Consumer goods and IT. Down Under, Energy and Materials weighed with some strength seen in South Korea. To support the economy China released a plethora of measures including a massive injection of CNY1.2T by the PBOC via reverse repos. Additionally, rates for both 7 and 14 day reverse repos were lowered by 10bps. Their securities regulator curtailed some futures restrictions with intra-government support for financing costs related to support of coronavirus-affected enterprises. Also, securities lending has said to be suspended beginning today as well. Unfortunately the death toll continues higher for the Wuhan coronavirus, approaching 400 with one death noted in the Philippines. Back to the economy, Industrial Profits in China fell 6.3% in December with…