Trading Desk

1930 total posts

CAPIS Global Recap – 6/17/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/17/2019 at 6:56 am
by Clayton Duff on 06/17/2019

Asian Headlines Trading in the far east started the week in an uninspiring fashion with summer doldrums certainly in play.  Scant moves away from the flatline were evident across the board with turnover noticeably lower.   Communication names were general winners with IT mostly lower.  Health Care and Financials worked higher in Hong Kong with CE Lam backing down protesters and shelving the extradition bill for now.  Throughout Asian hours oil held steady but is a bit lower in early European trading. The PBoC enacted another RRR cut today with CNY100B in funds being released. This helped Financials in Shanghai as well with several headlines referring to regulators working through the takeover and restructure of Baoshang Bank. It has been reported corporate creditors have received full repayment while interbank creditors have received less so. Down Under, Vocus Group -25% weighed on the Communication sector after AGL Energy pulled its bid for the firm.  This is now the 4th potential acquirer that has looked behind the curtain and said no thanks.  To note, tonight RBA minutes from June will be released. Samsung -.2% shook off earlier weakness post noting it sees memory chip demand “unlikely” to recover until the end of the…

Asian Headlines Trading in the far east started the week in an uninspiring fashion with summer doldrums certainly in play.  Scant moves away from the flatline were evident across the board with turnover noticeably lower.   Communication names were general winners with IT mostly lower.  Health Care and Financials worked higher in Hong Kong with CE Lam backing down protesters and shelving the extradition bill for now.  Throughout Asian hours oil held steady but is a bit lower in early European trading. The PBoC enacted another RRR cut today with CNY100B in funds being released. This helped Financials in Shanghai as well with several headlines referring to regulators working through the takeover and restructure of Baoshang Bank. It has been reported corporate creditors have received full repayment while interbank creditors have received less so. Down Under, Vocus Group -25% weighed on the Communication sector after AGL Energy pulled its bid for the firm.  This is now the 4th potential acquirer that has looked behind the curtain and said no thanks.  To note, tonight RBA minutes from June will be released. Samsung -.2% shook off earlier weakness post noting it sees memory chip demand “unlikely” to recover until the end of the…

CAPIS Global Recap – 6/14/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/14/2019 at 6:46 am
by Clayton Duff on 06/14/2019

Asian Headlines Mainland China led to the downside today, selling off in the afternoon hours on weakness in the IT and Communication space. Turnover was flat ahead a slew of data released after the close and noted below.  Hong Kong fell again with same sectors weak as some previously closed bank branches reopened.  The Nikkei conversely saw mild gains with the Energy sector leading as related names played catch to the attack headlines that hit post yesterday’s close.  Australia closed just above flat with Materials and Energy leading as iron ore continues to strengthen. The AUD$ fell with both National Australia Bank and Royal Bank of Canada both noting they see additional rate cuts ahead.  The Kiwi Dollar also fell on disappointing Manufacturing PMI data. Post the close Chinese Industrial Production grew at 5.0% in May, light of estimates and at the slowest pace in 17 years. Retail sales results were encouraging, ahead of estimates with Property Investment slowing a bit. Sony rallied 3% with a fund investing $1.5B into it with a push coming to offload their semiconductor unit. Bank of East Asia fell 9% on warnings of a “material decrease” in 1H NI, citing an expected impairment loss…

Asian Headlines Mainland China led to the downside today, selling off in the afternoon hours on weakness in the IT and Communication space. Turnover was flat ahead a slew of data released after the close and noted below.  Hong Kong fell again with same sectors weak as some previously closed bank branches reopened.  The Nikkei conversely saw mild gains with the Energy sector leading as related names played catch to the attack headlines that hit post yesterday’s close.  Australia closed just above flat with Materials and Energy leading as iron ore continues to strengthen. The AUD$ fell with both National Australia Bank and Royal Bank of Canada both noting they see additional rate cuts ahead.  The Kiwi Dollar also fell on disappointing Manufacturing PMI data. Post the close Chinese Industrial Production grew at 5.0% in May, light of estimates and at the slowest pace in 17 years. Retail sales results were encouraging, ahead of estimates with Property Investment slowing a bit. Sony rallied 3% with a fund investing $1.5B into it with a push coming to offload their semiconductor unit. Bank of East Asia fell 9% on warnings of a “material decrease” in 1H NI, citing an expected impairment loss…

CAPIS Global Markets 6 13 2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/13/2019 at 6:41 am
by Clayton Duff on 06/13/2019

Headlines in Asia After an uninspiring day in the US Asia followed up with a like result.  The bias on the day was to the downside, albeit on slight losses with mainland China up small.  Protests continued in Hong Kong with their market lower in the morning before closing flat by day’s end.  Legislators there delayed for the second time a meeting on the extradition bill.  The government HQ there is said to be shut today and tomorrow.  Cash demands there were again higher with money market rates up.  Oil prices have been in focus today with what is being called an attack in the Sea of Oman on 2 tankers.  Headlines hit post the close in Japan and Australia with Energy names both leading to the downside there.   Brent is up over $2.00 with WTI better by over $1.4. Chinese FDI rose 8.5% in May, ahead of the prior 6.3% gain seen.  State newspaper China Daily said moderate inflation and a current dovish environment will allow for the government to adjust credit to counter any risks that may arise if trade talks with the US continue to go south. LG Chem +3.6% inked a deal with China’s Geely Auto…

Headlines in Asia After an uninspiring day in the US Asia followed up with a like result.  The bias on the day was to the downside, albeit on slight losses with mainland China up small.  Protests continued in Hong Kong with their market lower in the morning before closing flat by day’s end.  Legislators there delayed for the second time a meeting on the extradition bill.  The government HQ there is said to be shut today and tomorrow.  Cash demands there were again higher with money market rates up.  Oil prices have been in focus today with what is being called an attack in the Sea of Oman on 2 tankers.  Headlines hit post the close in Japan and Australia with Energy names both leading to the downside there.   Brent is up over $2.00 with WTI better by over $1.4. Chinese FDI rose 8.5% in May, ahead of the prior 6.3% gain seen.  State newspaper China Daily said moderate inflation and a current dovish environment will allow for the government to adjust credit to counter any risks that may arise if trade talks with the US continue to go south. LG Chem +3.6% inked a deal with China’s Geely Auto…

CAPIS Global Markets 6 12 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/12/2019 at 6:43 am
by Matthew Kiselica on 06/12/2019

Asian Markets Following the losses in the West on trade concerns, the most of the region’s markets gave ground today.  Hong Kong suffered the most as citizens continue to protest a proposed extradition bill.  This is driving Hibor rates higher.  They are currently at levels not seen since 2008.   We all remember how well that year went. Most sectors end the day red.  Real estate, especially in Hong Kong and IT fell more than 1%.  Materials managed an advance of c. 0.25%. Important Headlines Chinese inflation data for both overall CPI and PPI were inline with expectations.  Food prices continue to accelerate gaining 7.7% y/y vs. the prior reading of 6.1%. Softbank -2.4% reacted to yesterday’s news a consortium of states filed an antitrust suit to block the T-Mobile/Sprint merger. China Tobacco +9.6% was on fire in its trading debut on the Hong Kong Exchange. After the local close, China released various lending data.  New CNY loans for May are below expectations. European Markets The European markets have been lower since the open.  Any attempts to pare the declines have faltered at c. 0.3%.  They are currently trading near the lows. Boris Johnson “officially” declared his candidacy to head the…

Asian Markets Following the losses in the West on trade concerns, the most of the region’s markets gave ground today.  Hong Kong suffered the most as citizens continue to protest a proposed extradition bill.  This is driving Hibor rates higher.  They are currently at levels not seen since 2008.   We all remember how well that year went. Most sectors end the day red.  Real estate, especially in Hong Kong and IT fell more than 1%.  Materials managed an advance of c. 0.25%. Important Headlines Chinese inflation data for both overall CPI and PPI were inline with expectations.  Food prices continue to accelerate gaining 7.7% y/y vs. the prior reading of 6.1%. Softbank -2.4% reacted to yesterday’s news a consortium of states filed an antitrust suit to block the T-Mobile/Sprint merger. China Tobacco +9.6% was on fire in its trading debut on the Hong Kong Exchange. After the local close, China released various lending data.  New CNY loans for May are below expectations. European Markets The European markets have been lower since the open.  Any attempts to pare the declines have faltered at c. 0.3%.  They are currently trading near the lows. Boris Johnson “officially” declared his candidacy to head the…

CAPIS Global Markets 6 11 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/11/2019 at 6:45 am
by Matthew Kiselica on 06/11/2019

Asian Markets Another solid day for the region with each of the core markets building upon yesterday’s gains.  The Mainland Chinese markets were the stars.  China is permitting local governments to use proceeds from special bond sales to fund “qualified major projects.”  This should boost infrastructure spending.  Australia needed to play catch up following yesterday’s holiday. All the major sectors close to the upside with Chinese names providing impetus.  Materials improved by 2% followed by consumer staples, IT and industrials. Other Important Headlines Another news item that caught Chinese investors eye is a report indicating the White House acting budget head is asking for a delay to the Huawei Tech business ban. The markets paid little attention to Pres. Trump saying he will impose additional tariffs on Chinese goods if Pres. Xi doesn’t meet with him at the G-20 meeting. Alibaba is said to have selected CICC and Credit Suisse as brokers for its Hong Kong listing.  The company is expected to officially file in the next “few weeks.” Down Under, AGL Energy -7.2% is proposing to purchase Vocus Group +8.8% at A$4.85 per share.  That is a 27.0% premium to Friday’s close (market was closed yesterday).  The prior bid…

Asian Markets Another solid day for the region with each of the core markets building upon yesterday’s gains.  The Mainland Chinese markets were the stars.  China is permitting local governments to use proceeds from special bond sales to fund “qualified major projects.”  This should boost infrastructure spending.  Australia needed to play catch up following yesterday’s holiday. All the major sectors close to the upside with Chinese names providing impetus.  Materials improved by 2% followed by consumer staples, IT and industrials. Other Important Headlines Another news item that caught Chinese investors eye is a report indicating the White House acting budget head is asking for a delay to the Huawei Tech business ban. The markets paid little attention to Pres. Trump saying he will impose additional tariffs on Chinese goods if Pres. Xi doesn’t meet with him at the G-20 meeting. Alibaba is said to have selected CICC and Credit Suisse as brokers for its Hong Kong listing.  The company is expected to officially file in the next “few weeks.” Down Under, AGL Energy -7.2% is proposing to purchase Vocus Group +8.8% at A$4.85 per share.  That is a 27.0% premium to Friday’s close (market was closed yesterday).  The prior bid…

CAPIS EU Recap – 6/10/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/10/2019 at 12:48 pm
by Clayton Duff on 06/10/2019

As noted earlier several large European markets were shut today with small gains seen today on sharply slower turnover.  Roughly 2/3’rds of the Stoxx 600 sectors finished higher with Basic Resources and Banks leading with gains of over a percent.  It was not only the US that saw merger activity with a few notable acquisitions in Europe as well. On the economic front ECB board members are wondering aloud that inflation continues to ease with a cut in rates being more talked about. Germany’s rep said the US/China trade spat may cut a percent off of global trade with the IMF’s Lagarde citing the spat in noting global GDP could slip .5% next year because of it. Finnish construction equipment seller Ramirent ticked up 65% with French firm Loxam offering to buy the firm for €9.00 a share.  The board recommends shareholders accept the bid.  The combination of company’s will see revenue of about €2.2B yearly with over 1000 branches. Air Liquide fell .7% on word they will offload their industrial gas unit to China’s Fujian, their customer in Southeast China. Finland’s Metso +1.6% is buying Canadian mobile crushing firm McCloskey for €279M. To the downside, gold miner Avesoro Resources…

As noted earlier several large European markets were shut today with small gains seen today on sharply slower turnover.  Roughly 2/3’rds of the Stoxx 600 sectors finished higher with Basic Resources and Banks leading with gains of over a percent.  It was not only the US that saw merger activity with a few notable acquisitions in Europe as well. On the economic front ECB board members are wondering aloud that inflation continues to ease with a cut in rates being more talked about. Germany’s rep said the US/China trade spat may cut a percent off of global trade with the IMF’s Lagarde citing the spat in noting global GDP could slip .5% next year because of it. Finnish construction equipment seller Ramirent ticked up 65% with French firm Loxam offering to buy the firm for €9.00 a share.  The board recommends shareholders accept the bid.  The combination of company’s will see revenue of about €2.2B yearly with over 1000 branches. Air Liquide fell .7% on word they will offload their industrial gas unit to China’s Fujian, their customer in Southeast China. Finland’s Metso +1.6% is buying Canadian mobile crushing firm McCloskey for €279M. To the downside, gold miner Avesoro Resources…

CAPIS Global Markets 6 10 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/10/2019 at 6:30 am
by Matthew Kiselica on 06/10/2019

Asian Markets A solid start to the week for the region’s markets following Friday’s U.S.-Mexican trade news.  As a refresher,  Pres. Trump suspended his threatened increase to Mexican tariffs.  He says a deal has been reached regarding border security along with agricultural products.  Friday’s headlines the Chinese government would seek to increase consumption of autos, home appliances and electronics was another factor.   The icing on the cake is the PBoC signaling it has scope for further easing, if needed.  Australia was closed. All major sectors advanced.  Consumer discretionary, real estate, consumer staples, telcos, healthcare and industrials improved by 1% or more.  Safe havens such as gold and the ¥ gave back some of the recent gains. Other Important Headlines China’s May trade surplus was also almost twice what was anticipated.  While imports in USD are below expectations, exports were a surprise increase.  (All figures in Markets & Macro section.)  There is some thought exporters were trying to get items shipped prior to the U.S. tariff increases. Japan’s Q1 GDP is bang inline with estimates. Reports over the weekend indicate both the French & Japanese governments are at odds regarding the future of the Renault/Nissan +0.8% alliance.  This is on top…

Asian Markets A solid start to the week for the region’s markets following Friday’s U.S.-Mexican trade news.  As a refresher,  Pres. Trump suspended his threatened increase to Mexican tariffs.  He says a deal has been reached regarding border security along with agricultural products.  Friday’s headlines the Chinese government would seek to increase consumption of autos, home appliances and electronics was another factor.   The icing on the cake is the PBoC signaling it has scope for further easing, if needed.  Australia was closed. All major sectors advanced.  Consumer discretionary, real estate, consumer staples, telcos, healthcare and industrials improved by 1% or more.  Safe havens such as gold and the ¥ gave back some of the recent gains. Other Important Headlines China’s May trade surplus was also almost twice what was anticipated.  While imports in USD are below expectations, exports were a surprise increase.  (All figures in Markets & Macro section.)  There is some thought exporters were trying to get items shipped prior to the U.S. tariff increases. Japan’s Q1 GDP is bang inline with estimates. Reports over the weekend indicate both the French & Japanese governments are at odds regarding the future of the Renault/Nissan +0.8% alliance.  This is on top…

D-Day Global Markets 6 6 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/06/2019 at 7:04 am
by Matthew Kiselica on 06/06/2019

Asian Markets There was certainly plenty of top down news for the markets to digest today.  Early on, the region was down as Pres. Trump stated “not enough” progress was made in US-Mexican trade talks.  Specifically regarding China, locals were not impressed by a new PBoC medium term loan facility of CNY 500b.  This was an injection of liquidity to offset maturing loans.  A large U.S.-Taiwan arms deal was also not taken well.  The ChiNext closed in bear market territory.  India gave ground following yesterday’s holiday and the RBI cutting its GDP forecasts for FY20.  The central bank now sees growth at 7% vs. 7.2% previously and changed its policy stance to accommodative.  S. Korea was closed in honor of its Memorial Day. However, China provided some lift to the markets which helped Hong Kong end the day higher.  Headlines hit that China intends to “boost” auto, home appliance and electronics consumption.  Details are vague but the markets that were open did catch a bid, as a result.  Most of the core markets were already closed including the Chinese mainland exchanges.  That headline coincided with Pres. Trump stating once again tariffs could be imposed on another $300b worth of Chinese…

Asian Markets There was certainly plenty of top down news for the markets to digest today.  Early on, the region was down as Pres. Trump stated “not enough” progress was made in US-Mexican trade talks.  Specifically regarding China, locals were not impressed by a new PBoC medium term loan facility of CNY 500b.  This was an injection of liquidity to offset maturing loans.  A large U.S.-Taiwan arms deal was also not taken well.  The ChiNext closed in bear market territory.  India gave ground following yesterday’s holiday and the RBI cutting its GDP forecasts for FY20.  The central bank now sees growth at 7% vs. 7.2% previously and changed its policy stance to accommodative.  S. Korea was closed in honor of its Memorial Day. However, China provided some lift to the markets which helped Hong Kong end the day higher.  Headlines hit that China intends to “boost” auto, home appliance and electronics consumption.  Details are vague but the markets that were open did catch a bid, as a result.  Most of the core markets were already closed including the Chinese mainland exchanges.  That headline coincided with Pres. Trump stating once again tariffs could be imposed on another $300b worth of Chinese…

CAPIS Global Markets 6 5 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/05/2019 at 7:07 am
by Matthew Kiselica on 06/05/2019

Asian Markets Most markets advanced with Japan leading the way.  The ¥ gave back some of its recent gains providing relief to exporters.  Australia moved higher with RBA Gov. Lowe making dovish comments following yesterday’s rate cut.  The Chinese May Caixin Services PMI is below expectations hitting a 4 month low.  S. Korea also had disappointing macro data.  Its currency a/c turned negative for the first time since 2012.  This was in part due to large offshore dividend payments.  Full figures in our macro section.  India (along with many Muslim nations) was closed for the start of Ramadan. Japanese names provided a lift to most sectors.  Consumer discretionary, IT, industrials and telcos each gained c. 1%.  Energy, healthcare and utilities lagged finishing around the flat line. Important Headlines Toyota Motors +2.5% sees the potential cost increases due to the proposed Mexican tariffs of up to $1b. While Byd -0.4% fell today, China is taking steps to bar entry to the electric vehicle space.  Additionally, it will foster key, efficient providers in the space. China Vanke’s +2.8% May contract sales rose 35.0% to CNY 58b. European Markets The region has been to the upside since the open.  Most of the markets…

Asian Markets Most markets advanced with Japan leading the way.  The ¥ gave back some of its recent gains providing relief to exporters.  Australia moved higher with RBA Gov. Lowe making dovish comments following yesterday’s rate cut.  The Chinese May Caixin Services PMI is below expectations hitting a 4 month low.  S. Korea also had disappointing macro data.  Its currency a/c turned negative for the first time since 2012.  This was in part due to large offshore dividend payments.  Full figures in our macro section.  India (along with many Muslim nations) was closed for the start of Ramadan. Japanese names provided a lift to most sectors.  Consumer discretionary, IT, industrials and telcos each gained c. 1%.  Energy, healthcare and utilities lagged finishing around the flat line. Important Headlines Toyota Motors +2.5% sees the potential cost increases due to the proposed Mexican tariffs of up to $1b. While Byd -0.4% fell today, China is taking steps to bar entry to the electric vehicle space.  Additionally, it will foster key, efficient providers in the space. China Vanke’s +2.8% May contract sales rose 35.0% to CNY 58b. European Markets The region has been to the upside since the open.  Most of the markets…

CAPIS Global Recap – 5/29/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/29/2019 at 6:56 am
by Clayton Duff on 05/29/2019

Asian Headlines After the disappointing finish in the States Asia closed mixed with a bias towards losses.  Like in the US, defensives saw selling with Consumer Staples and Utilities weighing on the Nikkei with Australia adding Industrials and Discretionary names to that list.  Shanghai managed a small gain with Staples conversely leading higher along with semiconductor-related names. Rare-earth names rallied with China threatening to cut the US off from supplies.  Semis fell elsewhere.   Bonds globally are bid higher after the US 10 year yield fell to levels not seen since September of 2017.  Post his trip to Japan, President Trump said higher tariffs may still be on tap. The PBoC continued to inject funds, this time ~$36B, hoping to sooth minds.  Market confidence continues to wane with concern after the gov took control of Baoshang Bank.  The Yuan continued to weaken despite the US calling the country a currency manipulator in the Semiannual Currency Report issued by the US Treasury.  Vietnam, Malaysia, Italy, and Ireland though were added to a watch list while India and Switzerland were removed. Taiwan saw overseas investors continue selling, 15 straight sessions now with state-owned brokers on their 14th day of acquisitions. Despite the selling the…

Asian Headlines After the disappointing finish in the States Asia closed mixed with a bias towards losses.  Like in the US, defensives saw selling with Consumer Staples and Utilities weighing on the Nikkei with Australia adding Industrials and Discretionary names to that list.  Shanghai managed a small gain with Staples conversely leading higher along with semiconductor-related names. Rare-earth names rallied with China threatening to cut the US off from supplies.  Semis fell elsewhere.   Bonds globally are bid higher after the US 10 year yield fell to levels not seen since September of 2017.  Post his trip to Japan, President Trump said higher tariffs may still be on tap. The PBoC continued to inject funds, this time ~$36B, hoping to sooth minds.  Market confidence continues to wane with concern after the gov took control of Baoshang Bank.  The Yuan continued to weaken despite the US calling the country a currency manipulator in the Semiannual Currency Report issued by the US Treasury.  Vietnam, Malaysia, Italy, and Ireland though were added to a watch list while India and Switzerland were removed. Taiwan saw overseas investors continue selling, 15 straight sessions now with state-owned brokers on their 14th day of acquisitions. Despite the selling the…

TGIF Global Markets 5/24/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/24/2019 at 6:58 am
by Matthew Kiselica on 05/24/2019

Today’s Top Story Two hours into the U.K. trading session, U.K. PM May announced she will step down as PM of her nation.  It was an emotional statement and as her voice trembled while stating she did her best for the “nation I love.”  She will remain at her post until June 7th giving her party time to select a new leader and PM.  It will be interesting to see who emerges.  Whatever happens, I don’t envy them the role. The markets have shown an interesting response.  The £ has made several attempts to advance but been unable to maintain any significant headway.  Later it moved to advance but it once again pulling back.  U.K. gilt yields higher by c. 1 bps, trimming modestly higher gain.  The FTSE is up +0.8% making a modest advance post the news.  More regarding the European markets later. Asian Markets Mixed and rather subdued markets following yesterday’s losses.  Energy names played catch-down following the selling in the States despite a small rebound overnight in WTI. Shanghai closed flat despite selling in IT names.  Both of those sector end the day lower c. 0.5%.  Providing support to the region were gains of c. 0.5% for…

Today’s Top Story Two hours into the U.K. trading session, U.K. PM May announced she will step down as PM of her nation.  It was an emotional statement and as her voice trembled while stating she did her best for the “nation I love.”  She will remain at her post until June 7th giving her party time to select a new leader and PM.  It will be interesting to see who emerges.  Whatever happens, I don’t envy them the role. The markets have shown an interesting response.  The £ has made several attempts to advance but been unable to maintain any significant headway.  Later it moved to advance but it once again pulling back.  U.K. gilt yields higher by c. 1 bps, trimming modestly higher gain.  The FTSE is up +0.8% making a modest advance post the news.  More regarding the European markets later. Asian Markets Mixed and rather subdued markets following yesterday’s losses.  Energy names played catch-down following the selling in the States despite a small rebound overnight in WTI. Shanghai closed flat despite selling in IT names.  Both of those sector end the day lower c. 0.5%.  Providing support to the region were gains of c. 0.5% for…

CAPIS Global Markets 5/22/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/22/2019 at 6:58 am
by Matthew Kiselica on 05/22/2019

Asian Markets The markets were subdued despite the solid performance during the U.S. trading session.   The Nikkei closed flat with the ¥ a bit stronger following mixed April trade data.   Exports again fell 2.4%, worse than expected while imports ticked up leaving a larger trade deficit than expected. Real Estate names were up 60bps while Financials pulled back somewhat. China’s Ambassador to the U.S. said his nation is ready to resume talks to address trade imbalances and offer to purchase more products and services from the US.  One former State Department official said a deal could take place by the end of next month but the recent break in talks will probably lead to a more drawn-out time line.   Adding to the tariff/Huawei mix, the U.S. may add five Chinese video surveillance firms to its list of firms unable to purchase US components.  Chinese espionage and treatment of a minority groups is cited for the possible action.  Despite that, the IT sector led with gains shy of 1% in Shanghai.  However, the nation’s major indices all settled lower. Other Important Headlines The Nikkei reports Tencent -0.6% is seeing slower growth in Chinese video ad sales. An executive of Hangzhou Nikvision…

Asian Markets The markets were subdued despite the solid performance during the U.S. trading session.   The Nikkei closed flat with the ¥ a bit stronger following mixed April trade data.   Exports again fell 2.4%, worse than expected while imports ticked up leaving a larger trade deficit than expected. Real Estate names were up 60bps while Financials pulled back somewhat. China’s Ambassador to the U.S. said his nation is ready to resume talks to address trade imbalances and offer to purchase more products and services from the US.  One former State Department official said a deal could take place by the end of next month but the recent break in talks will probably lead to a more drawn-out time line.   Adding to the tariff/Huawei mix, the U.S. may add five Chinese video surveillance firms to its list of firms unable to purchase US components.  Chinese espionage and treatment of a minority groups is cited for the possible action.  Despite that, the IT sector led with gains shy of 1% in Shanghai.  However, the nation’s major indices all settled lower. Other Important Headlines The Nikkei reports Tencent -0.6% is seeing slower growth in Chinese video ad sales. An executive of Hangzhou Nikvision…

CAPIS Global Market 5/20/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/20/2019 at 7:05 am
by Matthew Kiselica on 05/20/2019

Asian Markets A mix across the region but two markets outperformed due to local election news.  It was a G’day Down Under as PM Scott Morrison and his Liberal-National coalition retain power.  India was the region’s leader as PM Modi and his coalition also fared well and will remain in control of the world’s largest democracy.   China lagged with a Politburo member indicating a trade war with the U.S. would pare GDP by 1%.  Singapore and Thailand were both closed and will reopen tomorrow. Most sectors end the day in the red.  Telcos and healthcare gave ground more than 0.5% followed by consumer staples and IT.   Financials and energy improved by c. 1%.  (See energy markets below.)   Important Headlines Australian banks traded very well thanks to the election news.  Westpac +9.2% led the charge with peers: CBA +6.3%, ANZ +7.8% and NAB +7.9%.  The Labor Party threatened to end tax breaks for property owners and investors. A rating agency cut Nissan Motor’s -1.2% outlook to negative noting more severe downward pressure on earnings vs. peers. The Yuan slowed its march toward 7.00 vs the USD with a PBoC Vice Gov. remarking they intend to keep the yuan steady and…

Asian Markets A mix across the region but two markets outperformed due to local election news.  It was a G’day Down Under as PM Scott Morrison and his Liberal-National coalition retain power.  India was the region’s leader as PM Modi and his coalition also fared well and will remain in control of the world’s largest democracy.   China lagged with a Politburo member indicating a trade war with the U.S. would pare GDP by 1%.  Singapore and Thailand were both closed and will reopen tomorrow. Most sectors end the day in the red.  Telcos and healthcare gave ground more than 0.5% followed by consumer staples and IT.   Financials and energy improved by c. 1%.  (See energy markets below.)   Important Headlines Australian banks traded very well thanks to the election news.  Westpac +9.2% led the charge with peers: CBA +6.3%, ANZ +7.8% and NAB +7.9%.  The Labor Party threatened to end tax breaks for property owners and investors. A rating agency cut Nissan Motor’s -1.2% outlook to negative noting more severe downward pressure on earnings vs. peers. The Yuan slowed its march toward 7.00 vs the USD with a PBoC Vice Gov. remarking they intend to keep the yuan steady and…

CAPIS EU Close – 5/14/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/14/2019 at 12:49 pm
by Clayton Duff on 05/14/2019

Perhaps its just a dead cat bounce but European indices did rebound today with many seeing the action moving outside of the downward trend channel we’ve seen as of late.  500 names out of the Stoxx 600 closed up with volume 8% higher. All sectors rallied with the beat up Tech space up 2.22%. Emotions are still being jerked in different directions concerning the trade talks with positive comments from one official being offset with negative comments from another. One report noted top Trumps officials say a deal is not close with a long trade war ahead. Yesterday, headlines alluded to the potentiality that the US and Japan will make a deal that will place China back on their heels. On another macro level, energy prices are up with OPEC today affirming their FY oil demand.  Non-OPEC supply was slightly adjusted lower with FY19 OPEC demand a bit higher. Things are not all going swimmingly for Leroy Seafood -8% with 1Q NI light. 2Q earnings are seen inline with the 1Q.  Harvest volumes have disappointed with higher costs also weighing.  Majority owner Austevoll Seafood fell 8%. Cable producer Prysmian rose 7.2% on a solid report with BofAML stating the trend…

Perhaps its just a dead cat bounce but European indices did rebound today with many seeing the action moving outside of the downward trend channel we’ve seen as of late.  500 names out of the Stoxx 600 closed up with volume 8% higher. All sectors rallied with the beat up Tech space up 2.22%. Emotions are still being jerked in different directions concerning the trade talks with positive comments from one official being offset with negative comments from another. One report noted top Trumps officials say a deal is not close with a long trade war ahead. Yesterday, headlines alluded to the potentiality that the US and Japan will make a deal that will place China back on their heels. On another macro level, energy prices are up with OPEC today affirming their FY oil demand.  Non-OPEC supply was slightly adjusted lower with FY19 OPEC demand a bit higher. Things are not all going swimmingly for Leroy Seafood -8% with 1Q NI light. 2Q earnings are seen inline with the 1Q.  Harvest volumes have disappointed with higher costs also weighing.  Majority owner Austevoll Seafood fell 8%. Cable producer Prysmian rose 7.2% on a solid report with BofAML stating the trend…

CAPIS EU Close – 5/13/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/13/2019 at 12:55 pm
by Clayton Duff on 05/13/2019

It is all about retaliation today with headlines from China tanking indices.  Europe did though manage to close better than the current moves in the States.  Utilities saw a small gain with light losses in Energy in light of the tensions with Iran buoying oil prices (which have given back much of the day’s gains post the US open).  Leading lower, Autos fell 2.7% with Basic Resources, Telcos, and Industrials off 2% of more.  Unfortunately, volume on the Stoxx 600 was up 2%. Tomorrow Vodafone -5.2% reports FY results with the Sunday times reporting they may materially reduce their dividend. The story notes the firm is looking to be active in the German and Italian spectrum auctions with the funds to be diverted to those events. Post the close headlines hit that they will offload their New Zealand business with Brookfield said to be in the mix. Aerospace firm Leonardo fell 4.7% as another helicopter operator filed bankruptcy, this time with Bristow Group filing Chapter 11. Air France -4% will pare nearly 500 positions in its short-haul space as low-cost airlines and trains force it to cut domestic routes.  The firm further saw a broker downgrade with higher fuel costs…

It is all about retaliation today with headlines from China tanking indices.  Europe did though manage to close better than the current moves in the States.  Utilities saw a small gain with light losses in Energy in light of the tensions with Iran buoying oil prices (which have given back much of the day’s gains post the US open).  Leading lower, Autos fell 2.7% with Basic Resources, Telcos, and Industrials off 2% of more.  Unfortunately, volume on the Stoxx 600 was up 2%. Tomorrow Vodafone -5.2% reports FY results with the Sunday times reporting they may materially reduce their dividend. The story notes the firm is looking to be active in the German and Italian spectrum auctions with the funds to be diverted to those events. Post the close headlines hit that they will offload their New Zealand business with Brookfield said to be in the mix. Aerospace firm Leonardo fell 4.7% as another helicopter operator filed bankruptcy, this time with Bristow Group filing Chapter 11. Air France -4% will pare nearly 500 positions in its short-haul space as low-cost airlines and trains force it to cut domestic routes.  The firm further saw a broker downgrade with higher fuel costs…

CAPIS Global Markets 5/13/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/13/2019 at 6:41 am
by Matthew Kiselica on 05/13/2019

Asian Markets Two major factors caused the markets to trade lower.  Those are: the disappointing Sino-U.S. trade talks and resulting negative commentary by both parties + tensions in the Persian Gulf.   Following last weeks warnings by the U.S. that Iran and/or its “proxies” are prepared to attack shipping in the region, Saudi Arabia announced two tankers in the Persian Gulf were damaged by acts of sabotage.  The commodity markets are seeing both crude and gasoline higher by more than 1%.  Hong Kong was closed for Buddha’s birthday. This resulted in all the major sectors ending the day to the downside.  IT, financials and materials end the day off by at least 1%.   Important Headlines Softbank -3.3% following Uber’s decline during Friday’s trading debut. Commonwealth Bank of Australia -2.5% took additional charges for compensation to customers harmed in the “fees for no service” scandal. During the session, reports indicated Renault % has made a formal merger offer to Nissan +0.8%.  After the close, this was downplayed.  The idea of a merger continues to be discussed but Nissan remains reluctant. Clayton’s favorite plumbing parts supplier, Reliance Worldwide -15.6% issued a profit warning.  The company lowered its Fy19 EBITDA guidance citing weakness…

Asian Markets Two major factors caused the markets to trade lower.  Those are: the disappointing Sino-U.S. trade talks and resulting negative commentary by both parties + tensions in the Persian Gulf.   Following last weeks warnings by the U.S. that Iran and/or its “proxies” are prepared to attack shipping in the region, Saudi Arabia announced two tankers in the Persian Gulf were damaged by acts of sabotage.  The commodity markets are seeing both crude and gasoline higher by more than 1%.  Hong Kong was closed for Buddha’s birthday. This resulted in all the major sectors ending the day to the downside.  IT, financials and materials end the day off by at least 1%.   Important Headlines Softbank -3.3% following Uber’s decline during Friday’s trading debut. Commonwealth Bank of Australia -2.5% took additional charges for compensation to customers harmed in the “fees for no service” scandal. During the session, reports indicated Renault % has made a formal merger offer to Nissan +0.8%.  After the close, this was downplayed.  The idea of a merger continues to be discussed but Nissan remains reluctant. Clayton’s favorite plumbing parts supplier, Reliance Worldwide -15.6% issued a profit warning.  The company lowered its Fy19 EBITDA guidance citing weakness…

CAPIS Glbbal Recap – 5/8/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/08/2019 at 6:52 am
by Clayton Duff on 05/08/2019

Asian Headlines Asian markets fared better than the US overnight albeit still ending lower on the session. The Nikkei underperformed on weakness in Consumer Staples, Energy, and Material names with losses broad across all sectors. Losses were broad in other locales as well as investors keep an eye on trade talks between the US and China.  On that, the Nikkei said a sticking point in the deal discussions centers around China’s state subsidies.  Talks of course are scheduled to resume in DC this Thursday and Friday. Trade data out of China saw exports in USD terms fall 2.7% in April vs and expected 3% increase.  Imports though rose 4% vs a 2.1% decrease leaving their trade surplus at $13.84B, well light the $34.56B expected reading. Vs the United States their surplus for to $21B from $20.5B prior.  The New Zealand Dollar weakened overnight after their central bank cut its cash rate by .25% to 1.5%.  Expectations were adjusted for another cut. Down Under, BHP -.3% will face a £5B lawsuit in British courts related to the 2015 Samarco dam burst.  The suit alleges the company knew of escalating safety concerns and with 235k Brazilians represented in the case. Related to…

Asian Headlines Asian markets fared better than the US overnight albeit still ending lower on the session. The Nikkei underperformed on weakness in Consumer Staples, Energy, and Material names with losses broad across all sectors. Losses were broad in other locales as well as investors keep an eye on trade talks between the US and China.  On that, the Nikkei said a sticking point in the deal discussions centers around China’s state subsidies.  Talks of course are scheduled to resume in DC this Thursday and Friday. Trade data out of China saw exports in USD terms fall 2.7% in April vs and expected 3% increase.  Imports though rose 4% vs a 2.1% decrease leaving their trade surplus at $13.84B, well light the $34.56B expected reading. Vs the United States their surplus for to $21B from $20.5B prior.  The New Zealand Dollar weakened overnight after their central bank cut its cash rate by .25% to 1.5%.  Expectations were adjusted for another cut. Down Under, BHP -.3% will face a £5B lawsuit in British courts related to the 2015 Samarco dam burst.  The suit alleges the company knew of escalating safety concerns and with 235k Brazilians represented in the case. Related to…

CAPIS EU Close – 5/7/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/07/2019 at 12:54 pm
by Clayton Duff on 05/07/2019

After spending much of the day working back to yesterday’s lows, European indices blew through those levels post the US open.  Weakness in the US exacerbated selling with most indices down over a percent.  Unfortunately volume ticked up over 25% on the Stoxx 600 with 453 names down on the day.  On the sector front Utilities managed gains with the balance of sectors lower.  Energy, Banks, and Chemicals fell over 2%. The FTSE 100 violated both its 400 and 50 day with the DAX also through the 400 day.  While lower the CAC40 ended right at the 50 day with a sizable loss on the Stockholm 30 today as it fell 1.9% and closed at its 50 day as well. Infineon -3% weighed in the tech space as they see 3Q sales flat.  Their Digital Security unit revenue is seen falling by mid-single digit %’s with Power Mgmt also a bit weaker. Hitting the chemical space, Solvay slipped 6.7% despite better 1Q earnings. 1Q polymer volumes though were off 10% as semiconductor investment demand fell. Online furniture seller Westwing Group fell 18% after paring revenue growth forecasts.  EBITDA is seen as being flat which further weighed. Tonight, China releases trade…

After spending much of the day working back to yesterday’s lows, European indices blew through those levels post the US open.  Weakness in the US exacerbated selling with most indices down over a percent.  Unfortunately volume ticked up over 25% on the Stoxx 600 with 453 names down on the day.  On the sector front Utilities managed gains with the balance of sectors lower.  Energy, Banks, and Chemicals fell over 2%. The FTSE 100 violated both its 400 and 50 day with the DAX also through the 400 day.  While lower the CAC40 ended right at the 50 day with a sizable loss on the Stockholm 30 today as it fell 1.9% and closed at its 50 day as well. Infineon -3% weighed in the tech space as they see 3Q sales flat.  Their Digital Security unit revenue is seen falling by mid-single digit %’s with Power Mgmt also a bit weaker. Hitting the chemical space, Solvay slipped 6.7% despite better 1Q earnings. 1Q polymer volumes though were off 10% as semiconductor investment demand fell. Online furniture seller Westwing Group fell 18% after paring revenue growth forecasts.  EBITDA is seen as being flat which further weighed. Tonight, China releases trade…

CAPIS Global Recap – 4/25/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/25/2019 at 6:59 am
by Clayton Duff on 04/25/2019

Asian Headlines Asian indices closed mixed with sizable losses registering in mainland China.   There, the Shanghai and Shenzhen fell 2.43% and 3.41% respectively. Losses were broad with IT, Energy, and Industrials off with large losses.  Slowing concerns by officials weighed.  Note that the PBoC did drain liquidity adding it would provide low reserve rate requirements for medium and smaller banks to support small and private businesses.  And speaking of central banks, do not look for South Korea’s to up rates anytime soon with GDP readings for the 1Q disappointing.  Their FinMin though said 2Q should recover with the 2H expected to be stronger. Ahead of being closed next week Japan finished up 48bps with Real Estate, Utilities, and Consumer Staples lagging.   The BoJ was in focus, leaving rates unchanged.  They added though that rates will remain low until next spring adding they are considering an ETF lending facility. Asset purchase levels were also retained. Growth on the year was pared slightly as was next year’s outlook.  GDP for FY21/22 is seen at 1.2% with CPI over the next few years maintained or pared slightly. Australia and New Zealand were closed as they remembered their fallen soldiers on Anzac Day. Nissan…

Asian Headlines Asian indices closed mixed with sizable losses registering in mainland China.   There, the Shanghai and Shenzhen fell 2.43% and 3.41% respectively. Losses were broad with IT, Energy, and Industrials off with large losses.  Slowing concerns by officials weighed.  Note that the PBoC did drain liquidity adding it would provide low reserve rate requirements for medium and smaller banks to support small and private businesses.  And speaking of central banks, do not look for South Korea’s to up rates anytime soon with GDP readings for the 1Q disappointing.  Their FinMin though said 2Q should recover with the 2H expected to be stronger. Ahead of being closed next week Japan finished up 48bps with Real Estate, Utilities, and Consumer Staples lagging.   The BoJ was in focus, leaving rates unchanged.  They added though that rates will remain low until next spring adding they are considering an ETF lending facility. Asset purchase levels were also retained. Growth on the year was pared slightly as was next year’s outlook.  GDP for FY21/22 is seen at 1.2% with CPI over the next few years maintained or pared slightly. Australia and New Zealand were closed as they remembered their fallen soldiers on Anzac Day. Nissan…

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…

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