International Summary

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CAPIS Global Recap – 10/31/2019

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International Summary

posted by Clayton Duff on 10/31/2019 at 7:45 am
by Clayton Duff on 10/31/2019

Asian Headlines Asian indices closed mixed post the interest move in the States with mainland China underperforming. IT names there lagged, doing the same in Japan despite the Nikkei up on the session.  This after both Apple and Facebook reported good quarterly results.  Official Manufacturing PMI was possibly the culprit in China with the reading of 49.3 light vs the 49.8 expected as it remains in contraction.  Non-manufacturing also missed with smaller company Caixin readings expected Thursday night.  At midnight EST, the China Commerce Ministry noted trade negotiations with the US were going well. Hong Kong pared their base rate to 2.00% (25bps cut).   Post the close GDP was shown to be down 2.9% for the 3Q, well worse than the -.3% expected. Headlines noted they are now in a technical recession which it has not seen since 2009.  HSBC pared their lending rate on the move. The BoJ left their rates unchanged at -.10%, retaining asset purchases as-is. They reiterated low or even lower rates to prevent any momentum towards achieving price stability from being lost. Post the announcement GDP for the next several years along with CPI views were again pared. Other headlines to note include: AAC Tech…

Asian Headlines Asian indices closed mixed post the interest move in the States with mainland China underperforming. IT names there lagged, doing the same in Japan despite the Nikkei up on the session.  This after both Apple and Facebook reported good quarterly results.  Official Manufacturing PMI was possibly the culprit in China with the reading of 49.3 light vs the 49.8 expected as it remains in contraction.  Non-manufacturing also missed with smaller company Caixin readings expected Thursday night.  At midnight EST, the China Commerce Ministry noted trade negotiations with the US were going well. Hong Kong pared their base rate to 2.00% (25bps cut).   Post the close GDP was shown to be down 2.9% for the 3Q, well worse than the -.3% expected. Headlines noted they are now in a technical recession which it has not seen since 2009.  HSBC pared their lending rate on the move. The BoJ left their rates unchanged at -.10%, retaining asset purchases as-is. They reiterated low or even lower rates to prevent any momentum towards achieving price stability from being lost. Post the announcement GDP for the next several years along with CPI views were again pared. Other headlines to note include: AAC Tech…

CAPIS Unity Day Global Markets 10/03/2019

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posted by Matthew Kiselica on 10/03/2019 at 7:13 am
by Matthew Kiselica on 10/03/2019

Markets Overview The risk off mode continued in the Asian markets with several core indices seeing losses of 2%.  However, Hong Kong bucked the trend.  With a little more than an hour to go in the trading session, headlines hit that authorities would use emergency powers to ban protesters from wearing face masks.  The announcement sparked the Hang Seng Index to rally, erasing the day’s losses which at that point were about 0.4%.  The general feeling is this was less severe than anticipated.  The mainland Chinese markets remain closed with S. Korea also observing a holiday. The majority of sectors end the day to the downside.  Materials are off c. 1% followed by healthcare, industrials and consumer discretionary.  Utilities is the only sector managing a small advance while real estate was down small. The European markets have at least halted the selling tide.  They dipped on the open but then managed a small uptick.  They have since waffled following various Markit Service and Composite PMI readings.  Given the poor manufacturing readings last week, it should come as no surprise the German and EU Composite readings are low.  The EU remains barely above 50 but Germany’s was further below 50 than…

Markets Overview The risk off mode continued in the Asian markets with several core indices seeing losses of 2%.  However, Hong Kong bucked the trend.  With a little more than an hour to go in the trading session, headlines hit that authorities would use emergency powers to ban protesters from wearing face masks.  The announcement sparked the Hang Seng Index to rally, erasing the day’s losses which at that point were about 0.4%.  The general feeling is this was less severe than anticipated.  The mainland Chinese markets remain closed with S. Korea also observing a holiday. The majority of sectors end the day to the downside.  Materials are off c. 1% followed by healthcare, industrials and consumer discretionary.  Utilities is the only sector managing a small advance while real estate was down small. The European markets have at least halted the selling tide.  They dipped on the open but then managed a small uptick.  They have since waffled following various Markit Service and Composite PMI readings.  Given the poor manufacturing readings last week, it should come as no surprise the German and EU Composite readings are low.  The EU remains barely above 50 but Germany’s was further below 50 than…

CAPIS Global Recap – 10/01/2019

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posted by Clayton Duff on 10/01/2019 at 7:00 am
by Clayton Duff on 10/01/2019

Asian Headlines As noted yesterday China is celebrating their National Day holiday for the balance of the week with Hong Kong shut for trading today along with the mainland. Hong Kong will reopen tomorrow but watch for possible weakness with reports out that police there are using live ammunition with one protester said to be hit.   Markets that were open saw gains on the session apart from India post the move higher in the States Monday.  IT and Material names led in Japan with broad gains seen Down Under as Health Care and Industrials surged. Tankan readings out of Japan were mixed with its Large Manufacturing Index at 5 for the 3Q, ahead of the flattish 1 expectation reading but light vs the previous 7 seen. It was noted this is now the 3rd consecutive decline.  The Large all-industry Capex reading was 6.6% vs 7.0% estimated and 7.4% prior.  Their Economic Minister addressed the increase in sales taxes that went into effect today (to 10% from 8%) as he noted measures have been put into place to offset the increase.  Also, the Ministry of Finance sold ¥2.1T in 10 JGB’s to yield -.158% with the bid-to-cover at its lowest level…

Asian Headlines As noted yesterday China is celebrating their National Day holiday for the balance of the week with Hong Kong shut for trading today along with the mainland. Hong Kong will reopen tomorrow but watch for possible weakness with reports out that police there are using live ammunition with one protester said to be hit.   Markets that were open saw gains on the session apart from India post the move higher in the States Monday.  IT and Material names led in Japan with broad gains seen Down Under as Health Care and Industrials surged. Tankan readings out of Japan were mixed with its Large Manufacturing Index at 5 for the 3Q, ahead of the flattish 1 expectation reading but light vs the previous 7 seen. It was noted this is now the 3rd consecutive decline.  The Large all-industry Capex reading was 6.6% vs 7.0% estimated and 7.4% prior.  Their Economic Minister addressed the increase in sales taxes that went into effect today (to 10% from 8%) as he noted measures have been put into place to offset the increase.  Also, the Ministry of Finance sold ¥2.1T in 10 JGB’s to yield -.158% with the bid-to-cover at its lowest level…

CAPIS Global Recap – 9/30/2019

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posted by Clayton Duff on 09/30/2019 at 7:51 am
by Clayton Duff on 09/30/2019

Asian Headlines Asia wrapped up the last day of the quarter with most indices closing lower. With mainland China shut the balance of the week and next Monday for their National Day holiday, volume was surprisingly lower on the session, off over 40%.  Focus was on PMI readings out of China with the official reading beating estimates but still remaining in contraction.  On that Shanghai/Shenzhen both closed down ~1% on broad losses.  IT and Communication names led lower with Financials and Energy names also weaker. The Nikkei fared better but still was off with Energy name down over 3%.  Hong Kong finished up with Consumer Staples and Energy however leading on the day. Back to China, Manufacturing PMI of 49.8 was ahead of the 49.6 estimate and a hair above the prior reading of 49.5.  New orders though moved into expansion territory despite the   The Caixin reading, which uses a smaller sample and focuses on smaller firms, ticked up to 51.4, vs the 50.2 estimates and 50.4 prior result. This is the second month of expansion and the highest reading since February of last year.  Official Non-manufacturing PMI held steady at 53.7.   On the trade war front the US Treasury…

Asian Headlines Asia wrapped up the last day of the quarter with most indices closing lower. With mainland China shut the balance of the week and next Monday for their National Day holiday, volume was surprisingly lower on the session, off over 40%.  Focus was on PMI readings out of China with the official reading beating estimates but still remaining in contraction.  On that Shanghai/Shenzhen both closed down ~1% on broad losses.  IT and Communication names led lower with Financials and Energy names also weaker. The Nikkei fared better but still was off with Energy name down over 3%.  Hong Kong finished up with Consumer Staples and Energy however leading on the day. Back to China, Manufacturing PMI of 49.8 was ahead of the 49.6 estimate and a hair above the prior reading of 49.5.  New orders though moved into expansion territory despite the   The Caixin reading, which uses a smaller sample and focuses on smaller firms, ticked up to 51.4, vs the 50.2 estimates and 50.4 prior result. This is the second month of expansion and the highest reading since February of last year.  Official Non-manufacturing PMI held steady at 53.7.   On the trade war front the US Treasury…

CAPIS Global Markets 9/26/2019

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posted by Matthew Kiselica on 09/26/2019 at 6:55 am
by Matthew Kiselica on 09/26/2019

Markets Recap The Asian markets saw a mixed response to Pres. Trump’s Chinese trade deal “sooner than you may think” comment and an initial pact with Japanese PM Abe.   Japan ends the day with small gain with S. Korea flat.  However, Australia is lower and the mainland Chinese indices are the biggest laggards.  Local investors suffered jitters as Washington and Beijing lobbed warnings to each other regarding the democracy protests in Hong Kong.  Also, with the long Golden Week holiday approaching, some traders are taking money off the table.  After the mainland closed, China’s Ministry of Commerce made supportive statements.  Chairman Goa reports Chinese companies have made “considerable” purchases of U.S. pork and soybeans.  He also indicates China and the U.S. are preparing for another round of “high-level” negotiations.  This helped Hong Kong bounce from the flat line. Overall, most sectors finish in the red, consumer staples by 0.7% with IT, healthcare and industrials c. 0.5%.  Financials advance 0.5% followed by telcos and real estate.  Japanese autos and steel traded well on the above trade deal.  Both the U.S. and Japan will continue talks with one of Japan’s goals to eliminate U.S. auto and parts tariffs. After a modest dip…

Markets Recap The Asian markets saw a mixed response to Pres. Trump’s Chinese trade deal “sooner than you may think” comment and an initial pact with Japanese PM Abe.   Japan ends the day with small gain with S. Korea flat.  However, Australia is lower and the mainland Chinese indices are the biggest laggards.  Local investors suffered jitters as Washington and Beijing lobbed warnings to each other regarding the democracy protests in Hong Kong.  Also, with the long Golden Week holiday approaching, some traders are taking money off the table.  After the mainland closed, China’s Ministry of Commerce made supportive statements.  Chairman Goa reports Chinese companies have made “considerable” purchases of U.S. pork and soybeans.  He also indicates China and the U.S. are preparing for another round of “high-level” negotiations.  This helped Hong Kong bounce from the flat line. Overall, most sectors finish in the red, consumer staples by 0.7% with IT, healthcare and industrials c. 0.5%.  Financials advance 0.5% followed by telcos and real estate.  Japanese autos and steel traded well on the above trade deal.  Both the U.S. and Japan will continue talks with one of Japan’s goals to eliminate U.S. auto and parts tariffs. After a modest dip…

Autumnal Equinox Global Markets 9/23/2019

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

Global Markets The Greater Chinese markets traded lower following Friday’s report a Chinese agricultural delegation cancelled scheduled meetings in the States.  China’s Agricultural Minister downplayed the matter but investors still took it as an overall negative.  Additionally, the deputy level Sino-U.S. trade talks had no real information for traders to sink their teeth into.  Rate cut hopes gave Australia a small bid and India continues to move ahead following last week’s corporate tax news.  Japan was closed for the Autumnal Equinox. All the major sectors in Asia end the day lower to one extent or the other.  Real estate and healthcare end the day off c. 0.8%.  Financials and consumer staples led with modest declines. The European markets have been lower since the open.  Both German and Eurozone Markit manufacturing readings show additional erosion, falling further below the key 50 level.  Furthermore, both reading are below consensus.   The German result is a 10 yr. low and the Eurozone reading a 7 year low.  The Egyptian market saw heavy selling pressure yesterday due to local unrest.  It is lower again today but has pared losses.  The country is seeing a wave of protests against Pres. Sisi’s government.  Elsewhere on the political…

Global Markets The Greater Chinese markets traded lower following Friday’s report a Chinese agricultural delegation cancelled scheduled meetings in the States.  China’s Agricultural Minister downplayed the matter but investors still took it as an overall negative.  Additionally, the deputy level Sino-U.S. trade talks had no real information for traders to sink their teeth into.  Rate cut hopes gave Australia a small bid and India continues to move ahead following last week’s corporate tax news.  Japan was closed for the Autumnal Equinox. All the major sectors in Asia end the day lower to one extent or the other.  Real estate and healthcare end the day off c. 0.8%.  Financials and consumer staples led with modest declines. The European markets have been lower since the open.  Both German and Eurozone Markit manufacturing readings show additional erosion, falling further below the key 50 level.  Furthermore, both reading are below consensus.   The German result is a 10 yr. low and the Eurozone reading a 7 year low.  The Egyptian market saw heavy selling pressure yesterday due to local unrest.  It is lower again today but has pared losses.  The country is seeing a wave of protests against Pres. Sisi’s government.  Elsewhere on the political…

CAPIS Global Recap – 9/19/2019

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posted by Clayton Duff on 09/19/2019 at 6:55 am
by Clayton Duff on 09/19/2019

Asian Headlines Central banks are the focus today, this after the US Fed cut rates yesterday. The BoJ left their rates unchanged while maintaining reit and ETF purchases at prior levels. Kuroda added they are focusing more on the momentum toward achieving price stability on concern it will be lost. He noted they saw little affect from the increase in their sales tax adding after the close their economy is expanding moderately.  Further easing was noted as a possibility with a steep yield curve desired.  On the retention of level rates the Yen strengthened to under 108 vs the Dollar but has pulled back slightly.  Of interest, Japan’s Semi Equipment Association said billings fell 11.5% YoY in August. Taiwan’s central bank left their rates unchanged as expected noting their inflation outlook remains moderate. FY19 CPI though was reduced to +.7% from +.9% while GDP for the year was upped to 2.4% from 2.1%. The PBoC enacted a 14-day reverse repo, this the first time since June. CNY200B in funds was injected between 7 and 14 day repo operations.   Down Under, big banks called for more easing after mixed employment numbers disappointed. On the trade front Japan and South Korea are…

Asian Headlines Central banks are the focus today, this after the US Fed cut rates yesterday. The BoJ left their rates unchanged while maintaining reit and ETF purchases at prior levels. Kuroda added they are focusing more on the momentum toward achieving price stability on concern it will be lost. He noted they saw little affect from the increase in their sales tax adding after the close their economy is expanding moderately.  Further easing was noted as a possibility with a steep yield curve desired.  On the retention of level rates the Yen strengthened to under 108 vs the Dollar but has pulled back slightly.  Of interest, Japan’s Semi Equipment Association said billings fell 11.5% YoY in August. Taiwan’s central bank left their rates unchanged as expected noting their inflation outlook remains moderate. FY19 CPI though was reduced to +.7% from +.9% while GDP for the year was upped to 2.4% from 2.1%. The PBoC enacted a 14-day reverse repo, this the first time since June. CNY200B in funds was injected between 7 and 14 day repo operations.   Down Under, big banks called for more easing after mixed employment numbers disappointed. On the trade front Japan and South Korea are…

CAPIS Global Recap – 9/18/2019

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

Asian Headlines Mainland China and South Korea outperformed on small gains today while losses elsewhere were subdued. Energy names of course pulled back on the Saudi news pertaining to renewed production with that sector down 4%.  Insurers slipped as well with scant moves in most sectors.  Focus was on weaker trade data for August in Japan even as their trade deficit shrunk as well as the BoJ meeting and today’s US Fed. Back in China Energy was lower while defensive names worked higher. Real Estate names finished better on hopes of less government curbs post easing of prices.  Talks between them and the US are expected to resume as well buoying sentiment.  The much-watched Power Consumption number rose 3.6% YoY in August.   Down Under, IT and Industrial names crept a bit higher. On the energy front Iran has supposedly sent a letter to the White House claiming they have no responsibility in Saturday’s refinery attack while Saudi Arabia prepares for a presser outlining proof they did.  TTN noted a story that China has expanded their investment into the Iranian oil complex to the tune of $290B which is netting them a 12% discount on their energy imports. AAC Tech rallied…

Asian Headlines Mainland China and South Korea outperformed on small gains today while losses elsewhere were subdued. Energy names of course pulled back on the Saudi news pertaining to renewed production with that sector down 4%.  Insurers slipped as well with scant moves in most sectors.  Focus was on weaker trade data for August in Japan even as their trade deficit shrunk as well as the BoJ meeting and today’s US Fed. Back in China Energy was lower while defensive names worked higher. Real Estate names finished better on hopes of less government curbs post easing of prices.  Talks between them and the US are expected to resume as well buoying sentiment.  The much-watched Power Consumption number rose 3.6% YoY in August.   Down Under, IT and Industrial names crept a bit higher. On the energy front Iran has supposedly sent a letter to the White House claiming they have no responsibility in Saturday’s refinery attack while Saudi Arabia prepares for a presser outlining proof they did.  TTN noted a story that China has expanded their investment into the Iranian oil complex to the tune of $290B which is netting them a 12% discount on their energy imports. AAC Tech rallied…

CAPIS Global Recap – 9/11/2019

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posted by Clayton Duff on 09/11/2019 at 6:43 am
by Clayton Duff on 09/11/2019

The CAPIS International Trading Desk wishes those affected by and who still remember daily the events of 9/11, now 18 years later, peace and continued healing. World Market Points Apart from mainland China all indices in the region finished higher with weakness in Defensives weighing in that market. Financials finished up post word the government will remove QFII (qualified foreign institutional investor) and RQFII (yuan-based QFII) quota limits as they open up their markets more.  Conversely the Hang Seng rallied nearly two percent on broad gains as Real Estate, Financials, and Industrials surged.  Energy names joined Financials and Utilities for sizable gains in Japan while Materials led Down Under.  South Korea Kospi was higher with the country expected to file a WTO complaint against Japan concerning their chip-making material ban.  Word is some Japanese companies are looking to curtail production in Korea. The improved sentiment on US/China trade talks helped markets. One story out of China noted that back in May 80% of the agreement between the two existed.  Supposedly China will purchase more US ag products as it looks to finalize the deal with the US.    There were several economic releases out including South Korea reporting unemployment down…

The CAPIS International Trading Desk wishes those affected by and who still remember daily the events of 9/11, now 18 years later, peace and continued healing. World Market Points Apart from mainland China all indices in the region finished higher with weakness in Defensives weighing in that market. Financials finished up post word the government will remove QFII (qualified foreign institutional investor) and RQFII (yuan-based QFII) quota limits as they open up their markets more.  Conversely the Hang Seng rallied nearly two percent on broad gains as Real Estate, Financials, and Industrials surged.  Energy names joined Financials and Utilities for sizable gains in Japan while Materials led Down Under.  South Korea Kospi was higher with the country expected to file a WTO complaint against Japan concerning their chip-making material ban.  Word is some Japanese companies are looking to curtail production in Korea. The improved sentiment on US/China trade talks helped markets. One story out of China noted that back in May 80% of the agreement between the two existed.  Supposedly China will purchase more US ag products as it looks to finalize the deal with the US.    There were several economic releases out including South Korea reporting unemployment down…

CAPIS Global Recap – 9/9/2019

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posted by Clayton Duff on 09/09/2019 at 6:40 am
by Clayton Duff on 09/09/2019

Asian Headlines Not a bad start to the week with mostly higher closes seen in the region.  Mainland China led with strong returns in IT and Communication names.  This was predicated on word Shanghai is demanding a quicker rollout of 5G.  Financials and Healthcare led in Japan while Communication names eased.  many companies curtailed business today ahead of Typhoon Faxai.  Both Hong Kong and Australia underperformed with each market closing flat on the session. In Hong Kong, with protests continuing, Health Care names saw weakness while Energy, Discretionary, and IT names closed up.  Chipmakers buoyed the Kospi. Over the weekend trade data was released in China with imports and exports both contracting.  The USD-quoted Trade Surplus finished at $34.84B, well light of the $44.30B expected.  Exports to the US fell 16% with the country upping imports from Australia by 32% YoY.   The other notable focus point today was the PBoC reserve requirement rate reduction for all their banks.  This RRR will go into effect next week with the level reduced by 50 bps to 13%.   TTN reported several headlines of interest including last week’s phone discussion between the country and the US involved China’s plan to purchase a “modest” amount…

Asian Headlines Not a bad start to the week with mostly higher closes seen in the region.  Mainland China led with strong returns in IT and Communication names.  This was predicated on word Shanghai is demanding a quicker rollout of 5G.  Financials and Healthcare led in Japan while Communication names eased.  many companies curtailed business today ahead of Typhoon Faxai.  Both Hong Kong and Australia underperformed with each market closing flat on the session. In Hong Kong, with protests continuing, Health Care names saw weakness while Energy, Discretionary, and IT names closed up.  Chipmakers buoyed the Kospi. Over the weekend trade data was released in China with imports and exports both contracting.  The USD-quoted Trade Surplus finished at $34.84B, well light of the $44.30B expected.  Exports to the US fell 16% with the country upping imports from Australia by 32% YoY.   The other notable focus point today was the PBoC reserve requirement rate reduction for all their banks.  This RRR will go into effect next week with the level reduced by 50 bps to 13%.   TTN reported several headlines of interest including last week’s phone discussion between the country and the US involved China’s plan to purchase a “modest” amount…

CAPIS Global Markets 09/04/2019

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posted by Matthew Kiselica on 09/04/2019 at 6:57 am
by Matthew Kiselica on 09/04/2019

Markets Overview The markets are focused upon two key stories thus far.  First was yesterday’s news out of the U.K. after the local close.  The House of Commons voted 328 to 301 to implement the first step blocking a “No Deal” Brexit.   Those in favour (not a typo) included a number of Tory member’s from PM Johnson’s party.  In turn, PM Johnson is expelling said members from his party.  The House of Commons will now consider the bill to quash the No Deal scenario.  If that occurs, PM Johnson threatens to call for snap elections on Oct. 14th.   Bottom line, the Brexit issue remains as clear cut as it did following the initial referendum vote 3 years ago. The second item has generated the most reaction.  The South China Morning Post reported Hong Kong Chief Executive Lam will formally withdraw the bill permitting extradition to China.  She made the official announcement after the Hong Kong session ended.  This is pure speculation on my part; however, I can’t imagine she would make such a move without Beijing’s blessing.  We shall see. The SCMP report prompted Hong Kong equities to surge during the last two hours of trading.  The MSCI Hong Kong…

Markets Overview The markets are focused upon two key stories thus far.  First was yesterday’s news out of the U.K. after the local close.  The House of Commons voted 328 to 301 to implement the first step blocking a “No Deal” Brexit.   Those in favour (not a typo) included a number of Tory member’s from PM Johnson’s party.  In turn, PM Johnson is expelling said members from his party.  The House of Commons will now consider the bill to quash the No Deal scenario.  If that occurs, PM Johnson threatens to call for snap elections on Oct. 14th.   Bottom line, the Brexit issue remains as clear cut as it did following the initial referendum vote 3 years ago. The second item has generated the most reaction.  The South China Morning Post reported Hong Kong Chief Executive Lam will formally withdraw the bill permitting extradition to China.  She made the official announcement after the Hong Kong session ended.  This is pure speculation on my part; however, I can’t imagine she would make such a move without Beijing’s blessing.  We shall see. The SCMP report prompted Hong Kong equities to surge during the last two hours of trading.  The MSCI Hong Kong…

CAPIS Global Markets 9/03/2019

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posted by Matthew Kiselica on 09/03/2019 at 6:54 am
by Matthew Kiselica on 09/03/2019

Markets Overview Risk-off sentiment is seeping into the markets again.  Several factors are prompting investors to take a pause in recent buying.   For starters, headlines on Sino-U.S. trade talks indicate the two sides can’t even agree on a schedule for the next round of talks.  The Hong Kong and Macau Authority held a press conference about the continuing protests in Hong Kong.  Comments continued to deride the “radicals” and condemn foreign government provocation.  Additionally, there critical statements regarding the handling of the unrest by HK Chief Executive Lam’s administration.  Israel and Hezbollah continue to exchange fire along the border with Lebanon. However, the day’s most eye catching headlines pertain to Brexit.  This evening in London, Parliament will vote upon a measure blocking a No Deal Brexit.  In turn, PM Johnson threatens to call snap elections for Oct. 14 if passed.  He has emphatically stated, he will not ask for an extension to the U.K. departure date from the E.U. on Oct. 31st.   The £ has spent a fare portion of the morning trading below 1.20 for the first time in more than two years, building upon losses from yesterday. The risk off mode is prompting yields to fall in the debt…

Markets Overview Risk-off sentiment is seeping into the markets again.  Several factors are prompting investors to take a pause in recent buying.   For starters, headlines on Sino-U.S. trade talks indicate the two sides can’t even agree on a schedule for the next round of talks.  The Hong Kong and Macau Authority held a press conference about the continuing protests in Hong Kong.  Comments continued to deride the “radicals” and condemn foreign government provocation.  Additionally, there critical statements regarding the handling of the unrest by HK Chief Executive Lam’s administration.  Israel and Hezbollah continue to exchange fire along the border with Lebanon. However, the day’s most eye catching headlines pertain to Brexit.  This evening in London, Parliament will vote upon a measure blocking a No Deal Brexit.  In turn, PM Johnson threatens to call snap elections for Oct. 14 if passed.  He has emphatically stated, he will not ask for an extension to the U.K. departure date from the E.U. on Oct. 31st.   The £ has spent a fare portion of the morning trading below 1.20 for the first time in more than two years, building upon losses from yesterday. The risk off mode is prompting yields to fall in the debt…

CAPIS Global Markets 8/29/2018

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posted by Matthew Kiselica on 08/29/2019 at 7:07 am
by Matthew Kiselica on 08/29/2019

Markets Overview Most of the Asian markets closed with modest moves.  After a weak start, the indices managed to work back higher before lunch or just after in the case of Japan.   Mainland China drifted into the close to finish flattish.  A blip higher occurred just after 1:00 EST on headlines the Tory leader from Scotland, Ruth Davidson, will resign in protest of PM Johnson’s policies.  The move is expected to cost the Tories 12 votes in the next election.  Hong Kong and other markets that overlapped with Europe improved on two key bits of news.  First, a spokesperson for China’s Ministry of Commerce made less antagonistic, supportive trade comments.  The indication was China would not impose new tariffs in a quid, pro, quo with the States.  Secondly, a press conference was announced regarding formation of a new Italian government.  More on this later. Asian sectors were split.  Real estate was a standout to the downside off c. 0.8% (See China Evergrande in Corporate section.)   Financials, telcos and industrials gave ground small.  Healthcare improved by c. 0.5% followed by consumers staples and energy. On the Hong Kong protest front, a large rally and march is planned for Saturday.  Police are…

Markets Overview Most of the Asian markets closed with modest moves.  After a weak start, the indices managed to work back higher before lunch or just after in the case of Japan.   Mainland China drifted into the close to finish flattish.  A blip higher occurred just after 1:00 EST on headlines the Tory leader from Scotland, Ruth Davidson, will resign in protest of PM Johnson’s policies.  The move is expected to cost the Tories 12 votes in the next election.  Hong Kong and other markets that overlapped with Europe improved on two key bits of news.  First, a spokesperson for China’s Ministry of Commerce made less antagonistic, supportive trade comments.  The indication was China would not impose new tariffs in a quid, pro, quo with the States.  Secondly, a press conference was announced regarding formation of a new Italian government.  More on this later. Asian sectors were split.  Real estate was a standout to the downside off c. 0.8% (See China Evergrande in Corporate section.)   Financials, telcos and industrials gave ground small.  Healthcare improved by c. 0.5% followed by consumers staples and energy. On the Hong Kong protest front, a large rally and march is planned for Saturday.  Police are…

CAPIS Global Markets 8/28/2019

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posted by Matthew Kiselica on 08/28/2019 at 7:01 am
by Matthew Kiselica on 08/28/2019

Markets Overview Moves were subdued overnight in the Asian markets with mixed returns.  During the session, the US Federal Register confirmed US tariff rates will increase to 15% from 10% on $300B of Chinese goods.  As noted yesterday, China is continuing to boost domestic consumption with lower restrictions on car purchases being discussed.  This buoyed the auto sector overnight.  Shanghai and Shenzhen both saw slight weakness on the session with the Yuan still losing ground.  South Korea led the region.  The government plans to acquire KRW5.0T worth of materials and parts needed for 3 years as it looks to wean reliance upon Japan.  Japan’s exclusion of South Korea from their trusted-partner whitelist went into effect today. In China, Discretionary and IT names were up.  The same were up in Hong Kong with Consumer Staples also in the mix.  Real Estate and Communication names led on the Nikkei.  In the commodities space, oil is advancing post yesterday large API draw. As the political unrest continues in Hong Kong, China’s Public Security Minister instructed police to be vigilant against what they label as “terrorist activities” in the Guangdong province which borders Hong Kong. European markets have been trading in the red since…

Markets Overview Moves were subdued overnight in the Asian markets with mixed returns.  During the session, the US Federal Register confirmed US tariff rates will increase to 15% from 10% on $300B of Chinese goods.  As noted yesterday, China is continuing to boost domestic consumption with lower restrictions on car purchases being discussed.  This buoyed the auto sector overnight.  Shanghai and Shenzhen both saw slight weakness on the session with the Yuan still losing ground.  South Korea led the region.  The government plans to acquire KRW5.0T worth of materials and parts needed for 3 years as it looks to wean reliance upon Japan.  Japan’s exclusion of South Korea from their trusted-partner whitelist went into effect today. In China, Discretionary and IT names were up.  The same were up in Hong Kong with Consumer Staples also in the mix.  Real Estate and Communication names led on the Nikkei.  In the commodities space, oil is advancing post yesterday large API draw. As the political unrest continues in Hong Kong, China’s Public Security Minister instructed police to be vigilant against what they label as “terrorist activities” in the Guangdong province which borders Hong Kong. European markets have been trading in the red since…

CAPIS Global Markets 8/27/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/27/2019 at 7:00 am
by Matthew Kiselica on 08/27/2019

Markets Overview Much like the US, Asian markets gapped higher at the open and held those levels for the balance of the session.  Yesterday’s more upbeat trade tweet by Pres. Trump swung sentiment back to positive allowing for US markets to recover some of Friday’s tariff-induced losses.  Volumes in various markets, especially China, ended elevated with an MSCI Rebalance on the close kicking up turnover.  Chinese A shares are seeing a weight increase from 10% to 15%.  India is higher again after yesterday’s strong finish.  PM Modi’s government received central bank funds which will partially be used to bolster reserves at state-run banks.  Hong Kong lagged on results and unrest. Discretionary names led in Japan as retailers and autos strengthened.  Pres. Trump stated he is not considering tariffs against Japanese automakers, at this time.  Pharmaceuticals also ticked up with relief seen following a U.S. opioid related lawsuit.  (More on this in the On Our Side of the Pond section.)  Discretionary and IT names buoyed the mainland Chinese markets with both up well over a percent.  Similar gains were seen Down Under. The Yuan is weaker on the day but stronger than its opening level from yesterday morning.  Yesterday, several headlines…

Markets Overview Much like the US, Asian markets gapped higher at the open and held those levels for the balance of the session.  Yesterday’s more upbeat trade tweet by Pres. Trump swung sentiment back to positive allowing for US markets to recover some of Friday’s tariff-induced losses.  Volumes in various markets, especially China, ended elevated with an MSCI Rebalance on the close kicking up turnover.  Chinese A shares are seeing a weight increase from 10% to 15%.  India is higher again after yesterday’s strong finish.  PM Modi’s government received central bank funds which will partially be used to bolster reserves at state-run banks.  Hong Kong lagged on results and unrest. Discretionary names led in Japan as retailers and autos strengthened.  Pres. Trump stated he is not considering tariffs against Japanese automakers, at this time.  Pharmaceuticals also ticked up with relief seen following a U.S. opioid related lawsuit.  (More on this in the On Our Side of the Pond section.)  Discretionary and IT names buoyed the mainland Chinese markets with both up well over a percent.  Similar gains were seen Down Under. The Yuan is weaker on the day but stronger than its opening level from yesterday morning.  Yesterday, several headlines…

CAPIS Global Markets

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/26/2019 at 7:46 am
by Matthew Kiselica on 08/26/2019

Markets Overview It should come as no surprise Asia traded lower following all the trade headlines that prompted the markets in the West to sell-off on Friday.  The Mainland Chinese markets fared better then peers.   India was the standout with tax on foreign investors being scaled back.  Money moved to safety with the ¥ strengthening today, through 105 vs the dollar before paring the advance later. Geopolitics also kept investors on the back foot.  Iran has fired a new missile.  Iran showed at the G7 and met with Macron apparently with Pres. Trump’s blessing.  North Korea launched more missiles.  Hong Kong protesters were met with teargas and bullets as sensor-equipped lampposts were toppled in their anti-surveillance rally. All the major sectors end the day in the red.  Telcos and IT are lower by 1.5% followed by energy, utilities and real estate. Initially, Europe was adding to last week’s losses.  However, the markets have made some progress following supportive comments from Pres. Trump.   He claims Chinese representatives called over the weekend to resume trade talks.  He also spoke about Pres. Xi in glowing terms.  He also stated he does not want to impose tariffs on European autos.  Volumes are decidedly lower…

Markets Overview It should come as no surprise Asia traded lower following all the trade headlines that prompted the markets in the West to sell-off on Friday.  The Mainland Chinese markets fared better then peers.   India was the standout with tax on foreign investors being scaled back.  Money moved to safety with the ¥ strengthening today, through 105 vs the dollar before paring the advance later. Geopolitics also kept investors on the back foot.  Iran has fired a new missile.  Iran showed at the G7 and met with Macron apparently with Pres. Trump’s blessing.  North Korea launched more missiles.  Hong Kong protesters were met with teargas and bullets as sensor-equipped lampposts were toppled in their anti-surveillance rally. All the major sectors end the day in the red.  Telcos and IT are lower by 1.5% followed by energy, utilities and real estate. Initially, Europe was adding to last week’s losses.  However, the markets have made some progress following supportive comments from Pres. Trump.   He claims Chinese representatives called over the weekend to resume trade talks.  He also spoke about Pres. Xi in glowing terms.  He also stated he does not want to impose tariffs on European autos.  Volumes are decidedly lower…

CAPIS Global Recap – 8/23/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 08/23/2019 at 7:04 am
by Clayton Duff on 08/23/2019

Asian Headlines Asia wrapped up the week with mostly small gains in the region. Consumer goods led in Japan while Health Care took the lead in Hong Kong and the mainland.  IT names slipped in both markets.  Markets today are focused on the G7 meeting as well as any comments out of Jackson Hole, Wyoming, especially those from Fed Chair Powell.   Comments from WH Eco Adviser Kudlow noted positive talks this week with China as further calls are expected in the days ahead. And speaking of talks, President Trump may talk trade with PM Abe at the G7 even as discussions between the two continue.   As protests have been considerably more peaceful, markets do not seem to be as concerned with the additional protests scheduled for today in Hong Kong. Toyota +.1% will up the prices of steel it supplies to parts-makers by ¥4000 a ton as labor shortages have upped prices.  Higher iron ore prices have also contributed.  Japan Steel +2.8%, Shima Seiki +1.4%. Li & Fung rose 3% despite 1H revenues down 8%. Core operating profit was down 19% YoY to $105M with management noting it expects to benefit from the trade war by helping clients diversify their…

Asian Headlines Asia wrapped up the week with mostly small gains in the region. Consumer goods led in Japan while Health Care took the lead in Hong Kong and the mainland.  IT names slipped in both markets.  Markets today are focused on the G7 meeting as well as any comments out of Jackson Hole, Wyoming, especially those from Fed Chair Powell.   Comments from WH Eco Adviser Kudlow noted positive talks this week with China as further calls are expected in the days ahead. And speaking of talks, President Trump may talk trade with PM Abe at the G7 even as discussions between the two continue.   As protests have been considerably more peaceful, markets do not seem to be as concerned with the additional protests scheduled for today in Hong Kong. Toyota +.1% will up the prices of steel it supplies to parts-makers by ¥4000 a ton as labor shortages have upped prices.  Higher iron ore prices have also contributed.  Japan Steel +2.8%, Shima Seiki +1.4%. Li & Fung rose 3% despite 1H revenues down 8%. Core operating profit was down 19% YoY to $105M with management noting it expects to benefit from the trade war by helping clients diversify their…

CAPIS Global Markets 8/21/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/21/2019 at 7:13 am
by Matthew Kiselica on 08/21/2019

Markets Overview The Asian markets held up very well despite the Italian worries that spurred yesterday’s sell off in Europe and the States.  The majority of the key indices recorded minimal moves on the day.  Most sectors were down with materials, utilities and energy off by 0.5% or more.  Real estate and IT managed modest advances. Europe has been trading better since the open.  While the markets are currently slightly off their highs, merger speculation in the auto space has helped.  Also, Italian Pres. Mattarella is conducting talks to form a new coalition government as opposed to calling for new elections.  All major sectors are green.  Autos, energy, industrials, personal goods and tech are higher by more than 1.5%.  However, autos have pared gains of more than 2%.  Many others are improving more than 1%. In the debt markets, Germany held a 30 year bond auction that results in yield of -0.11%.  That is a new record low. Corporate Headlines The M&A mentioned above is regarding Fiat Chrysler +4.2% and Renault +5.0%.  Il Sole is reporting the companies continue to have merger talks. Clayton’s favorite pallet company, Brambles -9.8% is cutting its FY outlook.  The company notes slowing organic growth…

Markets Overview The Asian markets held up very well despite the Italian worries that spurred yesterday’s sell off in Europe and the States.  The majority of the key indices recorded minimal moves on the day.  Most sectors were down with materials, utilities and energy off by 0.5% or more.  Real estate and IT managed modest advances. Europe has been trading better since the open.  While the markets are currently slightly off their highs, merger speculation in the auto space has helped.  Also, Italian Pres. Mattarella is conducting talks to form a new coalition government as opposed to calling for new elections.  All major sectors are green.  Autos, energy, industrials, personal goods and tech are higher by more than 1.5%.  However, autos have pared gains of more than 2%.  Many others are improving more than 1%. In the debt markets, Germany held a 30 year bond auction that results in yield of -0.11%.  That is a new record low. Corporate Headlines The M&A mentioned above is regarding Fiat Chrysler +4.2% and Renault +5.0%.  Il Sole is reporting the companies continue to have merger talks. Clayton’s favorite pallet company, Brambles -9.8% is cutting its FY outlook.  The company notes slowing organic growth…

CAPIS Global Markets 8/20/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/20/2019 at 6:42 am
by Matthew Kiselica on 08/20/2019

Markets Overview Asia saw a mix with the Greater Chinese markets making scant moves either way following yesterday’s strong gains.  The new mortgage reference rate (LPR) was set at 4.25% slightly below the recent 4.31% in the market.   Most of the rest of the major indices advance.   S. Korea had a solid day with Japan approving some additional tech products for export to the country.  This eases recent trade tensions between the two nations.  Most sectors gained.  IT and healthcare led exceeding advances 0.5%.  Financials and utilities gave minimal ground. Europe has spent most of the morning up small but is currently flat.  Italy has been lagging as the political situation remains troubled.  (It feels like that has been the case since the fall of the Roman Empire.)  Sectors are split.  Healthcare, food/beverages and personal goods lead with gains of c. 0.5%.  Off by about the same mark are telcos, autos and basic resources. Corporate Headlines CK Asset +0.8% following yesterday’s agreed bid for Greene King -0.6% at 850p per share.  Green surged about 50% yesterday on the news. BHP’s +0.15% H1 revenues are a touch light.  The company also warned of the implications due to the ongoing trade negotiations. …

Markets Overview Asia saw a mix with the Greater Chinese markets making scant moves either way following yesterday’s strong gains.  The new mortgage reference rate (LPR) was set at 4.25% slightly below the recent 4.31% in the market.   Most of the rest of the major indices advance.   S. Korea had a solid day with Japan approving some additional tech products for export to the country.  This eases recent trade tensions between the two nations.  Most sectors gained.  IT and healthcare led exceeding advances 0.5%.  Financials and utilities gave minimal ground. Europe has spent most of the morning up small but is currently flat.  Italy has been lagging as the political situation remains troubled.  (It feels like that has been the case since the fall of the Roman Empire.)  Sectors are split.  Healthcare, food/beverages and personal goods lead with gains of c. 0.5%.  Off by about the same mark are telcos, autos and basic resources. Corporate Headlines CK Asset +0.8% following yesterday’s agreed bid for Greene King -0.6% at 850p per share.  Green surged about 50% yesterday on the news. BHP’s +0.15% H1 revenues are a touch light.  The company also warned of the implications due to the ongoing trade negotiations. …

CAPIS Global Markets 8/19/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/19/2019 at 7:04 am
by Matthew Kiselica on 08/19/2019

Markets Overview Asia had a solid start to the week.  Of course, the markets were provided a strong hand-off from the States on Friday.   There were were several factors which added to the enthusiasm which we will outline below.  Greater China led the way with Shenzhen the best performer.  All major sectors gained with most better by at least 1%.  Real estates ends the day higher more than 2%. Today’s Positives in Asia The PBoC announced interest rate reform measures.  Commencing tomorrow, new loans must be priced “mainly” in reference to a new benchmark, the LPR ( Loan Prime Rate).   The move is a measure to reduce leading rates for companies.  However, this was viewed to be a negative for banking stocks. After a conversation with Apple CEO Cook regarding tariffs, Pres. Trump stated Mr. Cook gave him much to ponder.  However, there are no changes to his current stance on Chinese trade talks.   Samsung. Elec. -0.7% was specifically discussed and that impacted the shares. While protests continue in Hong Kong, the general tone has been more peaceful. The European markets have been better since the open.   While off highs, they are maintaining a solid advance.  Following Friday’s story that…

Markets Overview Asia had a solid start to the week.  Of course, the markets were provided a strong hand-off from the States on Friday.   There were were several factors which added to the enthusiasm which we will outline below.  Greater China led the way with Shenzhen the best performer.  All major sectors gained with most better by at least 1%.  Real estates ends the day higher more than 2%. Today’s Positives in Asia The PBoC announced interest rate reform measures.  Commencing tomorrow, new loans must be priced “mainly” in reference to a new benchmark, the LPR ( Loan Prime Rate).   The move is a measure to reduce leading rates for companies.  However, this was viewed to be a negative for banking stocks. After a conversation with Apple CEO Cook regarding tariffs, Pres. Trump stated Mr. Cook gave him much to ponder.  However, there are no changes to his current stance on Chinese trade talks.   Samsung. Elec. -0.7% was specifically discussed and that impacted the shares. While protests continue in Hong Kong, the general tone has been more peaceful. The European markets have been better since the open.   While off highs, they are maintaining a solid advance.  Following Friday’s story that…

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