International Summary

1640 total posts

CAPIS TGIF Global Markets 2/15/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/15/2019 at 7:01 am
by Matthew Kiselica on 02/15/2019

Asian Markets Following yesterday’s disappointing U.S. sales data, the region traded lower.  However, there are other reasons the markets saw selling pressure.  Rumors indicate both parties still have significant hurdles to overcome to reach a Sino-U.S. trade accord.  (More on this later.)  Macro concerns also raised their head again.  Both Chinese CPI and PPI fell short of consensus.  The PPI slowed for the 5th consecutive month during January. The selling was widespread and all the major sectors ended the day to the downside.  Losses of 1% or more were experienced in real estate, financials, telcos, real estate and materials.  Macau gaming stocks were out of favor.  Chinese actions to reign in shadow banking activity especially pertaining to foreign currency transactions are a major concern. Other Important Headlines Coca Cola Bottling Japan -8.9% suffered an even worse drubbing than its parent following results. Kubota’s -7.0% FY results for OP and NI are light of its own projections by 7.2% and 4.4%, respectively Dai-Ichi Life -4.7% increased it FY sales outlook but they remained a touch below consensus. Lotte Shopping’s -1.8% Q4 OP is KRW 90.28b, missing the lowest analysts estimate. BAIC Motor -3.2% sees FY 2018 NP higher 95% y/y citing growth of…

Asian Markets Following yesterday’s disappointing U.S. sales data, the region traded lower.  However, there are other reasons the markets saw selling pressure.  Rumors indicate both parties still have significant hurdles to overcome to reach a Sino-U.S. trade accord.  (More on this later.)  Macro concerns also raised their head again.  Both Chinese CPI and PPI fell short of consensus.  The PPI slowed for the 5th consecutive month during January. The selling was widespread and all the major sectors ended the day to the downside.  Losses of 1% or more were experienced in real estate, financials, telcos, real estate and materials.  Macau gaming stocks were out of favor.  Chinese actions to reign in shadow banking activity especially pertaining to foreign currency transactions are a major concern. Other Important Headlines Coca Cola Bottling Japan -8.9% suffered an even worse drubbing than its parent following results. Kubota’s -7.0% FY results for OP and NI are light of its own projections by 7.2% and 4.4%, respectively Dai-Ichi Life -4.7% increased it FY sales outlook but they remained a touch below consensus. Lotte Shopping’s -1.8% Q4 OP is KRW 90.28b, missing the lowest analysts estimate. BAIC Motor -3.2% sees FY 2018 NP higher 95% y/y citing growth of…

Valentine’s Day Global Markets 2/14/2019

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International Summary

posted by Matthew Kiselica on 02/14/2019 at 7:00 am
by Matthew Kiselica on 02/14/2019

Asian Markets The region’s markets were mixed with most indices posting modest moves in either direction.  Investors showed little response to the earlier report the U.S. trade tariff  deadline may be extended by 60 days.  The exception is the KOSPI which advanced more than 1%.  The bulk of the day’s advance was buying on the close due to expiry. In keeping with the markets, sectors were mixed.  Consumer staples and healthcare gained less than 0.5% while telcos gave ground by about that market. China’s January trade balance was stronger than expected.  In USD terms, exports rose 9.1% y/y vs. a decline of 3.3% expected.  Imports dipped 1.5% but that is well ahead of the 10.2% slide anticipated.  This results in a trade surplus of $39.2b. Japan’s Q4 GDP rose 1.4% which is inline.   Other Important Headlines Telstra -2.2% cut its dividend and is seeing margin erosion as rollout of NBN data sharing increases costs and competition. Newcrest Mining’s -1.4% H1 earnings are better by 104%.  However, the cost per ounce is higher by 11% during the period. MGM China’s +0.9% Q4 adj. property Ebitda rose 11% to $167m, topping estimates. Sunny Optical -5.0% issued a profit warning for FY ’18. Both…

Asian Markets The region’s markets were mixed with most indices posting modest moves in either direction.  Investors showed little response to the earlier report the U.S. trade tariff  deadline may be extended by 60 days.  The exception is the KOSPI which advanced more than 1%.  The bulk of the day’s advance was buying on the close due to expiry. In keeping with the markets, sectors were mixed.  Consumer staples and healthcare gained less than 0.5% while telcos gave ground by about that market. China’s January trade balance was stronger than expected.  In USD terms, exports rose 9.1% y/y vs. a decline of 3.3% expected.  Imports dipped 1.5% but that is well ahead of the 10.2% slide anticipated.  This results in a trade surplus of $39.2b. Japan’s Q4 GDP rose 1.4% which is inline.   Other Important Headlines Telstra -2.2% cut its dividend and is seeing margin erosion as rollout of NBN data sharing increases costs and competition. Newcrest Mining’s -1.4% H1 earnings are better by 104%.  However, the cost per ounce is higher by 11% during the period. MGM China’s +0.9% Q4 adj. property Ebitda rose 11% to $167m, topping estimates. Sunny Optical -5.0% issued a profit warning for FY ’18. Both…

CAPIS EU Close Recap – 2/13/2019

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International Summary

posted by Clayton Duff on 02/13/2019 at 12:42 pm
by Clayton Duff on 02/13/2019

European indices managed decent gains with broad sector strength.  Basic Resources, Travel, Tech, Food, and Financials all saw gains of a percent or more.  Indices closed not too far off of highs with volume off just over 15% on the day.  As the US pulled back from early post-open highs European indices gave back little from their better levels. The better sentiment related to US trade talks with China led to solid gains today in the luxury space.  Richemont rose 4.8% with Kering up 3%. Heineken chugged 6% higher with FY revs, including organic beer volumes, and earnings seen up on the year. EDF shook off earlier weakness to close up 1.8% on headlines that the French gov is looking to purchase the balance of shares it does not own and take the name private.  The move could allow the firm to continue to pare dependence on nuclear reactors with the government pushing it more towards renewables. As highlighted earlier, Osram +14% rallied with headlines that firms Bain and Carlyle may be teaming up to bid for the firm. Osram did confirm they are in talks. Heavy economic releases are expected in China including FDI, New Yuan Loans, and trade data…

European indices managed decent gains with broad sector strength.  Basic Resources, Travel, Tech, Food, and Financials all saw gains of a percent or more.  Indices closed not too far off of highs with volume off just over 15% on the day.  As the US pulled back from early post-open highs European indices gave back little from their better levels. The better sentiment related to US trade talks with China led to solid gains today in the luxury space.  Richemont rose 4.8% with Kering up 3%. Heineken chugged 6% higher with FY revs, including organic beer volumes, and earnings seen up on the year. EDF shook off earlier weakness to close up 1.8% on headlines that the French gov is looking to purchase the balance of shares it does not own and take the name private.  The move could allow the firm to continue to pare dependence on nuclear reactors with the government pushing it more towards renewables. As highlighted earlier, Osram +14% rallied with headlines that firms Bain and Carlyle may be teaming up to bid for the firm. Osram did confirm they are in talks. Heavy economic releases are expected in China including FDI, New Yuan Loans, and trade data…

CAPIS Global Markets 2/11/2019

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International Summary

posted by Matthew Kiselica on 02/11/2019 at 12:48 pm
by Matthew Kiselica on 02/11/2019

Asian Headlines The Chinese markets had a solid return to trading following last week’s holiday.  The gains were triggered by two factors.  Low level Sino-U.S. trade talks are being conducted with higher level meetings to be held on the 14th and 15th of this week.  In addition, Pres. Trump signaled he would talk with Chinese Pres Xi ahead of the tariff truce deadline of March 1st.  The second key for Chinese traders were a number of encouraging statistics from the Lunar New Year.  We will highlight some of them below.   Political turmoil is unsettling the markets in Thailand.  Japan was closed for National Foundation Day. Most sectors gained with the Chinese names providing the broad boost.  IT improved by c. 1.4% following by a 1% gain among consumer staples.  Energy gave ground by c. 0.3%. Important Headlines Some of the Chinese statistics we flagged above include Chinese visitors to Macau rose 25.6% y/y.  Retail and catering sales jumped 8.5% y/y to CNY 1.01t.  Tourism revenue was also higher by +8.2% y/y. On a related note, Tencent +1.85% and Netease +1.8% are experiencing solid game sale increases following the roll out of New Year themed games..  During the period, they rose 8.0%…

Asian Headlines The Chinese markets had a solid return to trading following last week’s holiday.  The gains were triggered by two factors.  Low level Sino-U.S. trade talks are being conducted with higher level meetings to be held on the 14th and 15th of this week.  In addition, Pres. Trump signaled he would talk with Chinese Pres Xi ahead of the tariff truce deadline of March 1st.  The second key for Chinese traders were a number of encouraging statistics from the Lunar New Year.  We will highlight some of them below.   Political turmoil is unsettling the markets in Thailand.  Japan was closed for National Foundation Day. Most sectors gained with the Chinese names providing the broad boost.  IT improved by c. 1.4% following by a 1% gain among consumer staples.  Energy gave ground by c. 0.3%. Important Headlines Some of the Chinese statistics we flagged above include Chinese visitors to Macau rose 25.6% y/y.  Retail and catering sales jumped 8.5% y/y to CNY 1.01t.  Tourism revenue was also higher by +8.2% y/y. On a related note, Tencent +1.85% and Netease +1.8% are experiencing solid game sale increases following the roll out of New Year themed games..  During the period, they rose 8.0%…

CAPIS Global Recap – 2/7/2019

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International Summary

posted by Clayton Duff on 02/07/2019 at 6:55 am
by Clayton Duff on 02/07/2019

Asian Headlines Energy names led lower with losses of over 2% as Discretionary, Material, and Real Estate names also dipped at least 2% on the Nikkei. All sectors were lower but the index was supported by massive gains in Softbank Group.  Conversely Australia closed higher on broad gains with solid gains in Financials, Health Care, and Energy names. The Kospi closed flat on the session with the Kosdaq up nicely after being shut since last Friday.  And speaking of South Korea press there have reported the country will up by 8% it defense cost sharing with the US.  A contribution of roughly 1.0T Won is expected. Post its announcement to repurchase 10% of its shares Softbank Group rallied 18%.   Additionally their Vision Fund reported they liquidated its position in Nvidia reaping nearly ¥400B.  The firm will also utilize ¥700B of funds raised in the IPO to pay down debt. Japanese chemicals fell after Asahi Kasei -4.8% cut their FY forecast citing slowdown in China.  Specifically petrochemicals were a focus along with automakers and smartphones. Mitsubishi Chemicals slipped 6.1% after it disappointed on earnings.  Performance chemicals and petrochemicals saw lowered profit with scheduled maintenance weighing.  Higher fixed costs for display films was…

Asian Headlines Energy names led lower with losses of over 2% as Discretionary, Material, and Real Estate names also dipped at least 2% on the Nikkei. All sectors were lower but the index was supported by massive gains in Softbank Group.  Conversely Australia closed higher on broad gains with solid gains in Financials, Health Care, and Energy names. The Kospi closed flat on the session with the Kosdaq up nicely after being shut since last Friday.  And speaking of South Korea press there have reported the country will up by 8% it defense cost sharing with the US.  A contribution of roughly 1.0T Won is expected. Post its announcement to repurchase 10% of its shares Softbank Group rallied 18%.   Additionally their Vision Fund reported they liquidated its position in Nvidia reaping nearly ¥400B.  The firm will also utilize ¥700B of funds raised in the IPO to pay down debt. Japanese chemicals fell after Asahi Kasei -4.8% cut their FY forecast citing slowdown in China.  Specifically petrochemicals were a focus along with automakers and smartphones. Mitsubishi Chemicals slipped 6.1% after it disappointed on earnings.  Performance chemicals and petrochemicals saw lowered profit with scheduled maintenance weighing.  Higher fixed costs for display films was…

CAPIS Global Recap – 2/6/2019

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International Summary

posted by Clayton Duff on 02/06/2019 at 6:48 am
by Clayton Duff on 02/06/2019

Asian Headlines Slight gains were seen in the few open markets today with the Nikkei inching higher on Real Estate and Energy names. Australia saw the IT and Industrials sectors finish with gains of over 2% as Discretionary names and Materials finished better by over a percent. South Korea remains shut but will reopen tomorrow. The Aussie Dollar fell overnight with RBA Gov Lowe noting he sees the interest rate outlook balanced which is opposed to the prior view of a likely increase.  PM Abe noted job growth was what was important as he added the BoJ had yet to achieve its ever-elusive 2% inflation target. Softbank -2.7% fell despite 3Q profit up 19% YoY. Sales grew 5% with markets disappointed that the forecast and dividend remained unchanged. Founder M. Son spoke that he feels the company is highly undervalued, 59% in fact, when accounting for the value of its telco unit, Alibaba holdings, Sprint and Yahoo Japan.  His hopes are that the buyback of stock fueled by funds from their telco unit IPO will close the gap. Toyota fell .7% after paring FY NI by a fair amount.  The stock recovered from earlier lows even after the firm reported…

Asian Headlines Slight gains were seen in the few open markets today with the Nikkei inching higher on Real Estate and Energy names. Australia saw the IT and Industrials sectors finish with gains of over 2% as Discretionary names and Materials finished better by over a percent. South Korea remains shut but will reopen tomorrow. The Aussie Dollar fell overnight with RBA Gov Lowe noting he sees the interest rate outlook balanced which is opposed to the prior view of a likely increase.  PM Abe noted job growth was what was important as he added the BoJ had yet to achieve its ever-elusive 2% inflation target. Softbank -2.7% fell despite 3Q profit up 19% YoY. Sales grew 5% with markets disappointed that the forecast and dividend remained unchanged. Founder M. Son spoke that he feels the company is highly undervalued, 59% in fact, when accounting for the value of its telco unit, Alibaba holdings, Sprint and Yahoo Japan.  His hopes are that the buyback of stock fueled by funds from their telco unit IPO will close the gap. Toyota fell .7% after paring FY NI by a fair amount.  The stock recovered from earlier lows even after the firm reported…

CAPIS Global Recap – 2/5/2019

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International Summary

posted by Clayton Duff on 02/05/2019 at 6:48 am
by Clayton Duff on 02/05/2019

Asian Headlines Australia’s central bank was in focus today, leaving their cash rate target unchanged at 1.5%.  Light inflation was still a concern with lower oil prices again targeted but should gradually pick-up.  For 2019 they see underlying inflation running around 2.00%, moving to 2.25% next year. Wage growth continues to lag leading to weak household consumption but unemployment continues to decline.  To the upside business investment is on the increase as is spending for public infrastructure.   The AUD$ moved higher on the day but has pared some gains. PMI Services in the country held steady at 51.0 with retail sales contracting slightly.  Banks there rallied with the government not cracking down as hard as expected in relation to years of probes covering bank charges to sales of inappropriate products.  The 76 recommendations by the Royal Commission did not include a forced split between banks and wealth management/financial advice units.  Westpac rallied 7.4% with Commonwealth Bank of Australia up 4.7%. Australia & New Zealand Bank rose 6.5%.   Not all was rosy in the financial space with mortgage brokers lower after trailing commissions were banned.  Mortgage Choice ended down 25% with Australian Finance Group off 30%.   In the building space James Hardie…

Asian Headlines Australia’s central bank was in focus today, leaving their cash rate target unchanged at 1.5%.  Light inflation was still a concern with lower oil prices again targeted but should gradually pick-up.  For 2019 they see underlying inflation running around 2.00%, moving to 2.25% next year. Wage growth continues to lag leading to weak household consumption but unemployment continues to decline.  To the upside business investment is on the increase as is spending for public infrastructure.   The AUD$ moved higher on the day but has pared some gains. PMI Services in the country held steady at 51.0 with retail sales contracting slightly.  Banks there rallied with the government not cracking down as hard as expected in relation to years of probes covering bank charges to sales of inappropriate products.  The 76 recommendations by the Royal Commission did not include a forced split between banks and wealth management/financial advice units.  Westpac rallied 7.4% with Commonwealth Bank of Australia up 4.7%. Australia & New Zealand Bank rose 6.5%.   Not all was rosy in the financial space with mortgage brokers lower after trailing commissions were banned.  Mortgage Choice ended down 25% with Australian Finance Group off 30%.   In the building space James Hardie…

CAPIS Global Recap – 2/4/2019

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International Summary

posted by Clayton Duff on 02/04/2019 at 6:42 am
by Clayton Duff on 02/04/2019

Asian Headlines With Lunar New Year celebrations in full swing turnover in the region for markets that were open were lower.  Shanghai/Shenzhen and Taiwan were shut and will be all week.  Korea too took part in the celebrations and will be shut until Thursday.  Singapore saw a half session and will reopen Thursday as well.  Lastly Hong Kong traded in the morning and will be closed until Friday.  Caixin Service PMI readings were out over the weekend, holding in at 53.6 vs the prior 53.9 result. Japan is open all week and finished with slight gain on the day with Energy, Financials, and Health Care names strong.  Both Brent and WTI continue to work higher, appearing to want to move up from an inverse head-and-shoulders pattern.   Energy names buoyed Australia higher as well ahead of the RBA meeting later today.   Materials fell on the session with concrete firm Boral off 8% on a profit warning.  Today’s Building Approval number Down Under that showed a 23% YoY drop was no help either. Honda fell 3.5% after Friday highlighting a weak 3Q op income reading followed by by a disappointing FY result as well.  Currency moves were cited coupled with slowing sales…

Asian Headlines With Lunar New Year celebrations in full swing turnover in the region for markets that were open were lower.  Shanghai/Shenzhen and Taiwan were shut and will be all week.  Korea too took part in the celebrations and will be shut until Thursday.  Singapore saw a half session and will reopen Thursday as well.  Lastly Hong Kong traded in the morning and will be closed until Friday.  Caixin Service PMI readings were out over the weekend, holding in at 53.6 vs the prior 53.9 result. Japan is open all week and finished with slight gain on the day with Energy, Financials, and Health Care names strong.  Both Brent and WTI continue to work higher, appearing to want to move up from an inverse head-and-shoulders pattern.   Energy names buoyed Australia higher as well ahead of the RBA meeting later today.   Materials fell on the session with concrete firm Boral off 8% on a profit warning.  Today’s Building Approval number Down Under that showed a 23% YoY drop was no help either. Honda fell 3.5% after Friday highlighting a weak 3Q op income reading followed by by a disappointing FY result as well.  Currency moves were cited coupled with slowing sales…

CAPIS FOMC Day Global Markets 1 30 2019

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International Summary

posted by Matthew Kiselica on 01/30/2019 at 7:13 am
by Matthew Kiselica on 01/30/2019

Asian Markets Asia was mixed with the markets generally awaiting a slew of important items including today’s FOMC meeting and tomorrow’s Sino-U.S. trade talks.  S. Korea outpeformed.  The Finance Ministry is considering a reduction to a transaction tax charged on equity trades.  Sectors were mixed with minimal moves, overall.  Consumer staples, consumer discretionary, utilities and healthcare gave way by c. 0.5%. Real estate improved by more than 0.5% with miners ahead by about that mark. Important Headlines Apple suppliers were mixed following its results out after the U.S. close.  Overall, they are reassuring following recent worries.  Chip suppliers rallied but display sunk.  That was also due to LG Display -3.7% seeing pressure on panel/screens this year. China Life -1.9% suffered multiple downgrades following yesterday’s outlook cut.  The company now sees FY ’18 NI down 50 to 70%! After yesterday’s close, Daiwa Sec. -6.5% revealed a 47.0% decline in OP. On the macro side of things, Japan’s December retail sales beat expectations as did Australia’s Q4 CPI.   S. Korean department store sales continued to fall in December but at a much slower rate than November. After today’s close there were a slew of earnings out across the region.  Those include Advantest, Canon,…

Asian Markets Asia was mixed with the markets generally awaiting a slew of important items including today’s FOMC meeting and tomorrow’s Sino-U.S. trade talks.  S. Korea outpeformed.  The Finance Ministry is considering a reduction to a transaction tax charged on equity trades.  Sectors were mixed with minimal moves, overall.  Consumer staples, consumer discretionary, utilities and healthcare gave way by c. 0.5%. Real estate improved by more than 0.5% with miners ahead by about that mark. Important Headlines Apple suppliers were mixed following its results out after the U.S. close.  Overall, they are reassuring following recent worries.  Chip suppliers rallied but display sunk.  That was also due to LG Display -3.7% seeing pressure on panel/screens this year. China Life -1.9% suffered multiple downgrades following yesterday’s outlook cut.  The company now sees FY ’18 NI down 50 to 70%! After yesterday’s close, Daiwa Sec. -6.5% revealed a 47.0% decline in OP. On the macro side of things, Japan’s December retail sales beat expectations as did Australia’s Q4 CPI.   S. Korean department store sales continued to fall in December but at a much slower rate than November. After today’s close there were a slew of earnings out across the region.  Those include Advantest, Canon,…

CAPIS EU Close Recap – 1/28/2019

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International Summary

posted by Clayton Duff on 01/28/2019 at 12:57 pm
by Clayton Duff on 01/28/2019

European indices closed just off of lows, rebounding somewhat after disappointing NVDA and CAT results hit the tape. While Tech names in the region fell on the news, Banks were weaker with the Energy sector leading lower as WTI was off over 4%.  All sectors finished lower with only 135 names on the Stoxx 600 closing higher with volume down 10%. Atlas Copco +2.2% was a standout today post reporting better 4Q numbers.  Revenue hit record levels with organic order growth returning. Weakness at its vacuum unit was less than feared with most of that unit geared towards the semiconductor space. Over the weekend the Financial Times ran an article noting Tesco -1.7% would cut 15k jobs.  Today, the company officially said 9000 positions would be pared as it battles online shopping and discounters. Ahead of earnings tomorrow LVMH fell 1% today with concerns that protests in Paris will weigh on numbers. Amadeus -3.3% contributed to Spain underperforming today with the US gov shutdown leading to a concern of fewer travellers. Overnight, Imports for Hong Kong in December were reported down 7% after the previous flat reading with exports slowing as well.  On that, their trade deficit grew from November…

European indices closed just off of lows, rebounding somewhat after disappointing NVDA and CAT results hit the tape. While Tech names in the region fell on the news, Banks were weaker with the Energy sector leading lower as WTI was off over 4%.  All sectors finished lower with only 135 names on the Stoxx 600 closing higher with volume down 10%. Atlas Copco +2.2% was a standout today post reporting better 4Q numbers.  Revenue hit record levels with organic order growth returning. Weakness at its vacuum unit was less than feared with most of that unit geared towards the semiconductor space. Over the weekend the Financial Times ran an article noting Tesco -1.7% would cut 15k jobs.  Today, the company officially said 9000 positions would be pared as it battles online shopping and discounters. Ahead of earnings tomorrow LVMH fell 1% today with concerns that protests in Paris will weigh on numbers. Amadeus -3.3% contributed to Spain underperforming today with the US gov shutdown leading to a concern of fewer travellers. Overnight, Imports for Hong Kong in December were reported down 7% after the previous flat reading with exports slowing as well.  On that, their trade deficit grew from November…

CAPIS EU Close Recap – 1/24/2019

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International Summary

posted by Clayton Duff on 01/24/2019 at 12:45 pm
by Clayton Duff on 01/24/2019

A mostly better finish to the session with London and the Swiss market slightly lower.  The ECB meeting was in focus with rates left as-is as forward guidance was reiterated.  They did highlight that risked were to the downside as opposed to a previously balanced view. With current discussions centered around more favorable trade parameters for the US Draghi was quick to highlight protectionism was the reason for the higher risk assessment.  Rate views were retained with current levels seen through summer of this year.  The central bank is encouraged on rising inflation with cost pressures on the upswing in the labor market.   On the economic release front, EU PMI readings remained at expansionary levels but missed estimates and fell from prior levels.  Specifically, Germany saw Manufacturing PMI move under the 50 level, well under the 51.5 expected/seen previously. Services PMI encouragingly moved higher. The sector skew was to the upside with Tech and Auto up over 2% on the session.  Insurers saw gains as well with the balance of sectors seeing subdued moves.  Nearly 400 of the Stoxx 600 names saw gains with volumes up 16%. Leading the tech space STMicro +10% rallied on inline 4Q revs with NI…

A mostly better finish to the session with London and the Swiss market slightly lower.  The ECB meeting was in focus with rates left as-is as forward guidance was reiterated.  They did highlight that risked were to the downside as opposed to a previously balanced view. With current discussions centered around more favorable trade parameters for the US Draghi was quick to highlight protectionism was the reason for the higher risk assessment.  Rate views were retained with current levels seen through summer of this year.  The central bank is encouraged on rising inflation with cost pressures on the upswing in the labor market.   On the economic release front, EU PMI readings remained at expansionary levels but missed estimates and fell from prior levels.  Specifically, Germany saw Manufacturing PMI move under the 50 level, well under the 51.5 expected/seen previously. Services PMI encouragingly moved higher. The sector skew was to the upside with Tech and Auto up over 2% on the session.  Insurers saw gains as well with the balance of sectors seeing subdued moves.  Nearly 400 of the Stoxx 600 names saw gains with volumes up 16%. Leading the tech space STMicro +10% rallied on inline 4Q revs with NI…

CAPIS EU Close Recap – 1/22/2019

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International Summary

posted by Clayton Duff on 01/22/2019 at 12:52 pm
by Clayton Duff on 01/22/2019

While Travel and Media names continued to lead, their gains were pared somewhat with most sectors flattish to down on the day.  Basic Resources and Energy continued to lag finishing down over a percent each with weakness in the States weighing on European indices. From its closing low in December the Stoxx 600 rallied nearly 8%.  Today, even though it was lower on the day, only created a Doji on the charts. While that signals indecision and many times a reversal in direction time will tell whether we consolidate here and rally again or work lower.  Of interest Emerging Markets are catching the eye of some technicians with the EEM holding above its downward channel it broke from early in the month. Drink-maker Remy Cointreau fell 3.4% after 3Q sales numbers missed estimates. The firm confirmed FY18/19 noting China is holding in. Investors were disappointed in TomTom’s -7.6% sell of their telematics unit to Bridgestone.  The deal is worth €910M with investors expected to reap €750 via a capital repayment coupled with a share consolidation. On tougher competition brokers downgraded shares of Telecom Italia -.6% with the stock halted at one point this morning. Debenhams leapt 12% on a news…

While Travel and Media names continued to lead, their gains were pared somewhat with most sectors flattish to down on the day.  Basic Resources and Energy continued to lag finishing down over a percent each with weakness in the States weighing on European indices. From its closing low in December the Stoxx 600 rallied nearly 8%.  Today, even though it was lower on the day, only created a Doji on the charts. While that signals indecision and many times a reversal in direction time will tell whether we consolidate here and rally again or work lower.  Of interest Emerging Markets are catching the eye of some technicians with the EEM holding above its downward channel it broke from early in the month. Drink-maker Remy Cointreau fell 3.4% after 3Q sales numbers missed estimates. The firm confirmed FY18/19 noting China is holding in. Investors were disappointed in TomTom’s -7.6% sell of their telematics unit to Bridgestone.  The deal is worth €910M with investors expected to reap €750 via a capital repayment coupled with a share consolidation. On tougher competition brokers downgraded shares of Telecom Italia -.6% with the stock halted at one point this morning. Debenhams leapt 12% on a news…

CAPIS Global Markets 1/22/2019

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International Summary

posted by Matthew Kiselica on 01/22/2019 at 7:02 am
by Matthew Kiselica on 01/22/2019

Yesterday’s Market If you missed, the Asian markets traded to the upside while Europe was down small.   Here is yesterday’s recap. Asian Markets Today There were several factors which caused the region to trade lower.   The markets had a negative bias following yesterday’s cut to global growth forecasts by the IMF.   Selling increased following a meeting between Chinese Pres. Xi and other of the nation’s top leaders.  After the meeting, Pres. Xi made a pledge to “maintain stability.”  This comment along with the meeting fanned growth/slowdown worries.  The icing on the cake is Chinese criticism of reports the U.S. is seeking the extradition of Huawei’s CFO. The majority of sectors ended the day lower.  IT, materials and energy gave way by c. 1%.  Among healthcare names, Chinese pharma companies traded lower due to a government pledge to reduce prescription prices.  Utilities managed to hold steady. Other Important Headlines Despite seeing FY ’18 earnings higher 123% to 132%, Petrochina traded lower.  Credit Suisse cut its EPS outlook and Huatai Financial cut its PT on the shares by 40%. Sources allege, Takeda Pharma +0.25% is mulling the sale of up to $3b in emerging market assets.  This would be to reduce the debt…

Yesterday’s Market If you missed, the Asian markets traded to the upside while Europe was down small.   Here is yesterday’s recap. Asian Markets Today There were several factors which caused the region to trade lower.   The markets had a negative bias following yesterday’s cut to global growth forecasts by the IMF.   Selling increased following a meeting between Chinese Pres. Xi and other of the nation’s top leaders.  After the meeting, Pres. Xi made a pledge to “maintain stability.”  This comment along with the meeting fanned growth/slowdown worries.  The icing on the cake is Chinese criticism of reports the U.S. is seeking the extradition of Huawei’s CFO. The majority of sectors ended the day lower.  IT, materials and energy gave way by c. 1%.  Among healthcare names, Chinese pharma companies traded lower due to a government pledge to reduce prescription prices.  Utilities managed to hold steady. Other Important Headlines Despite seeing FY ’18 earnings higher 123% to 132%, Petrochina traded lower.  Credit Suisse cut its EPS outlook and Huatai Financial cut its PT on the shares by 40%. Sources allege, Takeda Pharma +0.25% is mulling the sale of up to $3b in emerging market assets.  This would be to reduce the debt…

MLK Day Global Markets 1/21/2019

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International Summary

posted by Matthew Kiselica on 01/21/2019 at 11:05 am
by Matthew Kiselica on 01/21/2019

Asian Markets The markets focused upon macro data out of China.  The nation’s FY ’18 GDP provided some interesting results.  The 6.6% reading was the lowest since 2009.  However, the final for the year is a touch better than the government’s target of c. 6.5%.  Industrial production and retail sales provided further evidence the the world’s second market largest economy may be faring better than feared.   (All details below in our macro section below.) This created general buying interest across the region.   However, that was tempered as investors await further word regarding trade talks.  Part of the caution is due to reports the U.S. will issue further restrictions upon Chinese telecoms doing business here.   Also, sources allege intellectual property remains a sticking point.  On the plus side, China is said to be offering a boost to imports of U.S. products by $1t over the next 6 years.  S. Korea lagged as imports and exports slumped resulting in a trade deficit. Overall,  most sectors saw gains.  Energy was the standout, advancing by c. 1.5%.  The was the result of strong Chinese refining data during December.  IT gained 1%.  Utilities were out of favor and the real estate sector lagged, weighed upon…

Asian Markets The markets focused upon macro data out of China.  The nation’s FY ’18 GDP provided some interesting results.  The 6.6% reading was the lowest since 2009.  However, the final for the year is a touch better than the government’s target of c. 6.5%.  Industrial production and retail sales provided further evidence the the world’s second market largest economy may be faring better than feared.   (All details below in our macro section below.) This created general buying interest across the region.   However, that was tempered as investors await further word regarding trade talks.  Part of the caution is due to reports the U.S. will issue further restrictions upon Chinese telecoms doing business here.   Also, sources allege intellectual property remains a sticking point.  On the plus side, China is said to be offering a boost to imports of U.S. products by $1t over the next 6 years.  S. Korea lagged as imports and exports slumped resulting in a trade deficit. Overall,  most sectors saw gains.  Energy was the standout, advancing by c. 1.5%.  The was the result of strong Chinese refining data during December.  IT gained 1%.  Utilities were out of favor and the real estate sector lagged, weighed upon…

CAPIS EU Close Recap – 1/17/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/17/2019 at 12:57 pm
by Clayton Duff on 01/17/2019

Little change to indices today with most markets seeing slight losses.  Sweden and Switzerland managed small gains with the recent run both in the States and internationally getting long in the tooth.  On a sector-basis Food names led with Construction and Basic Resources also higher.  Energy lagged with a pullback in oil prices as the Dollar moves higher. As PM May and MP’s discuss the future of Brexit the array of potential directions is becoming more complicated.  Options include another confidence vote and whether a new PM should be seated.  New elections are also being considered along with whether a new or amended plan should be tried with the EU.  Obviously an extension to Article 50 being enacted is being discussed along with whether an referendum to citizens should be held.  Today word was released a referendum could be a year-long process. In the Chemical space Akzo Nobel rallied 1.8% on the announcement of €2B to be returned to shareholders soon.  That is part of a €6.5B package to be returned post their unit sale. The European broadcasting space saw sizable losses today with BofAML downgrading several names on weakening in the region.  They note slowing TV consumption with a…

Little change to indices today with most markets seeing slight losses.  Sweden and Switzerland managed small gains with the recent run both in the States and internationally getting long in the tooth.  On a sector-basis Food names led with Construction and Basic Resources also higher.  Energy lagged with a pullback in oil prices as the Dollar moves higher. As PM May and MP’s discuss the future of Brexit the array of potential directions is becoming more complicated.  Options include another confidence vote and whether a new PM should be seated.  New elections are also being considered along with whether a new or amended plan should be tried with the EU.  Obviously an extension to Article 50 being enacted is being discussed along with whether an referendum to citizens should be held.  Today word was released a referendum could be a year-long process. In the Chemical space Akzo Nobel rallied 1.8% on the announcement of €2B to be returned to shareholders soon.  That is part of a €6.5B package to be returned post their unit sale. The European broadcasting space saw sizable losses today with BofAML downgrading several names on weakening in the region.  They note slowing TV consumption with a…

CAPIS Global Markets 1/17/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/17/2019 at 7:37 am
by Matthew Kiselica on 01/17/2019

Asian Markets Another mixed day of trading across the region.  To underscore that statement, Japan saw the Topix and Nikkei 400 manage small gains while the benchmark Nikkei 225 dipped.  The Chinese markets saw interesting activity.   They fell during the afternoon session with no trigger we could delve up.  It may have been partially related to TSMC (See below) but that can’t account for all the move.  Therefore, keep your eyes open.  News the U.S. will proceed with a Huawei criminal probe had been out well before the local open and had been largely shrugged off.  Hong Kong was still open when China confirmed Vice. Prem. Liu will come to the U.S. at the end of the month to resume trade talks.  However, that did not help the market rally. Real estate was the worst performing sector by far with Chinese related names lower following the selling noted above.  Jiayuan Intl slumped 80.0%!  Following yesterday’s results at Goldman Sachs, financials had a good start to the day.  However, Chinese names ended up pulling the sector back to the flat line. Other Important Headlines Here are the TMSC results we noted above which we were released after the local close.  Q4…

Asian Markets Another mixed day of trading across the region.  To underscore that statement, Japan saw the Topix and Nikkei 400 manage small gains while the benchmark Nikkei 225 dipped.  The Chinese markets saw interesting activity.   They fell during the afternoon session with no trigger we could delve up.  It may have been partially related to TSMC (See below) but that can’t account for all the move.  Therefore, keep your eyes open.  News the U.S. will proceed with a Huawei criminal probe had been out well before the local open and had been largely shrugged off.  Hong Kong was still open when China confirmed Vice. Prem. Liu will come to the U.S. at the end of the month to resume trade talks.  However, that did not help the market rally. Real estate was the worst performing sector by far with Chinese related names lower following the selling noted above.  Jiayuan Intl slumped 80.0%!  Following yesterday’s results at Goldman Sachs, financials had a good start to the day.  However, Chinese names ended up pulling the sector back to the flat line. Other Important Headlines Here are the TMSC results we noted above which we were released after the local close.  Q4…

CAPIS EU Close Recap – 1/16/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/16/2019 at 12:55 pm
by Clayton Duff on 01/16/2019

After the better open European indices moved back to PDC levels before moving back to near morning highs.  Italy outperformed as banks led on lower NPL’s and the minimal impact from ECB Bad-loan actions.  Further, positive earnings in the space on our side of the pond helped as well.  The UK FTSE fell with the Pound holding steady today with weakness in Consumer Staples and Energy names.  The 10 year GILT fell today, pushing the yield to 1.306%. Gains were broad with 416 of the 600 names in the Stoxx 600 higher on volume 5% higher.  The banking sector for the region rallied 2.51% with Insurers up 1.38% and Financials better by 1.07%. Post the close the UK Times reported EU officials are looking into the delay of Brexit until next year with France and Germany reported to be willing to extend discussions.  PM May’s confidence vote is still scheduled for this afternoon. Deutsche Bank rallied 8.4% on headlines that ECB regulators are in favor on the bank merging with a European rival rather than local peer Commerzbank +7.4%.  German regs are more keen to a merger between the two, hoping for one strong bank to support the country’s exporters.…

After the better open European indices moved back to PDC levels before moving back to near morning highs.  Italy outperformed as banks led on lower NPL’s and the minimal impact from ECB Bad-loan actions.  Further, positive earnings in the space on our side of the pond helped as well.  The UK FTSE fell with the Pound holding steady today with weakness in Consumer Staples and Energy names.  The 10 year GILT fell today, pushing the yield to 1.306%. Gains were broad with 416 of the 600 names in the Stoxx 600 higher on volume 5% higher.  The banking sector for the region rallied 2.51% with Insurers up 1.38% and Financials better by 1.07%. Post the close the UK Times reported EU officials are looking into the delay of Brexit until next year with France and Germany reported to be willing to extend discussions.  PM May’s confidence vote is still scheduled for this afternoon. Deutsche Bank rallied 8.4% on headlines that ECB regulators are in favor on the bank merging with a European rival rather than local peer Commerzbank +7.4%.  German regs are more keen to a merger between the two, hoping for one strong bank to support the country’s exporters.…

CAPIS Global Markets 1/16/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/16/2019 at 6:48 am
by Matthew Kiselica on 01/16/2019

Markets Focus on Brexit If you missed it, U.K. PM May’s Brexit deal was resoundingly rejected by Parliament.  It was not a surprise the measure was voted down.  However, the margin of defeat (432 nays vs. 202 ayes) was wider than expected.  To put this in perspective,  this is the largest margin of defeat in Parliament in the history of the U.K.  Following the result, Labour Party leader Corbyn called for a non confidence vote which will be held today at 2PM Eastern.  The has managed to hold steady for most of the morning.   U.K. yields are higher with 10 yr. c. +7 basis points. Asian Markets This caused the Asian markets to trade in mixed fashion.  Part of the issue is no one is sure what the next step in the Brexit process will be.  In fact, there are many who believe this will lead to a delay from the March 29th “deadline.”  The PBoC injected a record CNY 560b into the financial system today which help support the Chinese markets.  This was to meet the demand for upcoming tax payments and the Chinese New Year which commences in the first week of February. In keeping with how the…

Markets Focus on Brexit If you missed it, U.K. PM May’s Brexit deal was resoundingly rejected by Parliament.  It was not a surprise the measure was voted down.  However, the margin of defeat (432 nays vs. 202 ayes) was wider than expected.  To put this in perspective,  this is the largest margin of defeat in Parliament in the history of the U.K.  Following the result, Labour Party leader Corbyn called for a non confidence vote which will be held today at 2PM Eastern.  The has managed to hold steady for most of the morning.   U.K. yields are higher with 10 yr. c. +7 basis points. Asian Markets This caused the Asian markets to trade in mixed fashion.  Part of the issue is no one is sure what the next step in the Brexit process will be.  In fact, there are many who believe this will lead to a delay from the March 29th “deadline.”  The PBoC injected a record CNY 560b into the financial system today which help support the Chinese markets.  This was to meet the demand for upcoming tax payments and the Chinese New Year which commences in the first week of February. In keeping with how the…

CAPIS EU Close Recap – 1/15/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/15/2019 at 12:39 pm
by Clayton Duff on 01/15/2019

European indices hit lows just post midday, again rebounding on a move higher in the States. While off of highs most indices finished again to the upside while Italy and Sweden were a hair lower.  Banks finished down small post the JPM news with Media joining the sector for small losses.  Healthcare and Tech names finished up a percent with volume down 5% on the day. Later today the UK Parliament will vote on PM May’s Brexit plan with headlines hitting that the EU will not alter its agreement in the deal.  The Pound has fallen throughout the day, currently knocking on the 1.27 level. Swiss Re fell 1.5% post noting natural and man-made disasters resulted in $1B in fourth quarter claims.  For the year, the number hit nearly $3B with California fires accounting for $375M.  Industry-wide, insured losses for last year hit $81B. Shareholders in BooHoo -9% shed a tear today after the firm pared slightly its FY adj core op profit view. Revenue growth expectations were upped to 43-45% from the prior 38-43%. Sweden’s Millicom Intl Cellular rallied 7% after Liberty Latam America confirms they are in talks. From earlier: William Hill -2.9%, GVC Holdings -2.8%, Paddy Power…

European indices hit lows just post midday, again rebounding on a move higher in the States. While off of highs most indices finished again to the upside while Italy and Sweden were a hair lower.  Banks finished down small post the JPM news with Media joining the sector for small losses.  Healthcare and Tech names finished up a percent with volume down 5% on the day. Later today the UK Parliament will vote on PM May’s Brexit plan with headlines hitting that the EU will not alter its agreement in the deal.  The Pound has fallen throughout the day, currently knocking on the 1.27 level. Swiss Re fell 1.5% post noting natural and man-made disasters resulted in $1B in fourth quarter claims.  For the year, the number hit nearly $3B with California fires accounting for $375M.  Industry-wide, insured losses for last year hit $81B. Shareholders in BooHoo -9% shed a tear today after the firm pared slightly its FY adj core op profit view. Revenue growth expectations were upped to 43-45% from the prior 38-43%. Sweden’s Millicom Intl Cellular rallied 7% after Liberty Latam America confirms they are in talks. From earlier: William Hill -2.9%, GVC Holdings -2.8%, Paddy Power…

CAPIS Global Markets 1/15/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/15/2019 at 7:28 am
by Matthew Kiselica on 01/15/2019

Asian Markets A reversal in fortune compared to yesterday.  The markets responded to stimulus pledges in the China.   Those came from a number of government entities including the PBoC and Ministry of Finance.  Those actions included “tax cuts on a larger scale” especially for small businesses and the manufacturing sector.  There were also comments pertaining to “supportive regulatory policies.”  To that end, the first half of the 1% reserve ratio cut announced last week became effective today. This prompted the markets to rally.   Even Japan which had to play catch-down following yesterday’s holiday, erased initial losses to end the day with a solid gain.  All the major sectors advanced.  IT improved by more 2% with financials, telcos, consumer staples, real estate, materials and energy gaining  by at least 1%. Other Important Headlines S. Korean auto stocks were driven higher with SK Securities making positive comments. Investors gobbled up Nintendo % shares following the Barron’s article saying Apple should purchase the economy. Chow Tai Food % suffered a 6.0% y/y decline in Hong Kong/Macau same store sales. China Life % following the FY ’18 Premium sales announced after yesterday’s close. European Markets Europe had a solid start hitting highs with a…

Asian Markets A reversal in fortune compared to yesterday.  The markets responded to stimulus pledges in the China.   Those came from a number of government entities including the PBoC and Ministry of Finance.  Those actions included “tax cuts on a larger scale” especially for small businesses and the manufacturing sector.  There were also comments pertaining to “supportive regulatory policies.”  To that end, the first half of the 1% reserve ratio cut announced last week became effective today. This prompted the markets to rally.   Even Japan which had to play catch-down following yesterday’s holiday, erased initial losses to end the day with a solid gain.  All the major sectors advanced.  IT improved by more 2% with financials, telcos, consumer staples, real estate, materials and energy gaining  by at least 1%. Other Important Headlines S. Korean auto stocks were driven higher with SK Securities making positive comments. Investors gobbled up Nintendo % shares following the Barron’s article saying Apple should purchase the economy. Chow Tai Food % suffered a 6.0% y/y decline in Hong Kong/Macau same store sales. China Life % following the FY ’18 Premium sales announced after yesterday’s close. European Markets Europe had a solid start hitting highs with a…

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