International Summary

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CAPIS EU Close – 12/12/2018

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International Summary

posted by Clayton Duff on 12/12/2018 at 12:48 pm
by Clayton Duff on 12/12/2018

Europe managed to string together two back to back days of gains on broad gains today.  546 names in the Stoxx 600 finished better with volume on the session up 4%.  All sectors finished to the upside with Basic Resources and Banks finishing up shy of 3%.  Energy gave up some gains after DOE readings showed a smaller draw than expected, down 1.2M vs the expected 3M barrel draw. On encouraging US/China-related trade snippets markets are attempting to work off of lows.  This includes the Huawei CFO being offered bail in Canada despite being retained in the country.  Additional headlines only fueled bids with Italy said to propose a budget deficit/GDP of 2% for next year. Later comments walked that back somewhat with an official stating the country is trying to reach a deal with the EU with a target of 2% to 2.2% of GDP.   This matches the EU’s target.  On that Italy outperformed on the day, closing up 1.91% with their 10 year moving below 3% for the first time since September. France too is working to cut their budget deficit with plans to lower spending to move their budget deficit to GDP to under 3%. PM May continues…

Europe managed to string together two back to back days of gains on broad gains today.  546 names in the Stoxx 600 finished better with volume on the session up 4%.  All sectors finished to the upside with Basic Resources and Banks finishing up shy of 3%.  Energy gave up some gains after DOE readings showed a smaller draw than expected, down 1.2M vs the expected 3M barrel draw. On encouraging US/China-related trade snippets markets are attempting to work off of lows.  This includes the Huawei CFO being offered bail in Canada despite being retained in the country.  Additional headlines only fueled bids with Italy said to propose a budget deficit/GDP of 2% for next year. Later comments walked that back somewhat with an official stating the country is trying to reach a deal with the EU with a target of 2% to 2.2% of GDP.   This matches the EU’s target.  On that Italy outperformed on the day, closing up 1.91% with their 10 year moving below 3% for the first time since September. France too is working to cut their budget deficit with plans to lower spending to move their budget deficit to GDP to under 3%. PM May continues…

CAPIS Global Markets 12 6 2018

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posted by Matthew Kiselica on 12/06/2018 at 9:06 am
by Matthew Kiselica on 12/06/2018

Asian Markets The story of the day is the arrest of Huawei Tech CFO Meng Wanzhou.    Apparently, she has been arrested in Canada at the request of the United States.  Reports indicate the arrest occurred while Pres. Trump and Prem. Xi were conducting trade talks!  China is voicing its outrage and calling for her immediate release.  Here are more details pertaining to the story.  Naturally, the markets are worried about the impact this will have on trade negotiations. This drove all the Asian markets lower and most by well over 1%.  Sector performance was terrible.   All the major sectors were well to the downside.  Health care gave way by 3% with IT and telcos off by 2.5% or more.  Within IT, Apple suppliers ended the day down by 3.8%, as a whole.  (See Largan comments below.) Other Important Headlines The Huawei story wasn’t the only negative for the tech sector.  Apple supplier Largan Precision -9.95% sees December sales falling m/m.  This follows November sales which slumped 29.0% y/y. Sources allege Softbank’s -4.9% IPO of its telecom unit is fully subscribed including the over allotment shares.  That is a total of 176b shares, raising c. $24b.  The shares commence trading…

Asian Markets The story of the day is the arrest of Huawei Tech CFO Meng Wanzhou.    Apparently, she has been arrested in Canada at the request of the United States.  Reports indicate the arrest occurred while Pres. Trump and Prem. Xi were conducting trade talks!  China is voicing its outrage and calling for her immediate release.  Here are more details pertaining to the story.  Naturally, the markets are worried about the impact this will have on trade negotiations. This drove all the Asian markets lower and most by well over 1%.  Sector performance was terrible.   All the major sectors were well to the downside.  Health care gave way by 3% with IT and telcos off by 2.5% or more.  Within IT, Apple suppliers ended the day down by 3.8%, as a whole.  (See Largan comments below.) Other Important Headlines The Huawei story wasn’t the only negative for the tech sector.  Apple supplier Largan Precision -9.95% sees December sales falling m/m.  This follows November sales which slumped 29.0% y/y. Sources allege Softbank’s -4.9% IPO of its telecom unit is fully subscribed including the over allotment shares.  That is a total of 176b shares, raising c. $24b.  The shares commence trading…

CAPIS Global Recap – 12/5/2018 A Solemn Wednesday

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posted by Clayton Duff on 12/05/2018 at 6:51 am
by Clayton Duff on 12/05/2018

Asian Headlines Fortunately losses in Asia were more contained than in the States with indices there shaking off early lows.  Energy names continued to lag as did Financials but at a considerably smaller impact than in the US.  Caixin Service PMI readings were a much-needed relief, coming in at 53.8 vs the 50.7 estimate and 50.8 prior reading. The PMI reading in Hong Kong continued to slip, at 47.1 vs the prior 48.6.  Service PMI in Japan held steady while GDP in the 3Q Down Under rose only .3% vs the +.6% QoQ reading expected. Markets were somewhat relived by comments from WH Adviser Navarro as he stated it was too early to lose faith on trade talks and that is important to get it right.  That was followed by China’s Commerce Ministry noting negotiations were pushing forward and were confident of trade talk results. They added agreed upon items would be implemented ASAP. (US soy and LNG imports are on that list). President Trump tweeted either a REAL DEAL with China will be completed or no deal with major tariffs to follow. Real Estate names were lower but could have been considerably worse post comments from CK Asset executive…

Asian Headlines Fortunately losses in Asia were more contained than in the States with indices there shaking off early lows.  Energy names continued to lag as did Financials but at a considerably smaller impact than in the US.  Caixin Service PMI readings were a much-needed relief, coming in at 53.8 vs the 50.7 estimate and 50.8 prior reading. The PMI reading in Hong Kong continued to slip, at 47.1 vs the prior 48.6.  Service PMI in Japan held steady while GDP in the 3Q Down Under rose only .3% vs the +.6% QoQ reading expected. Markets were somewhat relived by comments from WH Adviser Navarro as he stated it was too early to lose faith on trade talks and that is important to get it right.  That was followed by China’s Commerce Ministry noting negotiations were pushing forward and were confident of trade talk results. They added agreed upon items would be implemented ASAP. (US soy and LNG imports are on that list). President Trump tweeted either a REAL DEAL with China will be completed or no deal with major tariffs to follow. Real Estate names were lower but could have been considerably worse post comments from CK Asset executive…

CAPIS Global Recap – 12/4/2018

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posted by Clayton Duff on 12/04/2018 at 6:58 am
by Clayton Duff on 12/04/2018

Asian Headlines A mixed close to the day with a mostly disappointing finish. While mainland China and Hong Kong managed small gains the balance of the major markets gave back most of yesterday’s gains.  The Nikkei underperformed even more so, giving back gains made over the last 4 days on broad weakness.  Moves in energy names in the region have been to the downside even as oil prices continue to rebound.  Markets may have gotten ahead of themselves on US/China deal hopes with WH EcoAdv Larry Kudlow stating there exists a 90 day timetable for a deal which could extend to April 1st, if a deal at all materializes. Of interest the China Daily today yesterday reported the country is considering lowering US auto tariffs.  The China Securities Daily later noted officials are in talks with expectations of tariffs returning to original levels.  On that autos Chinese automakers fell Tuesday. Chipmakers slipped as well with one broker noting DRAM prices, and NAND, continue to move south. Samsung Electronics fell 2.5% while Hynix fell 2.1%.  In Korea GDP met estimates, holding steady at .6% QoQ growth but inflation fell in November a bit more than expected. Sharp closed down 5.7% with…

Asian Headlines A mixed close to the day with a mostly disappointing finish. While mainland China and Hong Kong managed small gains the balance of the major markets gave back most of yesterday’s gains.  The Nikkei underperformed even more so, giving back gains made over the last 4 days on broad weakness.  Moves in energy names in the region have been to the downside even as oil prices continue to rebound.  Markets may have gotten ahead of themselves on US/China deal hopes with WH EcoAdv Larry Kudlow stating there exists a 90 day timetable for a deal which could extend to April 1st, if a deal at all materializes. Of interest the China Daily today yesterday reported the country is considering lowering US auto tariffs.  The China Securities Daily later noted officials are in talks with expectations of tariffs returning to original levels.  On that autos Chinese automakers fell Tuesday. Chipmakers slipped as well with one broker noting DRAM prices, and NAND, continue to move south. Samsung Electronics fell 2.5% while Hynix fell 2.1%.  In Korea GDP met estimates, holding steady at .6% QoQ growth but inflation fell in November a bit more than expected. Sharp closed down 5.7% with…

CAPIS Global Recap – 12/3/2018

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posted by Clayton Duff on 12/03/2018 at 6:37 am
by Clayton Duff on 12/03/2018

The CAPIS International Trading Desk wishes peace to the Bush family today as they mourn the loss of President George Herbert Walker Bush.  We thank him for the many decades of service to our country from his time in action in World War II through his presidency and support of the country after. President Bush’s funeral service will be this Wednesday with US markets shut for trading. Asian Headlines It has been a top down day today with strong gains worldwide post this weekend’s G20 meeting.   Headlines out the last several days include President Xi stating he plans more market-based reforms along with working to protect intellectual property.  This helped in Friday trading.  WTO reform was on the table this weekend but one of the main headlines out concerned President Trump opting to not up tariffs on China to 25% that were planned to take effect January 1st.  Instead the rate will remain at 10% with China pledging to purchase more good from the US.  Per a tweet,  China has seemingly agreed to lift tariffs on US-made vehicles with European vehicles benefiting today. Oil is higher with West Texas crude up over 4%, trading into the $53’s. Friday, an OPEC…

The CAPIS International Trading Desk wishes peace to the Bush family today as they mourn the loss of President George Herbert Walker Bush.  We thank him for the many decades of service to our country from his time in action in World War II through his presidency and support of the country after. President Bush’s funeral service will be this Wednesday with US markets shut for trading. Asian Headlines It has been a top down day today with strong gains worldwide post this weekend’s G20 meeting.   Headlines out the last several days include President Xi stating he plans more market-based reforms along with working to protect intellectual property.  This helped in Friday trading.  WTO reform was on the table this weekend but one of the main headlines out concerned President Trump opting to not up tariffs on China to 25% that were planned to take effect January 1st.  Instead the rate will remain at 10% with China pledging to purchase more good from the US.  Per a tweet,  China has seemingly agreed to lift tariffs on US-made vehicles with European vehicles benefiting today. Oil is higher with West Texas crude up over 4%, trading into the $53’s. Friday, an OPEC…

CAPIS Global Recap – 11/30/2018

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posted by Clayton Duff on 11/30/2018 at 6:52 am
by Clayton Duff on 11/30/2018

Asian Headlines Another mixed session in Asia with mainland China regaining a good bit of Thursday’s losses.  This was post Manufacturing PMI that while remained in expansion territory missed estimates.  For November the reading came at 50.0, a hair light of the previous 50.2 reading and like estimate. New export orders saw some growth but remained under the 50 level with a 47.0 reading.  Non-manufacturing missed as well but markets there shook off the news to see almost all sectors to the upside.  Elsewhere gains and losses were kept in check except for Australia which saw some sizable losses in Consumer Staple names along with RE and some discretionarys. Volumes today were higher with the MSCI rebalance taking effect. Also in focus the G20 kicks off tonight with Presidents Trump and Xi to dine while a new trading agreement between the US, Canada, and Mexico is expected to be signed. In addition to China’s PMI Industrial production in Japan beat estimates while construction orders fell 16.5% in October.  Industrial Production moved back to positive levels in South Korea with their central bank upping their repo rate 25bps as expected. SK’s central bank also weighed on semis there today with a…

Asian Headlines Another mixed session in Asia with mainland China regaining a good bit of Thursday’s losses.  This was post Manufacturing PMI that while remained in expansion territory missed estimates.  For November the reading came at 50.0, a hair light of the previous 50.2 reading and like estimate. New export orders saw some growth but remained under the 50 level with a 47.0 reading.  Non-manufacturing missed as well but markets there shook off the news to see almost all sectors to the upside.  Elsewhere gains and losses were kept in check except for Australia which saw some sizable losses in Consumer Staple names along with RE and some discretionarys. Volumes today were higher with the MSCI rebalance taking effect. Also in focus the G20 kicks off tonight with Presidents Trump and Xi to dine while a new trading agreement between the US, Canada, and Mexico is expected to be signed. In addition to China’s PMI Industrial production in Japan beat estimates while construction orders fell 16.5% in October.  Industrial Production moved back to positive levels in South Korea with their central bank upping their repo rate 25bps as expected. SK’s central bank also weighed on semis there today with a…

CAPIS European Markets 11/29/2018

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posted by Matthew Kiselica on 11/29/2018 at 12:54 pm
by Matthew Kiselica on 11/29/2018

The markets ended the day to the upside although the region did see mixed performance.  Spain and German have a small downtick as the utility sector weighed.  As a whole, utilities gave way by close to 1%.  Travel/leisure and retail off by c. 0.5%.  Basis resources are today’s winner with a gain slightly better than 1%.  Industrials and chemicals followed close behind. The names we highlighted this morning last traded as follows: Deutsche Bk -3.4%,  Sixt +3.0%,  Hertz -6.6%, Greene King +5.5% and Shire +0.3%. Other News in the Markets Bayer -0.7% is a laggard among chemical names.  The company announced job cuts and provided assets sales updates but they failed to impress the markets.  This had been rumored yesterday. Britvic +8.3% bubbled over. FY PTP is above the range.  The company also sees better prospects going forward and FCF increasing “materially.” Unilever’s -0.5% next CEO will be Alan Jope, the current head of its beauty and personal care unit.  CEO Polman will step down at the end of the year. On the Markets’ Agenda for Tonight Reminder, the MSCI rebalance will occur on the close across the globe.  Expect to see elevated volumes to end the day. The G-20…

The markets ended the day to the upside although the region did see mixed performance.  Spain and German have a small downtick as the utility sector weighed.  As a whole, utilities gave way by close to 1%.  Travel/leisure and retail off by c. 0.5%.  Basis resources are today’s winner with a gain slightly better than 1%.  Industrials and chemicals followed close behind. The names we highlighted this morning last traded as follows: Deutsche Bk -3.4%,  Sixt +3.0%,  Hertz -6.6%, Greene King +5.5% and Shire +0.3%. Other News in the Markets Bayer -0.7% is a laggard among chemical names.  The company announced job cuts and provided assets sales updates but they failed to impress the markets.  This had been rumored yesterday. Britvic +8.3% bubbled over. FY PTP is above the range.  The company also sees better prospects going forward and FCF increasing “materially.” Unilever’s -0.5% next CEO will be Alan Jope, the current head of its beauty and personal care unit.  CEO Polman will step down at the end of the year. On the Markets’ Agenda for Tonight Reminder, the MSCI rebalance will occur on the close across the globe.  Expect to see elevated volumes to end the day. The G-20…

CAPIS Global Recap – 11/29/2018

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International Summary

posted by Clayton Duff on 11/29/2018 at 7:29 am
by Clayton Duff on 11/29/2018

Asian Headlines For the most part Asia did not take the cue from the US post its strong run on Wednesday.  Gain were slight with markets that were up with mainland China disappointing on the session.   Ahead of official PMI readings tonight the Shenzhen was off over 2% with sizable weakness in IT and Financials with the same weighing on the Shanghai. Japan edged higher with Health Care and Industrials better with retail sales exceeding estimates.  South Korea’s indices were mixed with department store sales there disappointing.  Tomorrow their central bank is expected to increase their 7 day repo rate by 25bps to 1.75%.   Down Under IT names were better bid with Materials also to the upside.  Markets of course are interested if any progress will be made at this weekend’s G20 meeting to be held in Buenos Aires.   One highlight expected is that President Xi will tell President Trump they are continuing to open markets there adding the government will lessen support for SOE’s. Movers include Mitsui & Co +.9% with the conglomerate increasing their stakes in Asia’s largest private hospital group for ¥230B. Softbank rallied 3.1% on word they attained their ¥2T retail sales target for their telecom…

Asian Headlines For the most part Asia did not take the cue from the US post its strong run on Wednesday.  Gain were slight with markets that were up with mainland China disappointing on the session.   Ahead of official PMI readings tonight the Shenzhen was off over 2% with sizable weakness in IT and Financials with the same weighing on the Shanghai. Japan edged higher with Health Care and Industrials better with retail sales exceeding estimates.  South Korea’s indices were mixed with department store sales there disappointing.  Tomorrow their central bank is expected to increase their 7 day repo rate by 25bps to 1.75%.   Down Under IT names were better bid with Materials also to the upside.  Markets of course are interested if any progress will be made at this weekend’s G20 meeting to be held in Buenos Aires.   One highlight expected is that President Xi will tell President Trump they are continuing to open markets there adding the government will lessen support for SOE’s. Movers include Mitsui & Co +.9% with the conglomerate increasing their stakes in Asia’s largest private hospital group for ¥230B. Softbank rallied 3.1% on word they attained their ¥2T retail sales target for their telecom…

CAPIS European Close – 11/28/2018

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posted by Clayton Duff on 11/28/2018 at 12:49 pm
by Clayton Duff on 11/28/2018

Indices closed flat in Europe with moves kept subdued on the session. Tech and Retail saw some support on the day, up 60bps each, with Travel and Utilities somewhat offered.  Volume was off slightly with a fairly even split of names up vs down.  Markets seemingly were waiting for the US’ Powell to make comments with indices in the States rallying today on headlines from the luncheon. Comments from Italy were encouraging with PM Conte noting no final decision has been made on the deficit with a new deficit target being reviewed. Continental again skidded lower, down 4.3%, after their CFO said conditions remain tough citing the European emission testing change and weakness in the Chinese market. Shares in Tenaris fell 7% with their chairman and largest holder being indicted on bribery charges. Post the close the Bank of England noted a disruptive Brexit could lead to a 15% drop in the Pound with a disorderly divorce leading to a 25% drop.  They provided varying degrees of weakness to GDP based on the final deal and how “Close” the UK comes to the current economic relationship to the EU under a Brexit deal. In a worst case deal they see…

Indices closed flat in Europe with moves kept subdued on the session. Tech and Retail saw some support on the day, up 60bps each, with Travel and Utilities somewhat offered.  Volume was off slightly with a fairly even split of names up vs down.  Markets seemingly were waiting for the US’ Powell to make comments with indices in the States rallying today on headlines from the luncheon. Comments from Italy were encouraging with PM Conte noting no final decision has been made on the deficit with a new deficit target being reviewed. Continental again skidded lower, down 4.3%, after their CFO said conditions remain tough citing the European emission testing change and weakness in the Chinese market. Shares in Tenaris fell 7% with their chairman and largest holder being indicted on bribery charges. Post the close the Bank of England noted a disruptive Brexit could lead to a 15% drop in the Pound with a disorderly divorce leading to a 25% drop.  They provided varying degrees of weakness to GDP based on the final deal and how “Close” the UK comes to the current economic relationship to the EU under a Brexit deal. In a worst case deal they see…

CAPIS Global Markets 11/27/2018

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posted by Matthew Kiselica on 11/27/2018 at 7:42 am
by Matthew Kiselica on 11/27/2018

Asian Markets A mixed day around the region as the markets had some conflicting trade related comments balanced by a strong start to the U.S. holiday retail season.  A perfect example of the mix in the indices is Greater China.  Hong Kong and Shanghai ticked down small while Shenzhen and Taiwan advanced.  JP Morgan is cautious on Chinese equities over the next 3-6 months. Here is a recap of the trade banter highlighted above.  Pres. Trump indicates additional tariffs may be imposed upon $267b of goods.  That could include a 10% tariff on mobile phones and laptops manufactured in China.  The markets had a mild uptick when a spokesman for China’s Foreign Ministry stated Pres. Trump and Premier Xi had reach an agreement.  However, he was referring to the call held back on Nov. 1st.  Equities quickly gave back the advance once that became apparent. All the above created the following sector performance.  IT, consumer discretionary and telcos were better by more than 0.5%.  Within IT, Apple suppliers were mixed.  Those with manufacturing in Chine lagged while those in operations in other markets outperformed.  Consumer staples and health care gave way by about 0.5%. Headlines from the Region Australian bankers…

Asian Markets A mixed day around the region as the markets had some conflicting trade related comments balanced by a strong start to the U.S. holiday retail season.  A perfect example of the mix in the indices is Greater China.  Hong Kong and Shanghai ticked down small while Shenzhen and Taiwan advanced.  JP Morgan is cautious on Chinese equities over the next 3-6 months. Here is a recap of the trade banter highlighted above.  Pres. Trump indicates additional tariffs may be imposed upon $267b of goods.  That could include a 10% tariff on mobile phones and laptops manufactured in China.  The markets had a mild uptick when a spokesman for China’s Foreign Ministry stated Pres. Trump and Premier Xi had reach an agreement.  However, he was referring to the call held back on Nov. 1st.  Equities quickly gave back the advance once that became apparent. All the above created the following sector performance.  IT, consumer discretionary and telcos were better by more than 0.5%.  Within IT, Apple suppliers were mixed.  Those with manufacturing in Chine lagged while those in operations in other markets outperformed.  Consumer staples and health care gave way by about 0.5%. Headlines from the Region Australian bankers…

CAPIS Global Markets 11/26/2018

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posted by Matthew Kiselica on 11/26/2018 at 6:53 am
by Matthew Kiselica on 11/26/2018

Asian Markets Most of the region rallied with many markets seeing gains exceeding 1%.  The boost was provided by indications of a strong start to U.S. holiday sales and chatter of slower Fed rate hikes.   Taiwan had the added benefit of elections which saw a more pro-China party make headway.  The mainland Chinese exchanges dipped as investors keep a wary eye on the upcoming G-20 meeting. Australia underperformed. Miners saw heavy selling following sharp declines in the West on Friday.  Also, iron ore fell sharply in Asian trading with Chinese steal manufacturers cutting production and margins said to be facing severe margin erosion.  Energy was also lower.  However most sectors ended the day higher.  Telcos, real estate and utilities saw gains of 1% or more. Japan’s November Nikkei Flash manufacturing PMI remained in expansion territory but dipped from October’s reading. Important Headlines with Plenty after the Close Tencent +2.3% backed travel site, Tongcheng-Elong +26.5% flew out of the gate on its trading debut. Zhongjin Gold +1.9% will purchase a 90% stake in China Gold Inner Mongolia Mining and will fund the purchase with cash and additional shares. Daikin Ind +3.2% will acquire unlisted AHT Cooling Systems for over ¥100b from an investment…

Asian Markets Most of the region rallied with many markets seeing gains exceeding 1%.  The boost was provided by indications of a strong start to U.S. holiday sales and chatter of slower Fed rate hikes.   Taiwan had the added benefit of elections which saw a more pro-China party make headway.  The mainland Chinese exchanges dipped as investors keep a wary eye on the upcoming G-20 meeting. Australia underperformed. Miners saw heavy selling following sharp declines in the West on Friday.  Also, iron ore fell sharply in Asian trading with Chinese steal manufacturers cutting production and margins said to be facing severe margin erosion.  Energy was also lower.  However most sectors ended the day higher.  Telcos, real estate and utilities saw gains of 1% or more. Japan’s November Nikkei Flash manufacturing PMI remained in expansion territory but dipped from October’s reading. Important Headlines with Plenty after the Close Tencent +2.3% backed travel site, Tongcheng-Elong +26.5% flew out of the gate on its trading debut. Zhongjin Gold +1.9% will purchase a 90% stake in China Gold Inner Mongolia Mining and will fund the purchase with cash and additional shares. Daikin Ind +3.2% will acquire unlisted AHT Cooling Systems for over ¥100b from an investment…

Black Friday Global Markets 11/23/2018

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posted by Matthew Kiselica on 11/23/2018 at 8:34 am
by Matthew Kiselica on 11/23/2018

Asian Markets Most of the region traded lower.  However, volumes were low following the U.S. Thanksgiving holiday and given Japan and India were closed.  The Chinese markets suffered heavy selling pressure on trade concerns.  The Wall Street Journal reported the U.S. is asking allies to refrain from purchasing telecommunications equipment from Huawei Technologies.   Australia traded higher for the second consecutive session with Goldman noting the risk of a recession Down Under are small.  All the major sectors ended the day lower. Basic resources and miners were the hardest hit falling by a touch more than 1.0%. Important Headlines ZTE and suppliers to Huawei traded lower on the story noted above. Chinese rail stocks initially chugged higher before paring gains.  The high speed rail unit of state owned China Railway Corp. will list during H1 of next year, according “sources.”  The report indicates the deal will be in the neighborhood of c. $4.3b After yesterday’s close, Nissan officially dismissed Mr. Ghosn from the board.  The company indicates it wishes to maintain and strengthen the alliance with Renault. Bernstein sees top miners including BHP and Rio Tinto cutting iron ore shipments 6.4% y/y during Q4. European Markets Europe spent the first half…

Asian Markets Most of the region traded lower.  However, volumes were low following the U.S. Thanksgiving holiday and given Japan and India were closed.  The Chinese markets suffered heavy selling pressure on trade concerns.  The Wall Street Journal reported the U.S. is asking allies to refrain from purchasing telecommunications equipment from Huawei Technologies.   Australia traded higher for the second consecutive session with Goldman noting the risk of a recession Down Under are small.  All the major sectors ended the day lower. Basic resources and miners were the hardest hit falling by a touch more than 1.0%. Important Headlines ZTE and suppliers to Huawei traded lower on the story noted above. Chinese rail stocks initially chugged higher before paring gains.  The high speed rail unit of state owned China Railway Corp. will list during H1 of next year, according “sources.”  The report indicates the deal will be in the neighborhood of c. $4.3b After yesterday’s close, Nissan officially dismissed Mr. Ghosn from the board.  The company indicates it wishes to maintain and strengthen the alliance with Renault. Bernstein sees top miners including BHP and Rio Tinto cutting iron ore shipments 6.4% y/y during Q4. European Markets Europe spent the first half…

Pre-Thanksgiving Global Markets 11/21/2018

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posted by Matthew Kiselica on 11/21/2018 at 10:55 am
by Matthew Kiselica on 11/21/2018

Asian Markets A mix across the region as the risk-off sentiment abated, for now.  Greater China outperformed as local press reports indicate the PBoC will refrain from following Federal Reserve rate hikes higher.  Also, the PBoC refrained from OMO’s for the 19th consecutive session.  some took this as a positive the central bank feels their is ample liquidity for funding neds.  Most of the rest of the markets traded to the downside.  Both Malaysia and Indonesia underperformed playing “catch down.” Energy was the worst performing sector following yesterday’s plunge in crude prices off c. 1.5%.  Industrials, materials and IT fell by less than 0.5%.  To the upside, real estate gained more than 0.5%.  Moody’s made some positive comments regarding the Chinese real estate sector. Important Headlines Nissan +0.4% and Mitsubishi Motors -1.0% continue to take steps to remove Carlos Ghosn from management.  Teaser Alert:  However, there appears to be a rift growing with the French arm of the auto alliance.  See the European Markets section. In another blow to “Japan Inc.”, Mitsubishi Elec. -2.6% has reportedly shipped some products without them being inspected.  The company came out publicly to deny the report. Locals had their first chance to react to…

Asian Markets A mix across the region as the risk-off sentiment abated, for now.  Greater China outperformed as local press reports indicate the PBoC will refrain from following Federal Reserve rate hikes higher.  Also, the PBoC refrained from OMO’s for the 19th consecutive session.  some took this as a positive the central bank feels their is ample liquidity for funding neds.  Most of the rest of the markets traded to the downside.  Both Malaysia and Indonesia underperformed playing “catch down.” Energy was the worst performing sector following yesterday’s plunge in crude prices off c. 1.5%.  Industrials, materials and IT fell by less than 0.5%.  To the upside, real estate gained more than 0.5%.  Moody’s made some positive comments regarding the Chinese real estate sector. Important Headlines Nissan +0.4% and Mitsubishi Motors -1.0% continue to take steps to remove Carlos Ghosn from management.  Teaser Alert:  However, there appears to be a rift growing with the French arm of the auto alliance.  See the European Markets section. In another blow to “Japan Inc.”, Mitsubishi Elec. -2.6% has reportedly shipped some products without them being inspected.  The company came out publicly to deny the report. Locals had their first chance to react to…

CAPIS Global Markets 11/20/2018

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posted by Matthew Kiselica on 11/20/2018 at 11:09 am
by Matthew Kiselica on 11/20/2018

Asian Markets Following the U.S. tech route, the Asian markets were lower across the board.  Malaysia and Thailand were closed.   The dominant theme was the impact of yesterday’s Wall Street Journal Apple report.  Our basket of Asian Apple suppliers ended the day c. 1.8% lower.  IT as a whole was off more than 2%.  All the other major sectors were also to the downside, most more than 1%. Other Important Headlines Following yesterday’s arrest of Carlos Ghosn, Nissan Motors -5.5% and Mitsusbishi Motors -6.9% were a focal point in Japan.  While all companies involved are taking action to remove Mr. Ghosn from their respective boards, the market is pondering the future of the strategic, global alliance. Another theme carrying through from yesterday was the BAML report warning about slowing Chinese watch demand. Chow Tai Fook -1.5% and peers sold off. Fletcher Building -10.8% adds to concerns for the housing market Down Under.  It sees a decline to H1 earnings noting a challenging Australian market. Xiaomi +8.4% bucked the day’s trend.  Q3 revenues and NI beat as emerging markets offset slowing smartphone sales. European Markets Europe started to the downside hitting a low of c. 1% a little more than 2 hours…

Asian Markets Following the U.S. tech route, the Asian markets were lower across the board.  Malaysia and Thailand were closed.   The dominant theme was the impact of yesterday’s Wall Street Journal Apple report.  Our basket of Asian Apple suppliers ended the day c. 1.8% lower.  IT as a whole was off more than 2%.  All the other major sectors were also to the downside, most more than 1%. Other Important Headlines Following yesterday’s arrest of Carlos Ghosn, Nissan Motors -5.5% and Mitsusbishi Motors -6.9% were a focal point in Japan.  While all companies involved are taking action to remove Mr. Ghosn from their respective boards, the market is pondering the future of the strategic, global alliance. Another theme carrying through from yesterday was the BAML report warning about slowing Chinese watch demand. Chow Tai Fook -1.5% and peers sold off. Fletcher Building -10.8% adds to concerns for the housing market Down Under.  It sees a decline to H1 earnings noting a challenging Australian market. Xiaomi +8.4% bucked the day’s trend.  Q3 revenues and NI beat as emerging markets offset slowing smartphone sales. European Markets Europe started to the downside hitting a low of c. 1% a little more than 2 hours…

CAPIS Global Markets 11/19/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 11/19/2018 at 10:45 am
by Matthew Kiselica on 11/19/2018

Asian Markets Despite chatter from V.P. Pence criticizing Chinese trade practices, most of the markets managed to advance.  Tech names saw a rebound.  Chinese developers surged due to reports Chinese banks were looking to lower mortgage rates.  Most other sectors across the region also traded well. Other Important Headlines The story generating the most buzz came out after the local close.  Reports indicated Nissan Motors Chairman Ghosn would be arrested for violating various Japanese financial laws.  A brief period later, the company announced he was indeed put in handcuffs.  He allegedly has been using company funds for personal use and been under reporting his income.  They will seek to remove him from the board. Hitachi -1.5% is holding talks to acquire ABB’s % power unit, either in whole or part.  The division has a valuation of c. $13b. Japan Tobacco +0.1% is seeing a 35.1% decline in domestic sales volume due to higher taxes on tobacco products. MS&D +0.9% suffered a c. 39.0% decline to H1 NI.  However, the company see FY earnings ahead of consensus and will pay out a higher dividend than anticipated. Following last week’s results, Citibank is downgrading Japan Display -8.2% to a sell. Chinese holdings…

Asian Markets Despite chatter from V.P. Pence criticizing Chinese trade practices, most of the markets managed to advance.  Tech names saw a rebound.  Chinese developers surged due to reports Chinese banks were looking to lower mortgage rates.  Most other sectors across the region also traded well. Other Important Headlines The story generating the most buzz came out after the local close.  Reports indicated Nissan Motors Chairman Ghosn would be arrested for violating various Japanese financial laws.  A brief period later, the company announced he was indeed put in handcuffs.  He allegedly has been using company funds for personal use and been under reporting his income.  They will seek to remove him from the board. Hitachi -1.5% is holding talks to acquire ABB’s % power unit, either in whole or part.  The division has a valuation of c. $13b. Japan Tobacco +0.1% is seeing a 35.1% decline in domestic sales volume due to higher taxes on tobacco products. MS&D +0.9% suffered a c. 39.0% decline to H1 NI.  However, the company see FY earnings ahead of consensus and will pay out a higher dividend than anticipated. Following last week’s results, Citibank is downgrading Japan Display -8.2% to a sell. Chinese holdings…

CAPIS European Markets 11/15/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 11/15/2018 at 12:50 pm
by Matthew Kiselica on 11/15/2018

Markets Overview Today was all about Brexit.  (You may have heard of it.)  PM Teresa May is now in the political fight of her life.  She spoke to Parliament for well over 3 hours.  Her Brexit minister resigned along with several other cabinet ministers.  To top it off,  Pro-Brexit leader Rees-Mogg is gathering parliament members for a no-confidence vote.  This link is a good recap of it all including the sticking points.  For its part, EU members are considering an upcoming meeting on Nov. 25th to prepare for a No Brexit scenario.  Stay tuned. This kept the markets lower for most of the session.  Interestingly, the U.K. managed to end the day basically flat.  However, that was largely due to energy and miners.  The £ suffered heavy selling pressure.  The concern is not simply related to Brexit.  There are worries this could lead to the Labour (not a typo) party gaining control of Parliament. Other than the two sectors we highlighted above, the rest ended the day lower.  The vast majority by at least 1%.  Losses of 2% or more were scene among travel/leisure, financials, retail and utilities. The energy markets have crude higher by more than 1% as well…

Markets Overview Today was all about Brexit.  (You may have heard of it.)  PM Teresa May is now in the political fight of her life.  She spoke to Parliament for well over 3 hours.  Her Brexit minister resigned along with several other cabinet ministers.  To top it off,  Pro-Brexit leader Rees-Mogg is gathering parliament members for a no-confidence vote.  This link is a good recap of it all including the sticking points.  For its part, EU members are considering an upcoming meeting on Nov. 25th to prepare for a No Brexit scenario.  Stay tuned. This kept the markets lower for most of the session.  Interestingly, the U.K. managed to end the day basically flat.  However, that was largely due to energy and miners.  The £ suffered heavy selling pressure.  The concern is not simply related to Brexit.  There are worries this could lead to the Labour (not a typo) party gaining control of Parliament. Other than the two sectors we highlighted above, the rest ended the day lower.  The vast majority by at least 1%.  Losses of 2% or more were scene among travel/leisure, financials, retail and utilities. The energy markets have crude higher by more than 1% as well…

CAPIS Global Recap – 11/15/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 11/15/2018 at 6:45 am
by Clayton Duff on 11/15/2018

Asian Headlines Gains today were focused in China/Hong Kong as well as Korea while Japan and Australia saw tepid moves on the session.  Helping buoy the local Chinese markets expectations are for a RRR cut of 50bps to be enacted this quarter per local press reports.  Also, as per reported yesterday the government has responded with trade concessions to the US with no guidance at this point to the specifics. To the downside China’s NDRC said they are Not looking into reducing the auto purchase tax. On the Shanghai all sectors rallied with IT names there higher, fueled by gains in Hong Kong-listed Tencent+5.8%.  Post yesterday’s strong earnings report one local broker upped the name to Buy but several US brokers expressed concern the lack of clarity concerning new video game releases in light of the country’s non-approval of new games.  Mogu, a fashion firm backed by Tencent, pared their US IPO offering valuation in light of weakness in the tech space. Energy lagged in Japan along with Financials with oil names though leading in Australia. Down Under, employment readings for October were encouraging with full-time employment on the upswing.  On the central bank front both Indonesia and the Philippines…

Asian Headlines Gains today were focused in China/Hong Kong as well as Korea while Japan and Australia saw tepid moves on the session.  Helping buoy the local Chinese markets expectations are for a RRR cut of 50bps to be enacted this quarter per local press reports.  Also, as per reported yesterday the government has responded with trade concessions to the US with no guidance at this point to the specifics. To the downside China’s NDRC said they are Not looking into reducing the auto purchase tax. On the Shanghai all sectors rallied with IT names there higher, fueled by gains in Hong Kong-listed Tencent+5.8%.  Post yesterday’s strong earnings report one local broker upped the name to Buy but several US brokers expressed concern the lack of clarity concerning new video game releases in light of the country’s non-approval of new games.  Mogu, a fashion firm backed by Tencent, pared their US IPO offering valuation in light of weakness in the tech space. Energy lagged in Japan along with Financials with oil names though leading in Australia. Down Under, employment readings for October were encouraging with full-time employment on the upswing.  On the central bank front both Indonesia and the Philippines…

CAPIS EU Close – 11/14/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 11/14/2018 at 12:45 pm
by Clayton Duff on 11/14/2018

Action was fairly volatile today with the early selloff giving way to a move higher that took European indices to gains and the high of the day at the US open.  From there as the US sold off so did Europe finishing the day with mostly mild losses. As noted earlier Sweden continued to lag with Switzerland and Italy also skewing the average. On a sector basis the Autos ended up 80bps with a reprieve for now on tariffs while Utility and Travel names saw some gains.  Basic Resources ended down 1.65%, joining Chemicals, Industrials, and Health Care with losses of over a percent. Back to Brexit, headlines hit the Cabinet meeting with PM May has been extended and could run until 7:00 locally.  Push back is expected with one news outlet noting 10 ministers may express they do not support the deal as written and demand change.  While higher on the day the Pound has pulled back as the meeting wears on.   ***As this goes to print TTN reports a BBC reporter has quoted a senior Tory saying Brexiteer anger is so high that is seems likely a no confidence vote will be called tomorrow***  On that the Pound…

Action was fairly volatile today with the early selloff giving way to a move higher that took European indices to gains and the high of the day at the US open.  From there as the US sold off so did Europe finishing the day with mostly mild losses. As noted earlier Sweden continued to lag with Switzerland and Italy also skewing the average. On a sector basis the Autos ended up 80bps with a reprieve for now on tariffs while Utility and Travel names saw some gains.  Basic Resources ended down 1.65%, joining Chemicals, Industrials, and Health Care with losses of over a percent. Back to Brexit, headlines hit the Cabinet meeting with PM May has been extended and could run until 7:00 locally.  Push back is expected with one news outlet noting 10 ministers may express they do not support the deal as written and demand change.  While higher on the day the Pound has pulled back as the meeting wears on.   ***As this goes to print TTN reports a BBC reporter has quoted a senior Tory saying Brexiteer anger is so high that is seems likely a no confidence vote will be called tomorrow***  On that the Pound…

CAPIS Global Markets 11/14/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 11/14/2018 at 7:04 am
by Matthew Kiselica on 11/14/2018

MSCI ACWI Markets The MSCI semi-annual rebalance hit the tape.  The ACWI Index markets will see a total of 48 additions and 66 deletions.  Names of note include a reduction to Tencent’s -0.8% weighting while Alibaba’s will be increased.  They become effective on Nov. 30th.  Teaser alert: More on Tecent below. Asian Markets China saw profit taking following the past two day’s of strong gains.  This was due to mixed macro data which we outline below.  Most of the rest of the markets ended the day with minor moves to one side of the flat line or the other.  An exception to that statement is Australia.  Heavy selling among energy and miners weighed heavily upon the ASX200. In fact, energy names tumbled across the entire region following yesterday’s 7% decline in crude.  As a group they gave way by about 2%.  IT, health care and financials were lower by c. 0.5% or more.  Consumer discretionary advanced by about that mark.  They are boosted by autos on word Pres. Trump is holding off on tariffs for the sector.   Another sector to gain was real estate.  Chinese names were leaders as the weak financing data prompts hopes further restrictions will be ruled…

MSCI ACWI Markets The MSCI semi-annual rebalance hit the tape.  The ACWI Index markets will see a total of 48 additions and 66 deletions.  Names of note include a reduction to Tencent’s -0.8% weighting while Alibaba’s will be increased.  They become effective on Nov. 30th.  Teaser alert: More on Tecent below. Asian Markets China saw profit taking following the past two day’s of strong gains.  This was due to mixed macro data which we outline below.  Most of the rest of the markets ended the day with minor moves to one side of the flat line or the other.  An exception to that statement is Australia.  Heavy selling among energy and miners weighed heavily upon the ASX200. In fact, energy names tumbled across the entire region following yesterday’s 7% decline in crude.  As a group they gave way by about 2%.  IT, health care and financials were lower by c. 0.5% or more.  Consumer discretionary advanced by about that mark.  They are boosted by autos on word Pres. Trump is holding off on tariffs for the sector.   Another sector to gain was real estate.  Chinese names were leaders as the weak financing data prompts hopes further restrictions will be ruled…

CAPIS EU Close Recap – 11/13/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 11/13/2018 at 12:46 pm
by Clayton Duff on 11/13/2018

A couple of late session headlines boosted indices in Europe to close better on the day.  First, WH Econ Adviser Kudlow made comments on CNBC that discussions with China are back on, inline with yesterday’s headlines. Second, the UK Times said a high level cabinet meeting will occur tomorrow ahead of a larger meeting in what could be a signing off of the Brexit deal.  Post the close headlines note a deal is quite possibly imminent but comments from conservatives and Boris Johnson show not all are onboard. The Pound was a steady gainer today, blipping higher on the headlines and regaining the 1.30 level.  On the session the FTSE 100 closed flat, helped by the strong performance in Vodafone +7.8%.  The sentiment extended to the Euro as well as the currency held the 1.12 level.   The rebound in tech names and automakers pushed the DAX to lead on the session.  Across the region Travel names were also in the mix of winners with all but a few sectors higher. On continued weakness in oil prices Energy finished down 1.8% on the day. Tobacco names continued south today in face of the FDA’s focus on menthol flavoring in cigarettes. BATS…

A couple of late session headlines boosted indices in Europe to close better on the day.  First, WH Econ Adviser Kudlow made comments on CNBC that discussions with China are back on, inline with yesterday’s headlines. Second, the UK Times said a high level cabinet meeting will occur tomorrow ahead of a larger meeting in what could be a signing off of the Brexit deal.  Post the close headlines note a deal is quite possibly imminent but comments from conservatives and Boris Johnson show not all are onboard. The Pound was a steady gainer today, blipping higher on the headlines and regaining the 1.30 level.  On the session the FTSE 100 closed flat, helped by the strong performance in Vodafone +7.8%.  The sentiment extended to the Euro as well as the currency held the 1.12 level.   The rebound in tech names and automakers pushed the DAX to lead on the session.  Across the region Travel names were also in the mix of winners with all but a few sectors higher. On continued weakness in oil prices Energy finished down 1.8% on the day. Tobacco names continued south today in face of the FDA’s focus on menthol flavoring in cigarettes. BATS…

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