International Summary

1756 total posts

CAPIS Global Markets 8/14/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/14/2019 at 7:03 am
by Matthew Kiselica on 08/14/2019

Markets Overview The bounce following yesterday positive tariff news is proving to be short lived.  The major story of the day is yields.  The Asian markets lost steam on a number of Chinese macroeconomic data points that were all below consensus.  These raised slowdown concerns.  Data out of Germany and Europe have underscored those worries.  (All data provided in Markets and Macro section.)   The U.K. yield curve is inverted for the first time since 2007 with the U.S. 10 yr. yield is below the 2 yr. yield also for the first time since then. The EU debts markets are seeing yields lower by c. 3 basis points.  However, U.S yields are seeing some dramatic moves.  The 2 yr. is lower by c. 7.5 basis points, , 10 yr. c. 11 bps & 30 yr. c. 13 bps. While Asian equities were higher across the board, Europe is now firmly in the red due to the items highlighted above.  All the major sectors are lower.  Autos, banks, basic resources, technology,  chemicals, energy off at least 2%.  Many others are giving ground more than 1%.  Defensives are outperforming. The commodity markets are also showing the risk-off sentiment.  Earlier gold was down small…

Markets Overview The bounce following yesterday positive tariff news is proving to be short lived.  The major story of the day is yields.  The Asian markets lost steam on a number of Chinese macroeconomic data points that were all below consensus.  These raised slowdown concerns.  Data out of Germany and Europe have underscored those worries.  (All data provided in Markets and Macro section.)   The U.K. yield curve is inverted for the first time since 2007 with the U.S. 10 yr. yield is below the 2 yr. yield also for the first time since then. The EU debts markets are seeing yields lower by c. 3 basis points.  However, U.S yields are seeing some dramatic moves.  The 2 yr. is lower by c. 7.5 basis points, , 10 yr. c. 11 bps & 30 yr. c. 13 bps. While Asian equities were higher across the board, Europe is now firmly in the red due to the items highlighted above.  All the major sectors are lower.  Autos, banks, basic resources, technology,  chemicals, energy off at least 2%.  Many others are giving ground more than 1%.  Defensives are outperforming. The commodity markets are also showing the risk-off sentiment.  Earlier gold was down small…

CAPIS EU Close – 8/13/2019

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International Summary

posted by Clayton Duff on 08/13/2019 at 12:53 pm
by Clayton Duff on 08/13/2019

Oh the power of the Tweet as global indices picked up post President Trump’s tariff delay/exclusion release.  While taking a dig that Ag products were not being purchased as implied Trump is not ramping up tariff rates post what appeared a solid call between US Trade Rep Lighthizer, Treasury Secretary Mnuchin, and Chinese Vice Premier Liu He.  Post the European close Trump said as much adding China wants to make a deal and the President wants to not weigh on Christmas shopping.  Those headlines saw indices tick higher and for the most part those gains were held into the close…(Hopefully the US retains the move up as well). Weighing on sentiment though police in Hong Kong have stormed the HK International Airport with clashes coming across the screens.   This after German ZEW readings disappointed.  However, by day’s end all but Retail, Travel, Food, and Personal Goods closed higher.  Basic Resources led by 2% with Energy up 1.7% as Brent rallied up nearly 5%. Ceconomy fell over 8% post its 3Q ebit loss.  The firm though retained their FY18/19 forecast even as sales for the quarter also disappointed. German sensor-maker Paragon collapsed 40% after its subsidiary Voltabox, which it owns 60%,…

Oh the power of the Tweet as global indices picked up post President Trump’s tariff delay/exclusion release.  While taking a dig that Ag products were not being purchased as implied Trump is not ramping up tariff rates post what appeared a solid call between US Trade Rep Lighthizer, Treasury Secretary Mnuchin, and Chinese Vice Premier Liu He.  Post the European close Trump said as much adding China wants to make a deal and the President wants to not weigh on Christmas shopping.  Those headlines saw indices tick higher and for the most part those gains were held into the close…(Hopefully the US retains the move up as well). Weighing on sentiment though police in Hong Kong have stormed the HK International Airport with clashes coming across the screens.   This after German ZEW readings disappointed.  However, by day’s end all but Retail, Travel, Food, and Personal Goods closed higher.  Basic Resources led by 2% with Energy up 1.7% as Brent rallied up nearly 5%. Ceconomy fell over 8% post its 3Q ebit loss.  The firm though retained their FY18/19 forecast even as sales for the quarter also disappointed. German sensor-maker Paragon collapsed 40% after its subsidiary Voltabox, which it owns 60%,…

CAPIS Global Markets 8/13/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/13/2019 at 6:55 am
by Matthew Kiselica on 08/13/2019

Markets Over View Following the reaction to yesterday’s news out of Hong Kong and corresponding sell-off, it is no surprise the Asian markets.  Hong Kong saw the heaviest selling pressure.  Japan returned from its three day weekend to trade lower with a stronger ¥ vs. Friday’s close weighing.  The TOPIX losses erase the gains that had been made YTD.  Singapore managed to trade to the upside following its own three day holiday. Most of the Asian sectors end the day to the downside.  In fact, energy was the only one to manage an uptick.  Losses of 1% or greater occurred among telcos, consumer discretionary, real estate and financials to name a few. The European markets are continuing to see selling pressure.  Equities set new lows following ZEW readings for both Germany and the EU that are well below expectations.   Also, once again outbound flights from Hong Kong International airport have been canceled. The debt markets are seeing yields continuing to move lower.  However, Italian yields are not taking part.  A story that has been lost among some of the other global headlines is the political unrest in Italy.  Post the local close, the Italian parliament will meet to determine when…

Markets Over View Following the reaction to yesterday’s news out of Hong Kong and corresponding sell-off, it is no surprise the Asian markets.  Hong Kong saw the heaviest selling pressure.  Japan returned from its three day weekend to trade lower with a stronger ¥ vs. Friday’s close weighing.  The TOPIX losses erase the gains that had been made YTD.  Singapore managed to trade to the upside following its own three day holiday. Most of the Asian sectors end the day to the downside.  In fact, energy was the only one to manage an uptick.  Losses of 1% or greater occurred among telcos, consumer discretionary, real estate and financials to name a few. The European markets are continuing to see selling pressure.  Equities set new lows following ZEW readings for both Germany and the EU that are well below expectations.   Also, once again outbound flights from Hong Kong International airport have been canceled. The debt markets are seeing yields continuing to move lower.  However, Italian yields are not taking part.  A story that has been lost among some of the other global headlines is the political unrest in Italy.  Post the local close, the Italian parliament will meet to determine when…

CAPIS Global Markets 8/12/2019

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International Summary

posted by Matthew Kiselica on 08/12/2019 at 7:41 am
by Matthew Kiselica on 08/12/2019

Top Down Markets Most of the core Asian markets had a decent day managing to advance.   The mainland Chinese exchanges led the way with Pres. Trump making some promising if somewhat vague trade comments.  Hong Kong lagged throughout the day due to protests at Hong Kong International airport.  It moved 25 bps lower during the closing auction as headlines hit the tape.  Authorities announced all flights from the airport were cancelled.  Additionally, the protests were referred to as terrorism.  This unsettled the rest of the markets that remained open, as you will see.  Japan was closed of Mountain Day. Europe has a solid start with the Euro Stoxx 600 advancing by c. 1% and all sectors were green.   However, the markets started paring the advance on the Hong Kong headlines and are now in the red across the board.  Also, hurting sentiment is Chinese new CNY data for July.  They are CNY 1,060b vs. CNY $1,275b expected. With most of the core markets closed by the time the Hong Kong headlines hit, most Asian sectors end the day higher.  IT and consumer staples improved by c. 1%.  Utilities, real estate and basic resources lagged.   European sectors have seen a dramatic…

Top Down Markets Most of the core Asian markets had a decent day managing to advance.   The mainland Chinese exchanges led the way with Pres. Trump making some promising if somewhat vague trade comments.  Hong Kong lagged throughout the day due to protests at Hong Kong International airport.  It moved 25 bps lower during the closing auction as headlines hit the tape.  Authorities announced all flights from the airport were cancelled.  Additionally, the protests were referred to as terrorism.  This unsettled the rest of the markets that remained open, as you will see.  Japan was closed of Mountain Day. Europe has a solid start with the Euro Stoxx 600 advancing by c. 1% and all sectors were green.   However, the markets started paring the advance on the Hong Kong headlines and are now in the red across the board.  Also, hurting sentiment is Chinese new CNY data for July.  They are CNY 1,060b vs. CNY $1,275b expected. With most of the core markets closed by the time the Hong Kong headlines hit, most Asian sectors end the day higher.  IT and consumer staples improved by c. 1%.  Utilities, real estate and basic resources lagged.   European sectors have seen a dramatic…

CAPIS Global Recap – 8/7/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 08/07/2019 at 6:43 am
by Clayton Duff on 08/07/2019

Asian Headlines Asian indices saw subdued moves overnight, a welcome session in light of recent weakness and volatility.  The Yuan is weaker today as the PBoC setting the reference rate to 6.9996 vs the prior 6.9683 level. A financial story out noted banks there were buyers of USD.  Central bank moves are in focus elsewhere with New Zealand’s RBNZ lowering their cash rate by 50bps, to 1.0%, as a 25bps cut was expected.  Governor Orr said the move was a strategic one adding negative rates could be utilized if needed. On that, the Kiwi Dollar fell to levels not seen since last October but have recovered somewhat today. In the sector space, Utilities led on the Nikkei along with Health Care while Materials and IT slipped. Utilities led in Hong Kong as well with Industrials lagging. Conversely, Materials led in China with IT and Communication weaker.  Down Under, Real Estate and Consumer goods rallied, this after mixed home loan readings. In individual names Softbank – .2% closed near flat post reporting 1Q op income sharply ahead of estimates.  Much of the gain was from a ¥856.8B gain from its 2016 Aliaba share sale.  Son said he sees 5-6 IPOs from…

Asian Headlines Asian indices saw subdued moves overnight, a welcome session in light of recent weakness and volatility.  The Yuan is weaker today as the PBoC setting the reference rate to 6.9996 vs the prior 6.9683 level. A financial story out noted banks there were buyers of USD.  Central bank moves are in focus elsewhere with New Zealand’s RBNZ lowering their cash rate by 50bps, to 1.0%, as a 25bps cut was expected.  Governor Orr said the move was a strategic one adding negative rates could be utilized if needed. On that, the Kiwi Dollar fell to levels not seen since last October but have recovered somewhat today. In the sector space, Utilities led on the Nikkei along with Health Care while Materials and IT slipped. Utilities led in Hong Kong as well with Industrials lagging. Conversely, Materials led in China with IT and Communication weaker.  Down Under, Real Estate and Consumer goods rallied, this after mixed home loan readings. In individual names Softbank – .2% closed near flat post reporting 1Q op income sharply ahead of estimates.  Much of the gain was from a ¥856.8B gain from its 2016 Aliaba share sale.  Son said he sees 5-6 IPOs from…

CAPIS Global Markets 8/6/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/06/2019 at 7:24 am
by Matthew Kiselica on 08/06/2019

Markets Showing Some Signs of Stabilizing Rhetoric between the U.S. and China remains antagonistic.  The U.S. officially declares China a currency manipulator.  China asserts U.S. policies are protectionist, yada, yada, yada.   Initially, the markets traded lower across the board.   However, the PBoC helped alleviate some concerns by setting the Yuan reference price stronger than CNY 7/$.   Also, the nation announced a CNY denominated bond sale in Hong Kong. The Nikkei traded lower by about 3% shortly after the open.   It then made some steady progress erasing well over 2% of its losses.   This was prompted by a weakening ¥ which regained the 106 level and briefly breached 107.  This is one of the signs of weakening risk-off sentiment.  Shanghai ends the day paring about half of the day’s loss.  India trades well as do some of the peripheral markets that overlap with Europe. Australia slid more than 2% with the poor sentiment for the resource sector weighing.  The RBA is leaving its benchmark rate unchanged at 1%, as expected.  While Gov. Lowe indicates the central bank is prepared to lower rates, the tone was less dovish than some traders anticipated.  The “Aussie” generally strengthened over the course of the session. …

Markets Showing Some Signs of Stabilizing Rhetoric between the U.S. and China remains antagonistic.  The U.S. officially declares China a currency manipulator.  China asserts U.S. policies are protectionist, yada, yada, yada.   Initially, the markets traded lower across the board.   However, the PBoC helped alleviate some concerns by setting the Yuan reference price stronger than CNY 7/$.   Also, the nation announced a CNY denominated bond sale in Hong Kong. The Nikkei traded lower by about 3% shortly after the open.   It then made some steady progress erasing well over 2% of its losses.   This was prompted by a weakening ¥ which regained the 106 level and briefly breached 107.  This is one of the signs of weakening risk-off sentiment.  Shanghai ends the day paring about half of the day’s loss.  India trades well as do some of the peripheral markets that overlap with Europe. Australia slid more than 2% with the poor sentiment for the resource sector weighing.  The RBA is leaving its benchmark rate unchanged at 1%, as expected.  While Gov. Lowe indicates the central bank is prepared to lower rates, the tone was less dovish than some traders anticipated.  The “Aussie” generally strengthened over the course of the session. …

Risk-Off Markets 8/5/2019

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International Summary

posted by Matthew Kiselica on 08/05/2019 at 6:57 am
by Matthew Kiselica on 08/05/2019

Risk Off Markets Following latest week’s word Pres. Trump would impose further sanctions upon Chinese products, China provided further reason for investors to be more defensive.  The PBoC set the Yuan reference price weaker than CNY6.90 to the Greenback.   The currency tumbled breaching CNT7/$ for the first time since 2008.  However, that wasn’t the only news that rattled investors.  Reports allege China is telling state owned companies to halt purchases of U.S. agricultural products. Equity markets are tumbling with all the major indices lower in Asia and Europe.  A bounce off the European lows could not maintain momentum.  In both regions, all the major sectors are red.   Asia saw most off in excess of 1%. Losses in telcos, real estate and healthcare exceeded 2%.  Europe is seeing basic resources lower more than 3%.  There are eclines of at least 2% among tech, construction, personal goods, autos, industrials, retail and financials. The debt markets are seeing sovereign bond yields tumble.  Most EU core yields are lower 2 to 4 basis points.  The U.S. 1o yr. yield is lower by 8 basis points.  In the commodity and currency markets, most risk assets fall while safe havens rally.  Bitcoin is better by more…

Risk Off Markets Following latest week’s word Pres. Trump would impose further sanctions upon Chinese products, China provided further reason for investors to be more defensive.  The PBoC set the Yuan reference price weaker than CNY6.90 to the Greenback.   The currency tumbled breaching CNT7/$ for the first time since 2008.  However, that wasn’t the only news that rattled investors.  Reports allege China is telling state owned companies to halt purchases of U.S. agricultural products. Equity markets are tumbling with all the major indices lower in Asia and Europe.  A bounce off the European lows could not maintain momentum.  In both regions, all the major sectors are red.   Asia saw most off in excess of 1%. Losses in telcos, real estate and healthcare exceeded 2%.  Europe is seeing basic resources lower more than 3%.  There are eclines of at least 2% among tech, construction, personal goods, autos, industrials, retail and financials. The debt markets are seeing sovereign bond yields tumble.  Most EU core yields are lower 2 to 4 basis points.  The U.S. 1o yr. yield is lower by 8 basis points.  In the commodity and currency markets, most risk assets fall while safe havens rally.  Bitcoin is better by more…

CAPIS Global Markets 8/1/2019

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International Summary

posted by Matthew Kiselica on 08/01/2019 at 6:45 am
by Matthew Kiselica on 08/01/2019

Asian Markets Following yesterday’s hawkish comments from Fed Chair Powell (You may have heard something about it.), most of the markets gave ground.  However, Japan was buoyed by key earnings.  Most sectors end the day in the red.  Materials and real estate are lower by more than 1%.  Telcos end up small with consumer discretionary steady. Important Headlines MUFG +2.8%: Revenues better by 9.9% and NI +24.1%.  While lending profit declined -7.5% y/y, Trading profits soared +79.0%. Nomura Holdings +9.0%:  A very strong Q1 report with Revenues up 18.7% while NI soars an astounding 969.0%.  Trading revenues rose 57.0% and investment banking activity +14.0% offsetting broker fee/commission decline of 14.0%. Daiwa Secs. +2.5%: Q1 revenues improve +3.5% but OP -44.0% and NI -13.3%.  It will buyback up to 3.19% of capital. Takeda Pharmaceutical +7.8%: Q1 Oper. Income reached ¥9.87b.  It indicates the Shire integration is going well.  The company cut its forecast of a FY loss outlook to ¥166b from prior outlook of ¥193b.  Bloomberg shows that is still below consensus but it is a wide range. Japan Tobacco -0.5%: Revenues dip 1.6% with OP +3.0% and NI +4.8%.  The company is cutting its FY OP outlook to ¥518b from…

Asian Markets Following yesterday’s hawkish comments from Fed Chair Powell (You may have heard something about it.), most of the markets gave ground.  However, Japan was buoyed by key earnings.  Most sectors end the day in the red.  Materials and real estate are lower by more than 1%.  Telcos end up small with consumer discretionary steady. Important Headlines MUFG +2.8%: Revenues better by 9.9% and NI +24.1%.  While lending profit declined -7.5% y/y, Trading profits soared +79.0%. Nomura Holdings +9.0%:  A very strong Q1 report with Revenues up 18.7% while NI soars an astounding 969.0%.  Trading revenues rose 57.0% and investment banking activity +14.0% offsetting broker fee/commission decline of 14.0%. Daiwa Secs. +2.5%: Q1 revenues improve +3.5% but OP -44.0% and NI -13.3%.  It will buyback up to 3.19% of capital. Takeda Pharmaceutical +7.8%: Q1 Oper. Income reached ¥9.87b.  It indicates the Shire integration is going well.  The company cut its forecast of a FY loss outlook to ¥166b from prior outlook of ¥193b.  Bloomberg shows that is still below consensus but it is a wide range. Japan Tobacco -0.5%: Revenues dip 1.6% with OP +3.0% and NI +4.8%.  The company is cutting its FY OP outlook to ¥518b from…

CAPIS Global Markets 7/31/2019

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International Summary

posted by Matthew Kiselica on 07/31/2019 at 6:54 am
by Matthew Kiselica on 07/31/2019

Asian Markets Core markets down across the board as the Sino-U.S. trade talks end early with no apparent progress made.  China’s official July Manufacturing number was below the key 50 expansion level for the third consecutive month.  Hong Kong only had a half day of trading.  Authorities canceled the afternoon session with a tropical storm in the region. The majority of sectors end the day to the downside.  Real estate is the worst performer lower by more than 1%.  Consumer discretionary and telcos end off shy of that mark.  Utilities and healthcare hold steady. Earnings from the Region Samsung Elec. -2.6%: Q2 revenues are off 4% to KRW 56.1t with NI lower 54.0% to KRW 5.06t.  The company did note increased memory chip demand.  The US China trade talks and potential Japanese trade action cloud its outlook. Sony +5.3%: While revenues are 1.4% lower and NI -32.8%, OP improves by 18.4% crushing consensus. SMFG -1.0%: Q1 NI is lower by 5% y/y.  The company saw increased NPL costs in conjunction with lower lending. A slew of Japanese companies released after the local close including MUFG, Japan Tobacco, Diawa Sec., Nomura and Takeda Pharmaceutical. European Markets For the most part, the…

Asian Markets Core markets down across the board as the Sino-U.S. trade talks end early with no apparent progress made.  China’s official July Manufacturing number was below the key 50 expansion level for the third consecutive month.  Hong Kong only had a half day of trading.  Authorities canceled the afternoon session with a tropical storm in the region. The majority of sectors end the day to the downside.  Real estate is the worst performer lower by more than 1%.  Consumer discretionary and telcos end off shy of that mark.  Utilities and healthcare hold steady. Earnings from the Region Samsung Elec. -2.6%: Q2 revenues are off 4% to KRW 56.1t with NI lower 54.0% to KRW 5.06t.  The company did note increased memory chip demand.  The US China trade talks and potential Japanese trade action cloud its outlook. Sony +5.3%: While revenues are 1.4% lower and NI -32.8%, OP improves by 18.4% crushing consensus. SMFG -1.0%: Q1 NI is lower by 5% y/y.  The company saw increased NPL costs in conjunction with lower lending. A slew of Japanese companies released after the local close including MUFG, Japan Tobacco, Diawa Sec., Nomura and Takeda Pharmaceutical. European Markets For the most part, the…

CAPIS Global Recap – 7/30/2019

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International Summary

posted by Clayton Duff on 07/30/2019 at 6:43 am
by Clayton Duff on 07/30/2019

Asian Headlines Asian markets ended generally higher on small gains today with South Korea recovering a bit of yesterday’s pullback.   In addition to the US/China meeting and earnings, focus was on the BoJ today with little in the way of headlines out of that meeting.  Gains were fairly broad with Utilities and Health Care leading in Japan while Softbank gave back yesterday’s gains.  Communication names though led in China while IT edged lower.  IT names also fell Down Under with Utilities again to the upside. The BoJ left interest rates as-is with the rate on excess reserves remaining at -.10%. They kept forward guidance pledging to keep extremely low rates until at least through next Spring.  They added they will not hesitate to ease further if need be.  Several GDP targets for the next few years were pared slightly with CPI unsurprisingly lowered a bit as well.  To the upside, corporate profits were noted as remaining at high levels with banks said to have a sufficient capital base.  The ¥ traded to the upside today.   On the economic front Industrial Production turned south in June, off 3.6% MoM, the largest decline since January of last year. In South Korea a…

Asian Headlines Asian markets ended generally higher on small gains today with South Korea recovering a bit of yesterday’s pullback.   In addition to the US/China meeting and earnings, focus was on the BoJ today with little in the way of headlines out of that meeting.  Gains were fairly broad with Utilities and Health Care leading in Japan while Softbank gave back yesterday’s gains.  Communication names though led in China while IT edged lower.  IT names also fell Down Under with Utilities again to the upside. The BoJ left interest rates as-is with the rate on excess reserves remaining at -.10%. They kept forward guidance pledging to keep extremely low rates until at least through next Spring.  They added they will not hesitate to ease further if need be.  Several GDP targets for the next few years were pared slightly with CPI unsurprisingly lowered a bit as well.  To the upside, corporate profits were noted as remaining at high levels with banks said to have a sufficient capital base.  The ¥ traded to the upside today.   On the economic front Industrial Production turned south in June, off 3.6% MoM, the largest decline since January of last year. In South Korea a…

CAPIS Global Recap – 7/29/2019

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International Summary

posted by Clayton Duff on 07/29/2019 at 6:52 am
by Clayton Duff on 07/29/2019

Asian Headlines Asian markets kicked off the week mostly lower with South Korea underperforming the region.  Names in the semiconductor space suffered with the tiff between them and Japan continuing.  The Nikkei though held in well, off small on the day, with Softbank +3.9% up strong.  The firm is investing big in Indonesia with further action expected.  The tech space in Japan was generally weaker today while Real Estate names led lower both in Hong Kong and on the mainland.  Speaking of Hong Kong, clashes with protesters and the government continued with China noting they support CE Lam and the suspension of the extradition bill.  However, post the white paper essentially offering the use of the mainland’s military China urged HK to quell the protests and punish those involved in violence.    To the upside, Australia ticked a bit higher on strength in IT and Communication names.  On the economic front official PMI readings are due in China tomorrow, this after Industrial Profits disappointed Friday.  Trade talks are reported to continue between the US and China Tuesday and Wednesday.  The BoJ meets Tuesday and Wednesday as well. Automation-component maker Keyence fell 4.4% on disappointing earnings from Friday.  Amid trade tensions manufacturers…

Asian Headlines Asian markets kicked off the week mostly lower with South Korea underperforming the region.  Names in the semiconductor space suffered with the tiff between them and Japan continuing.  The Nikkei though held in well, off small on the day, with Softbank +3.9% up strong.  The firm is investing big in Indonesia with further action expected.  The tech space in Japan was generally weaker today while Real Estate names led lower both in Hong Kong and on the mainland.  Speaking of Hong Kong, clashes with protesters and the government continued with China noting they support CE Lam and the suspension of the extradition bill.  However, post the white paper essentially offering the use of the mainland’s military China urged HK to quell the protests and punish those involved in violence.    To the upside, Australia ticked a bit higher on strength in IT and Communication names.  On the economic front official PMI readings are due in China tomorrow, this after Industrial Profits disappointed Friday.  Trade talks are reported to continue between the US and China Tuesday and Wednesday.  The BoJ meets Tuesday and Wednesday as well. Automation-component maker Keyence fell 4.4% on disappointing earnings from Friday.  Amid trade tensions manufacturers…

TGIF Global Markets 7/26/2019

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International Summary

posted by Matthew Kiselica on 07/26/2019 at 7:00 am
by Matthew Kiselica on 07/26/2019

Asian Markets Following yesterday’s ECB and US macro headlines, most of the region trades lower.   The mainland Chinese markets managed to reverse earlier losses.  The KOSPI settled lower for the third consecutive session.  N. Korea commented on yesterday’s missile test as a warning to “war mongering”  by their southern cousins. Most sectors end the day lower.  Telcos, consumer staples, consumer discretionary and IT were off by c. 0.5%.  Healthcare is the only sector that managed to gain, ending the day 0.4% better. Corporate Headlines Nissan Motors -3.2% trades lower again.  The results released after yesterday’s close were a bit worse than the Nikkei report from the previous day.  The company will make global job cuts of 12,500 while trimming overall production. Q1 at Fujitsu +9.8% is better than expected showing an unexpected profit.  The company says revenues improved significantly. MGM China’s +0.9% Q2 gross gambling revenues are a positive surprise with the new Cotai property performing well. Softbank +1.0% is launching its 2nd Vision Fund.  It has raised $108b with Apple among the investors. European Markets After a sluggish start, the region is now higher by c. 0.4%.  However, the Spanish and Italian markets are trading lower with political uncertainty…

Asian Markets Following yesterday’s ECB and US macro headlines, most of the region trades lower.   The mainland Chinese markets managed to reverse earlier losses.  The KOSPI settled lower for the third consecutive session.  N. Korea commented on yesterday’s missile test as a warning to “war mongering”  by their southern cousins. Most sectors end the day lower.  Telcos, consumer staples, consumer discretionary and IT were off by c. 0.5%.  Healthcare is the only sector that managed to gain, ending the day 0.4% better. Corporate Headlines Nissan Motors -3.2% trades lower again.  The results released after yesterday’s close were a bit worse than the Nikkei report from the previous day.  The company will make global job cuts of 12,500 while trimming overall production. Q1 at Fujitsu +9.8% is better than expected showing an unexpected profit.  The company says revenues improved significantly. MGM China’s +0.9% Q2 gross gambling revenues are a positive surprise with the new Cotai property performing well. Softbank +1.0% is launching its 2nd Vision Fund.  It has raised $108b with Apple among the investors. European Markets After a sluggish start, the region is now higher by c. 0.4%.  However, the Spanish and Italian markets are trading lower with political uncertainty…

CAPIS Global Markets 7/25/2019

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International Summary

posted by Matthew Kiselica on 07/25/2019 at 7:05 am
by Matthew Kiselica on 07/25/2019

Asian Markets The majority of Asia moved to the upside following the U.S. gains.   S. Korea did not take part in the gains for the 2nd consecutive day.  Investors are still worried about potential trades issue with Japan along with some disappointing local earnings.  Sentiment was not helped by N. Korea’s launch of two missiles.  However, the rest of the region managed to shrug it off. In terms of sectors and following yesterday’s surge in the SOX, IT led with a gain of 1%.  Telcos, consumer staples, financials and healthcare were also to the upside, better by c. 0.5%.  The only two major sectors that gave ground are energy and materials. The “Aussie” fell after RBA Gov. Lowe indicated the RBA is ready to provide stimulus dye to the local and global macro picture. Important Corporate Headlines SK Hynix -2.0% is one of the names that held the KOSPI back.  The company’s Q2 operating profit of KRW 637.63b is more than KRW 100b below consensus. Nissan -2.0% following confirmation of yesterday’s Nikkei report the company’s OP would be lower by c. 90.0%.  After the close, Nissan posted an OP decline of 99%.  It is doubling planned job cuts to 12,500…

Asian Markets The majority of Asia moved to the upside following the U.S. gains.   S. Korea did not take part in the gains for the 2nd consecutive day.  Investors are still worried about potential trades issue with Japan along with some disappointing local earnings.  Sentiment was not helped by N. Korea’s launch of two missiles.  However, the rest of the region managed to shrug it off. In terms of sectors and following yesterday’s surge in the SOX, IT led with a gain of 1%.  Telcos, consumer staples, financials and healthcare were also to the upside, better by c. 0.5%.  The only two major sectors that gave ground are energy and materials. The “Aussie” fell after RBA Gov. Lowe indicated the RBA is ready to provide stimulus dye to the local and global macro picture. Important Corporate Headlines SK Hynix -2.0% is one of the names that held the KOSPI back.  The company’s Q2 operating profit of KRW 637.63b is more than KRW 100b below consensus. Nissan -2.0% following confirmation of yesterday’s Nikkei report the company’s OP would be lower by c. 90.0%.  After the close, Nissan posted an OP decline of 99%.  It is doubling planned job cuts to 12,500…

CAPIS Global Markets 7/23/2019

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International Summary

posted by Matthew Kiselica on 07/23/2019 at 7:03 am
by Matthew Kiselica on 07/23/2019

Asian Markets Most of the region managed to gain to one extent or the other.  The markets were better bid on yesterday’s story the U.S. trade delegation would head to China.  The second major news was news breaking overnight Pres. Trump and congressional leaders reached a debt ceiling agreement.  That boosted the “Greenback” and a weakening ¥ caused Japan to lead.  One market that did not take part in gains was the Chinese STAR exchange.  In its 2nd day of trading 21 of the 25 names ended the day lower.  However, it should be noted they averaged gains of 140.0% yesterday. Most sectors end the day to the upside. IT led followed by industrials, utilities, consumer discretion and telcos.  All gained 0.5% or more.  Real estate is the only decliner of note, off 0.5%. Important Headlines Some of the IT gains were driven by yesterday’s meeting between Pres. Trump and U.S. technology company leaders.  Statements were interpreted to mean the President may be taking a less severe tact regarding Huawei. CNBC is reporting the DoJ may approve the Sprint/T-Mobile merger tomorrow.  This lifted Softbank +4.0%. With an hour to go in Hong Kong trading, BAIC +2.8% disclosed its had taken…

Asian Markets Most of the region managed to gain to one extent or the other.  The markets were better bid on yesterday’s story the U.S. trade delegation would head to China.  The second major news was news breaking overnight Pres. Trump and congressional leaders reached a debt ceiling agreement.  That boosted the “Greenback” and a weakening ¥ caused Japan to lead.  One market that did not take part in gains was the Chinese STAR exchange.  In its 2nd day of trading 21 of the 25 names ended the day lower.  However, it should be noted they averaged gains of 140.0% yesterday. Most sectors end the day to the upside. IT led followed by industrials, utilities, consumer discretion and telcos.  All gained 0.5% or more.  Real estate is the only decliner of note, off 0.5%. Important Headlines Some of the IT gains were driven by yesterday’s meeting between Pres. Trump and U.S. technology company leaders.  Statements were interpreted to mean the President may be taking a less severe tact regarding Huawei. CNBC is reporting the DoJ may approve the Sprint/T-Mobile merger tomorrow.  This lifted Softbank +4.0%. With an hour to go in Hong Kong trading, BAIC +2.8% disclosed its had taken…

CAPIS Global Recap – 7/18/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/18/2019 at 6:49 am
by Clayton Duff on 07/18/2019

Asian Headlines It was tough sledding today in Asia with broad and in some cases, fairly sizable, losses.  The Nikkei led lower with Energy-related names especially hard-hit explorers and refiners down 4-5%.  Industrials, Materials, and IT names also experienced heavy selling.   In addition to concern over US/China trade talks (Huawei, again) rising tension with SK weighed. Those concerns saw both the Shanghai and Shenzhen down over a percent as well.   Losses in HK, SK, and Australia were better contained. Speaking of South Korea, the BoK cut their repo rate 25bps to 1.5% which surprised the markets. Gov Lee said there was little room for more policy action with the Won trading higher today though.  In other economic news Japan’s trade surplus rose to ¥589.5B in June despite exports falling 6.7%.   A pullback of 5.4% was expected with imports down 5.2% YoY vs the .2% loss expected.  Exports to China fell 10.1%.  Indonesia too pared rates, pulling their 7 day repo rate to 5.75% from 6.00%. Notable losers in Japan include Sony -3.6% and Canon -4% which fell the Nikkei said operating profit will slip 40% this year.  Next week the firm is expected to release their official views.  Auto-glass provider…

Asian Headlines It was tough sledding today in Asia with broad and in some cases, fairly sizable, losses.  The Nikkei led lower with Energy-related names especially hard-hit explorers and refiners down 4-5%.  Industrials, Materials, and IT names also experienced heavy selling.   In addition to concern over US/China trade talks (Huawei, again) rising tension with SK weighed. Those concerns saw both the Shanghai and Shenzhen down over a percent as well.   Losses in HK, SK, and Australia were better contained. Speaking of South Korea, the BoK cut their repo rate 25bps to 1.5% which surprised the markets. Gov Lee said there was little room for more policy action with the Won trading higher today though.  In other economic news Japan’s trade surplus rose to ¥589.5B in June despite exports falling 6.7%.   A pullback of 5.4% was expected with imports down 5.2% YoY vs the .2% loss expected.  Exports to China fell 10.1%.  Indonesia too pared rates, pulling their 7 day repo rate to 5.75% from 6.00%. Notable losers in Japan include Sony -3.6% and Canon -4% which fell the Nikkei said operating profit will slip 40% this year.  Next week the firm is expected to release their official views.  Auto-glass provider…

CAPIS Global Recap – 7/15/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/15/2019 at 6:45 am
by Clayton Duff on 07/15/2019

Asian Headlines Post better GDP, Industrial Production, and Retail sales readings for China local indices there led the region. IT names were strong with broad gains seen.  Hong Kong too closed up with the Health Care sector a notable gainer.  The Nikkei was closed for Marine Day.  To the downside both Australia and Korea finished down with IT and Communication names weighing in the former.  Note that tonight RBA minutes from the July meeting will be released Down Under. While the YoY reading met estimates and showed a slowing in growth the QoQ result for the 2Q GDP in China was a bit better.  Industrial Production results were strong with retail sales seeing gains from autos and online sales.  From late Friday post the headline numbers on the their trade balance Chinese exports of rare earths rose with 1H exports to the US down 2.6% YoY.  Imports though from the US fell just over 25% on a YoY basis.  On a more internal focus Aggregate Financing in June reached 2.26T Yuan, well ahead of the 1.9T estimate. The PBoC refrained again from open market ops but noted the planned 3rd phase of RRR cuts occurred, releasing CNY100B in funds for…

Asian Headlines Post better GDP, Industrial Production, and Retail sales readings for China local indices there led the region. IT names were strong with broad gains seen.  Hong Kong too closed up with the Health Care sector a notable gainer.  The Nikkei was closed for Marine Day.  To the downside both Australia and Korea finished down with IT and Communication names weighing in the former.  Note that tonight RBA minutes from the July meeting will be released Down Under. While the YoY reading met estimates and showed a slowing in growth the QoQ result for the 2Q GDP in China was a bit better.  Industrial Production results were strong with retail sales seeing gains from autos and online sales.  From late Friday post the headline numbers on the their trade balance Chinese exports of rare earths rose with 1H exports to the US down 2.6% YoY.  Imports though from the US fell just over 25% on a YoY basis.  On a more internal focus Aggregate Financing in June reached 2.26T Yuan, well ahead of the 1.9T estimate. The PBoC refrained again from open market ops but noted the planned 3rd phase of RRR cuts occurred, releasing CNY100B in funds for…

CAPIS Global Recap – 7/10/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/10/2019 at 7:02 am
by Clayton Duff on 07/10/2019

Asian Headlines Ahead of Congressional testimony by the US’ Fed Powell and the minutes to be released from the FOMC minutes from June Asian indices  closed again mixed.  Moves either way were contained as the world hopes to gleam what direction, if any, the Fed will take on the 31st.  Economic releases were light with consumer inflation inline in China.  Producer prices though were flat with oil and steel prices said to have pushed the reading lower than expected.  With a storm a’ brewin in the Gulf and a sizable draw from yesterday’s API reading oil is to the upside with West Texas Intermediate up 2% into the European session. South Korea’s PM Moon said the country will address the Japanese export curb with line items in their extra budget including an emergency response system.  Talks between the two continue but they are country is being proactive as leaders met with local firms. Related, a Korean press story noted both Samsung +1% and SK Hynix +4.4% have pared NAND output.   A Samsung rep though called that claim “groundless”. Real Estate names in China continue to lag as the Chinese Securities Journal reports some banks have been requested to limit loans…

Asian Headlines Ahead of Congressional testimony by the US’ Fed Powell and the minutes to be released from the FOMC minutes from June Asian indices  closed again mixed.  Moves either way were contained as the world hopes to gleam what direction, if any, the Fed will take on the 31st.  Economic releases were light with consumer inflation inline in China.  Producer prices though were flat with oil and steel prices said to have pushed the reading lower than expected.  With a storm a’ brewin in the Gulf and a sizable draw from yesterday’s API reading oil is to the upside with West Texas Intermediate up 2% into the European session. South Korea’s PM Moon said the country will address the Japanese export curb with line items in their extra budget including an emergency response system.  Talks between the two continue but they are country is being proactive as leaders met with local firms. Related, a Korean press story noted both Samsung +1% and SK Hynix +4.4% have pared NAND output.   A Samsung rep though called that claim “groundless”. Real Estate names in China continue to lag as the Chinese Securities Journal reports some banks have been requested to limit loans…

CAPIS Global Recap – 7/8/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/08/2019 at 6:39 am
by Clayton Duff on 07/08/2019

Asian Headlines Asian indices started the week to the downside after Friday’s job numbers in the States eased hopes for a rate cut by the Fed.  Even as talks continue between the US and China, Chinese markets led lower on broad weakness.  IT names were weaker on the Shanghai by nearly 4% as a whole with software-specific stocks falling 3-7%.  Hong Kong too fell but defensive names like Health Care and Consumer Staples fell the most.   In Japan the Nikkei fell with Health Care off over 2%.  Industrials closed lower with Core Machine Orders missing big on a MoM basis.  The Kospi was not immune from the selling with giant Samsung down nearly 3% with the semi-spat with Japan growing.  India and Australia eased lower as well. Japan is limiting much-needed components required to produce memory chips to Korea.  Over the weekend Samsung’s vice-chairman went to Japan to try to work out a compromise  but investors are not so hopeful. Peer Hynix fell 1.5% with many calling the restriction retaliation for a Korean court ruling Japanese companies owe Koreans for forced labor under colonial rule.  Korea has said it will support firms affected by the export curbs. Post the 8…

Asian Headlines Asian indices started the week to the downside after Friday’s job numbers in the States eased hopes for a rate cut by the Fed.  Even as talks continue between the US and China, Chinese markets led lower on broad weakness.  IT names were weaker on the Shanghai by nearly 4% as a whole with software-specific stocks falling 3-7%.  Hong Kong too fell but defensive names like Health Care and Consumer Staples fell the most.   In Japan the Nikkei fell with Health Care off over 2%.  Industrials closed lower with Core Machine Orders missing big on a MoM basis.  The Kospi was not immune from the selling with giant Samsung down nearly 3% with the semi-spat with Japan growing.  India and Australia eased lower as well. Japan is limiting much-needed components required to produce memory chips to Korea.  Over the weekend Samsung’s vice-chairman went to Japan to try to work out a compromise  but investors are not so hopeful. Peer Hynix fell 1.5% with many calling the restriction retaliation for a Korean court ruling Japanese companies owe Koreans for forced labor under colonial rule.  Korea has said it will support firms affected by the export curbs. Post the 8…

TGIF Global Markets 7/5/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/05/2019 at 6:41 am
by Matthew Kiselica on 07/05/2019

Asian Markets After mixed performance yesterday, most of the core markets managed modest gains.  However, activity was muted with volumes dramatically lower due to yesterday’s U.S. holiday and the payroll data due this morning.  India is a standout to the downside.  Investors are disappointed by two key factors in the government’s fiscal plan.  There was less stimulus spending than anticipated and taxes will be increased for a higher bracket. Sectors were mixed.  Consumer staples fared well rising more than 1%.  Healthcare advanced more than 0.5%.  Energy ended the day lower by c. 0.5% followed by materials. Other Important Headlines Samsung Elec. -0.75% is the key corporate story.  The company’s preliminary  Q2 OP of KRW 6.5t is ahead of consensus: KRW 6.08t.  However, that includes a one-off customer related gain of KRW 900b.  It is speculated to have come from Apple.  Taking that out of the OP puts it below estimates. Iron ore futures in Shanghai tumbled when a Chinese mill association asked authorities to investigate the recent price surge.  Reports allege China is asking trusts to limit financing within the property sector.  The Shanghai Property Index fell more than 1% but pared a loss of 1.9%. After the close, China…

Asian Markets After mixed performance yesterday, most of the core markets managed modest gains.  However, activity was muted with volumes dramatically lower due to yesterday’s U.S. holiday and the payroll data due this morning.  India is a standout to the downside.  Investors are disappointed by two key factors in the government’s fiscal plan.  There was less stimulus spending than anticipated and taxes will be increased for a higher bracket. Sectors were mixed.  Consumer staples fared well rising more than 1%.  Healthcare advanced more than 0.5%.  Energy ended the day lower by c. 0.5% followed by materials. Other Important Headlines Samsung Elec. -0.75% is the key corporate story.  The company’s preliminary  Q2 OP of KRW 6.5t is ahead of consensus: KRW 6.08t.  However, that includes a one-off customer related gain of KRW 900b.  It is speculated to have come from Apple.  Taking that out of the OP puts it below estimates. Iron ore futures in Shanghai tumbled when a Chinese mill association asked authorities to investigate the recent price surge.  Reports allege China is asking trusts to limit financing within the property sector.  The Shanghai Property Index fell more than 1% but pared a loss of 1.9%. After the close, China…

CAPIS Global Markets 7/3/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/03/2019 at 7:00 am
by Matthew Kiselica on 07/03/2019

Asian Markets The majority of the region’s core markets saw selling pressure for a variety of factors.  A stronger ¥ weighed in Japan.  But that wasn’t the only concern.  A trade spat is brewing between Japan and S. Korea.  Local press reports say Japan is prepared to expand a list of tech products prohibited from export to S. Korea.  The reason is the potential to be used for military purposes.  Caixin Chinese Service and Composite PMIs created uncertainty in China. Most of the major sectors traded lower.  IT was the hardest hit off by 1.5%.  It was Japanese and S. Korean names that weighed.  Both utilities and real estate gained about 0.5% with yields falling. Other Important Headlines The Caixin June Chinese Service PMI is below expectations and at a 4 month low.  The Composite reading is lower m/m and is the lowest result since October 2016. The BoJ is increasing its purchases of 1-3 yr. JGBs.  However, it will reduce 3-5 year & 1o-25 year purchases.  This is inline with prior guidance from the central bank. Fast Retailing’s +2.7% June Uniqlo sales are a robust +27.3% y/y. ABC-Mart’s +1.5% June same store sales are better by 5.5% y/y. European…

Asian Markets The majority of the region’s core markets saw selling pressure for a variety of factors.  A stronger ¥ weighed in Japan.  But that wasn’t the only concern.  A trade spat is brewing between Japan and S. Korea.  Local press reports say Japan is prepared to expand a list of tech products prohibited from export to S. Korea.  The reason is the potential to be used for military purposes.  Caixin Chinese Service and Composite PMIs created uncertainty in China. Most of the major sectors traded lower.  IT was the hardest hit off by 1.5%.  It was Japanese and S. Korean names that weighed.  Both utilities and real estate gained about 0.5% with yields falling. Other Important Headlines The Caixin June Chinese Service PMI is below expectations and at a 4 month low.  The Composite reading is lower m/m and is the lowest result since October 2016. The BoJ is increasing its purchases of 1-3 yr. JGBs.  However, it will reduce 3-5 year & 1o-25 year purchases.  This is inline with prior guidance from the central bank. Fast Retailing’s +2.7% June Uniqlo sales are a robust +27.3% y/y. ABC-Mart’s +1.5% June same store sales are better by 5.5% y/y. European…

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