International Summary

1737 total posts

CAPIS EU Close – 5/14/2019

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International Summary

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

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

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

CAPIS EU Close – 5/13/2019

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International Summary

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

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

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

CAPIS Global Markets 5/13/2019

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International Summary

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

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

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

CAPIS Glbbal Recap – 5/8/2019

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International Summary

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

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

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

CAPIS EU Close – 5/7/2019

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International Summary

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

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

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

CAPIS Global Recap – 4/25/2019

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International Summary

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

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

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

CAPIS EU Close – 4/18/2019

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International Summary

posted by Clayton Duff on 04/18/2019 at 12:42 pm
by Clayton Duff on 04/18/2019

European indices closed mixed on the session with several markets closing early or not even opening today.  On the week the UK FTSE 100 closed up 57bps with France up 1.73% and Germany up 2.41%.  Most sectors finished higher, led by Autos and Tech names.  Healthcare again moved off.  Volume in Europe was off 11%. The Media space was supported by Mediaset +3.6%, with their board preventing Vivendi from participating in their AGM. Engineering firm Arcadis rallied 10% on solid 1Q results. One broker sees margin improvement ahead despite tough sledding in Asia, Latin America, and the Middle East. Other names seeing earnings include Unilever +3%, Nestle +.8%, and Pernod Ricard -1%. On concerns Bain Capital and Carlyle may not complete their takeover of the firm, Osram Licht fell 5.5%.  Both investors are expressing concerning post weaker earnings at the firm. Cigarette firms turned lower post headlines that Senator Mitch McConnell seeks to raise the tobacco age in the US to 21 from the current 18. The move would include vaping devices.   Imperial Brands fell .8% with BATS off 1.4%.  ***Note that only mainland China, Japan, South Korea, Taiwan, Thailand, and Turkey are open Friday.*** Monday, Canada and Mexico are open…

European indices closed mixed on the session with several markets closing early or not even opening today.  On the week the UK FTSE 100 closed up 57bps with France up 1.73% and Germany up 2.41%.  Most sectors finished higher, led by Autos and Tech names.  Healthcare again moved off.  Volume in Europe was off 11%. The Media space was supported by Mediaset +3.6%, with their board preventing Vivendi from participating in their AGM. Engineering firm Arcadis rallied 10% on solid 1Q results. One broker sees margin improvement ahead despite tough sledding in Asia, Latin America, and the Middle East. Other names seeing earnings include Unilever +3%, Nestle +.8%, and Pernod Ricard -1%. On concerns Bain Capital and Carlyle may not complete their takeover of the firm, Osram Licht fell 5.5%.  Both investors are expressing concerning post weaker earnings at the firm. Cigarette firms turned lower post headlines that Senator Mitch McConnell seeks to raise the tobacco age in the US to 21 from the current 18. The move would include vaping devices.   Imperial Brands fell .8% with BATS off 1.4%.  ***Note that only mainland China, Japan, South Korea, Taiwan, Thailand, and Turkey are open Friday.*** Monday, Canada and Mexico are open…

CAPIS EU Close – 4/16/2019

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International Summary

posted by Clayton Duff on 04/16/2019 at 12:53 pm
by Clayton Duff on 04/16/2019

Post positive comments and the PBoC’s OMO action overnight mainland markets there finished with gains of over 2%.  Gains were seen in most Asian locales with better sentiment moving into Europe. The US has eased a bit on demands with China over industrial firm subsidies giving hopes to a deal sooner than later.   The AUD$ slipped with dovish RBA comments. While higher, European gains were tepid with roughly 2/3rds of sectors to the upside.  Financials and Insurers finished up by over a percent with Utilities and Energy off (despite higher oil prices). Asset manager Ashmore Group rallied 6.3% on word they saw inflows of over $5B in the 1Q, up 10x’s what was seen in the 4Q of last year. In addition to the inflows customer activity picked up as well. Rio Tinto fell .6% after iron shipments disappointed for the 1Q with full year estimates reduced down. After the close L’oreal +.8% said 1Q LfL’s rallied 7.7% in the 1Q vs the estimate of +6.4%.   They see another year of growth in 2019 with Asia Pacific seen up 23%.  The firm and the Bettencourt family also said they will donate €200M to rebuild the Notre-Dame cathedral. Economic releases are…

Post positive comments and the PBoC’s OMO action overnight mainland markets there finished with gains of over 2%.  Gains were seen in most Asian locales with better sentiment moving into Europe. The US has eased a bit on demands with China over industrial firm subsidies giving hopes to a deal sooner than later.   The AUD$ slipped with dovish RBA comments. While higher, European gains were tepid with roughly 2/3rds of sectors to the upside.  Financials and Insurers finished up by over a percent with Utilities and Energy off (despite higher oil prices). Asset manager Ashmore Group rallied 6.3% on word they saw inflows of over $5B in the 1Q, up 10x’s what was seen in the 4Q of last year. In addition to the inflows customer activity picked up as well. Rio Tinto fell .6% after iron shipments disappointed for the 1Q with full year estimates reduced down. After the close L’oreal +.8% said 1Q LfL’s rallied 7.7% in the 1Q vs the estimate of +6.4%.   They see another year of growth in 2019 with Asia Pacific seen up 23%.  The firm and the Bettencourt family also said they will donate €200M to rebuild the Notre-Dame cathedral. Economic releases are…

CAPIS EU Close – 4/10/2019

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International Summary

posted by Clayton Duff on 04/10/2019 at 12:50 pm
by Clayton Duff on 04/10/2019

European indices closed mixed with most markets near flat on the session.  Sweden closed with a decent gain as did Germany.   Roughly 2/3rds of sectors closed better with strong gains in Retail +1.33% and Basic Resources +1.01%.  Healthcare and Banks slipped on the day. The Euro sold off on Draghi’s post-ECB-rate-announcement-presser.  As expected rates were left as-is with levels to remain there until at least through the end of the year. QE debt is expected to continue to be rolled over, even after their first rate hike.  Draghi provided no update on TLTRO’s, noting it was too early to provide any details.  The € did manage to rebound and wipe away much of the pullback. Heavyweight Reckitt Benckiser fell 6.5% as it may very well incur liabilities from US government prosecution over Suboxone Film that was produced by Indivior -72%, which it used to own.  In addition to possible government actions the firm may face lawsuits with the opioid manufacturer space under attack. Logitech +1.5% worked higher with positive sentiment in the name after their CEO said a big acquisition for the company is “conceivable”. Post the close Louis Vuitton +.8% said organic revenues rose 15% in their fashion &…

European indices closed mixed with most markets near flat on the session.  Sweden closed with a decent gain as did Germany.   Roughly 2/3rds of sectors closed better with strong gains in Retail +1.33% and Basic Resources +1.01%.  Healthcare and Banks slipped on the day. The Euro sold off on Draghi’s post-ECB-rate-announcement-presser.  As expected rates were left as-is with levels to remain there until at least through the end of the year. QE debt is expected to continue to be rolled over, even after their first rate hike.  Draghi provided no update on TLTRO’s, noting it was too early to provide any details.  The € did manage to rebound and wipe away much of the pullback. Heavyweight Reckitt Benckiser fell 6.5% as it may very well incur liabilities from US government prosecution over Suboxone Film that was produced by Indivior -72%, which it used to own.  In addition to possible government actions the firm may face lawsuits with the opioid manufacturer space under attack. Logitech +1.5% worked higher with positive sentiment in the name after their CEO said a big acquisition for the company is “conceivable”. Post the close Louis Vuitton +.8% said organic revenues rose 15% in their fashion &…

CAPIS EU Close – 4/9/2019

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International Summary

posted by Clayton Duff on 04/09/2019 at 12:47 pm
by Clayton Duff on 04/09/2019

Apart from Switzerland most European indices finished at or near lows on the day.  Losses were broad with Tech, Retail, and Autos seeing losses of over a percent.  President Trump’s threat of tariffs on several European export categories weighed with traders a bit touchy anyway considering the months long rebound.  Overhead resistance levels are slowing the advance higher with the Stoxx 600 up ~18% since its December low.  Volumes today too were lackluster, off 16% from recent turnover. In addition to the $11B in tariffs that may hit European tariffs other headlines include PM May’s meeting today with Merkel and France’s Macron.  The World Bank and IMF kick off a spring get-together, no doubt to decry protectionism.   Italy pared their FY19 GDP growth view from 1% down to .1% while upping their budget deficit estimate.  Tomorrow, the ECB meets with the post-announcement presser sure to be watched and scrutinized closely. Earlier we mentioned the interest of Wynn Resorts into Crown Resorts. Evidently the fact that the  preliminary discussions were leaked though caused Wynn to discontinue the conversation. SAP -3.4% led the tech space lower on a downgrade by UBS and HSBC with further margin expansion questioned.  The strong move in…

Apart from Switzerland most European indices finished at or near lows on the day.  Losses were broad with Tech, Retail, and Autos seeing losses of over a percent.  President Trump’s threat of tariffs on several European export categories weighed with traders a bit touchy anyway considering the months long rebound.  Overhead resistance levels are slowing the advance higher with the Stoxx 600 up ~18% since its December low.  Volumes today too were lackluster, off 16% from recent turnover. In addition to the $11B in tariffs that may hit European tariffs other headlines include PM May’s meeting today with Merkel and France’s Macron.  The World Bank and IMF kick off a spring get-together, no doubt to decry protectionism.   Italy pared their FY19 GDP growth view from 1% down to .1% while upping their budget deficit estimate.  Tomorrow, the ECB meets with the post-announcement presser sure to be watched and scrutinized closely. Earlier we mentioned the interest of Wynn Resorts into Crown Resorts. Evidently the fact that the  preliminary discussions were leaked though caused Wynn to discontinue the conversation. SAP -3.4% led the tech space lower on a downgrade by UBS and HSBC with further margin expansion questioned.  The strong move in…

CAPIS Global Markets 4/9/2019

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International Summary

posted by Matthew Kiselica on 04/09/2019 at 7:21 am
by Matthew Kiselica on 04/09/2019

Asian  Markets Lackluster trading with mixed performance across the region and also within countries.  For example, Chinese and Japanese markets saw varied moves across their related indices.  As a result, sectors were also mixed.  Real estate, healthcare and consumer discretionary improve about 1%.  Materials saw profit taking and gave way c. 1% while utilities end the day off c. 0.5%. Important Headlines Sony +9.3% is one of the day’s stars.  This was in response to yesterday’s report activest investor Thirdpoint is building a stake in the company. Gree Appliance +10.0% is limit up.  Its parent company intends to sell a 15.0% stake.  The general commentary is this will improve corporate structure and operational efficiency. Wynn Resorts is conducting talks to acquire Crown Resorts +19.7%.  The deal is said to put a valuation on Crown of c. A$10b and is A$14.75 per share.  That is c. 26.0% premium to yesterday’s close and will put quite a few shrimp on the bar-b. The Chinese auto sector had a number of important headlines.  Byd’s +1.2% new energy vehicle sales improve by 116.0% y/y during March.  Total sales are 8.5% higher.  Geely Auto’s +0.9% are 3% to the upside and the company saw a…

Asian  Markets Lackluster trading with mixed performance across the region and also within countries.  For example, Chinese and Japanese markets saw varied moves across their related indices.  As a result, sectors were also mixed.  Real estate, healthcare and consumer discretionary improve about 1%.  Materials saw profit taking and gave way c. 1% while utilities end the day off c. 0.5%. Important Headlines Sony +9.3% is one of the day’s stars.  This was in response to yesterday’s report activest investor Thirdpoint is building a stake in the company. Gree Appliance +10.0% is limit up.  Its parent company intends to sell a 15.0% stake.  The general commentary is this will improve corporate structure and operational efficiency. Wynn Resorts is conducting talks to acquire Crown Resorts +19.7%.  The deal is said to put a valuation on Crown of c. A$10b and is A$14.75 per share.  That is c. 26.0% premium to yesterday’s close and will put quite a few shrimp on the bar-b. The Chinese auto sector had a number of important headlines.  Byd’s +1.2% new energy vehicle sales improve by 116.0% y/y during March.  Total sales are 8.5% higher.  Geely Auto’s +0.9% are 3% to the upside and the company saw a…

CAPIS EU Close – 4/8/2019

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International Summary

posted by Clayton Duff on 04/08/2019 at 12:43 pm
by Clayton Duff on 04/08/2019

European indices gave up midday highs (which only got markets to flattish levels) to close just above day’s lows.  Finishing levels though were not that bad with moves away from flat pretty benign.  The Stoxx 600 saw 189 names better with 398 down on volume 26% weaker.  The same concerns continue to get regurgitated with global slowing along with Brexit and the US/China trade deal noted. Despite the lackluster trading the Energy sector rallied nearly 90bps with oil continued to work higher on the aforementioned woes in the middle East. Several defensive sectors also saw small gains while Travel and Media names slipped. Keep an eye on Sony (ADR’s +7.5%) tonight after Reuters reported Third Point is increasing their holdings in the name.  Reuters said Third Point is looking for an investment vehicle to provide $500M to $1B as they want the company to consider offloading their movie studio to the likes of Amazon or Netflix. Exploration firm Equinor rallied 2.6% despite word Norway’s political leadership is denying support to develop an Arctic sight that could produce 1-3B barrels of oil.  the Lofoten site has been off limit to development for years but as other field slowly pare down supplies…

European indices gave up midday highs (which only got markets to flattish levels) to close just above day’s lows.  Finishing levels though were not that bad with moves away from flat pretty benign.  The Stoxx 600 saw 189 names better with 398 down on volume 26% weaker.  The same concerns continue to get regurgitated with global slowing along with Brexit and the US/China trade deal noted. Despite the lackluster trading the Energy sector rallied nearly 90bps with oil continued to work higher on the aforementioned woes in the middle East. Several defensive sectors also saw small gains while Travel and Media names slipped. Keep an eye on Sony (ADR’s +7.5%) tonight after Reuters reported Third Point is increasing their holdings in the name.  Reuters said Third Point is looking for an investment vehicle to provide $500M to $1B as they want the company to consider offloading their movie studio to the likes of Amazon or Netflix. Exploration firm Equinor rallied 2.6% despite word Norway’s political leadership is denying support to develop an Arctic sight that could produce 1-3B barrels of oil.  the Lofoten site has been off limit to development for years but as other field slowly pare down supplies…

CAPIS Global Markets 4/08/2019

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International Summary

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

Asian Markets A mixed day for the region with mostly modest moves.  The mainland Chinese markets initially traded well following their three day weekend.  However, they were unable top maintain those gains.  Australia bounced after lagging last week. Sectors were fairly split.  Basic materials are the day’s clear winner better by  more than 1% with energy improving c. 0.5%.  To the downside by c. 0.5% are consumer discretionary and utilities. There are a number of reports indicating the PBoC may once again make “targeted” decreases to the reserve-ratio requirement this month.  The central bank will also make use of its medium term lending facility with CNY 367b in such loans maturing. Other Important Headlines Press reports indicate BHP +1.7% is preparing to cut more than 700 white collar jobs. Jefferies initiated coverage on a number of Macau gaming names but it didn’t help their trading performance.  Sands China -1.4% and Wynn Macau -0.5% are rated buys while MGM China -2.5% and Galaxy Ent. -2.4% are holds. The U.K. is reviewing the gaming renewal practices of Sony -0.2% and Nintendo -1.8% for potential competition and fairness violations. Shinsegae Grp Vice Chair Chung will increase his stake in E-Mart +5.25% to 10.3%…

Asian Markets A mixed day for the region with mostly modest moves.  The mainland Chinese markets initially traded well following their three day weekend.  However, they were unable top maintain those gains.  Australia bounced after lagging last week. Sectors were fairly split.  Basic materials are the day’s clear winner better by  more than 1% with energy improving c. 0.5%.  To the downside by c. 0.5% are consumer discretionary and utilities. There are a number of reports indicating the PBoC may once again make “targeted” decreases to the reserve-ratio requirement this month.  The central bank will also make use of its medium term lending facility with CNY 367b in such loans maturing. Other Important Headlines Press reports indicate BHP +1.7% is preparing to cut more than 700 white collar jobs. Jefferies initiated coverage on a number of Macau gaming names but it didn’t help their trading performance.  Sands China -1.4% and Wynn Macau -0.5% are rated buys while MGM China -2.5% and Galaxy Ent. -2.4% are holds. The U.K. is reviewing the gaming renewal practices of Sony -0.2% and Nintendo -1.8% for potential competition and fairness violations. Shinsegae Grp Vice Chair Chung will increase his stake in E-Mart +5.25% to 10.3%…

CAPIS EU Close – 4/5/2019

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International Summary

posted by Clayton Duff on 04/05/2019 at 12:52 pm
by Clayton Duff on 04/05/2019

Most European indices held gains on sentiment fueled trade talk advances made between President Trump and China’s Vice Premier Liu. Better German MoM Industrial Production also helped as well.  On the day, the FTSE 100 led with the weaker Pound (approaching 1.30) helped.  Moves away from the UK continued to be as scant as they were this morning.  On the week though we saw solid gains with the UK up 2.3%, Germany up 4.2%, and France +2.35%.  Volume today was off 16% per the Stoxx 600. On the sector front Energy led, up .88%, with Brent up to levels not seen since last November and through the 200 day level.  As with West Texas Intermediate moves higher appear imminent. AB Inbev rallied 1.9% with BofAML upgrading their view of the firm’s organic growth.  However they do not see much of a bigger move with eps estimates for next year below estimates. Post the close Engie is said to be near a deal to buy Petrobras’ pipeline unit for $9B. The deal will see Engie and the Canadian pension fund Caisse de Deport et Placement du Quebec acquiring 90% of their 2800 mile pipeline network in Brazil called TAG. Japan will…

Most European indices held gains on sentiment fueled trade talk advances made between President Trump and China’s Vice Premier Liu. Better German MoM Industrial Production also helped as well.  On the day, the FTSE 100 led with the weaker Pound (approaching 1.30) helped.  Moves away from the UK continued to be as scant as they were this morning.  On the week though we saw solid gains with the UK up 2.3%, Germany up 4.2%, and France +2.35%.  Volume today was off 16% per the Stoxx 600. On the sector front Energy led, up .88%, with Brent up to levels not seen since last November and through the 200 day level.  As with West Texas Intermediate moves higher appear imminent. AB Inbev rallied 1.9% with BofAML upgrading their view of the firm’s organic growth.  However they do not see much of a bigger move with eps estimates for next year below estimates. Post the close Engie is said to be near a deal to buy Petrobras’ pipeline unit for $9B. The deal will see Engie and the Canadian pension fund Caisse de Deport et Placement du Quebec acquiring 90% of their 2800 mile pipeline network in Brazil called TAG. Japan will…

CAPIS EU Close – 4/4/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/04/2019 at 1:03 pm
by Clayton Duff on 04/04/2019

European markets closed mixed with markets there spending the session shaking off early lows.  On the sector front only Autos saw notable gains, finishing up 71bps, while Banks and Personal Goods were only slightly green. Basic Resources fell over a percent while Energy slipped less than percent on flattish oil prices today.  Copper is currently off over a percent today. During its investor day Michelin +.6% reaffirmed their growth objectives for next year and announced they will undergo a €500M share buyback.  On that the name moved off of earlier lower levels to close up small.  The company said while Chinese new car sales are expected to rise in the 2H new car sales in March declined again. In the retail space Casino fell 3.5% after Morgan Stanley expressed concern about their debt load. Competition and modest cost-savings were highlighted with the broker noting the company has few levers to pull to right the ship. Also weighing in the retail space, home appliance-seller AO World fell 5.7% on word they adjusted ebitda is expected at the lower end of expectations.  The company booked a loss-making contract in Germany and is unable to terminate it.  The firm is evidently unable to…

European markets closed mixed with markets there spending the session shaking off early lows.  On the sector front only Autos saw notable gains, finishing up 71bps, while Banks and Personal Goods were only slightly green. Basic Resources fell over a percent while Energy slipped less than percent on flattish oil prices today.  Copper is currently off over a percent today. During its investor day Michelin +.6% reaffirmed their growth objectives for next year and announced they will undergo a €500M share buyback.  On that the name moved off of earlier lower levels to close up small.  The company said while Chinese new car sales are expected to rise in the 2H new car sales in March declined again. In the retail space Casino fell 3.5% after Morgan Stanley expressed concern about their debt load. Competition and modest cost-savings were highlighted with the broker noting the company has few levers to pull to right the ship. Also weighing in the retail space, home appliance-seller AO World fell 5.7% on word they adjusted ebitda is expected at the lower end of expectations.  The company booked a loss-making contract in Germany and is unable to terminate it.  The firm is evidently unable to…

CAPIS EU Close – 4/2/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 04/02/2019 at 12:34 pm
by Clayton Duff on 04/02/2019

Most markets saw slight gains with the UK outperforming as the Pound fell.  The Auto sector finished north of a percent with solid gains seen in Insurers, Media, and Banks.  443 members of the Stoxx 600 ended higher on volume 10% lower. While the IMF said they do not expect a recession they did add that a rebound in growth this year is seen as “precarious”.  Trade risks, Brexit, and the unease in financial markets was all cited.  Lagarde though was a bit more positive, noting the 2H of the year looks better even though the global economy is losing momentum currently.   On the Brexit font France’s Macron said further UK parliament rejection of plans to move forward is putting them on a path to a Hard Brexit. Standard Chartered closed up 3.4% on hopes of finalizing the Iran-related scandal with the US government.  The US extended their deferred prosecution agreement another two weeks but the monitorship by the US ended Sunday.  A large fine by the US is expected soon which should put a bow on the investigation as the firm put away $900M in February in anticipation. Atos finished off 2% but had been down more earlier after…

Most markets saw slight gains with the UK outperforming as the Pound fell.  The Auto sector finished north of a percent with solid gains seen in Insurers, Media, and Banks.  443 members of the Stoxx 600 ended higher on volume 10% lower. While the IMF said they do not expect a recession they did add that a rebound in growth this year is seen as “precarious”.  Trade risks, Brexit, and the unease in financial markets was all cited.  Lagarde though was a bit more positive, noting the 2H of the year looks better even though the global economy is losing momentum currently.   On the Brexit font France’s Macron said further UK parliament rejection of plans to move forward is putting them on a path to a Hard Brexit. Standard Chartered closed up 3.4% on hopes of finalizing the Iran-related scandal with the US government.  The US extended their deferred prosecution agreement another two weeks but the monitorship by the US ended Sunday.  A large fine by the US is expected soon which should put a bow on the investigation as the firm put away $900M in February in anticipation. Atos finished off 2% but had been down more earlier after…

CAPIS Global Markets 4/2/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 04/02/2019 at 7:39 am
by Matthew Kiselica on 04/02/2019

Asian Markets Most of the regions core markets had minimal moves following yesterday’s strong gains.  Peripherals are outperformers.   Consumer staples fell by c. 1% and defensives remain out of favor.  Materials and IT gained c. 0.5%.  Semiconductor names saw buying interest following a Digitimes report chips prices will rebound during the second half of the year. Down Under, the RBA left its benchmark rate unchanged at 1.5%, as expected.  Overall, the central bank remained balance noting areas of strength and weakness in the overall economy.  The AUD gained following the countries budget which is projecting an A$7.1b surplus for FY20. European Markets Europe had a sluggish start but moved to the highs after about three hours into the trading session.  The markets are currently holding the highs of the day.  The auto sector is the standout better by more than 1%.  Tech, media, insurance, food/bevies and banks are all better by more than 0.5%.  Telecoms and healthcare are down small and retail has lagged all session. Currency Markets Bitcoin has surged more than 20.0% during Asian trading.  However, there was no fundamental trigger scene.  Speculation it was a significant buy order but that is not conclusive.  It has pared some…

Asian Markets Most of the regions core markets had minimal moves following yesterday’s strong gains.  Peripherals are outperformers.   Consumer staples fell by c. 1% and defensives remain out of favor.  Materials and IT gained c. 0.5%.  Semiconductor names saw buying interest following a Digitimes report chips prices will rebound during the second half of the year. Down Under, the RBA left its benchmark rate unchanged at 1.5%, as expected.  Overall, the central bank remained balance noting areas of strength and weakness in the overall economy.  The AUD gained following the countries budget which is projecting an A$7.1b surplus for FY20. European Markets Europe had a sluggish start but moved to the highs after about three hours into the trading session.  The markets are currently holding the highs of the day.  The auto sector is the standout better by more than 1%.  Tech, media, insurance, food/bevies and banks are all better by more than 0.5%.  Telecoms and healthcare are down small and retail has lagged all session. Currency Markets Bitcoin has surged more than 20.0% during Asian trading.  However, there was no fundamental trigger scene.  Speculation it was a significant buy order but that is not conclusive.  It has pared some…

CAPIS EU Close – 3/29/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/29/2019 at 12:50 pm
by Clayton Duff on 03/29/2019

Sweden continued to underperform with banks there again lower.  Other markets though in Europe finished to the upside with gains seen on the week.  Despite PM May losing her Brexit vote today the FTSE100 finished a percent better on the week with the DAX up 1.42% and CAC40 up 1.53% for the same period.   On the Brexit front, Sky News is reporting ministers are meeting with PM May adviser her to forget a soft Brexit and instead push for a no-deal Brexit.  We’ll see new votes next week. On the sector front all but Telcos and Utilities finished better with Basic Resources and Tech names leading.   Homebuilders were weak with disappointing house price/mortgage approvals in the UK. Proton therapy-equipment installer Ion Beam rallied 14% after it won a Shenzhen tender contract for their system. Contract negotiations are still underway but a deal of €90M is expected. After noting they see next year’s profit weaker than expected Renewi fell over 21% at the open.  However, by the day’s end the stock was only off 2.7%.  The firm is undergoing tests required by the Dutch gov concerning their treated soil product. The firm said they feel they will adhere to banking covenants…

Sweden continued to underperform with banks there again lower.  Other markets though in Europe finished to the upside with gains seen on the week.  Despite PM May losing her Brexit vote today the FTSE100 finished a percent better on the week with the DAX up 1.42% and CAC40 up 1.53% for the same period.   On the Brexit front, Sky News is reporting ministers are meeting with PM May adviser her to forget a soft Brexit and instead push for a no-deal Brexit.  We’ll see new votes next week. On the sector front all but Telcos and Utilities finished better with Basic Resources and Tech names leading.   Homebuilders were weak with disappointing house price/mortgage approvals in the UK. Proton therapy-equipment installer Ion Beam rallied 14% after it won a Shenzhen tender contract for their system. Contract negotiations are still underway but a deal of €90M is expected. After noting they see next year’s profit weaker than expected Renewi fell over 21% at the open.  However, by the day’s end the stock was only off 2.7%.  The firm is undergoing tests required by the Dutch gov concerning their treated soil product. The firm said they feel they will adhere to banking covenants…

TGIF Global Markets 3/29/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/29/2019 at 7:19 am
by Matthew Kiselica on 03/29/2019

Asian Markets Word of progress in the Sino-US trade talks lifts equities.  Most of the major indices recorded significant gains with the Chinese markets leading the way.  Surprisingly, Australia lagged with utilities and energy among others holding the ASX200 back.  For the region, all major sectors end the day better.   Consumer staples, financials, healthcare and real estate improve by c. 2%. European Markets Europe is also trading well and currently near highs of the day.  Sweden lags the as the anti-money laundering scandal continues to weigh upon the banks.  Basic resources area head by c. 2%.  Retail, autos, technology, financials and constructions improve by c. 1.0% or more.  with most other sectors to the upside.  Defensives and travel/leisure lag. We couldn’t go a day without mentioning Brexit. Parliament will have a third vote regarding PM May’s Brexit plan.  However, today’s vote will only be for a portion of the existing deal she has hammered out with the EU.  Debate is occurring as we to to press with the tally scheduled for 10:30 AM Eastern. Other Important International Headlines ICBC -0.8% did not take part in today’s rally following results out after yesterday’s close.  FY 18 NI is CNY 297.7b vs.…

Asian Markets Word of progress in the Sino-US trade talks lifts equities.  Most of the major indices recorded significant gains with the Chinese markets leading the way.  Surprisingly, Australia lagged with utilities and energy among others holding the ASX200 back.  For the region, all major sectors end the day better.   Consumer staples, financials, healthcare and real estate improve by c. 2%. European Markets Europe is also trading well and currently near highs of the day.  Sweden lags the as the anti-money laundering scandal continues to weigh upon the banks.  Basic resources area head by c. 2%.  Retail, autos, technology, financials and constructions improve by c. 1.0% or more.  with most other sectors to the upside.  Defensives and travel/leisure lag. We couldn’t go a day without mentioning Brexit. Parliament will have a third vote regarding PM May’s Brexit plan.  However, today’s vote will only be for a portion of the existing deal she has hammered out with the EU.  Debate is occurring as we to to press with the tally scheduled for 10:30 AM Eastern. Other Important International Headlines ICBC -0.8% did not take part in today’s rally following results out after yesterday’s close.  FY 18 NI is CNY 297.7b vs.…

CAPIS EU Close – 3/28/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/28/2019 at 1:06 pm
by Clayton Duff on 03/28/2019

European indices closed mixed with the UK’s FTSE100 the clear winner as the Pound fell today.  There, health care and consumer staples led while Chemicals ultimately led in the region.  Roughly 2/3rds of the sectors finished lower with Banks and Telcos down over a percent.  Concerning the Stoxx600 members up vs down was evenly split while volume was down by 20% today. While most names finished nicely higher Infineon continued to fall, down another 2%, after paring their FY19 outlook yesterday.  Morgan Stanley called the move “an important reality check” for the semi space. As noted in our morning blurb Swedbank -7.8% continues lower with their CEO ousted amid their continuing AML woes.  SEB -7%, Nordea Bank -2.6%. SMA Solar fell 17% despite confirming their FY2019 sales and earnings.  The firm sees a 1Q loss of between €5M to flat.  The firm lost money last year. China’s BoP current account is due overnight along with a slew of Japanese data.  Jobs data, Tokyo inflation, Industrial Production, Retail Sales, and Vehicle Production is due, mostly just before the open.  Industrial Production is due in Korea.  Home prices and mortgage approvals are out in the UK along with GDP for the 4Q. …

European indices closed mixed with the UK’s FTSE100 the clear winner as the Pound fell today.  There, health care and consumer staples led while Chemicals ultimately led in the region.  Roughly 2/3rds of the sectors finished lower with Banks and Telcos down over a percent.  Concerning the Stoxx600 members up vs down was evenly split while volume was down by 20% today. While most names finished nicely higher Infineon continued to fall, down another 2%, after paring their FY19 outlook yesterday.  Morgan Stanley called the move “an important reality check” for the semi space. As noted in our morning blurb Swedbank -7.8% continues lower with their CEO ousted amid their continuing AML woes.  SEB -7%, Nordea Bank -2.6%. SMA Solar fell 17% despite confirming their FY2019 sales and earnings.  The firm sees a 1Q loss of between €5M to flat.  The firm lost money last year. China’s BoP current account is due overnight along with a slew of Japanese data.  Jobs data, Tokyo inflation, Industrial Production, Retail Sales, and Vehicle Production is due, mostly just before the open.  Industrial Production is due in Korea.  Home prices and mortgage approvals are out in the UK along with GDP for the 4Q. …

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