International Summary

1691 total posts

CAPIS European Close July 21, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/21/2015 at 12:26 pm
by Clayton Duff on 07/21/2015

European indices closed lower, near lows with London outperforming on the day as IT and Material names led.  Volumes again were light, off 23% with all sectors in the red.  Leading to the downside, Financials and Healthcare both finished down over 1.5%. Chemical firm Croda +5.6% beat sales estimates noting they expect to meet FY goals.  Their personal care unit showed good results with margins continuing to be strong. Admiral Group +4.5% ticked higher after vehicle insurance quotes rose 5.2% for the 2nd quarter per AA. Swatch -1.1% lower despite Swiss watch exports up 3.3% in June YoY.  Hong Kong sales fell 21% though with US sales up 4.7%. ThyssenKrupp -1.3% fell despite Jefferies noting improved margins in automotive steel with free cash flow expected to surprise to the upside. Tonight, watch for the Japanese All Industry Activity Index reading with CPI due in Australia.  In the UK, the BOE will release the minutes of their July Monetary policy committee meeting.  Italy will release Industrial orders plus retail sales.  Earnings are expected from ARM Holding, SEB, Credit Suisse, Telenor, Logitech, Danske Bank, and Lonza.

European indices closed lower, near lows with London outperforming on the day as IT and Material names led.  Volumes again were light, off 23% with all sectors in the red.  Leading to the downside, Financials and Healthcare both finished down over 1.5%. Chemical firm Croda +5.6% beat sales estimates noting they expect to meet FY goals.  Their personal care unit showed good results with margins continuing to be strong. Admiral Group +4.5% ticked higher after vehicle insurance quotes rose 5.2% for the 2nd quarter per AA. Swatch -1.1% lower despite Swiss watch exports up 3.3% in June YoY.  Hong Kong sales fell 21% though with US sales up 4.7%. ThyssenKrupp -1.3% fell despite Jefferies noting improved margins in automotive steel with free cash flow expected to surprise to the upside. Tonight, watch for the Japanese All Industry Activity Index reading with CPI due in Australia.  In the UK, the BOE will release the minutes of their July Monetary policy committee meeting.  Italy will release Industrial orders plus retail sales.  Earnings are expected from ARM Holding, SEB, Credit Suisse, Telenor, Logitech, Danske Bank, and Lonza.

CAPIS International Summary July 21, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/21/2015 at 7:31 am
by Matthew Kiselica on 07/21/2015

Asian Headlines Japan reopened from its 3 day weekend to trade to the upside.  BoJ minutes from the June 18th meeting showed that while most members believe QE is having the desire effects, some members believe the impact may be diminishing.  This sparked hopes of further easing or at the very least further extension of current measures.  The majority of sectors advanced with consumer services and healthcare leading.  Energy created the biggest drag.  As a general comment, energy and basic resources were lower across the region and capped gains.  The Japanese corporate story of the day was Toshiba +6.1%.  A third party investigator stated the company’s oper. profit was overstated by $1.22b due to the accounting scandal.  True to earlier rumors, the CEO and several other top executives resigned after the close. China initially traded lower but rallied over the course of the day.  The PBoC said it will “maintain prudent monetary policy” and keep liquidity at a moderate level.  It did inject more liquidity today. The Securities Journal reported some of China’s margin lenders were asking clients to sell stocks in an attempt to reduce exposure.  There were a number of key corporate releases.  China Pacific Ins +3.8% sees…

Asian Headlines Japan reopened from its 3 day weekend to trade to the upside.  BoJ minutes from the June 18th meeting showed that while most members believe QE is having the desire effects, some members believe the impact may be diminishing.  This sparked hopes of further easing or at the very least further extension of current measures.  The majority of sectors advanced with consumer services and healthcare leading.  Energy created the biggest drag.  As a general comment, energy and basic resources were lower across the region and capped gains.  The Japanese corporate story of the day was Toshiba +6.1%.  A third party investigator stated the company’s oper. profit was overstated by $1.22b due to the accounting scandal.  True to earlier rumors, the CEO and several other top executives resigned after the close. China initially traded lower but rallied over the course of the day.  The PBoC said it will “maintain prudent monetary policy” and keep liquidity at a moderate level.  It did inject more liquidity today. The Securities Journal reported some of China’s margin lenders were asking clients to sell stocks in an attempt to reduce exposure.  There were a number of key corporate releases.  China Pacific Ins +3.8% sees…

CAPIS European Close July 20, 2015

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International Summary

posted by Clayton Duff on 07/20/2015 at 11:23 am
by Clayton Duff on 07/20/2015

A generally higher finish to the day but markets did give up gains beginning at the US market open.   Volumes were a dismal 30% slower with a dearth of economic news to operate from.   Technology closed up .84% with Basic Resources, Media, and Energy somewhat weaker. Swedish Match +2.3% ended higher post seeing 2Q sales up 9% but just light of estimates. They noted currency effects will be positive on both sales and operating profit. Tullow Oil -5.2% a big underperformer today as technical issues at a Ghana plant have prompted the firm to suspend gas exports at the location. Rolls Royce +.4% up small despite winning two large contracts with one in Saudi Arabia and one in France. Finmeccanica +3% Rosneft has placed an order for 150 helicopters from a JV that will see Rosneft now hold 30% of the firm with AgustaWestland holding 40% and Russian Helicopters holding 30%. Tonight, Chinese FDI should be released with Japanese department store sales out before the close.  RBA minutes will be released in Australia.   Tomorrow, earnings expected from Norsk Hydro, Novartis, Akzo Nobel, Actelion, Yara, Stora Enso, Croda, Temenos, and TomTom.  

A generally higher finish to the day but markets did give up gains beginning at the US market open.   Volumes were a dismal 30% slower with a dearth of economic news to operate from.   Technology closed up .84% with Basic Resources, Media, and Energy somewhat weaker. Swedish Match +2.3% ended higher post seeing 2Q sales up 9% but just light of estimates. They noted currency effects will be positive on both sales and operating profit. Tullow Oil -5.2% a big underperformer today as technical issues at a Ghana plant have prompted the firm to suspend gas exports at the location. Rolls Royce +.4% up small despite winning two large contracts with one in Saudi Arabia and one in France. Finmeccanica +3% Rosneft has placed an order for 150 helicopters from a JV that will see Rosneft now hold 30% of the firm with AgustaWestland holding 40% and Russian Helicopters holding 30%. Tonight, Chinese FDI should be released with Japanese department store sales out before the close.  RBA minutes will be released in Australia.   Tomorrow, earnings expected from Norsk Hydro, Novartis, Akzo Nobel, Actelion, Yara, Stora Enso, Croda, Temenos, and TomTom.  

CAPIS “Marine Day” International Summary July 20th, 2015

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International Summary

posted by Clayton Duff on 07/20/2015 at 7:10 am
by Clayton Duff on 07/20/2015

Asian Headlines While Japan was closed for Marine Day, most of the rest of the region worked lower with commodity names seeing pressure, as a general comment.  Gold names around the region were hit especially hard. Mainland China managed to advance with two key headlines dominating the day.  Over the weekend, China enacted measures to gain further control over internet financing for trading activities.  The PBoC stated investor funds must be held at banks or internet finance firms and must receive approval from financial as well as cyberspace regulators.   There was mixed reaction to June New Home Prices which fell in 33 of the 70 cities tracked m/m.  That compares to 41 cities during May.  A number of names traded to the upside during the afternoon session. China Vanke +1.3%.  Approximately 20.0% of mainland listings remain suspended from trading. South Korea’s LG Chem -1.7% initially traded well following Q2 OP of 563.4b won vs. the 506b estimate and planning to delist its GDR on the London Stock Exchange.  However, the shares moved lower over the course of the day. In Australia, the banking sector moved to the upside after regulators raised the capital requirement ratio but that will not take effect for over a…

Asian Headlines While Japan was closed for Marine Day, most of the rest of the region worked lower with commodity names seeing pressure, as a general comment.  Gold names around the region were hit especially hard. Mainland China managed to advance with two key headlines dominating the day.  Over the weekend, China enacted measures to gain further control over internet financing for trading activities.  The PBoC stated investor funds must be held at banks or internet finance firms and must receive approval from financial as well as cyberspace regulators.   There was mixed reaction to June New Home Prices which fell in 33 of the 70 cities tracked m/m.  That compares to 41 cities during May.  A number of names traded to the upside during the afternoon session. China Vanke +1.3%.  Approximately 20.0% of mainland listings remain suspended from trading. South Korea’s LG Chem -1.7% initially traded well following Q2 OP of 563.4b won vs. the 506b estimate and planning to delist its GDR on the London Stock Exchange.  However, the shares moved lower over the course of the day. In Australia, the banking sector moved to the upside after regulators raised the capital requirement ratio but that will not take effect for over a…

CAPIS European Close July 17, 2015

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International Summary

posted by Clayton Duff on 07/17/2015 at 11:43 am
by Clayton Duff on 07/17/2015

A small bias to the downside by day’s end today in Europe.  On another volatile week indices closed up roughly 3-4% with the FTSE only better by half that. There was an even split of sectors up vs down with Financials and Travel names leading while Energy slipped.   Volume was ultimately 23% slower vs recent activity.  As noted earlier, German lawmakers approved the Greek bailout terms.  The € is now near day’s low, trading currently at the mid 1.08’s. The BOE’s Carney said he sees rates increasing over the next 3 years, noting inflation pressures will firm up by the end of this year.  He noted rates rill rise gradually and to level about half that of historic averages. Fragrance/flavor-maker Givaudan +4% reported better ebidta as margin ticked up to 19.6% for ebit.  They reaffirmed FY expectations with organic growth of 4.5-5.5% over the year seen. Assa Abloy +3% locked up some nice gains today after reporting better than expected numbers.  However, the CEO noted they see a 5-10% decline in China. Matt’s “go-to” cashmere-maker Cucinelli +4% sewed up some decent gains today post reporting 1H sales ahead of estimates.  The US and Hong Kong both saw strength with limited Chinese exposure helping.…

A small bias to the downside by day’s end today in Europe.  On another volatile week indices closed up roughly 3-4% with the FTSE only better by half that. There was an even split of sectors up vs down with Financials and Travel names leading while Energy slipped.   Volume was ultimately 23% slower vs recent activity.  As noted earlier, German lawmakers approved the Greek bailout terms.  The € is now near day’s low, trading currently at the mid 1.08’s. The BOE’s Carney said he sees rates increasing over the next 3 years, noting inflation pressures will firm up by the end of this year.  He noted rates rill rise gradually and to level about half that of historic averages. Fragrance/flavor-maker Givaudan +4% reported better ebidta as margin ticked up to 19.6% for ebit.  They reaffirmed FY expectations with organic growth of 4.5-5.5% over the year seen. Assa Abloy +3% locked up some nice gains today after reporting better than expected numbers.  However, the CEO noted they see a 5-10% decline in China. Matt’s “go-to” cashmere-maker Cucinelli +4% sewed up some decent gains today post reporting 1H sales ahead of estimates.  The US and Hong Kong both saw strength with limited Chinese exposure helping.…

CAPIS International Summary July 17th, 2015

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International Summary

posted by Matthew Kiselica on 07/17/2015 at 7:04 am
by Matthew Kiselica on 07/17/2015

Asian Headlines Mainland Chinese markets had a solid day trading better than 3% to the upside.  Chinese authorities granted brokers permission to expand their proprietary trading activities.  This was viewed as another measure to support the markets and taken as a positive.  Bloomberg reported the China Sec. Finance Corp. has CNY 2.5t to 3t ($483b) to support the stock market.  Also, more companies made statements regarding share purchases.  China Vanke -1.5% intends to buyback up to CNY 10b A shares while China Life +1.1% pledged it would continue to purchase A shares.  China LNG Grp -17.1% did not take part in today’s rally after U.S. based Glaucus Research made negative statements about the company.  In Taiwan, TSMC +2.6% saw positive broker comments following yesterday’s Q2 NI beat even though its forecasts for Q3 lagged expectations. S. Korea underperformed with the Samsung Group was in focus as shareholders approved the controversial Cheil Ind. -7.7% and Samsung C&T -10.4% merger despite opposition from activist investors such as Elliot Assoc.  Samsung Heavy -12.4% fell like a lead balloon after local media reports alleged the company will post a record KRW 1t loss for Q2.  The company declined to comment.  June PPI fell 3.6% y/y following May’s…

Asian Headlines Mainland Chinese markets had a solid day trading better than 3% to the upside.  Chinese authorities granted brokers permission to expand their proprietary trading activities.  This was viewed as another measure to support the markets and taken as a positive.  Bloomberg reported the China Sec. Finance Corp. has CNY 2.5t to 3t ($483b) to support the stock market.  Also, more companies made statements regarding share purchases.  China Vanke -1.5% intends to buyback up to CNY 10b A shares while China Life +1.1% pledged it would continue to purchase A shares.  China LNG Grp -17.1% did not take part in today’s rally after U.S. based Glaucus Research made negative statements about the company.  In Taiwan, TSMC +2.6% saw positive broker comments following yesterday’s Q2 NI beat even though its forecasts for Q3 lagged expectations. S. Korea underperformed with the Samsung Group was in focus as shareholders approved the controversial Cheil Ind. -7.7% and Samsung C&T -10.4% merger despite opposition from activist investors such as Elliot Assoc.  Samsung Heavy -12.4% fell like a lead balloon after local media reports alleged the company will post a record KRW 1t loss for Q2.  The company declined to comment.  June PPI fell 3.6% y/y following May’s…

CAPIS European Close July 16, 2015

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International Summary

posted by Clayton Duff on 07/16/2015 at 11:40 am
by Clayton Duff on 07/16/2015

European markets held onto gains post the ECB leaving rates unchanged as expected.  Draghi noted QE is working and will continue to be in force until inflation is sustained.  They see inflation rising later this year with a decent pickup next year and after with higher oil prices helping.  On the weaker €, Eurozone exports are expected to benefit. On the Greek front the ELA was raised by €900M to a now total of €89.9B. (Greek deposit outflows hit €8.18B in June). To note, Greek banks are expected to open Monday. In the market, all sectors closed to the upside with Autos and Industrials up 2%.  Tech and Energy managed small gains with volume down 7% on the day. Atlas Copco +10.4% rebounding after recent weakness post reporting 2Q numbers noting they see better demand and margins. Alfa Laval +12.5% also trading better on better 2Q readings despite noting they expect 3Q inline demand on weakness from oil and gas customers. Anglo American +1.8% said 2Q copper output fell 5% YoY with nickel output down 41%. The firm expects to record a non-cash impairment of $3B to $4B on iron-ore assets and coal mines. In the supermarket space, Carrefour +2.8% registered higher…

European markets held onto gains post the ECB leaving rates unchanged as expected.  Draghi noted QE is working and will continue to be in force until inflation is sustained.  They see inflation rising later this year with a decent pickup next year and after with higher oil prices helping.  On the weaker €, Eurozone exports are expected to benefit. On the Greek front the ELA was raised by €900M to a now total of €89.9B. (Greek deposit outflows hit €8.18B in June). To note, Greek banks are expected to open Monday. In the market, all sectors closed to the upside with Autos and Industrials up 2%.  Tech and Energy managed small gains with volume down 7% on the day. Atlas Copco +10.4% rebounding after recent weakness post reporting 2Q numbers noting they see better demand and margins. Alfa Laval +12.5% also trading better on better 2Q readings despite noting they expect 3Q inline demand on weakness from oil and gas customers. Anglo American +1.8% said 2Q copper output fell 5% YoY with nickel output down 41%. The firm expects to record a non-cash impairment of $3B to $4B on iron-ore assets and coal mines. In the supermarket space, Carrefour +2.8% registered higher…

CAPIS International Summary July 16th, 2015

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International Summary

posted by Matthew Kiselica on 07/16/2015 at 7:13 am
by Matthew Kiselica on 07/16/2015

Asian Headlines Perhaps we need to start spelling volatility as C-H-I-N-A?   The Chinese markets continued yesterday’s selling by opening lower.  Shanghai and Shenzhen fell by c. 3% and Hong Kong c. 1% shortly after the local open.  However, the markets quickly pared those losses and the major indices closed to the upside.  Most sectors ended the day higher and property names traded well.  However, financials with trading exposure were weaker with regulators investigating margin finance activities of Hundsun Tech -10.0%.  Yesterday, China Life +1.3% disclosed it had sold its 30m A-share stake in Citic Securities -0.2%.  Luk Fook’s (-1.3%) Q2 same store sales fell 18% y/y.  China Railway Group +1.0% raised 12b yuan by selling 1.54b new shares to 7 investors. A weakening ¥ helped Japan move ahead as the currency threatened 124 with its low of the day vs. the US$ being 123.97.   The head of the GPIF stated the pension plan is near the end of its asset reallocation move from 60% domestic debt to 35% while increasing equity holdings.  However, there was no rush to complete the move just to reach the projected targets.  Reuters reported Toshiba -1.5% could face ¥300-400b in fines due to its accounting scandal.  Glenn’s favorite Japanese…

Asian Headlines Perhaps we need to start spelling volatility as C-H-I-N-A?   The Chinese markets continued yesterday’s selling by opening lower.  Shanghai and Shenzhen fell by c. 3% and Hong Kong c. 1% shortly after the local open.  However, the markets quickly pared those losses and the major indices closed to the upside.  Most sectors ended the day higher and property names traded well.  However, financials with trading exposure were weaker with regulators investigating margin finance activities of Hundsun Tech -10.0%.  Yesterday, China Life +1.3% disclosed it had sold its 30m A-share stake in Citic Securities -0.2%.  Luk Fook’s (-1.3%) Q2 same store sales fell 18% y/y.  China Railway Group +1.0% raised 12b yuan by selling 1.54b new shares to 7 investors. A weakening ¥ helped Japan move ahead as the currency threatened 124 with its low of the day vs. the US$ being 123.97.   The head of the GPIF stated the pension plan is near the end of its asset reallocation move from 60% domestic debt to 35% while increasing equity holdings.  However, there was no rush to complete the move just to reach the projected targets.  Reuters reported Toshiba -1.5% could face ¥300-400b in fines due to its accounting scandal.  Glenn’s favorite Japanese…

CAPIS European Close July 15, 2015

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International Summary

posted by Clayton Duff on 07/15/2015 at 11:58 am
by Clayton Duff on 07/15/2015

Ahead of tomorrow’s ECB meeting and this afternoon’s Greek parliament vote, European markets were content to trade only slightly higher on the session.  This post good economic results from China and Fed Head Yellen noting a rate increase in the US is still in the cards despite employment not yet where it should be.  Autos slipped .45% today with Industrials off .11% as SKF weighed.  On the upside, Utilities and Technology (think ASML) both closed up over a percent with volume on the day down a disappointing 20%. The Loonie moved to levels not seen since March of 2009 after the BoC cut rates 25bps to .5%. They noted the Canadian economy was in the midst of significant and complete adjustments with monetary stimulus in order. Concerns over weaker housing and the continuation of low oil prices weighed. Fiat +3% accelerated higher  post a NYC story where CEO Marchionne said, “I was rebuffed once, and I won’t go back to get my nose bloodied a second time” pertaining to a takeover request from GM. Also, Credit Suisse rated the new a new outperform. Vodafone -.9% underperformed the sector post Goldman cutting the name to Neutral from Buy. Crop protection firm Syngenta…

Ahead of tomorrow’s ECB meeting and this afternoon’s Greek parliament vote, European markets were content to trade only slightly higher on the session.  This post good economic results from China and Fed Head Yellen noting a rate increase in the US is still in the cards despite employment not yet where it should be.  Autos slipped .45% today with Industrials off .11% as SKF weighed.  On the upside, Utilities and Technology (think ASML) both closed up over a percent with volume on the day down a disappointing 20%. The Loonie moved to levels not seen since March of 2009 after the BoC cut rates 25bps to .5%. They noted the Canadian economy was in the midst of significant and complete adjustments with monetary stimulus in order. Concerns over weaker housing and the continuation of low oil prices weighed. Fiat +3% accelerated higher  post a NYC story where CEO Marchionne said, “I was rebuffed once, and I won’t go back to get my nose bloodied a second time” pertaining to a takeover request from GM. Also, Credit Suisse rated the new a new outperform. Vodafone -.9% underperformed the sector post Goldman cutting the name to Neutral from Buy. Crop protection firm Syngenta…

CAPIS International Summary July 15th, 2015

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International Summary

posted by Matthew Kiselica on 07/15/2015 at 6:57 am
by Matthew Kiselica on 07/15/2015

Asian Headlines China dominated the regional news today and once again saw selling pressure.  Q2 GDP was 7.0% which was better than consensus of 6.8%.  Also, Industrial output in June rose 6.8% while retail sales increased 10.6% both surpassing expectations.  All of these data points were lauded by the government that their stimulus efforts are having the desired effect.  The official statistics bureau even took the unprecedented step of stating the day’s data was reliable and was in no manner “padded.”  (CNBC)  However, the data only served to provide more jitters for investors who feared easing efforts would be eased, for lack of a better word.  Chinese markets quickly reversed direction and spent the day lower especially on the mainland. Having said the above, the rest of the region traded better.   The BoJ  maintained its current policy and will continue to expand its monetary base at ¥80t annually.  The central bank did reduce its FY GDP target to 1.7% while also reducing FY17 and FY18 CPI outloosk to 1.7% and 0.7%, respectively.  Its CPI target remains 2% to be achieved in H2 of ’16.  The continued policy along with the inflation outlook helped the ¥ move higher which helped the…

Asian Headlines China dominated the regional news today and once again saw selling pressure.  Q2 GDP was 7.0% which was better than consensus of 6.8%.  Also, Industrial output in June rose 6.8% while retail sales increased 10.6% both surpassing expectations.  All of these data points were lauded by the government that their stimulus efforts are having the desired effect.  The official statistics bureau even took the unprecedented step of stating the day’s data was reliable and was in no manner “padded.”  (CNBC)  However, the data only served to provide more jitters for investors who feared easing efforts would be eased, for lack of a better word.  Chinese markets quickly reversed direction and spent the day lower especially on the mainland. Having said the above, the rest of the region traded better.   The BoJ  maintained its current policy and will continue to expand its monetary base at ¥80t annually.  The central bank did reduce its FY GDP target to 1.7% while also reducing FY17 and FY18 CPI outloosk to 1.7% and 0.7%, respectively.  Its CPI target remains 2% to be achieved in H2 of ’16.  The continued policy along with the inflation outlook helped the ¥ move higher which helped the…

CAPIS European Close July 14th, 2015

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International Summary

posted by Matthew Kiselica on 07/14/2015 at 11:43 am
by Matthew Kiselica on 07/14/2015

The majority of the European indices improved in the afternoon and turned green as the U.S. markets traded higher.  Food/bevies, energy, healthcare and telecoms all gained about 0.8% on the day which is an interesting mix.  Autos were the worst performer down about the same with basic resources and financials the only other sectors to end the day lower.  Volumes were weaker by c. 25.0%. Concerns about China and a slowdown in sales there hampered autos.  Reports continue to focus upon lower margins and expanded incentives to attract purchasers and reduce inventory. The names we highlighted this morning ended the day as follows: Kuehne & Nagel +2.2%, SEB -2.2% and Michael Paige -2.3%.  The £ moved higher when BoE Gov. Carney stated “the point at which interest rates may begin to rise is moving closer given the performance of the economy.” The currency moved from below 1.55 to better than 1.56 before paring gains.  (see chart below)  Forward rates did not foresee a hike until May of next year. (Bloomberg)  These comments also prompted U.K. builders to move lower. Crude had an interesting trading day with the Iranian nuclear deal pushing the commodity’s prices lower and WTI trading below $51 briefly.  However, it…

The majority of the European indices improved in the afternoon and turned green as the U.S. markets traded higher.  Food/bevies, energy, healthcare and telecoms all gained about 0.8% on the day which is an interesting mix.  Autos were the worst performer down about the same with basic resources and financials the only other sectors to end the day lower.  Volumes were weaker by c. 25.0%. Concerns about China and a slowdown in sales there hampered autos.  Reports continue to focus upon lower margins and expanded incentives to attract purchasers and reduce inventory. The names we highlighted this morning ended the day as follows: Kuehne & Nagel +2.2%, SEB -2.2% and Michael Paige -2.3%.  The £ moved higher when BoE Gov. Carney stated “the point at which interest rates may begin to rise is moving closer given the performance of the economy.” The currency moved from below 1.55 to better than 1.56 before paring gains.  (see chart below)  Forward rates did not foresee a hike until May of next year. (Bloomberg)  These comments also prompted U.K. builders to move lower. Crude had an interesting trading day with the Iranian nuclear deal pushing the commodity’s prices lower and WTI trading below $51 briefly.  However, it…

CAPIS International Summary July 14,2015

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International Summary

posted by Clayton Duff on 07/14/2015 at 6:52 am
by Clayton Duff on 07/14/2015

Asian Headlines Mixed returns overnight in Asia with China/Hong Kong and the Kospi pulling back slightly while the Nikkei and Australia rallied. China’s credit expanded in June as aggregate financing ended at 1.86t yuan, well ahead of all estimates. China’s foreign exchange reserves fell by the least in a year in the Q2 by $40b to $3.69t., the lowest since 2013.  Money supply grew as well.  200 more A shares resumed trading with 785 names still halted.  Zijin Mining fell .9% after the company said it sees a 20% H1 profit y/y.  In the US, Micron is indicating higher today after China’s Unigroup is said to plan a $23B bid for the company.  Galaxy Ent. Group +3.8% / Sands China +4.9% traded higher with Macau Business noting the government may pull back its ban on gaming floor smoking rooms. Japan rallied with the ¥ weaker to flattish on the day as Energy and IT names led. Sony -1.2% plans to raise ¥300b in a new share sale to raise funds to boost its chip making capacity.  Nomura +4.7% will to own a 20% stake in a JV with Japan Post bank concerning a new asset management company.  The bank also said they expect an increase in account…

Asian Headlines Mixed returns overnight in Asia with China/Hong Kong and the Kospi pulling back slightly while the Nikkei and Australia rallied. China’s credit expanded in June as aggregate financing ended at 1.86t yuan, well ahead of all estimates. China’s foreign exchange reserves fell by the least in a year in the Q2 by $40b to $3.69t., the lowest since 2013.  Money supply grew as well.  200 more A shares resumed trading with 785 names still halted.  Zijin Mining fell .9% after the company said it sees a 20% H1 profit y/y.  In the US, Micron is indicating higher today after China’s Unigroup is said to plan a $23B bid for the company.  Galaxy Ent. Group +3.8% / Sands China +4.9% traded higher with Macau Business noting the government may pull back its ban on gaming floor smoking rooms. Japan rallied with the ¥ weaker to flattish on the day as Energy and IT names led. Sony -1.2% plans to raise ¥300b in a new share sale to raise funds to boost its chip making capacity.  Nomura +4.7% will to own a 20% stake in a JV with Japan Post bank concerning a new asset management company.  The bank also said they expect an increase in account…

EUphoric European Close July 13, 2015

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International Summary

posted by Matthew Kiselica on 07/13/2015 at 11:37 am
by Matthew Kiselica on 07/13/2015

The EUphoria over the latest Greek deal kept all of the major indices to the upside with many closing at or near their highs.  All sectors were in the green with basic resources up 3%.  Advancing by 2% or more included banks, retail, media and insurance.  Autos were the only sector that failed to advance by at least 1%.  Volumes trailed off during the afternoon to end the day about 10.0% lower. The € continually moved lower during the afternoon with a LOD of the day being 1.1006. The ECB elected to maintain the ELA at current levels.  The Greek 10 yr. yield improved by 148 bps with the majority of yields for the rest of the region also falling just not as dramatically. BMW -0.2% underperformed with its Chinese jv partner Brilliance China % issuing a profit warning citing costs related to the jv. The healthcare sector saw positive study releases from Roche +1.5% and Novo Nordisk +2.5% while Deutsche Bk upgraded Sanofi +2.5% to  buy.  M&A within the chemicals space remains a theme with Alent +44.0% (yes, 44.0!)  being purchased by privately held Platform Specialty Products. After the close, CVC announced it was selling its 2.6% stake in Evonik Ind. via…

The EUphoria over the latest Greek deal kept all of the major indices to the upside with many closing at or near their highs.  All sectors were in the green with basic resources up 3%.  Advancing by 2% or more included banks, retail, media and insurance.  Autos were the only sector that failed to advance by at least 1%.  Volumes trailed off during the afternoon to end the day about 10.0% lower. The € continually moved lower during the afternoon with a LOD of the day being 1.1006. The ECB elected to maintain the ELA at current levels.  The Greek 10 yr. yield improved by 148 bps with the majority of yields for the rest of the region also falling just not as dramatically. BMW -0.2% underperformed with its Chinese jv partner Brilliance China % issuing a profit warning citing costs related to the jv. The healthcare sector saw positive study releases from Roche +1.5% and Novo Nordisk +2.5% while Deutsche Bk upgraded Sanofi +2.5% to  buy.  M&A within the chemicals space remains a theme with Alent +44.0% (yes, 44.0!)  being purchased by privately held Platform Specialty Products. After the close, CVC announced it was selling its 2.6% stake in Evonik Ind. via…

CAPIS International Summary July 13, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/13/2015 at 6:45 am
by Clayton Duff on 07/13/2015

Asian Headlines Asian markets kicked off the week to the upside with Shanghai again leading higher, its third straight up day. China’s exports rose for the first time in four months in June 2.1% YoY, besting the 1.2% growth estimate. Imports fell 6.7% but that was better than May’s 18.15% drop. On that a trade surplus of 284.2B yuan was reported. Markets rallied despite 200 A-shares seeing their trading halts lifted. Regulators have told brokerages to further scrutinize account-openings but will allow securities companies to issue short-term debt. The CSRC also said it will not suspend IPO approval procedures but said IPO amounts and deal size will fall.  Great Wall Motor -13.3% skidding lower as the company plans to raise as much as $2.7b in a private share placement. The company also saw several rating downgrades. China Oilfield Services -2% lower as they expect 1H net to fall 80%. The Nikkei closed higher, led by Consumer Staples and Utilities.  Later in the session Industrial Production was reported to have fallen 2.1% MoM with Capacity utilization also weaker. Toshiba -1.3% lower after the Nikkei reports securities regulators will investigate the co. as the president is expected to step down. The Tokyo…

Asian Headlines Asian markets kicked off the week to the upside with Shanghai again leading higher, its third straight up day. China’s exports rose for the first time in four months in June 2.1% YoY, besting the 1.2% growth estimate. Imports fell 6.7% but that was better than May’s 18.15% drop. On that a trade surplus of 284.2B yuan was reported. Markets rallied despite 200 A-shares seeing their trading halts lifted. Regulators have told brokerages to further scrutinize account-openings but will allow securities companies to issue short-term debt. The CSRC also said it will not suspend IPO approval procedures but said IPO amounts and deal size will fall.  Great Wall Motor -13.3% skidding lower as the company plans to raise as much as $2.7b in a private share placement. The company also saw several rating downgrades. China Oilfield Services -2% lower as they expect 1H net to fall 80%. The Nikkei closed higher, led by Consumer Staples and Utilities.  Later in the session Industrial Production was reported to have fallen 2.1% MoM with Capacity utilization also weaker. Toshiba -1.3% lower after the Nikkei reports securities regulators will investigate the co. as the president is expected to step down. The Tokyo…

CAPIS European Close July 10, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/10/2015 at 1:00 pm
by Clayton Duff on 07/10/2015

Green on the screen to close out a volatile week with hopes for a 3rd bailout deal with Greece adding to the sentiment. This of course after we saw China’s continued rebound session last night. All sectors finished higher with Chemicals up 3% on the day.  Energy and Basic Resources closed up 1% to round out the bottom of performance.   Concerning the new Greek proposal, not only is there continued resistance by some Syriza party members but we saw markets move off from highs on a headline from Lithuanian’s President.  She noted the proposals are insufficient and “will have to be seriously amended”.  From there though markets moved back to higher levels with the SX5E up 2.53% on the week. As noted Chemicals led, this post HSBC noting they see European chemicals back to normal in the 2H after a “strong patch” of strong earnings sessions.  They did add though there will be a low for longer growth with low capacity utilization. Munich Re +3.4% traded higher after its Ergo unit said they may not acquire Greece’s ATE Insurance in light of the country’s instability. British American Tobacco +1.7% finished higher on a news story noting the firm will close…

Green on the screen to close out a volatile week with hopes for a 3rd bailout deal with Greece adding to the sentiment. This of course after we saw China’s continued rebound session last night. All sectors finished higher with Chemicals up 3% on the day.  Energy and Basic Resources closed up 1% to round out the bottom of performance.   Concerning the new Greek proposal, not only is there continued resistance by some Syriza party members but we saw markets move off from highs on a headline from Lithuanian’s President.  She noted the proposals are insufficient and “will have to be seriously amended”.  From there though markets moved back to higher levels with the SX5E up 2.53% on the week. As noted Chemicals led, this post HSBC noting they see European chemicals back to normal in the 2H after a “strong patch” of strong earnings sessions.  They did add though there will be a low for longer growth with low capacity utilization. Munich Re +3.4% traded higher after its Ergo unit said they may not acquire Greece’s ATE Insurance in light of the country’s instability. British American Tobacco +1.7% finished higher on a news story noting the firm will close…

CAPIS International Summary July 10th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/10/2015 at 8:02 am
by Matthew Kiselica on 07/10/2015

Asian Headlines Chinese markets built upon yesterday’s gains as investors continued to respond to the previous measures to support the market.  Given today’s advance, the Shanghai Composite has now risen more than 12.0% over the past few sessions.  That is roughly 1/3 of the index’s recent collapse.  All sectors advanced with most by 4% or more.  Financials lagged seeing mixed performance in the banking sector.  Some of the shares that have been halted are trading again with the number of those still on the sideline c. 47.0%.  Following the recent plunge on the mainland, JP Morgan raised its A share rating to neutral.  Chalco’s +10.2% controlling shareholder intends to purchase up to CNY 640m of shares.  China Gas +0.85% purchased 3.2m of its own shares. The Chinese Auto Assoc. has cut it vehicle sales growth to 3% from 7% following the disappointing June sales data.  Taiwan was closed due to Typhoon Chan-hom. Most Japanese indices made modest gains.  However, the Nikkei was lower weighed down by the disappointing outlook from Fast Retailing -6.0% we highlighted yesterday.  The stock’s decline erased c. 135 points from the Nikkei 250.   The Nikkei reported the BoJ may cut its 2015 GDP forecast to as…

Asian Headlines Chinese markets built upon yesterday’s gains as investors continued to respond to the previous measures to support the market.  Given today’s advance, the Shanghai Composite has now risen more than 12.0% over the past few sessions.  That is roughly 1/3 of the index’s recent collapse.  All sectors advanced with most by 4% or more.  Financials lagged seeing mixed performance in the banking sector.  Some of the shares that have been halted are trading again with the number of those still on the sideline c. 47.0%.  Following the recent plunge on the mainland, JP Morgan raised its A share rating to neutral.  Chalco’s +10.2% controlling shareholder intends to purchase up to CNY 640m of shares.  China Gas +0.85% purchased 3.2m of its own shares. The Chinese Auto Assoc. has cut it vehicle sales growth to 3% from 7% following the disappointing June sales data.  Taiwan was closed due to Typhoon Chan-hom. Most Japanese indices made modest gains.  However, the Nikkei was lower weighed down by the disappointing outlook from Fast Retailing -6.0% we highlighted yesterday.  The stock’s decline erased c. 135 points from the Nikkei 250.   The Nikkei reported the BoJ may cut its 2015 GDP forecast to as…

CAPIS European Close July 9, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/09/2015 at 11:48 am
by Clayton Duff on 07/09/2015

Markets steadily worked higher today after Shanghai found support at its 200 day post a promise of liquidity from the government.  There is little new news out of Greece with tonight the deadline for a final plan submittal concerning a third bailout. Any submission with be reviewed during Sunday’s Eurogroup meeting. Volumes were a disappointing 12% slower as indices rallied.  All sectors finished to the upside with Banks and Insurers just shy of 3% gains with Energy and Industrials laggards, up shy of 2%. Sanofi +2.7% ticked higher after a Japanese study revealed a 64% reduction in LDL Cholesterol for patients using the co’s Regeneron. Pipeline builder Saipem -2.3% fell as Gazprom cancelled a $2.2B contract for the firm to construct a nat-gas pipeline under the Black Sea. On the contract win side, Gamesa +4.1% worked higher post a contract win in Thailand. Concerning names that we highlighted this morning: BMW +2.1%, Barratt Developments +4.4%, Balfour Beatty -3.6%, Bwin +1.7%, Air France +3.6%, and Lufthansa +3.3%. Link to this morning’s piece: International Summary Japanese PPI tonight followed by UK Construction output and Spanish CPI.  Earnings expected from DNB and Tryg.              

Markets steadily worked higher today after Shanghai found support at its 200 day post a promise of liquidity from the government.  There is little new news out of Greece with tonight the deadline for a final plan submittal concerning a third bailout. Any submission with be reviewed during Sunday’s Eurogroup meeting. Volumes were a disappointing 12% slower as indices rallied.  All sectors finished to the upside with Banks and Insurers just shy of 3% gains with Energy and Industrials laggards, up shy of 2%. Sanofi +2.7% ticked higher after a Japanese study revealed a 64% reduction in LDL Cholesterol for patients using the co’s Regeneron. Pipeline builder Saipem -2.3% fell as Gazprom cancelled a $2.2B contract for the firm to construct a nat-gas pipeline under the Black Sea. On the contract win side, Gamesa +4.1% worked higher post a contract win in Thailand. Concerning names that we highlighted this morning: BMW +2.1%, Barratt Developments +4.4%, Balfour Beatty -3.6%, Bwin +1.7%, Air France +3.6%, and Lufthansa +3.3%. Link to this morning’s piece: International Summary Japanese PPI tonight followed by UK Construction output and Spanish CPI.  Earnings expected from DNB and Tryg.              

CAPIS International Summary July 9th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/09/2015 at 7:07 am
by Matthew Kiselica on 07/09/2015

Asian Headlines They used to say “as GM goes so goes the Nation.”  Well apparently, as Mainland China goes so goes the rest of the Asia.  Most markets opened to the downside and remained there when China also opened weaker.  However, a dramatic rally in the Sino markets lifted the rest of the region out of the red or least well off their lows. The Shanghai Composite moved by over 11.0% intraday to post its largest percentage gain since ’09. (see chart below)  Once again, China announce further measures in an attempt to end the markets plunge.  Shareholders of positions exceeding 5% and company executives cannot sell positions for 6 months.  There were also reports banks were being allowed to roll the stock collateral loans we mentioned yesterday.  Furthermore and perhaps the primary driver of today’s rally, CNBC stated market chatter indicated authorities were “on the cusp” of taken further more dramatic action.  All major sectors rallied with most well over 5%.  Financials saw the smallest bounce with an advance of “only” 4.7%. Approximately 50% of A shares remain suspended.  June’s CPI increased 1.4% y/y just ahead of the 1.3% estimate.  PPI fell 4.8% extending declines for more than three years. Please be…

Asian Headlines They used to say “as GM goes so goes the Nation.”  Well apparently, as Mainland China goes so goes the rest of the Asia.  Most markets opened to the downside and remained there when China also opened weaker.  However, a dramatic rally in the Sino markets lifted the rest of the region out of the red or least well off their lows. The Shanghai Composite moved by over 11.0% intraday to post its largest percentage gain since ’09. (see chart below)  Once again, China announce further measures in an attempt to end the markets plunge.  Shareholders of positions exceeding 5% and company executives cannot sell positions for 6 months.  There were also reports banks were being allowed to roll the stock collateral loans we mentioned yesterday.  Furthermore and perhaps the primary driver of today’s rally, CNBC stated market chatter indicated authorities were “on the cusp” of taken further more dramatic action.  All major sectors rallied with most well over 5%.  Financials saw the smallest bounce with an advance of “only” 4.7%. Approximately 50% of A shares remain suspended.  June’s CPI increased 1.4% y/y just ahead of the 1.3% estimate.  PPI fell 4.8% extending declines for more than three years. Please be…

CAPIS European Close July 8th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/08/2015 at 11:04 am
by Matthew Kiselica on 07/08/2015

As we noted this morning, Greece has submitted an official request for a new, 3 yr. bailout package.  The report indicated the tone of the request letter had removed some of the harsher rhetoric and requests.  Some of the items which may now be more palatable to the Eurogroup include an opportunity to review outstanding debt opposed to the demand for a restructuring, also a list outlining why the creditors are at “fault” for the current crisis has been removed.  Greece has extended its banking “holiday” and capital controls for the 2nd time until Friday.  After the close, the ECB elected to maintain the ELA at current levels. Most of the major indices remained fairly well in the green but off of their highs on the day.  Interestingly, a number of the fairly broad indices such as the Eurostoxx600 underperformed. The U.K.’s Chancellor of the Exchequer Osbourne outlined the Conservative Party’s first budget since the elections in May.  Some of the key points were: corporate tax to be reduced to 18% in ’20 from the currentg 20%.  As a bone to banks which have threatened to leave the country, he reduced the bank levy.  However, a surcharge on bank profits…

As we noted this morning, Greece has submitted an official request for a new, 3 yr. bailout package.  The report indicated the tone of the request letter had removed some of the harsher rhetoric and requests.  Some of the items which may now be more palatable to the Eurogroup include an opportunity to review outstanding debt opposed to the demand for a restructuring, also a list outlining why the creditors are at “fault” for the current crisis has been removed.  Greece has extended its banking “holiday” and capital controls for the 2nd time until Friday.  After the close, the ECB elected to maintain the ELA at current levels. Most of the major indices remained fairly well in the green but off of their highs on the day.  Interestingly, a number of the fairly broad indices such as the Eurostoxx600 underperformed. The U.K.’s Chancellor of the Exchequer Osbourne outlined the Conservative Party’s first budget since the elections in May.  Some of the key points were: corporate tax to be reduced to 18% in ’20 from the currentg 20%.  As a bone to banks which have threatened to leave the country, he reduced the bank levy.  However, a surcharge on bank profits…

CAPIS “Chinastrophic” International Summary July 8th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/08/2015 at 7:27 am
by Matthew Kiselica on 07/08/2015

Asia Headlines An incredible day for Greater China with investors continuing to sell despite further measures taken by authorities to stem the tide.  In fact, comments from authorities referring to the recent downturn as “irrational selling” appeared to have only fanned the flames rather than soothe sentiment.  Within 10 minutes of the Mainland Chinese open, more than 1,000 stocks reached the 10.0% limit down and had to be halted.   More companies requested trading halts and reports now put that number somewhere around 50.0%  of A shares.  Some companies may have used their shares for loan collateral. See paragraph 9 in this link.  After the Mainland markets closed, Chinese shares in Hong Kong continued to see selling pressure with the Hang Seng hitting its low (22,836.82 and down over 8%) c. 30 minutes prior to the close before paring some of that loss. During that span the index fell close to 3% before the bounce. Japan not only had to contend with spillover from the Chinese losses but a strengthening ¥ as well.  The continued flight to safety saw the Yen/$ trade at  122 by the market close and strengthen further to the mid 121’s after that.  Exporters led the market down, especially those with Chinese exposure.…

Asia Headlines An incredible day for Greater China with investors continuing to sell despite further measures taken by authorities to stem the tide.  In fact, comments from authorities referring to the recent downturn as “irrational selling” appeared to have only fanned the flames rather than soothe sentiment.  Within 10 minutes of the Mainland Chinese open, more than 1,000 stocks reached the 10.0% limit down and had to be halted.   More companies requested trading halts and reports now put that number somewhere around 50.0%  of A shares.  Some companies may have used their shares for loan collateral. See paragraph 9 in this link.  After the Mainland markets closed, Chinese shares in Hong Kong continued to see selling pressure with the Hang Seng hitting its low (22,836.82 and down over 8%) c. 30 minutes prior to the close before paring some of that loss. During that span the index fell close to 3% before the bounce. Japan not only had to contend with spillover from the Chinese losses but a strengthening ¥ as well.  The continued flight to safety saw the Yen/$ trade at  122 by the market close and strengthen further to the mid 121’s after that.  Exporters led the market down, especially those with Chinese exposure.…

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