International Summary

1738 total posts

CAPIS European Close Aug. 14, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/14/2015 at 12:09 pm
by Matthew Kiselica on 08/14/2015

European markets stayed lower during the afternoon trading in a fairly tight range over the last few hours of the day.   A mildly weaker U.S. open was no help following the stronger than expected U.S. PPI data.  Sector performance was mixed and not dramatic.  Energy was lower by c. 1% followed by techs.   Travel/leisure advanced a little more than 0.5% with financials and autos next in line.  Volumes were c. 20.% but that was at least an improvement from earlier in the day. Rio Tinto +0.15% outperformed its mining peers following reports China Shenhua is among the 6 companies that have interest in the sale of its Hunter Valley thermal coal assets. Novo Nordisk +1.4% CEO Soerensen stated he believes if Shire % succeeds in acquiring Baxalta.  Mr. Soerensen believes the merger could create a short-term disruption and allow Novo to gain share with its NovoSeven hempholia treatment. Nestle +1.0% continued to trade well following yesterday’s earnings and end to India’s Maggi noodle ban. Investors did not want to hear of yet another consensus missed set of earnings from William Demant -0.75% following recent disappointments from hearing aid peers GN Stor Nord -2.0% and Cochlear . Some of…

European markets stayed lower during the afternoon trading in a fairly tight range over the last few hours of the day.   A mildly weaker U.S. open was no help following the stronger than expected U.S. PPI data.  Sector performance was mixed and not dramatic.  Energy was lower by c. 1% followed by techs.   Travel/leisure advanced a little more than 0.5% with financials and autos next in line.  Volumes were c. 20.% but that was at least an improvement from earlier in the day. Rio Tinto +0.15% outperformed its mining peers following reports China Shenhua is among the 6 companies that have interest in the sale of its Hunter Valley thermal coal assets. Novo Nordisk +1.4% CEO Soerensen stated he believes if Shire % succeeds in acquiring Baxalta.  Mr. Soerensen believes the merger could create a short-term disruption and allow Novo to gain share with its NovoSeven hempholia treatment. Nestle +1.0% continued to trade well following yesterday’s earnings and end to India’s Maggi noodle ban. Investors did not want to hear of yet another consensus missed set of earnings from William Demant -0.75% following recent disappointments from hearing aid peers GN Stor Nord -2.0% and Cochlear . Some of…

CAPIS International Summary August 14, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 08/14/2015 at 6:53 am
by Clayton Duff on 08/14/2015

Asian Headlines Apart from Shanghai and the Shenzhen markets, major Asian players closed down to end a volatile week. Losses though were kept in check with the Energy sector seeing losses of roughly 150bps in both Japan and Hong Kong.   South Korea was closed for Liberation Day. After 3 consecutive days of devaluing their currency, China’s PBoC set the mid-point at 6.3975 today vs the prior 6.401. This eased the minds of market participants with comments from China’s Ministry of Commerce as helping sentiment. They noted China’s exports will return to growth this year noting easing of the slowdown in imports. Ping An Bank +.6% reported better earnings as it was noted the have the least exposure to bad loans related to commodity names as they had prior worked to move away from that sector. Hon Hai +1.5% reported 2Q NI just ahead of ests, this post costs cuts amid waning demand. The Apple supplier said 2Q gross margins of 7.2% beat the 7% average ests. Japan ended down small to close off 1% on the week as the ¥ moved little over the session. Nexon +20% gapped up as the online gamer reported 2Q revenue that more than tripled…

Asian Headlines Apart from Shanghai and the Shenzhen markets, major Asian players closed down to end a volatile week. Losses though were kept in check with the Energy sector seeing losses of roughly 150bps in both Japan and Hong Kong.   South Korea was closed for Liberation Day. After 3 consecutive days of devaluing their currency, China’s PBoC set the mid-point at 6.3975 today vs the prior 6.401. This eased the minds of market participants with comments from China’s Ministry of Commerce as helping sentiment. They noted China’s exports will return to growth this year noting easing of the slowdown in imports. Ping An Bank +.6% reported better earnings as it was noted the have the least exposure to bad loans related to commodity names as they had prior worked to move away from that sector. Hon Hai +1.5% reported 2Q NI just ahead of ests, this post costs cuts amid waning demand. The Apple supplier said 2Q gross margins of 7.2% beat the 7% average ests. Japan ended down small to close off 1% on the week as the ¥ moved little over the session. Nexon +20% gapped up as the online gamer reported 2Q revenue that more than tripled…

European Close Aug. 13th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/13/2015 at 12:16 pm
by Matthew Kiselica on 08/13/2015

Europe ended the day higher but pretty much worked lower over the last few hours of the session retreating from the mid-day highs.  A number of markets (the U.K. and Amsterdam were flat) on the day.  Amsterdam was weighed down by index heavyweight Aegon -7.5% after missing estimates while the UK was hampered due to weakness among energy and basic resource names.  Those were the only sectors in the red on the day.   The majority of sectors advanced by more than 1% led by financials, travel/leisure, construction and food and beverage.   Overall, volumes were flat on the day but that did vary widely by market. As highlighted this morning, Nestle +2.7% provided leadership to the food/beverage sector following strong H1 organic sales and the end of the Indian Maggi noodles pan.  (Clayton loves them.) Glencore’s -1.9% production update was largely inline with expectations.  However, the CAPEX cut was sizeable with perhaps more to come.  Additionally, a writedown of an oil asset in Chad appears to be most of the purchase price. ThyssenKrupp’s -0.4% post Q3 results and the company indicating it will surpass its FY cost savings target. The travel sector was helped by further declines in the crude price.…

Europe ended the day higher but pretty much worked lower over the last few hours of the session retreating from the mid-day highs.  A number of markets (the U.K. and Amsterdam were flat) on the day.  Amsterdam was weighed down by index heavyweight Aegon -7.5% after missing estimates while the UK was hampered due to weakness among energy and basic resource names.  Those were the only sectors in the red on the day.   The majority of sectors advanced by more than 1% led by financials, travel/leisure, construction and food and beverage.   Overall, volumes were flat on the day but that did vary widely by market. As highlighted this morning, Nestle +2.7% provided leadership to the food/beverage sector following strong H1 organic sales and the end of the Indian Maggi noodles pan.  (Clayton loves them.) Glencore’s -1.9% production update was largely inline with expectations.  However, the CAPEX cut was sizeable with perhaps more to come.  Additionally, a writedown of an oil asset in Chad appears to be most of the purchase price. ThyssenKrupp’s -0.4% post Q3 results and the company indicating it will surpass its FY cost savings target. The travel sector was helped by further declines in the crude price.…

CAPIS International Summary August 13, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 08/13/2015 at 7:15 am
by Clayton Duff on 08/13/2015

Asian Headlines Currency war fears subsided today with Asia ticking higher after the US shook off early weakness Wednesday. This though despite the PBoC, for a third day, dropped the fixing rate 1.1%. Markets were relieved as it appears the depreciation moves are diminishing as Wednesday’s move was a 1.6% adjustment. There has been speculation that the PBoC would push for the yuan to decline further for an overall devaluation of 10% to help exporters. However, PBoC Dep Gov Gang said the “adjustment is almost complete” with the 10% estimate “nonsense”. Lenovo -9% reported 1Q sales that missed estimates but beat on NI. They noted China growing at its slowest pace since 1990 as the firm will cut 5% of its workforce. The cuts, roughly 3200 people, will save the firm $1.35B as they integrate the Motorola unit. The Nikkei ticked higher as the ¥ weakened overnight. Japan’s Core Machine orders in June fell7.9% MoM vs. the -4.8% estimate, the biggest drop since May 2014. PM Abe’s advisors said Japan “needs to worry” about China’s devaluation of the yuan because it can offset the effects by easing monetary policy. SoftBank -2.6% raised its stake in Sprint by investing another $87M,…

Asian Headlines Currency war fears subsided today with Asia ticking higher after the US shook off early weakness Wednesday. This though despite the PBoC, for a third day, dropped the fixing rate 1.1%. Markets were relieved as it appears the depreciation moves are diminishing as Wednesday’s move was a 1.6% adjustment. There has been speculation that the PBoC would push for the yuan to decline further for an overall devaluation of 10% to help exporters. However, PBoC Dep Gov Gang said the “adjustment is almost complete” with the 10% estimate “nonsense”. Lenovo -9% reported 1Q sales that missed estimates but beat on NI. They noted China growing at its slowest pace since 1990 as the firm will cut 5% of its workforce. The cuts, roughly 3200 people, will save the firm $1.35B as they integrate the Motorola unit. The Nikkei ticked higher as the ¥ weakened overnight. Japan’s Core Machine orders in June fell7.9% MoM vs. the -4.8% estimate, the biggest drop since May 2014. PM Abe’s advisors said Japan “needs to worry” about China’s devaluation of the yuan because it can offset the effects by easing monetary policy. SoftBank -2.6% raised its stake in Sprint by investing another $87M,…

CAPIS European Close Aug. 12th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/12/2015 at 12:03 pm
by Matthew Kiselica on 08/12/2015

There was no respite from the risk off sentiment due to the China Yuan devaluation story that we discussed in our morning summary.   Not helping sentiment were reports the German government believes Greek bailout #3 is off insufficient size and has doubts on debt sustainability.  The major indices closed at or near their respective lows with volumes higher by about 40.0%!  The major targets of Chinese related selling remained autos, luxury/personal goods and other exporters which remained firmly in sellers crosshairs.  Those sectors were off 4% with most others falling by at least 2% or more.  The best performing sector was energy which fell 0.8%.  557 members of the Eurostoxx600 declined on the day. A bright spot on the day was Balfour Beatty +3.9% in the construction sector.  While the company did see close to 300% increase in its pre-tax loss for H1 it was better than feared.  Also, the company’s outlook statements were reassuring to the market. Another name in a related sector that fared well was Bilfinger +4.9%.  The company showed an improved order backlog and sees its FY output volume flat y/y which was similar to Balfour above better than feared. Reports indicate potential buyers for Tesco’s…

There was no respite from the risk off sentiment due to the China Yuan devaluation story that we discussed in our morning summary.   Not helping sentiment were reports the German government believes Greek bailout #3 is off insufficient size and has doubts on debt sustainability.  The major indices closed at or near their respective lows with volumes higher by about 40.0%!  The major targets of Chinese related selling remained autos, luxury/personal goods and other exporters which remained firmly in sellers crosshairs.  Those sectors were off 4% with most others falling by at least 2% or more.  The best performing sector was energy which fell 0.8%.  557 members of the Eurostoxx600 declined on the day. A bright spot on the day was Balfour Beatty +3.9% in the construction sector.  While the company did see close to 300% increase in its pre-tax loss for H1 it was better than feared.  Also, the company’s outlook statements were reassuring to the market. Another name in a related sector that fared well was Bilfinger +4.9%.  The company showed an improved order backlog and sees its FY output volume flat y/y which was similar to Balfour above better than feared. Reports indicate potential buyers for Tesco’s…

CAPIS International Summary August 12, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 08/12/2015 at 6:39 am
by Clayton Duff on 08/12/2015

Asian Headlines The PBoC lowered the yuan mid-point price by 1.6% to 6.3306 for the second day after lowering it by 1.9% yesterday. The PBoC said there is no economic or financial “basis” for the yuan exchange rate to fall continuously. The yuan was cut to the weakest level since 2012 and headed for the biggest two day drop in 21 years. Later in the session Industrial Production missed estimates with Fixed Asset Investment also weaker than expected.   TTN added that the market reaction was exacerbated as the IMF endorsed the yuan move stating market forces should have more of a role. The move today benefitted firms like Li & Fung +2.8% with one competitor’s CEO noting margins will improve on the weakening.  Quanta Computer -1.9% fell as it 2Q NI dropped 17%, missing estimates. The Nikkei fell, ending near lows today as the ¥ strengthened. Telecoms finished up small with the balance of sectors down with Energy and Consumer Discretionary names weaker by over 2%. Eco-wise, Japan’s preliminary July Machine Tool Orders rose 1.6% YoY, well under the 6.6% prior reading. PPI missed estimates and continued lower YoY but we did see a decent pickup in Industrial Production. Toyota…

Asian Headlines The PBoC lowered the yuan mid-point price by 1.6% to 6.3306 for the second day after lowering it by 1.9% yesterday. The PBoC said there is no economic or financial “basis” for the yuan exchange rate to fall continuously. The yuan was cut to the weakest level since 2012 and headed for the biggest two day drop in 21 years. Later in the session Industrial Production missed estimates with Fixed Asset Investment also weaker than expected.   TTN added that the market reaction was exacerbated as the IMF endorsed the yuan move stating market forces should have more of a role. The move today benefitted firms like Li & Fung +2.8% with one competitor’s CEO noting margins will improve on the weakening.  Quanta Computer -1.9% fell as it 2Q NI dropped 17%, missing estimates. The Nikkei fell, ending near lows today as the ¥ strengthened. Telecoms finished up small with the balance of sectors down with Energy and Consumer Discretionary names weaker by over 2%. Eco-wise, Japan’s preliminary July Machine Tool Orders rose 1.6% YoY, well under the 6.6% prior reading. PPI missed estimates and continued lower YoY but we did see a decent pickup in Industrial Production. Toyota…

CAPIS International Summary Aug. 11th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/11/2015 at 7:01 am
by Matthew Kiselica on 08/11/2015

Asian Headlines China once again dominated the Asian headlines following the PBoC reducing the daily yuan reference rate by 1.9%.  This is contrary to recent moves to support the currency in order prevent capital outflows given the equity market volatility and the longer term goal of receiving reserve currency status by the IMF.  The central bank stated the move was a “one-time adjustment.”  Clearly, the action was taken as another step to prop up the flagging economy.  The currency saw its largest one-day decline since China initiated the current model back in Jan. of 1994.  Mainland markets saw choppy trading throughout the day following the news and ended the day mixed.  Chinese airline stocks were hit especially hard due to the currency move since most of their costs are in foreign currency.  The rest of the region gave ground as exporters to the country sold off due to earnings impact concerns.  Peripheral markets were hit especially hard.  Another blow for sentiment was July Chinese retail autos sales -2.5%. Other key stories from around the region and market action was as follows: Japan saw energy and basic resources provide some support to the market.  Dai-ichi Life’s +1.2% NI and current profit were well ahead of…

Asian Headlines China once again dominated the Asian headlines following the PBoC reducing the daily yuan reference rate by 1.9%.  This is contrary to recent moves to support the currency in order prevent capital outflows given the equity market volatility and the longer term goal of receiving reserve currency status by the IMF.  The central bank stated the move was a “one-time adjustment.”  Clearly, the action was taken as another step to prop up the flagging economy.  The currency saw its largest one-day decline since China initiated the current model back in Jan. of 1994.  Mainland markets saw choppy trading throughout the day following the news and ended the day mixed.  Chinese airline stocks were hit especially hard due to the currency move since most of their costs are in foreign currency.  The rest of the region gave ground as exporters to the country sold off due to earnings impact concerns.  Peripheral markets were hit especially hard.  Another blow for sentiment was July Chinese retail autos sales -2.5%. Other key stories from around the region and market action was as follows: Japan saw energy and basic resources provide some support to the market.  Dai-ichi Life’s +1.2% NI and current profit were well ahead of…

CAPIS International Summary Aug. 10th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/10/2015 at 7:15 am
by Matthew Kiselica on 08/10/2015

Asian Headlines China was the focal point of the day as it led the region higher on market reform and stimulus hopes.  State Owned Enterprises (SOEs) led the rally due to reports Beijing will speed up M&A among them.  The South China Morning post stated the Chinese cabinet has approved plans for the group.  Many companies in the sector were limit up on the mainland.  Specifically, sources alleged a merger of the two major shipping companies, China Shipping Group  and China COSCO Holdings (Related tickers were suspended from trading but had surged on Friday).  The reports indicated two companies will be formed that will be similar to Singapore’s Temasek Holdings which will invest in the SOE’s.  The 2nd major point in China was trade and inflation data.  July Exports dropped 8.9% y/y vs. the -0.3% estimated. Imports fell 8.6% y/y vs. the -6.6% expected leaving a trade surplus of CNY263b.  July CPI rose 1.6% y/y a touch higher than the 1.5% forecast.  However, that was largely due to food price increases.  PPI -5.4% y/y vs. consensus of 5.0% and is the 41st consecutive monthly decline and largest in 6 years.  This data all contributed to hopes of further easing by the PBoC.  Some…

Asian Headlines China was the focal point of the day as it led the region higher on market reform and stimulus hopes.  State Owned Enterprises (SOEs) led the rally due to reports Beijing will speed up M&A among them.  The South China Morning post stated the Chinese cabinet has approved plans for the group.  Many companies in the sector were limit up on the mainland.  Specifically, sources alleged a merger of the two major shipping companies, China Shipping Group  and China COSCO Holdings (Related tickers were suspended from trading but had surged on Friday).  The reports indicated two companies will be formed that will be similar to Singapore’s Temasek Holdings which will invest in the SOE’s.  The 2nd major point in China was trade and inflation data.  July Exports dropped 8.9% y/y vs. the -0.3% estimated. Imports fell 8.6% y/y vs. the -6.6% expected leaving a trade surplus of CNY263b.  July CPI rose 1.6% y/y a touch higher than the 1.5% forecast.  However, that was largely due to food price increases.  PPI -5.4% y/y vs. consensus of 5.0% and is the 41st consecutive monthly decline and largest in 6 years.  This data all contributed to hopes of further easing by the PBoC.  Some…

CAPIS European Close Aug. 7th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/07/2015 at 11:20 am
by Matthew Kiselica on 08/07/2015

Europe remained in the red throughout the afternoon session. The markets did move towards their highs of the day shortly after the U.S. payroll data.  From that point, the region generally head lower for the rest of the day to close at or near respective lows.  Volumes remained lower by about 20.0%.  Basic resources and energy which had limited losses throughout the day with gains of over 1% ended the day only up by 0.8% and 0.5%, respectively.  Media remained under pressure for the entire and a number of sectors ended up also down by over 1% including financials, healthcare, telecoms, tech, retail and banks. K+S +1.1% was a bright spot after disclosing Potash has reiterated its unsolicited bid for the company at €41/sh. Potash had said last month it had no intention on increasing its offer for the company. BMPS +8.7% continued to remain close to limit up post its results despite the overall pressure in the banking sector noted during the afternoon. Erste Bk +3.2% also was a sector outperformer with results boosted by an improvement in net interest income. Alliaz -1.1% continued to see profit taking due to the results we highlighted in this morning’s session. S. Africa…

Europe remained in the red throughout the afternoon session. The markets did move towards their highs of the day shortly after the U.S. payroll data.  From that point, the region generally head lower for the rest of the day to close at or near respective lows.  Volumes remained lower by about 20.0%.  Basic resources and energy which had limited losses throughout the day with gains of over 1% ended the day only up by 0.8% and 0.5%, respectively.  Media remained under pressure for the entire and a number of sectors ended up also down by over 1% including financials, healthcare, telecoms, tech, retail and banks. K+S +1.1% was a bright spot after disclosing Potash has reiterated its unsolicited bid for the company at €41/sh. Potash had said last month it had no intention on increasing its offer for the company. BMPS +8.7% continued to remain close to limit up post its results despite the overall pressure in the banking sector noted during the afternoon. Erste Bk +3.2% also was a sector outperformer with results boosted by an improvement in net interest income. Alliaz -1.1% continued to see profit taking due to the results we highlighted in this morning’s session. S. Africa…

CAPIS International Summary Aug. 7th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/07/2015 at 7:00 am
by Matthew Kiselica on 08/07/2015

Asian Headlines Asia was divided in performance.  Greater China and Japan will advanced while most of the rest of the region traded lower.  Many markets saw cautious trading ahead of today’s U.S. payroll data. The outperformance among the Chinese markets was driven by reports the Chinese state fund CSFC is aiming to gain an additional CNY 2t to support the market.   The Shanghai Sec. News indicated other funds are on the sidelines with cash also ready to enter the market.  Furthermore, there was a story indicating some of the State Owned Enterprises reforms which caused related names to surge.  This caused a broad rally and the mainland Chinese markets led the region.  Great Wall Motor -2.4% reported after the close yesterday that July vehicle sales were 47,445 units from 48,273 y/y.  Tawian is preparing for Super Cylcone Soudelor which is expected to make landfall on Saturday. Japan nudged higher once again thanks to some key earnings.  Softbank +3.6% following yesterday’s strong earnings and buyback announcement.  Nikon +4.7% also traded well after raising its FY OP guidance.  However, both Konica Minolta 8.5% and Olympus -2.4% missed.  The market showed little reaction to the BoJ policy meeting which concluded with no surprises.  The central…

Asian Headlines Asia was divided in performance.  Greater China and Japan will advanced while most of the rest of the region traded lower.  Many markets saw cautious trading ahead of today’s U.S. payroll data. The outperformance among the Chinese markets was driven by reports the Chinese state fund CSFC is aiming to gain an additional CNY 2t to support the market.   The Shanghai Sec. News indicated other funds are on the sidelines with cash also ready to enter the market.  Furthermore, there was a story indicating some of the State Owned Enterprises reforms which caused related names to surge.  This caused a broad rally and the mainland Chinese markets led the region.  Great Wall Motor -2.4% reported after the close yesterday that July vehicle sales were 47,445 units from 48,273 y/y.  Tawian is preparing for Super Cylcone Soudelor which is expected to make landfall on Saturday. Japan nudged higher once again thanks to some key earnings.  Softbank +3.6% following yesterday’s strong earnings and buyback announcement.  Nikon +4.7% also traded well after raising its FY OP guidance.  However, both Konica Minolta 8.5% and Olympus -2.4% missed.  The market showed little reaction to the BoJ policy meeting which concluded with no surprises.  The central…

CAPIS European Closing Note Aug. 6th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/06/2015 at 11:57 am
by Matthew Kiselica on 08/06/2015

Europe closed down small on the day seeing some moderate weakness in the latter portions of the session as the U.S. markets opened lower.  By the close all sectors were to the down side.  Basic resources were -1.9% but at least off of lows.  Media, energy, travel/leisure, tech and healthcare were also off by 1% or more. Metro +3.7% provided support to the retail sector post inline earnings along and announcing its purchase of Singapore’s Classis Fine Foods. Distillers and brewers were a stand out among consumer discretionary  (There is no truth to rumors I consider them a staple.)  MolsonCoors +3.3% results provided some froth to peers. Diageo +0.9% was upgraded to buy at Investec. We noted Munich Re’s +1.5% raised outlook in this morning’s note.  However, Zurich Ins. -4.6% missed estimates as general insurance business slumped.  The company is also still considering a bid for the UK’s RSA -2.7%. Some of the other names we highlighted earlier today ended the day as follows:  Deutsche Telekom -1.7%, Rio Tinto -0.1%, Novo Nordisk -3.5% and Glaxo +2.7%. The £  remained under pressure but at least managed to regain the 1.55 level following today’s BoE rate decision and inflation outlook.   While the bank left…

Europe closed down small on the day seeing some moderate weakness in the latter portions of the session as the U.S. markets opened lower.  By the close all sectors were to the down side.  Basic resources were -1.9% but at least off of lows.  Media, energy, travel/leisure, tech and healthcare were also off by 1% or more. Metro +3.7% provided support to the retail sector post inline earnings along and announcing its purchase of Singapore’s Classis Fine Foods. Distillers and brewers were a stand out among consumer discretionary  (There is no truth to rumors I consider them a staple.)  MolsonCoors +3.3% results provided some froth to peers. Diageo +0.9% was upgraded to buy at Investec. We noted Munich Re’s +1.5% raised outlook in this morning’s note.  However, Zurich Ins. -4.6% missed estimates as general insurance business slumped.  The company is also still considering a bid for the UK’s RSA -2.7%. Some of the other names we highlighted earlier today ended the day as follows:  Deutsche Telekom -1.7%, Rio Tinto -0.1%, Novo Nordisk -3.5% and Glaxo +2.7%. The £  remained under pressure but at least managed to regain the 1.55 level following today’s BoE rate decision and inflation outlook.   While the bank left…

CAPIS “Super Thursday” International Summary Aug. 6th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/06/2015 at 7:23 am
by Matthew Kiselica on 08/06/2015

Asian Headlines With the exception of Japan, Asia traded lower as energy plays weighed upon the major indices and investors belief the Fed is leaning towards a rate hike in September grows. The small gains in Japan were due in large part due to the ¥ weakening closer to the 125 mark.  Another positive were Tokyo July office vacancies which fell to 4.89% from 5.12 in June.  That is the lowest since 2008 when the rate was 4.72%.  NTT’s +3.2% Q1 NI beat and the company announced a buyback.  Fast Retailing -2.1% ended the day lower once again on the slowing Uniqlo sales concerns.  SoftBank +1.9% and FamilyMart +0.2% will open a combined convenience store and mobile phone outlet.  After the close, Softbank announced consensus beating earnings and a buyback.  The BoJ began its two day policy meeting with no policy changes expected. China was lower with regulators indicating they will resume reviews of secondary stock offerings although no word was given regarding resumption of IPOs.  Despite a huge surge in Everbright Sec.’s -4.6% H1 NI (4.88b yuan vs. last year’s 381.1m yuan) the shares were lower with the CSRC approving the company’s private placement plan.  Guangzhou Auto’s +2.4% July vehicle sales were 95,950 units vs. 72,589 y/y. …

Asian Headlines With the exception of Japan, Asia traded lower as energy plays weighed upon the major indices and investors belief the Fed is leaning towards a rate hike in September grows. The small gains in Japan were due in large part due to the ¥ weakening closer to the 125 mark.  Another positive were Tokyo July office vacancies which fell to 4.89% from 5.12 in June.  That is the lowest since 2008 when the rate was 4.72%.  NTT’s +3.2% Q1 NI beat and the company announced a buyback.  Fast Retailing -2.1% ended the day lower once again on the slowing Uniqlo sales concerns.  SoftBank +1.9% and FamilyMart +0.2% will open a combined convenience store and mobile phone outlet.  After the close, Softbank announced consensus beating earnings and a buyback.  The BoJ began its two day policy meeting with no policy changes expected. China was lower with regulators indicating they will resume reviews of secondary stock offerings although no word was given regarding resumption of IPOs.  Despite a huge surge in Everbright Sec.’s -4.6% H1 NI (4.88b yuan vs. last year’s 381.1m yuan) the shares were lower with the CSRC approving the company’s private placement plan.  Guangzhou Auto’s +2.4% July vehicle sales were 95,950 units vs. 72,589 y/y. …

CAPIS European Close August 5, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 08/05/2015 at 12:10 pm
by Clayton Duff on 08/05/2015

After opening higher, European markets made a steady march higher, finishing at highs of the day.  All sectors closed up with the Stoxx Europe 600 Basic Resources Index continuing to bounce from recent lows and levels set back in December and January.  The Auto sector finished up 2.5%, nearing the upper limit of a downward sloping channel.  Energy closed up 1.8% despite Oil turning south even after a larger-than-expected draw on supplies. Greece finished down 2.5% with banks again collapsing near their 30% daily limit.  Concerning their newest bailout, TTN noting they are close to reaching a €86B deal which will keep it solvent over the next three years. EC Pres Juncker expects talks to conclude by the 20th with PM Tsipras noting he sees progress being made. Soc Gen +7.9% rallied hard today after solidly beating estimates as 2Q equity revenue was up 61% YoY.  They see an additional €850M in cost savings by the end of 2017.  The firm will continuing to bolster their capital.   They did though cite continued weakness in Russia. Conversely, ING -3.5% missed estimates as lending margins continue to be tight.  The firm expects regulatory-related costs to increase by over 50% to €640M this year with…

After opening higher, European markets made a steady march higher, finishing at highs of the day.  All sectors closed up with the Stoxx Europe 600 Basic Resources Index continuing to bounce from recent lows and levels set back in December and January.  The Auto sector finished up 2.5%, nearing the upper limit of a downward sloping channel.  Energy closed up 1.8% despite Oil turning south even after a larger-than-expected draw on supplies. Greece finished down 2.5% with banks again collapsing near their 30% daily limit.  Concerning their newest bailout, TTN noting they are close to reaching a €86B deal which will keep it solvent over the next three years. EC Pres Juncker expects talks to conclude by the 20th with PM Tsipras noting he sees progress being made. Soc Gen +7.9% rallied hard today after solidly beating estimates as 2Q equity revenue was up 61% YoY.  They see an additional €850M in cost savings by the end of 2017.  The firm will continuing to bolster their capital.   They did though cite continued weakness in Russia. Conversely, ING -3.5% missed estimates as lending margins continue to be tight.  The firm expects regulatory-related costs to increase by over 50% to €640M this year with…

CAPIS European Close August 4, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 08/04/2015 at 12:09 pm
by Clayton Duff on 08/04/2015

Little change to most indices today with Spain and Italy though both finishing off over a percent. We had an even mix of sectors up vs down with Basic Resources ticking up over a percent.  Banks closed down 125bps with that accounting for much of the losses in Spain and Italy. Volume slowed as the day wore on, finishing down 12% on the day.   Greece, after being off 5% early on, closed down 1.22 bps on the session. Speaking of Spain, the Premier of the Catalan region has called for early elections for their regional parliament on September 27th.  The concern for Madrid being this may be used as a referendum of sorts with many there looking to declare independence, a move that failed in late 2014. Shire -5.9% trailed off for much of the session on the news it is trying to acquire Baxalta for .1687 Shire ADR’s for each Baxalta share. That equates to roughly $45 and change for the firm as Shire may be using an acquisition to fend off someone taking them over. After recent misses, Hugo Boss +3.3% reported numbers a bit better than expected today.  Gross margins though were a bit disappointing as the co warned tightening may…

Little change to most indices today with Spain and Italy though both finishing off over a percent. We had an even mix of sectors up vs down with Basic Resources ticking up over a percent.  Banks closed down 125bps with that accounting for much of the losses in Spain and Italy. Volume slowed as the day wore on, finishing down 12% on the day.   Greece, after being off 5% early on, closed down 1.22 bps on the session. Speaking of Spain, the Premier of the Catalan region has called for early elections for their regional parliament on September 27th.  The concern for Madrid being this may be used as a referendum of sorts with many there looking to declare independence, a move that failed in late 2014. Shire -5.9% trailed off for much of the session on the news it is trying to acquire Baxalta for .1687 Shire ADR’s for each Baxalta share. That equates to roughly $45 and change for the firm as Shire may be using an acquisition to fend off someone taking them over. After recent misses, Hugo Boss +3.3% reported numbers a bit better than expected today.  Gross margins though were a bit disappointing as the co warned tightening may…

CAPIS International Summary Aug. 4th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 08/04/2015 at 7:16 am
by Matthew Kiselica on 08/04/2015

Asian Headlines China outperformed the region while the rest of the markets traded mixed following the slowing manufacturing macro from the States and China.  The crude sector saw some steadying following yesterday’s tumble. The Chinese gains were fueled by restrictions in short selling to limit day-trading activities.  There have been several measures to limit short selling loan activity and a number of firms stated they would halt there short selling operations temporarily.  Macau gaming names were mixed post July casino revenue falling 34.5% y/y matching estimates.  China Vanke’s +2.4% July sales were 23.9b yuan beating estimates.  Tencent -0.7% has made a bid for U.S. listed Chinese travel site Elong.  Yesterday, the Caixin final manuf. PMI for July was 47.8 which is the lowest reading since July ’13. Japan saw modest, mixed moves out of its major indices.  Shares with Chinese and commodity exposure weighed upon the market.  Investors were disappointed by Japan Tobacco’s -2.3% capital return plans while the company did raise its FY profit outlook.  The nation’s Monetary Base Outstanding rose 32.8% y/y in July to ¥325.7t.  After the close, Toyota raised its forecasts for Japanese sales and profits beat estimates; however, OP lagged and the company noted profitability in China could…

Asian Headlines China outperformed the region while the rest of the markets traded mixed following the slowing manufacturing macro from the States and China.  The crude sector saw some steadying following yesterday’s tumble. The Chinese gains were fueled by restrictions in short selling to limit day-trading activities.  There have been several measures to limit short selling loan activity and a number of firms stated they would halt there short selling operations temporarily.  Macau gaming names were mixed post July casino revenue falling 34.5% y/y matching estimates.  China Vanke’s +2.4% July sales were 23.9b yuan beating estimates.  Tencent -0.7% has made a bid for U.S. listed Chinese travel site Elong.  Yesterday, the Caixin final manuf. PMI for July was 47.8 which is the lowest reading since July ’13. Japan saw modest, mixed moves out of its major indices.  Shares with Chinese and commodity exposure weighed upon the market.  Investors were disappointed by Japan Tobacco’s -2.3% capital return plans while the company did raise its FY profit outlook.  The nation’s Monetary Base Outstanding rose 32.8% y/y in July to ¥325.7t.  After the close, Toyota raised its forecasts for Japanese sales and profits beat estimates; however, OP lagged and the company noted profitability in China could…

CAPIS International Summary August 3, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 08/03/2015 at 7:16 am
by Clayton Duff on 08/03/2015

Asian Headlines Friday evening, China released its official July PMI which pretty much matched the 50.1 estimate with a 50.0 reading. Non-manu PMI came at 53.9, inline with last month’s reading. Note that Manu PMI was a 5 month low while the non-manu number was a 5 month high.  Early in the session last night, Markit’s Caixin July Manufacturing PMI was released at 47.8, just shy of the 48.3 estimate and a two year low. The official number is focused more towards large companies while the Caixin report looks more towards mid- and smaller- sized firm. Analysts at Markit noted both domestic and foreign demand weakened with employment ticking lower post layoffs on the slowdown in exports. Further, the PBoC’s research director added the eco will remain under pressure in the 2H. Regulators are currently looking into trading records of some brokers to sniff out those involved in “malicious” short selling. Sinopec -1.19% fell Reuter said the co. will move about 40% of its overseas unit staff to their HQ adding Iranian oil exports are expected later this year. The Nikkei saw little change on the day post the Nikkei/Markit July Manufacturing PMI being reported at 51.2, the third consecutive…

Asian Headlines Friday evening, China released its official July PMI which pretty much matched the 50.1 estimate with a 50.0 reading. Non-manu PMI came at 53.9, inline with last month’s reading. Note that Manu PMI was a 5 month low while the non-manu number was a 5 month high.  Early in the session last night, Markit’s Caixin July Manufacturing PMI was released at 47.8, just shy of the 48.3 estimate and a two year low. The official number is focused more towards large companies while the Caixin report looks more towards mid- and smaller- sized firm. Analysts at Markit noted both domestic and foreign demand weakened with employment ticking lower post layoffs on the slowdown in exports. Further, the PBoC’s research director added the eco will remain under pressure in the 2H. Regulators are currently looking into trading records of some brokers to sniff out those involved in “malicious” short selling. Sinopec -1.19% fell Reuter said the co. will move about 40% of its overseas unit staff to their HQ adding Iranian oil exports are expected later this year. The Nikkei saw little change on the day post the Nikkei/Markit July Manufacturing PMI being reported at 51.2, the third consecutive…

CAPIS International Summary July 31, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/31/2015 at 8:34 am
by Clayton Duff on 07/31/2015

Asian Headlines To the end the week, most markets finished to the upside with mainland China the notable exception. Energy and IT shares slipped in Shanghai with Energy also a drag in HK. IT helped buoy the Nikkei with the ¥ stronger for much of the session. China’s gov again issued statements to the effect they will support the economy with economic planner NDRC adding that private investors are encouraged to bid for rail projects. The PBoC gave the thumbs up for 93 banks to issue large-denomination CD’s. China Cosco ended flat as they see a 1H net income of roughly 1.9B yuan, this vs a loss a year ago. China Taiping Insurance -3.1% expects 6 month net to rise more than 180% y/y. As noted, Manu and non-manu PMI is expected to be released tonight. Beijing also won the bid to host the 2022 Winter Olympics. Japan’s consumer price gains remained little changed in June as household spending dropped. June unemployment rate was at 3.4% vs. the 3.3% estimate. Additionally, construction orders YoY rose 15.4%, well ahead of the negative 7.4% reading. Yahoo Japan +7.1% 1Q results beat estimates as they see FY sales/op profit up. Jefferies raised the…

Asian Headlines To the end the week, most markets finished to the upside with mainland China the notable exception. Energy and IT shares slipped in Shanghai with Energy also a drag in HK. IT helped buoy the Nikkei with the ¥ stronger for much of the session. China’s gov again issued statements to the effect they will support the economy with economic planner NDRC adding that private investors are encouraged to bid for rail projects. The PBoC gave the thumbs up for 93 banks to issue large-denomination CD’s. China Cosco ended flat as they see a 1H net income of roughly 1.9B yuan, this vs a loss a year ago. China Taiping Insurance -3.1% expects 6 month net to rise more than 180% y/y. As noted, Manu and non-manu PMI is expected to be released tonight. Beijing also won the bid to host the 2022 Winter Olympics. Japan’s consumer price gains remained little changed in June as household spending dropped. June unemployment rate was at 3.4% vs. the 3.3% estimate. Additionally, construction orders YoY rose 15.4%, well ahead of the negative 7.4% reading. Yahoo Japan +7.1% 1Q results beat estimates as they see FY sales/op profit up. Jefferies raised the…

CAPIS International European Close July 30, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/30/2015 at 10:47 am
by Clayton Duff on 07/30/2015

Indices shook off a late day selloff (see the next paragraph) to finish small up on the day for most countries.  Spain fell as Repsol and DIA weighed.  Energy continued to lead with Tech and Industrials also retaining much of their gains.  Autos again lagged on the day.  Volume on the day finished up 7%. Indices pulled lower not long after the US opened on word from the Financial Times that IMF staff have said that Greece’s poor reform record would disqualify it from another IMF bailout.  Thus, this would delay any IMF participation in a bailout as it could be months, if not until next year before an agreement is met.  Germany has mentioned it will be impossible to get Bundestag approval to assist without the IMF participation. In further earnings news, Sanofi -.2% edged lower after reporting 2Q eps ahead of estimates and confirming their FY biz eps.  Their CEO added that M&A is always part of the equation. Fiat Chrysler +5.8% finished up with better than expected earnings. Despite recalls, the firm raised their FY adj ebit forecast to at least €4.5B.  They also confirmed they will spin off Ferrari in an IPO around next January if…

Indices shook off a late day selloff (see the next paragraph) to finish small up on the day for most countries.  Spain fell as Repsol and DIA weighed.  Energy continued to lead with Tech and Industrials also retaining much of their gains.  Autos again lagged on the day.  Volume on the day finished up 7%. Indices pulled lower not long after the US opened on word from the Financial Times that IMF staff have said that Greece’s poor reform record would disqualify it from another IMF bailout.  Thus, this would delay any IMF participation in a bailout as it could be months, if not until next year before an agreement is met.  Germany has mentioned it will be impossible to get Bundestag approval to assist without the IMF participation. In further earnings news, Sanofi -.2% edged lower after reporting 2Q eps ahead of estimates and confirming their FY biz eps.  Their CEO added that M&A is always part of the equation. Fiat Chrysler +5.8% finished up with better than expected earnings. Despite recalls, the firm raised their FY adj ebit forecast to at least €4.5B.  They also confirmed they will spin off Ferrari in an IPO around next January if…

CAPIS International Summary July 30, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/30/2015 at 7:59 am
by Clayton Duff on 07/30/2015

Asian Headlines Mainland China ended its rebound today, sliding over the last hour of trading with Hong Kong finishing down small. Elsewhere though we saw some decent gains post a better day in the US. IMF’s managing director said China’s economy is strong enough to withstand its current stock market rout as the government helps to stop the decline. China’s FinMin noted they still face downward eco pressure with the gov to still fund major projects and continue consumption tax reform. Wynn Macau -.9% lower as 2Q net revenue missed estimates with eps well under expectations. Macau revs fell 36% with 2Q adj property ebitda down 44% YoY. Margins continue to contract as well. Coal producer China Shenhua -2.3% said H1 net income fell 45.6% y/y to 11.7B yuan citing both lower sales and prices. The ¥ weakened throughout the session with the Nikkei an outperformer in the region today. This was post data which showed industrial production that rose more than forecast in June to 0.8% from May when it fell 2.1%. Foreign purchases of Japanese equities fell ¥82.1B vs the prior reading of a gain of ¥632.2B. Nintendo +8.3% traded higher as Q1 NI ¥8.28b trounced the ¥362M…

Asian Headlines Mainland China ended its rebound today, sliding over the last hour of trading with Hong Kong finishing down small. Elsewhere though we saw some decent gains post a better day in the US. IMF’s managing director said China’s economy is strong enough to withstand its current stock market rout as the government helps to stop the decline. China’s FinMin noted they still face downward eco pressure with the gov to still fund major projects and continue consumption tax reform. Wynn Macau -.9% lower as 2Q net revenue missed estimates with eps well under expectations. Macau revs fell 36% with 2Q adj property ebitda down 44% YoY. Margins continue to contract as well. Coal producer China Shenhua -2.3% said H1 net income fell 45.6% y/y to 11.7B yuan citing both lower sales and prices. The ¥ weakened throughout the session with the Nikkei an outperformer in the region today. This was post data which showed industrial production that rose more than forecast in June to 0.8% from May when it fell 2.1%. Foreign purchases of Japanese equities fell ¥82.1B vs the prior reading of a gain of ¥632.2B. Nintendo +8.3% traded higher as Q1 NI ¥8.28b trounced the ¥362M…

CAPIS International Summary July 29, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 07/29/2015 at 7:05 am
by Clayton Duff on 07/29/2015

Asian Headlines Post the solid day in the US, Asia finished higher with Shanghai closing at the day’s high. In stark contrast to yesterday, all sectors finished higher with the sectors of Industrials, Utilities, Materials, and IT closing better by at least 6%. Japan finished slightly lower as the ¥ spent much of the session stronger. China’s Westpac-MNI July Consumer Sentiment was up 1.9% m/m to 114.5 with the Leading Index inline with last month’s 98.71 reading. TTN noted that total margin debt fell for the 3rd straight day to CNY1.38T from 1.43T yesterday. That is the lowest level in over 4 months. Air China -7.4% plans to raise 12b yuan in a private placement of new shares to buy 15 Boeing 787 planes. Tencent -1.4% will add a chatting robot to its WeChat app. Japan Retail Sales slowed for the third time this year to -0.8% m/m from May and vs. the 0.9% drop estimate. Fanuc -10.6% cut its FY operating profit forecast 18% to ¥218.2B. Advantest -7.8% fell after reporting Q1 earnings that missed estimates but the co. raised its H1 forecast and maintained their FY forecast. Nomura cut their price target on the name 22%. South Korea’s…

Asian Headlines Post the solid day in the US, Asia finished higher with Shanghai closing at the day’s high. In stark contrast to yesterday, all sectors finished higher with the sectors of Industrials, Utilities, Materials, and IT closing better by at least 6%. Japan finished slightly lower as the ¥ spent much of the session stronger. China’s Westpac-MNI July Consumer Sentiment was up 1.9% m/m to 114.5 with the Leading Index inline with last month’s 98.71 reading. TTN noted that total margin debt fell for the 3rd straight day to CNY1.38T from 1.43T yesterday. That is the lowest level in over 4 months. Air China -7.4% plans to raise 12b yuan in a private placement of new shares to buy 15 Boeing 787 planes. Tencent -1.4% will add a chatting robot to its WeChat app. Japan Retail Sales slowed for the third time this year to -0.8% m/m from May and vs. the 0.9% drop estimate. Fanuc -10.6% cut its FY operating profit forecast 18% to ¥218.2B. Advantest -7.8% fell after reporting Q1 earnings that missed estimates but the co. raised its H1 forecast and maintained their FY forecast. Nomura cut their price target on the name 22%. South Korea’s…

Subscribe to Stay Informed

Stay informed by subscribing to information that matters to you. We'll email you when we post new content you want to see.