International Summary

1691 total posts

CAPIS European Close July 7th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/07/2015 at 11:54 am
by Matthew Kiselica on 07/07/2015

Wow!  What an end to the session we saw today.   At c. 10:00 A.M. Eastern, headlines hit the wire that Greece had brought no new proposals to the bargaining table. From that point, Europe moved lower and continued to do so pretty much until the closing bell.  A small bounce off of lows was stymied when 15 minutes before the close German Chancellor Merkel said “there was no basis for talks with Greece because there were no formal proposals from Athens.”  This caused the major indices to close at or near their respective lows of the day. The EU leaders summit is taking place as we type, therefore mind your eye for more headlines. The best performing sector on the day was food/beverages which closed lower by 0.4%.  Basic resources collapsed by 3.9% with losses in excess of 2.5% in energy and autos.  538 stocks in the Eurostoxx600 closed to the downside.   Volumes were essentially flat which was an improvement from earlier in the day when they were lower by c. 20.0%. The basic resources and energy sector saw incredible selling pressure in their respective commodities.  Crude fell by more than 2% but is rallying now. Copper and iron ore…

Wow!  What an end to the session we saw today.   At c. 10:00 A.M. Eastern, headlines hit the wire that Greece had brought no new proposals to the bargaining table. From that point, Europe moved lower and continued to do so pretty much until the closing bell.  A small bounce off of lows was stymied when 15 minutes before the close German Chancellor Merkel said “there was no basis for talks with Greece because there were no formal proposals from Athens.”  This caused the major indices to close at or near their respective lows of the day. The EU leaders summit is taking place as we type, therefore mind your eye for more headlines. The best performing sector on the day was food/beverages which closed lower by 0.4%.  Basic resources collapsed by 3.9% with losses in excess of 2.5% in energy and autos.  538 stocks in the Eurostoxx600 closed to the downside.   Volumes were essentially flat which was an improvement from earlier in the day when they were lower by c. 20.0%. The basic resources and energy sector saw incredible selling pressure in their respective commodities.  Crude fell by more than 2% but is rallying now. Copper and iron ore…

CAPIS International Summary July 7th, 2015

News Trading Desk International Summary

International Summary

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

Asian Headlines Today’s action in the region was almost a complete reversal of yesterday’s trading results.  Today, Mainland China was weaker while most of the rest of the region managed to advance.  The fairly mild reaction in the West to the Greek situation helped many of the markets that declined yesterday recoup a some of those losses. Chinese investors moved back into sell mode after Premier Li did not specifically mention the collapsing equity markets or matters to support them.  He did state the nation is “capable of dealing with all challenges and will risks”  while promoting  “sustainable and healthy development of the economy.”  He also noted some data is revealing the economy is stabilizing. This did little to assuage investor fears.  The Shanghai and Shenzhen exchanges have had c. 26% of listed companies halt trading marking the largest halt in A-share history. That equates to c. $1.4t worth of stock!  Haitong Secs. -13.2% plans to boost proprietary equity investment by 15b yuan. Japanese stocks rebounded as investors took a stab at some bottom fishing post yesterday’s decline and the ¥ weakened to the high 122’s.   Exporters and the banking sector rebound.  In the auto sector  Mazda +1.5% was…

Asian Headlines Today’s action in the region was almost a complete reversal of yesterday’s trading results.  Today, Mainland China was weaker while most of the rest of the region managed to advance.  The fairly mild reaction in the West to the Greek situation helped many of the markets that declined yesterday recoup a some of those losses. Chinese investors moved back into sell mode after Premier Li did not specifically mention the collapsing equity markets or matters to support them.  He did state the nation is “capable of dealing with all challenges and will risks”  while promoting  “sustainable and healthy development of the economy.”  He also noted some data is revealing the economy is stabilizing. This did little to assuage investor fears.  The Shanghai and Shenzhen exchanges have had c. 26% of listed companies halt trading marking the largest halt in A-share history. That equates to c. $1.4t worth of stock!  Haitong Secs. -13.2% plans to boost proprietary equity investment by 15b yuan. Japanese stocks rebounded as investors took a stab at some bottom fishing post yesterday’s decline and the ¥ weakened to the high 122’s.   Exporters and the banking sector rebound.  In the auto sector  Mazda +1.5% was…

European Close July 6th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/06/2015 at 10:49 am
by Matthew Kiselica on 07/06/2015

During the afternoon, Europe moved back toward the lows of the day after German Economic Minister Gabriel declared Greece must accept the rules of the Euro currency.  He added the Hellenic nation would need to bring new ideas to the negotiating table that surpass those previously put forth.   After the U.S. open, the markets managed to pare those losses but then headed back towards the lows over the last 30 minutes of the day.  Volumes slowed in the latter portions of the session falling by c. 10.0% overall.  The banking sector led the region lower declining by 2.6%.   Basic resources, constructioin and utilies fell by over 1%.   Healthcare and travel/leisure ended the day down small.  The travel sector was supported by the current 5.0% decline in WTI. Tomorrow, at the EU Summit, Mr. Tsipras and company are expected to present their latest proposals.  Market input indicates the the ruling Syriza party has been emboldened by the “Greferendum” and believe they have been given a mandate by their constituents to reject austerity.   The IMF’s Lagarde released an emailed statement indicating the institution is ready to assist Greece “if requested to do so.”  There were also reports, the ECB…

During the afternoon, Europe moved back toward the lows of the day after German Economic Minister Gabriel declared Greece must accept the rules of the Euro currency.  He added the Hellenic nation would need to bring new ideas to the negotiating table that surpass those previously put forth.   After the U.S. open, the markets managed to pare those losses but then headed back towards the lows over the last 30 minutes of the day.  Volumes slowed in the latter portions of the session falling by c. 10.0% overall.  The banking sector led the region lower declining by 2.6%.   Basic resources, constructioin and utilies fell by over 1%.   Healthcare and travel/leisure ended the day down small.  The travel sector was supported by the current 5.0% decline in WTI. Tomorrow, at the EU Summit, Mr. Tsipras and company are expected to present their latest proposals.  Market input indicates the the ruling Syriza party has been emboldened by the “Greferendum” and believe they have been given a mandate by their constituents to reject austerity.   The IMF’s Lagarde released an emailed statement indicating the institution is ready to assist Greece “if requested to do so.”  There were also reports, the ECB…

CAPIS “No Vote” International Summary July 6th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/06/2015 at 7:15 am
by Matthew Kiselica on 07/06/2015

Asian Headlines With the exception of China and India, the entire region sold off in response to the Greek “NO” vote which we address further below.  Most sectors saw losses in excess of 1% with the energy sector especially weak due to declines in crude prices.   Crude has dropped with the USD seeing strength in a flight to safety.  Gold miners outperformed. China had an incredible day of trading.  Over the weekend, there were a number of measures announced in an attempt to stabilize the market.  The  CSRC said IPO approvals will continue but the numbers of IPO’s and capital increases will drop in the future to reduce the supply of stocks.  It also declared the China Securities Finance will increase its capital base to 100b yuan from 24b yuan to assist with industry financing.  A market stabilization fund will be established with 21 brokers investing 120b yuan in “blue chip” ETF’s.  These measures initially caused mainland markets to soar with the Shanghai Composite gaining 8% on the open.  The market then steadily moved lower and even dipped into the red before moving higher during the last 30 minutes of trading.  The CSI 300 also ended the day to the upside; however, Shenzhen and…

Asian Headlines With the exception of China and India, the entire region sold off in response to the Greek “NO” vote which we address further below.  Most sectors saw losses in excess of 1% with the energy sector especially weak due to declines in crude prices.   Crude has dropped with the USD seeing strength in a flight to safety.  Gold miners outperformed. China had an incredible day of trading.  Over the weekend, there were a number of measures announced in an attempt to stabilize the market.  The  CSRC said IPO approvals will continue but the numbers of IPO’s and capital increases will drop in the future to reduce the supply of stocks.  It also declared the China Securities Finance will increase its capital base to 100b yuan from 24b yuan to assist with industry financing.  A market stabilization fund will be established with 21 brokers investing 120b yuan in “blue chip” ETF’s.  These measures initially caused mainland markets to soar with the Shanghai Composite gaining 8% on the open.  The market then steadily moved lower and even dipped into the red before moving higher during the last 30 minutes of trading.  The CSI 300 also ended the day to the upside; however, Shenzhen and…

CAPIS International Summary July 3rd, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/03/2015 at 7:29 am
by Matthew Kiselica on 07/03/2015

  Asian Headlines What a day in China.  Mainland markets once gain endured heavy selling pressure while swinging more than 6% intraday.  China’s CSRC plans to investigate cross-market manipulation and intends to prosecute offenders.  The CSRC is also investigating recent short selling of stock index futures.  It was no surprise but no help either that Services and Composite PMIs declined.  The HSBC June Services PMI slowed to 51.8 from May’s 53.5 reading and the June Composite PMI slowed to 50.6 from 51.2 prior.  Shanghai declined more than 6% about an hour into the session.  It then rallied all the way back to the flat line after 28 companies listed in the ChiNext stated they will take steps to support share prices.  However, the rally was short lived and the market moved steadily back towards the lows. BNP cut Lenovo -2.8% to reduce. Japan ended the day flat but that was largely due to Fast Retailing -3.7%.  As highlighted after yesterday’s close, its Uniqlo unit suffered a 11.7% y/y deline in sales.   The stock’s fall took more than 80 points out of the Nikkei.  Consumer services fell by over 2% followed by energy.  All other sectors traded to the upside but…

  Asian Headlines What a day in China.  Mainland markets once gain endured heavy selling pressure while swinging more than 6% intraday.  China’s CSRC plans to investigate cross-market manipulation and intends to prosecute offenders.  The CSRC is also investigating recent short selling of stock index futures.  It was no surprise but no help either that Services and Composite PMIs declined.  The HSBC June Services PMI slowed to 51.8 from May’s 53.5 reading and the June Composite PMI slowed to 50.6 from 51.2 prior.  Shanghai declined more than 6% about an hour into the session.  It then rallied all the way back to the flat line after 28 companies listed in the ChiNext stated they will take steps to support share prices.  However, the rally was short lived and the market moved steadily back towards the lows. BNP cut Lenovo -2.8% to reduce. Japan ended the day flat but that was largely due to Fast Retailing -3.7%.  As highlighted after yesterday’s close, its Uniqlo unit suffered a 11.7% y/y deline in sales.   The stock’s fall took more than 80 points out of the Nikkei.  Consumer services fell by over 2% followed by energy.  All other sectors traded to the upside but…

CAPIS European Close July 2nd, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/02/2015 at 10:50 am
by Matthew Kiselica on 07/02/2015

Europe moved lower during the afternoon after the sluggish, flat start to the day.   Initially, the move downwards was prompted by the lockdown of the Washington Naval Yard.   Thankfully, the situation there was a false alarm.  However, Europe continued to work its way more firmly into the red.  With the Greek referendum on the horizon Sunday and volumes to be muted tomorrow due to the U.S. holiday, investors were taking money off of the table to await developments.  Volumes on the day remained lower by c. 30.0%.   Sectors to the downside 1% or more included tech, autos, media and industrials.  The energy sector and utilities advance by more than 1%.  The FTSE100 which lagged yesterday outperformed thanks to the strength in the energy names along with flat performance among basic resources. There were a number of key corporate stories that came out following our morning note. BP +4.3% moved steadily higher after announcing it is paying $18.7b to settle all Federal and State claims related to the Gulf Oil spill from back in 2010.  It was a top performer in the energy complex which was trading better as a whole due to the rebound in crude prices.…

Europe moved lower during the afternoon after the sluggish, flat start to the day.   Initially, the move downwards was prompted by the lockdown of the Washington Naval Yard.   Thankfully, the situation there was a false alarm.  However, Europe continued to work its way more firmly into the red.  With the Greek referendum on the horizon Sunday and volumes to be muted tomorrow due to the U.S. holiday, investors were taking money off of the table to await developments.  Volumes on the day remained lower by c. 30.0%.   Sectors to the downside 1% or more included tech, autos, media and industrials.  The energy sector and utilities advance by more than 1%.  The FTSE100 which lagged yesterday outperformed thanks to the strength in the energy names along with flat performance among basic resources. There were a number of key corporate stories that came out following our morning note. BP +4.3% moved steadily higher after announcing it is paying $18.7b to settle all Federal and State claims related to the Gulf Oil spill from back in 2010.  It was a top performer in the energy complex which was trading better as a whole due to the rebound in crude prices.…

CAPIS International Summary July 2nd, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/02/2015 at 7:12 am
by Matthew Kiselica on 07/02/2015

Asian Headlines The downhill express train that has been the Chinese mainland markets continued with the Shanghai Composite closing below the 4000 level for the first time since April.  The close below this level is worrisome because many in the market had believed this is where the government would step up support efforts.  It is also worth noting the index once again closed below its 100 dmavg, and that level was an area of resistance today (see chart below).  The index slumped more than 6% on the day before paring losses into the close.  Interestingly, after yesterday’s close regulators eased collateral requirements for margin traders while no longer requiring brokerages to sell investors stock with insufficient collateral!  The Shanghai and Shenzhen Exchanges announced they will reduce transaction fees by 30% on Aug. 1. Hong Kong decoupled from the mainland moving small to the upside following yesterday’s holiday.  Investors were “all in” on the Macau gaming sector following yesterday’s revenues providing signs of reversal and the relaxation of visa rules for Chinese visitors.  Wynn Macau +13.8%. Japan was lead higher by exporters (¥ weakened following U.S. data from yesterday) and insurance companies.  Honda +3.5% and Nissan +2.7% responded well to yesterday’s U.S. sales data while Toyota…

Asian Headlines The downhill express train that has been the Chinese mainland markets continued with the Shanghai Composite closing below the 4000 level for the first time since April.  The close below this level is worrisome because many in the market had believed this is where the government would step up support efforts.  It is also worth noting the index once again closed below its 100 dmavg, and that level was an area of resistance today (see chart below).  The index slumped more than 6% on the day before paring losses into the close.  Interestingly, after yesterday’s close regulators eased collateral requirements for margin traders while no longer requiring brokerages to sell investors stock with insufficient collateral!  The Shanghai and Shenzhen Exchanges announced they will reduce transaction fees by 30% on Aug. 1. Hong Kong decoupled from the mainland moving small to the upside following yesterday’s holiday.  Investors were “all in” on the Macau gaming sector following yesterday’s revenues providing signs of reversal and the relaxation of visa rules for Chinese visitors.  Wynn Macau +13.8%. Japan was lead higher by exporters (¥ weakened following U.S. data from yesterday) and insurance companies.  Honda +3.5% and Nissan +2.7% responded well to yesterday’s U.S. sales data while Toyota…

CAPIS European Close July 1st, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/01/2015 at 12:12 pm
by Matthew Kiselica on 07/01/2015

Europe remained to the upside throughout the later hours of the session following the letter Greek PM Tsipras sent stating he would agree to the most recent Eurogroup bailout terms subject to modifications.  The market did tick lower following his address to the Greek nation.  In it he urged voters to against the bailout terms which is a “no” vote. This link is a useful flowchart of the vote and its potential implications.  Even given that modest down tick, the region still finished with solid gains.  Autos, tech, and media ended the day with gains above 2%. Travel/leisure and banks were just shy of that.  Basic resources was the only sector to finish lower while utilities and energy ended with small gains.  The underperformance of the key basic resources and energy sectors caused the FTSE100 to lag.   Volumes ended about 10% higher which was a slowdown from earlier in the day. The € made its low of the day (1.1059) with c. 90 minutes to go in the session during the Tsipras address.  It is currently 1.1075.  Yields saw peripherals improve while core yields eroded a touch which is the reverse of the recent, general trend. Crude was the…

Europe remained to the upside throughout the later hours of the session following the letter Greek PM Tsipras sent stating he would agree to the most recent Eurogroup bailout terms subject to modifications.  The market did tick lower following his address to the Greek nation.  In it he urged voters to against the bailout terms which is a “no” vote. This link is a useful flowchart of the vote and its potential implications.  Even given that modest down tick, the region still finished with solid gains.  Autos, tech, and media ended the day with gains above 2%. Travel/leisure and banks were just shy of that.  Basic resources was the only sector to finish lower while utilities and energy ended with small gains.  The underperformance of the key basic resources and energy sectors caused the FTSE100 to lag.   Volumes ended about 10% higher which was a slowdown from earlier in the day. The € made its low of the day (1.1059) with c. 90 minutes to go in the session during the Tsipras address.  It is currently 1.1075.  Yields saw peripherals improve while core yields eroded a touch which is the reverse of the recent, general trend. Crude was the…

CAPIS Canada Day International Summary July 1st, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/01/2015 at 7:00 am
by Matthew Kiselica on 07/01/2015

Asian Headlines With the exception of China, the majority of the region managed to advance while Hong Kong and Thailand were closed for local holidays. A number of factors contributed to the fall in the Mainland Chinese markets.  The official manuf. PMI was 50.2 for June just shy of the 50.4 estimate and unchanged from May’s reading.  Non- manufacturing PMI improved to 53.8 in June from 53.2.  The HSBC manuf. PMI gauge was a worrisome 49.4 vs. 49.6 expected.    Also, investors were disappointed that some of the government measures recently speculated to support the market (i.e. IPO halt, stamp tax cut, etc.) failed to materialize.  Official margin debt in Shanghai fell for the 7th day which is the longest decline in 3 years.  However, reports allege online lenders have issued more than 7b yuan in high rate loans through the first 5 months of this year for stock purchases to investors that have been denied margin accounts.  Macau June casino revenue fell 36.2% y/y vs. the 38.3% drop estimate. The BoJ Tankan Survey showed a surprise increase in manuf. sentiment with the large manufacturer index increasing  to 15  from 12 previously.  It is the first increase  in 3 quarters.   June Manuf. PMI fell…

Asian Headlines With the exception of China, the majority of the region managed to advance while Hong Kong and Thailand were closed for local holidays. A number of factors contributed to the fall in the Mainland Chinese markets.  The official manuf. PMI was 50.2 for June just shy of the 50.4 estimate and unchanged from May’s reading.  Non- manufacturing PMI improved to 53.8 in June from 53.2.  The HSBC manuf. PMI gauge was a worrisome 49.4 vs. 49.6 expected.    Also, investors were disappointed that some of the government measures recently speculated to support the market (i.e. IPO halt, stamp tax cut, etc.) failed to materialize.  Official margin debt in Shanghai fell for the 7th day which is the longest decline in 3 years.  However, reports allege online lenders have issued more than 7b yuan in high rate loans through the first 5 months of this year for stock purchases to investors that have been denied margin accounts.  Macau June casino revenue fell 36.2% y/y vs. the 38.3% drop estimate. The BoJ Tankan Survey showed a surprise increase in manuf. sentiment with the large manufacturer index increasing  to 15  from 12 previously.  It is the first increase  in 3 quarters.   June Manuf. PMI fell…

European Close June 30th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/30/2015 at 11:33 am
by Matthew Kiselica on 06/30/2015

To paraphrase John Donne, “For the whom the bell tolls, it tolls for Greece.”   Greece’s payment of €1.6 payment to the IMF  is due at Midnight CEST and at this point it appears to be a fait accompli the nation will not be able to make the bundled payment.  Greece allegedly asked for a new €29b bailout package via the ESM.   The Eurogroup has indicated this was possible but not with Greece intending to hold the referendum vote on this coming Saturday.   Hope of last minute maneuvering along with the stronger U.S. markets helped during the session but the region experienced selling during the closing auctions.  We did not identify a specific trigger for the last minute leg down but we speculate with no concrete debt developments and the aforementioned IMF payment looming, traders were willing to take money off the table and see what transpires tomorrow.  It is worth noting an IMF official stated non-payment by Greece will be referred to as “arrears” as opposed to “default.” All of the major indices ended the day to the downside with Spain and Italy erasing modest gains thanks to the closing auction selling noted above.  479 names in the Euostoxx600 ended…

To paraphrase John Donne, “For the whom the bell tolls, it tolls for Greece.”   Greece’s payment of €1.6 payment to the IMF  is due at Midnight CEST and at this point it appears to be a fait accompli the nation will not be able to make the bundled payment.  Greece allegedly asked for a new €29b bailout package via the ESM.   The Eurogroup has indicated this was possible but not with Greece intending to hold the referendum vote on this coming Saturday.   Hope of last minute maneuvering along with the stronger U.S. markets helped during the session but the region experienced selling during the closing auctions.  We did not identify a specific trigger for the last minute leg down but we speculate with no concrete debt developments and the aforementioned IMF payment looming, traders were willing to take money off the table and see what transpires tomorrow.  It is worth noting an IMF official stated non-payment by Greece will be referred to as “arrears” as opposed to “default.” All of the major indices ended the day to the downside with Spain and Italy erasing modest gains thanks to the closing auction selling noted above.  479 names in the Euostoxx600 ended…

CAPIS International Summary June 30, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/30/2015 at 6:37 am
by Clayton Duff on 06/30/2015

Asian Headlines After a lackluster start, Asian markets rallied with most markets ending near day’s highs. Shanghai fell 5% over the first session but rallied to end at highs today, again holding the 100 day MA. Several positive actions pointing to a rally today include yesterday’s story that regulators would allow pensions to invest in A-shares with certain restrictions.  We also pointed out that IPO’s may be restricted with the China Nuclear Engineering Corp (CNEC) IPO planned for July being delayed.  Additionally, the PBoC injected CNY50B.  China’s CSRC is contemplating cutting its stamp tax in an attempt to stabilize the stock market.  On the flip side, the Shanghai exchange halted margin trading for select stocks.  Air China shares were halted pending a private placement. Japanese shares were led by Health Care and Consumer Staples while Energy names again suffered.  May labor cash earnings rose 0.6% just shy of estimates.  May Vehicle Production tanked 16.6% YoY  the the prior month decline of 7.4% .  Takata -.7% is seeking price support from automakers.  Honda +.9% said it plans to make English its official language for international communications within the company around 2020.  The firm also said it would increase the number of women…

Asian Headlines After a lackluster start, Asian markets rallied with most markets ending near day’s highs. Shanghai fell 5% over the first session but rallied to end at highs today, again holding the 100 day MA. Several positive actions pointing to a rally today include yesterday’s story that regulators would allow pensions to invest in A-shares with certain restrictions.  We also pointed out that IPO’s may be restricted with the China Nuclear Engineering Corp (CNEC) IPO planned for July being delayed.  Additionally, the PBoC injected CNY50B.  China’s CSRC is contemplating cutting its stamp tax in an attempt to stabilize the stock market.  On the flip side, the Shanghai exchange halted margin trading for select stocks.  Air China shares were halted pending a private placement. Japanese shares were led by Health Care and Consumer Staples while Energy names again suffered.  May labor cash earnings rose 0.6% just shy of estimates.  May Vehicle Production tanked 16.6% YoY  the the prior month decline of 7.4% .  Takata -.7% is seeking price support from automakers.  Honda +.9% said it plans to make English its official language for international communications within the company around 2020.  The firm also said it would increase the number of women…

CAPIS European June 29th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/29/2015 at 12:15 pm
by Matthew Kiselica on 06/29/2015

Honestly, there is little of substance we can add from what we stated in our morning brief.  Bottom line of the Greek story reading through all of the headlines, the Greek aid programs expires tomorrow, the Eurogroup seems to be standing their ground and the Greek referendum will be held on the 5th. Europe remained firmly in the red with a small bounce after the U.S. open proving to be unsustainable.  All sectors ended to the downside and the best performing sector, basic resources, lower by 1.3% on the day.   It will probably be no surprise today the banks led the market lower falling by 4% followed by autos, tech, and chemicals.   Volumes ended the day c. 25% higher but worth noting that was a decline from activity earlier in the day when they were running roughly c. 60.0% higher. The amazingly resilient € managed to erase all of its losses on the day vs. the “Greenback” swinging by more than  2% intraday.   Bond yields remained remained with the same general comment we noted this morning.  Greek and peripheral yields advanced while core European yields retreated.  The Greek 10 yr yield rose 403 bps and the 2 yr c. 1550 bps.  Most of the…

Honestly, there is little of substance we can add from what we stated in our morning brief.  Bottom line of the Greek story reading through all of the headlines, the Greek aid programs expires tomorrow, the Eurogroup seems to be standing their ground and the Greek referendum will be held on the 5th. Europe remained firmly in the red with a small bounce after the U.S. open proving to be unsustainable.  All sectors ended to the downside and the best performing sector, basic resources, lower by 1.3% on the day.   It will probably be no surprise today the banks led the market lower falling by 4% followed by autos, tech, and chemicals.   Volumes ended the day c. 25% higher but worth noting that was a decline from activity earlier in the day when they were running roughly c. 60.0% higher. The amazingly resilient € managed to erase all of its losses on the day vs. the “Greenback” swinging by more than  2% intraday.   Bond yields remained remained with the same general comment we noted this morning.  Greek and peripheral yields advanced while core European yields retreated.  The Greek 10 yr yield rose 403 bps and the 2 yr c. 1550 bps.  Most of the…

CAPIS Greekageddon International Summary June 29, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/29/2015 at 7:01 am
by Clayton Duff on 06/29/2015

Asian Headlines We began the week lower with Japan finishing at the low of the day while Shanghai moved into bear territory. In China, the PBoC over the weekend cut interest rates for the fourth time in seven months to a record low.   Lending rates fell to 4.85% with deposit rates to 2%, both down by 25bps. The required reserve ratio was cut for the third time in five months. Also, Industrial Profits fell 2% in May, to a scant .6%. China Coal -3.4% said it expects H1 net loss of 800m–1.2b yuan, its first loss since 2012. Wynn Macau   -6.2% and other names in the sector suffered ahead of the Macau casino regulators to report June gross gaming revenues this week. To note, after the close, China’s Stock Regulator are reportedly suspending IPOs to stabilize equity markets amid the recent slump. With markets worldwide lower and a flight to safety, the stronger ¥ hurt Japan with IT, Healthcare, and Financials all weaker by over 3%. Japan’s May industrial production dropped more than forecast as output fell 2.2% MoM. Retail sales rose 1.7% m/m vs. the +1.1% estimate. The government noted the industrial sector is stagnating.   Mito Securities downgraded Sumitomo Heavy -3.8% to neutral. Samsung…

Asian Headlines We began the week lower with Japan finishing at the low of the day while Shanghai moved into bear territory. In China, the PBoC over the weekend cut interest rates for the fourth time in seven months to a record low.   Lending rates fell to 4.85% with deposit rates to 2%, both down by 25bps. The required reserve ratio was cut for the third time in five months. Also, Industrial Profits fell 2% in May, to a scant .6%. China Coal -3.4% said it expects H1 net loss of 800m–1.2b yuan, its first loss since 2012. Wynn Macau   -6.2% and other names in the sector suffered ahead of the Macau casino regulators to report June gross gaming revenues this week. To note, after the close, China’s Stock Regulator are reportedly suspending IPOs to stabilize equity markets amid the recent slump. With markets worldwide lower and a flight to safety, the stronger ¥ hurt Japan with IT, Healthcare, and Financials all weaker by over 3%. Japan’s May industrial production dropped more than forecast as output fell 2.2% MoM. Retail sales rose 1.7% m/m vs. the +1.1% estimate. The government noted the industrial sector is stagnating.   Mito Securities downgraded Sumitomo Heavy -3.8% to neutral. Samsung…

CAPIS ALERT: Chinese interest rate and RRR cut

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/27/2015 at 8:47 am
by Matthew Kiselica on 06/27/2015

China –  heads up on the moves by the PBoC that were released on its website today.  The central bank cuts it benchmark lending rate by 25 bps to 4.85% while also reducing its benchmark deposit rate by 25 bps to 2%.  Additionally, it lowered its deposit reserve ratio by 50 bps for some banks provding certain commercial loans.  The new rates become effective on Sunday.  This link provides further context and background.    Enjoy the weekend.

China –  heads up on the moves by the PBoC that were released on its website today.  The central bank cuts it benchmark lending rate by 25 bps to 4.85% while also reducing its benchmark deposit rate by 25 bps to 2%.  Additionally, it lowered its deposit reserve ratio by 50 bps for some banks provding certain commercial loans.  The new rates become effective on Sunday.  This link provides further context and background.    Enjoy the weekend.

CAPIS European Close June 26, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/26/2015 at 11:28 am
by Matthew Kiselica on 06/26/2015

Europe spent the majority of the afternoon trading to the upside which is fairly surprising given the latest updates from the Greek talks combined with the terrorist attack in France.  A stronger U.S. open was a help.   Greece has rejected a Eurogroup proposal to a 5 month, €15.5b extension of the current program while creditors have issues with the Greek VAT and pension proposals.  EU Finance Ministers meet tomorrow and statements continue to indicate June 30th is a firm deadline.  Greek PM Tsipras has insinuated some creditors are taking advantage of the situation to “blackmail” his nation.   Having said all of the that, Greece ended the day higher. There was little conviction in today’s gains though with volumes off by c. 20.0%.  Most sectors gained with retail +0.9% followed by chemicals, banks and autos.  Basic resource were lower by 1% with energy off c. 0.5%.  The weakness in those two key sectors were why the FTSE was lower on the day. The energy sector was impacted by lower crude prices.  Negotiators have apparently offered Iran further concessions in an attempt to reach regarding Iran’s nuclear energy program.   However, “Texas Tea” has managed to recoup most of those losses.…

Europe spent the majority of the afternoon trading to the upside which is fairly surprising given the latest updates from the Greek talks combined with the terrorist attack in France.  A stronger U.S. open was a help.   Greece has rejected a Eurogroup proposal to a 5 month, €15.5b extension of the current program while creditors have issues with the Greek VAT and pension proposals.  EU Finance Ministers meet tomorrow and statements continue to indicate June 30th is a firm deadline.  Greek PM Tsipras has insinuated some creditors are taking advantage of the situation to “blackmail” his nation.   Having said all of the that, Greece ended the day higher. There was little conviction in today’s gains though with volumes off by c. 20.0%.  Most sectors gained with retail +0.9% followed by chemicals, banks and autos.  Basic resource were lower by 1% with energy off c. 0.5%.  The weakness in those two key sectors were why the FTSE was lower on the day. The energy sector was impacted by lower crude prices.  Negotiators have apparently offered Iran further concessions in an attempt to reach regarding Iran’s nuclear energy program.   However, “Texas Tea” has managed to recoup most of those losses.…

CAPIS International Summary June 26, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/26/2015 at 6:53 am
by Clayton Duff on 06/26/2015

Asian Headlines Chinese markets again led lower, closing out a particular tough week with the entire region seeing weakness today.  Much like last Friday, Shanghai moved lower throughout the day, accelerating losses into the close. For the week, Shanghai finished down over 12% with Shenzhen over 14% weaker. The slew of IPO’s this week was cited much of the loss but no doubt traders getting out from margin calls a concern as well.  See the Shanghai Compite 6 mo chart below. Morgan Stanley said the Chinese stock market rally has peaked and predicts the Shanghai Index will fall as much 30% over the next year and said not to buy on dips. Goldman expects the market to remain volatile. Guotai Junan Securities +44%, the nation’s biggest domestic IPO since 2010, closed higher as the shares rose by the daily limit.  Jewel retailer Luk Fook +1.1% said FY net fell 13.4% YoY but will add 100 outlets this year in China. Japan finished down small post mixed economic data. Unemployment is at an 18 year low with household spending on the upswing. However, CPI hit a 2 year low.  On this, the ¥ strengthened slightly as Material names finished up while the Energy…

Asian Headlines Chinese markets again led lower, closing out a particular tough week with the entire region seeing weakness today.  Much like last Friday, Shanghai moved lower throughout the day, accelerating losses into the close. For the week, Shanghai finished down over 12% with Shenzhen over 14% weaker. The slew of IPO’s this week was cited much of the loss but no doubt traders getting out from margin calls a concern as well.  See the Shanghai Compite 6 mo chart below. Morgan Stanley said the Chinese stock market rally has peaked and predicts the Shanghai Index will fall as much 30% over the next year and said not to buy on dips. Goldman expects the market to remain volatile. Guotai Junan Securities +44%, the nation’s biggest domestic IPO since 2010, closed higher as the shares rose by the daily limit.  Jewel retailer Luk Fook +1.1% said FY net fell 13.4% YoY but will add 100 outlets this year in China. Japan finished down small post mixed economic data. Unemployment is at an 18 year low with household spending on the upswing. However, CPI hit a 2 year low.  On this, the ¥ strengthened slightly as Material names finished up while the Energy…

CAPIS European Closing June 25, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/25/2015 at 12:06 pm
by Matthew Kiselica on 06/25/2015

Europe remained to the downside post our morning comments, hitting the afternoon lows shortly after the U.S. open.  The headlines out of Europe at that point were pessimistic regarding Greece.  However, various people involved continue to comment a deal is possible.  What appears to be frustrating the credit negotiators is a lack of “substance” with the financials from the Greek delegates along with failure to give ground on key measures.  Since the close,  EU Parliament member Schulz declared “implementation of a Greek deal would be difficult” and that “agreement with Greece isn’t the solution.”  The IMF declared it is still expecting Greece to pay the $1.17b due next Tuesday.  As we have said ad nauseam, the markets will continue to hang and swing on every statement. While the majority of markets were down, Italy outperformed with the banking sector providing support.  A number of positive broker comments lifted the sector including the Natixis upgrade of Unicredit +1.6% to buy.  Germany was also a relative outperformer with telecoms and consumer goods providing the support. Other than the names we highlighted this morning (Vivendi +1.8%, Telecom Italia flat, H&M -3.2% and Electrolux -1.8%) there was little in the way of major corporate news.…

Europe remained to the downside post our morning comments, hitting the afternoon lows shortly after the U.S. open.  The headlines out of Europe at that point were pessimistic regarding Greece.  However, various people involved continue to comment a deal is possible.  What appears to be frustrating the credit negotiators is a lack of “substance” with the financials from the Greek delegates along with failure to give ground on key measures.  Since the close,  EU Parliament member Schulz declared “implementation of a Greek deal would be difficult” and that “agreement with Greece isn’t the solution.”  The IMF declared it is still expecting Greece to pay the $1.17b due next Tuesday.  As we have said ad nauseam, the markets will continue to hang and swing on every statement. While the majority of markets were down, Italy outperformed with the banking sector providing support.  A number of positive broker comments lifted the sector including the Natixis upgrade of Unicredit +1.6% to buy.  Germany was also a relative outperformer with telecoms and consumer goods providing the support. Other than the names we highlighted this morning (Vivendi +1.8%, Telecom Italia flat, H&M -3.2% and Electrolux -1.8%) there was little in the way of major corporate news.…

CAPIS International Summary June 25, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/25/2015 at 6:56 am
by Clayton Duff on 06/25/2015

Asian Headlines Post the weaker session in the States, Asian markets fell overnight as Greek talks fell apart yesterday.  Another meeting occurred last night which ran late as talks continue today. The PBOC offered 35b yuan of seven day reverse repos to make up for a sovereign bond sale that failed to raise the amount planned.  The yuan fell the most in two weeks as a result of the cash infusion.  Shanghai was up small for much of the morning but worked lower in the afternoon.  Much of the selloff was explained as market disappointment that the PBoC action was in exchange for no rate or RRR cut.  In addition to the government looking to scrap the 75% loan-to-deposit ratio TTN is noting speculation that banks will be allowed to obtain brokerage licenses later this year.  As we have been noting recently, margin trading has been on the upswing in China but today’s selling was somewhat attributed to margin traders looking to cut positions. Margin debt fell 2% on Wednesday.  Bloomberg today noted that the CSI 300 IT index has fallen 20% since June 2nd. The ¥ strengthened for much of the session with all sectors except Consumer Discretionary names lower. Japan’s June Small Business…

Asian Headlines Post the weaker session in the States, Asian markets fell overnight as Greek talks fell apart yesterday.  Another meeting occurred last night which ran late as talks continue today. The PBOC offered 35b yuan of seven day reverse repos to make up for a sovereign bond sale that failed to raise the amount planned.  The yuan fell the most in two weeks as a result of the cash infusion.  Shanghai was up small for much of the morning but worked lower in the afternoon.  Much of the selloff was explained as market disappointment that the PBoC action was in exchange for no rate or RRR cut.  In addition to the government looking to scrap the 75% loan-to-deposit ratio TTN is noting speculation that banks will be allowed to obtain brokerage licenses later this year.  As we have been noting recently, margin trading has been on the upswing in China but today’s selling was somewhat attributed to margin traders looking to cut positions. Margin debt fell 2% on Wednesday.  Bloomberg today noted that the CSI 300 IT index has fallen 20% since June 2nd. The ¥ strengthened for much of the session with all sectors except Consumer Discretionary names lower. Japan’s June Small Business…

CAPIS European Close June 24, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/24/2015 at 11:20 am
by Clayton Duff on 06/24/2015

A small negative bias to markets today with denials of a Greek deal weighing. With both sides supposedly providing offers with rejections on both, markets not surprisingly fell but the loss was relatively benign.    The UK finished up small with Energy and Basic Resource names seeing some decent gains. Only Energy, Basic Resources, and Travel Names saw any strength with the Technology and Construction sectors both weaker by over a percent. Julius Baer +3.3% trading higher today as the firm will set aside $350M for an expected DOJ fine, considerably less than what the market was looking for. Shell +1.5% post a couple broker upgrades thus lending strength to the FTSE. The deal with BG cited as a driver. Miners rallied despite CS cutting estimates on iron ore miners as they noted 2H pricing pressure.  Chinese steel production is expected to fall 1.5% this year but they did note that cost cuts are allowing for dividends to be maintained.   Anglo American +1.1%, BHP Billiton +1.3%. Tonight, Japan will release Small business confidence data along with activity in equity/bonds. After the close tonight, Hong Kong will report trade data.  German GfK Consumer confidence is expected with Spanish PPI as well.  Earnings expected from DS…

A small negative bias to markets today with denials of a Greek deal weighing. With both sides supposedly providing offers with rejections on both, markets not surprisingly fell but the loss was relatively benign.    The UK finished up small with Energy and Basic Resource names seeing some decent gains. Only Energy, Basic Resources, and Travel Names saw any strength with the Technology and Construction sectors both weaker by over a percent. Julius Baer +3.3% trading higher today as the firm will set aside $350M for an expected DOJ fine, considerably less than what the market was looking for. Shell +1.5% post a couple broker upgrades thus lending strength to the FTSE. The deal with BG cited as a driver. Miners rallied despite CS cutting estimates on iron ore miners as they noted 2H pricing pressure.  Chinese steel production is expected to fall 1.5% this year but they did note that cost cuts are allowing for dividends to be maintained.   Anglo American +1.1%, BHP Billiton +1.3%. Tonight, Japan will release Small business confidence data along with activity in equity/bonds. After the close tonight, Hong Kong will report trade data.  German GfK Consumer confidence is expected with Spanish PPI as well.  Earnings expected from DS…

CAPIS International Summary June 24, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/24/2015 at 7:02 am
by Matthew Kiselica on 06/24/2015

Asian Headlines Most Asia nudged higher on the day with Mainland China the exception, outperforming again, the Shanghai exchange adding 2.5%.   While not as extreme as yesterday, the mainland markets remained volatile.  The Shanghai Composite swung more than 3% intraday erasing initial gains before moving back into the green again late in the session.  Some of the volatility was attributed to mixed macro data.  The Westpac business index rose to 112.3 from 111.1 but the Conf. Board Leading Index slowed. The rebound on the day was thanks to a report regulators have approved the removal of the loan/deposit cap. Also, in the wake of yesterday’s Flash PMI reading caused analysts to predict further interest rate and rrr cuts by the PBoC.  Petrochina +2.7% President Wang  said H1 profit to reach about 40b yuan and H1 performance better than expected. Japan had a modest advance but still saw the Nikkei 225 close at its highest level since 1996 (see chart below). It also puts the Nikkei 225 above the dot.com highs at the turn of the century.  The BoJ minutes from May indicated the majority of the board members remain committed to an expansive monetary policy until the nation’s inflation rate steadies at 2.0%.  On that topic, Services PPI was 0.6%…

Asian Headlines Most Asia nudged higher on the day with Mainland China the exception, outperforming again, the Shanghai exchange adding 2.5%.   While not as extreme as yesterday, the mainland markets remained volatile.  The Shanghai Composite swung more than 3% intraday erasing initial gains before moving back into the green again late in the session.  Some of the volatility was attributed to mixed macro data.  The Westpac business index rose to 112.3 from 111.1 but the Conf. Board Leading Index slowed. The rebound on the day was thanks to a report regulators have approved the removal of the loan/deposit cap. Also, in the wake of yesterday’s Flash PMI reading caused analysts to predict further interest rate and rrr cuts by the PBoC.  Petrochina +2.7% President Wang  said H1 profit to reach about 40b yuan and H1 performance better than expected. Japan had a modest advance but still saw the Nikkei 225 close at its highest level since 1996 (see chart below). It also puts the Nikkei 225 above the dot.com highs at the turn of the century.  The BoJ minutes from May indicated the majority of the board members remain committed to an expansive monetary policy until the nation’s inflation rate steadies at 2.0%.  On that topic, Services PPI was 0.6%…

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