International Summary

1710 total posts

European Close June 8, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/08/2015 at 11:56 am
by Clayton Duff on 06/08/2015

Most European indices finished near lows today with US markets not lending any positive sentiment.   Volumes were 14% lower with all sectors down except for Food/Bevvies.  Autos finished down 1.86%, with Basic Resources off 1.72%, and Chemicals weaker by 1.28%.  Apart from Obama speaking, nothing new from the G7.  The Euro has continued to rebound, retaking all that was lost on Friday’s sharp sell-off. Barclays closed 1.3% lower despite Stifel buying the firm’s US Wealth and Investment Mgmt that has a reported $56B in total client assets.  Barclays had purchased the firm in 2008 from Lehman Brothers Holdings. Saint Gobain -.1% as Apollo Global Mgmt looks to purchase the firms glass-packaging unit Verallia for €2.95B. Several analysts noted the amount was a bit more than expected as that should help with St Gobain’s purchase of Sika. Logitech -.7% closed down small post noting they will settle with the US SEC for roughly $3.25M over a financial statement investigation. Tonight, CPI/PPI due from China with Japanese Consumer Confidence expected.  Ausralian NAB biz readings out as well.  EZ GDP will be reported after the open with the UK releasing Trade balance info.  

Most European indices finished near lows today with US markets not lending any positive sentiment.   Volumes were 14% lower with all sectors down except for Food/Bevvies.  Autos finished down 1.86%, with Basic Resources off 1.72%, and Chemicals weaker by 1.28%.  Apart from Obama speaking, nothing new from the G7.  The Euro has continued to rebound, retaking all that was lost on Friday’s sharp sell-off. Barclays closed 1.3% lower despite Stifel buying the firm’s US Wealth and Investment Mgmt that has a reported $56B in total client assets.  Barclays had purchased the firm in 2008 from Lehman Brothers Holdings. Saint Gobain -.1% as Apollo Global Mgmt looks to purchase the firms glass-packaging unit Verallia for €2.95B. Several analysts noted the amount was a bit more than expected as that should help with St Gobain’s purchase of Sika. Logitech -.7% closed down small post noting they will settle with the US SEC for roughly $3.25M over a financial statement investigation. Tonight, CPI/PPI due from China with Japanese Consumer Confidence expected.  Ausralian NAB biz readings out as well.  EZ GDP will be reported after the open with the UK releasing Trade balance info.  

CAPIS International Summary June 8th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/08/2015 at 3:07 am
by Matthew Kiselica on 06/08/2015

Asian Headlines The majority of the region was flat to down small while Greater China outperformed.  The gains in China were driven by 2 key items.   MSCI announces its index changes tomorrow and there are hopes Shanghai listed A shares will be added to the Emerging Market Index.  The banking sector is viewed to be one of the main beneficiaries and led the market.  The May trade surplus was $59.5b with exports falling 2.8% y/y vs. the estimate of  a 4% decline.  Imports fell 18.1% y/y vs. the market expectation of -9.6%.   That is the 7th consecutive monthly decline.  The softness in the data prompted hopes of further easing measures by the PBoC.  CSR Corp. and China CNR have completed their merger and are now CRRC Corp. +4.5%. Chow Tai Fook’s -6.5% FY15 earnings missed estimates and sales were softer in China, Hong Kong and Macau. Japan was essentially flat as GDP data caused worry about easing.  Q1 Final GDP expanded a robust 3.9% q/q well ahead of the preliminary 2.4% reading and expected gain to 2.8% q/q.  The April Current Account Surplus was ¥1.33t vs. consensus +¥1.69t.  Nomura lifted its Japanese stock targets citing the weak ¥ will raise…

Asian Headlines The majority of the region was flat to down small while Greater China outperformed.  The gains in China were driven by 2 key items.   MSCI announces its index changes tomorrow and there are hopes Shanghai listed A shares will be added to the Emerging Market Index.  The banking sector is viewed to be one of the main beneficiaries and led the market.  The May trade surplus was $59.5b with exports falling 2.8% y/y vs. the estimate of  a 4% decline.  Imports fell 18.1% y/y vs. the market expectation of -9.6%.   That is the 7th consecutive monthly decline.  The softness in the data prompted hopes of further easing measures by the PBoC.  CSR Corp. and China CNR have completed their merger and are now CRRC Corp. +4.5%. Chow Tai Fook’s -6.5% FY15 earnings missed estimates and sales were softer in China, Hong Kong and Macau. Japan was essentially flat as GDP data caused worry about easing.  Q1 Final GDP expanded a robust 3.9% q/q well ahead of the preliminary 2.4% reading and expected gain to 2.8% q/q.  The April Current Account Surplus was ¥1.33t vs. consensus +¥1.69t.  Nomura lifted its Japanese stock targets citing the weak ¥ will raise…

European Close June 5, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/05/2015 at 11:37 am
by Clayton Duff on 06/05/2015

European indices traded within a fairly tight range today, albeit over a percent lower than yesterday’s close.  As the day wore on, volume continued to lag, finishing down 6% on the day. Energy and Basic Resource names finished up small with Financials, Chemicals, and Personal Goods all lower by at least 150bps. Little help from the US despite NFP’s coming better than expected.  Treasuries are selling off with European bonds seeing selling as well.  There is not much to add to the Greek situation with Fitch saying the bundling of their IMF payments to month-end has no implications to the country’s CCC sovereign rating. Deutsche Bank -1.7% lower as the firm noted they are looking potential money laundering by some Russian clients.  Initially they believe up to $6B in transactions over four years may have occurred. Syngenta -3.3% lower with word the firm would lose another line of biz if Monsanto is to win approval to acquire the firm. Fiat Chrysler’s -3.3% CEO again talking up industry consolidation  noting they are in talks with many in the sector.  Marchionne said he would stay on until after 2018 if needed if a deal is on the table.  He noted Ferrari cannot be IPO’d before…

European indices traded within a fairly tight range today, albeit over a percent lower than yesterday’s close.  As the day wore on, volume continued to lag, finishing down 6% on the day. Energy and Basic Resource names finished up small with Financials, Chemicals, and Personal Goods all lower by at least 150bps. Little help from the US despite NFP’s coming better than expected.  Treasuries are selling off with European bonds seeing selling as well.  There is not much to add to the Greek situation with Fitch saying the bundling of their IMF payments to month-end has no implications to the country’s CCC sovereign rating. Deutsche Bank -1.7% lower as the firm noted they are looking potential money laundering by some Russian clients.  Initially they believe up to $6B in transactions over four years may have occurred. Syngenta -3.3% lower with word the firm would lose another line of biz if Monsanto is to win approval to acquire the firm. Fiat Chrysler’s -3.3% CEO again talking up industry consolidation  noting they are in talks with many in the sector.  Marchionne said he would stay on until after 2018 if needed if a deal is on the table.  He noted Ferrari cannot be IPO’d before…

CAPIS International Summary June 5, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/05/2015 at 7:22 am
by Clayton Duff on 06/05/2015

Asian Headlines Following on yesterday’s Greek news, most of the core Asian markets ended the day down small; however, China closed to the upside.  A number of the peripheral markets also managed to move higher.  China spent most of the session higher but saw a similar pattern to what occurred yesterday albeit with less volatility.  Shanghai came under pressure as the mid-day break approached and the selling continued as the afternoon trading commenced.  After hitting a low of -1%, the market steadily rallied and spent the balance of the day to the upside, finishing in the green.  Overall, Shanghai swung c. 3.0% intraday and closed above 5,000.  The market did see some further margin lending tightening from the Street. A PBoC official declared the Shanghai Free Trade Zone (FTZ) has met the conditions for full Yuan convertibility.  Great Wall Motor’s -8.5% May sales were 65,400 vehicles vs. 51,837 y/y. China Vanke’s +2.3% May sales were 20.7b yuan up from April’s 17.8b yuan.  Macau casino shares gained following Citi’s comments from yesterday that gaming trends improved during May. Japan spent the entire session lower but did pare losses over the last hour.  The combination of Greek concerns coupled with the comments from BoJ member Harada made…

Asian Headlines Following on yesterday’s Greek news, most of the core Asian markets ended the day down small; however, China closed to the upside.  A number of the peripheral markets also managed to move higher.  China spent most of the session higher but saw a similar pattern to what occurred yesterday albeit with less volatility.  Shanghai came under pressure as the mid-day break approached and the selling continued as the afternoon trading commenced.  After hitting a low of -1%, the market steadily rallied and spent the balance of the day to the upside, finishing in the green.  Overall, Shanghai swung c. 3.0% intraday and closed above 5,000.  The market did see some further margin lending tightening from the Street. A PBoC official declared the Shanghai Free Trade Zone (FTZ) has met the conditions for full Yuan convertibility.  Great Wall Motor’s -8.5% May sales were 65,400 vehicles vs. 51,837 y/y. China Vanke’s +2.3% May sales were 20.7b yuan up from April’s 17.8b yuan.  Macau casino shares gained following Citi’s comments from yesterday that gaming trends improved during May. Japan spent the entire session lower but did pare losses over the last hour.  The combination of Greek concerns coupled with the comments from BoJ member Harada made…

European Close June 4, 2015

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International Summary

posted by Clayton Duff on 06/04/2015 at 11:43 am
by Clayton Duff on 06/04/2015

A volatile session today with volume slowing as the session wore on.  European indices saw some strength post the US open but quickly turned south again. Like earlier, all sectors are lower with Basic Resources, Utilities, and Energy all finishing down over 2%. On the Greek front, bonds rebounded post more word that Greece will indeed make their IMF payment tomorrow.  At one point, the 10 year Bund nearly reached 1% but they rebounded to yield .835% currently.  Concerning the offer to Athens, EU creditors are looking to an increase to the VAT tax plus pension cuts.  More sales and privatizations are being requested.  In return, the EFSF will be able to provide €11B to cover July and August payments. Additionally, the IMF today cut US growth forecasts asking the Fed to hold off until next year any rate increases.  They cited delicate international portfolios for the request. ABB +3.57% higher on word of an increased investment by Cevian Capital. Ericsson +2.4% a standout today as JPM upped the name to Overweight citing an upswing in US wireless infrastructure spending post a cyclical low. They see spending starting to increase in the 2H with an upswing expected next year. Saipem -13% on a…

A volatile session today with volume slowing as the session wore on.  European indices saw some strength post the US open but quickly turned south again. Like earlier, all sectors are lower with Basic Resources, Utilities, and Energy all finishing down over 2%. On the Greek front, bonds rebounded post more word that Greece will indeed make their IMF payment tomorrow.  At one point, the 10 year Bund nearly reached 1% but they rebounded to yield .835% currently.  Concerning the offer to Athens, EU creditors are looking to an increase to the VAT tax plus pension cuts.  More sales and privatizations are being requested.  In return, the EFSF will be able to provide €11B to cover July and August payments. Additionally, the IMF today cut US growth forecasts asking the Fed to hold off until next year any rate increases.  They cited delicate international portfolios for the request. ABB +3.57% higher on word of an increased investment by Cevian Capital. Ericsson +2.4% a standout today as JPM upped the name to Overweight citing an upswing in US wireless infrastructure spending post a cyclical low. They see spending starting to increase in the 2H with an upswing expected next year. Saipem -13% on a…

CAPIS International Summary June 4, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/04/2015 at 7:14 am
by Clayton Duff on 06/04/2015

Asian Headlines It was quite a day for Chinese traders with the major indices swinging to and fro.  The Shanghai Composite was lower by over 5% in almost a straight line over a very brief period that straddled the mid-day break after Guo Sheng Secs. ceased margin lending to retail investors for certain securities.  However, the market steadily rebounded over the rest of the afternoon and managed to close higher.  (See chart below)  Helping the bounce were comments from a PBoC official indicating the deposit rate cap may be “soon” be removed.  Thus, banks led the advance.  BoCom +5.5% had its ownership reform plan approved by authorities.  Byd +8.8% resumed trading following its private placement announcement. It was tough day Down Under following disappointment with the April Trade Deficit and Retail Sales.  The trade deficit reached an all time record of -$A3.9b vs. -A$2.1b expected and was the 13th consecutive monthly deficit.  Retail sales were flat m/m marking a 1 year low with the market expecting a gain of +0.3%.  All sectors were lower with most by well over 1% as basic resources, retail and banks experienced some of the steepest declines.   NAB -2.0% is rumored to be in talks to sell its…

Asian Headlines It was quite a day for Chinese traders with the major indices swinging to and fro.  The Shanghai Composite was lower by over 5% in almost a straight line over a very brief period that straddled the mid-day break after Guo Sheng Secs. ceased margin lending to retail investors for certain securities.  However, the market steadily rebounded over the rest of the afternoon and managed to close higher.  (See chart below)  Helping the bounce were comments from a PBoC official indicating the deposit rate cap may be “soon” be removed.  Thus, banks led the advance.  BoCom +5.5% had its ownership reform plan approved by authorities.  Byd +8.8% resumed trading following its private placement announcement. It was tough day Down Under following disappointment with the April Trade Deficit and Retail Sales.  The trade deficit reached an all time record of -$A3.9b vs. -A$2.1b expected and was the 13th consecutive monthly deficit.  Retail sales were flat m/m marking a 1 year low with the market expecting a gain of +0.3%.  All sectors were lower with most by well over 1% as basic resources, retail and banks experienced some of the steepest declines.   NAB -2.0% is rumored to be in talks to sell its…

European Close June 3rd, 2015

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International Summary

posted by Matthew Kiselica on 06/03/2015 at 12:57 pm
by Matthew Kiselica on 06/03/2015

Closing Comments Europe ended the day to the upside but saw selling pressure towards the close with a number of the major indices closing at or near their respective lows. Some of the latter day selling may have been reaction to headlines indicated sanctions against Russia would be extended for 6 more months at the upcoming EU summit later this month. However, the tone of the 2nd half of the day was largely positive.   The retail sector, banks and chems led while food/bevies, basic resources and energy lagged.  None of the major sectors moved by 1%.  Volumes were lower by c. 7% overall. The key afternoon news was the ECB rate decision and Mr. Draghi’s press conference.  The central bank made no policy changes but did raise its EU CPI forecasts for the year to 0.3% from flat. Mr. Draghi stated QE was having precisely the desired effect and there were signs the regions economy was improving.  Therefore, there was no need to add to the current easing plan.  This caused the € to rally from the low 1.11’s to 1.125 and better (see chart below).   Conversely, regional sovereign bonds sold off with yields seeing increases of multiple basis points.…

Closing Comments Europe ended the day to the upside but saw selling pressure towards the close with a number of the major indices closing at or near their respective lows. Some of the latter day selling may have been reaction to headlines indicated sanctions against Russia would be extended for 6 more months at the upcoming EU summit later this month. However, the tone of the 2nd half of the day was largely positive.   The retail sector, banks and chems led while food/bevies, basic resources and energy lagged.  None of the major sectors moved by 1%.  Volumes were lower by c. 7% overall. The key afternoon news was the ECB rate decision and Mr. Draghi’s press conference.  The central bank made no policy changes but did raise its EU CPI forecasts for the year to 0.3% from flat. Mr. Draghi stated QE was having precisely the desired effect and there were signs the regions economy was improving.  Therefore, there was no need to add to the current easing plan.  This caused the € to rally from the low 1.11’s to 1.125 and better (see chart below).   Conversely, regional sovereign bonds sold off with yields seeing increases of multiple basis points.…

CAPIS International Summary June 3, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/03/2015 at 6:53 am
by Clayton Duff on 06/03/2015

Asian Headlines Varied returns overnight with mainland China pausing from its recent runup to close flat on the session. Hong Kong managed gains with Japan, South Korea, and Australia lower on the session. China initially ticked up post the better HSBC Services PMI reading, with their economist noting the strongest upturn in three years.  Hong Kong finished higher but off of highs depite HSBC PMI data light vs the prior reading.   Per TTN, Markit economists noted weakening output on a faster contraction of new orders.  Additionally, new business from the mainland fell at the fastest rate since December of 2008.  The PBoC yesterday said they will allow lenders to issue Certificates of Deposit to individuals and companies as they continue the march toward interest-rate liberalization.  Geely Automotive -4% underperformed today after UBS cut the name to Sell from Neutral.  CK Hutchison Holdings fell 4% as its spinoff, Cheung Kong Property -flat– IPO’d today.  Note: after the close, BYD Co said they plan to raise up to 15B Yuan via an A-share placement. Japan finished down as the ¥ strengthened slightly post better Markit Services and Composite PMI data readings.  The BoJ’s Shrai forecasted that its 2% target will be achieved at the end…

Asian Headlines Varied returns overnight with mainland China pausing from its recent runup to close flat on the session. Hong Kong managed gains with Japan, South Korea, and Australia lower on the session. China initially ticked up post the better HSBC Services PMI reading, with their economist noting the strongest upturn in three years.  Hong Kong finished higher but off of highs depite HSBC PMI data light vs the prior reading.   Per TTN, Markit economists noted weakening output on a faster contraction of new orders.  Additionally, new business from the mainland fell at the fastest rate since December of 2008.  The PBoC yesterday said they will allow lenders to issue Certificates of Deposit to individuals and companies as they continue the march toward interest-rate liberalization.  Geely Automotive -4% underperformed today after UBS cut the name to Sell from Neutral.  CK Hutchison Holdings fell 4% as its spinoff, Cheung Kong Property -flat– IPO’d today.  Note: after the close, BYD Co said they plan to raise up to 15B Yuan via an A-share placement. Japan finished down as the ¥ strengthened slightly post better Markit Services and Composite PMI data readings.  The BoJ’s Shrai forecasted that its 2% target will be achieved at the end…

CAPIS European Close June 2, 2015

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International Summary

posted by Matthew Kiselica on 06/02/2015 at 12:04 pm
by Matthew Kiselica on 06/02/2015

European Headlines Europe ended the day to the downside with little constructive seen on the Greek front while the U.S. markets once again provided no definitive direction.  Eurogroup Finance Minister head Dijjsselbloem downplayed rumors a Hellenic deal was near stating it was “still far from a deal with Greece.”  Spain and Italy outperformed the region with banking stocks proving the lift.  However, across all of the markets basic resources was the only sector make any significant advance.  Personal goods pulled back by over 2% followed by food/bevies, healthcare and travel/leisure. The travel/leisure  sector was impacted by continued increases in crude prices.   OPEC holding an international seminar tomorrow with its production meeting following on Friday.  However, most analysts do not expect any cut to production.  That sentiment has been underscored by the Saudi Oil Minister stating crude demand was picking up.  The travel sector was also burdened by reports of bomb threats made to flights heading from Europe to the States.  However, later in the session the threats were said to be “not credible.” May U.S. auto sales were released and were a focus for the sector.  Fiat Chrysler’s -0.7%  sales surpassed the +2.6% estimate increasing by 4.0%.  The shares initially responded well…

European Headlines Europe ended the day to the downside with little constructive seen on the Greek front while the U.S. markets once again provided no definitive direction.  Eurogroup Finance Minister head Dijjsselbloem downplayed rumors a Hellenic deal was near stating it was “still far from a deal with Greece.”  Spain and Italy outperformed the region with banking stocks proving the lift.  However, across all of the markets basic resources was the only sector make any significant advance.  Personal goods pulled back by over 2% followed by food/bevies, healthcare and travel/leisure. The travel/leisure  sector was impacted by continued increases in crude prices.   OPEC holding an international seminar tomorrow with its production meeting following on Friday.  However, most analysts do not expect any cut to production.  That sentiment has been underscored by the Saudi Oil Minister stating crude demand was picking up.  The travel sector was also burdened by reports of bomb threats made to flights heading from Europe to the States.  However, later in the session the threats were said to be “not credible.” May U.S. auto sales were released and were a focus for the sector.  Fiat Chrysler’s -0.7%  sales surpassed the +2.6% estimate increasing by 4.0%.  The shares initially responded well…

CAPIS International Summary June 2, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/02/2015 at 6:48 am
by Clayton Duff on 06/02/2015

Asian Headlines A generally weaker bias in Asia today with the exception of mainland China which rallied again.  Goldman noted despite manufacturing ticking up slightly the PBoC easing bias is expected to continue. Also, Moodys raised it forecast on the Chinese property market to Stable with sales values expected to grow up to 5% through to June of next year. The HK line of HSBC -.4% fell after Sky News reported that the bank will announce on June 9th that it will be cutting between 10,000 and 20,000 employees. Zoomlion Heavy +12% will purchase a 57% stake in an Italian renewable co. for €57M. Macau May casino revenue fell 37.1% y/y vs. the 38.5% drop est. TTN reported “vague chatter is circulating that Macau business is declining so much that regulators are looking at lowering taxes.  Post the close, retail sales by value were reported to fall 2.2% YoY with volumes meeting estimates, up 2.4%. In Japan, workers wages increased faster than the cost of living for the first time in two years as real cash earnings rose 0.1% YoY. Overall wages including overtime and bonuses rose 0.9%. NTT DoCoMo +3.9% targets a ROE of over 10% in 3 years and…

Asian Headlines A generally weaker bias in Asia today with the exception of mainland China which rallied again.  Goldman noted despite manufacturing ticking up slightly the PBoC easing bias is expected to continue. Also, Moodys raised it forecast on the Chinese property market to Stable with sales values expected to grow up to 5% through to June of next year. The HK line of HSBC -.4% fell after Sky News reported that the bank will announce on June 9th that it will be cutting between 10,000 and 20,000 employees. Zoomlion Heavy +12% will purchase a 57% stake in an Italian renewable co. for €57M. Macau May casino revenue fell 37.1% y/y vs. the 38.5% drop est. TTN reported “vague chatter is circulating that Macau business is declining so much that regulators are looking at lowering taxes.  Post the close, retail sales by value were reported to fall 2.2% YoY with volumes meeting estimates, up 2.4%. In Japan, workers wages increased faster than the cost of living for the first time in two years as real cash earnings rose 0.1% YoY. Overall wages including overtime and bonuses rose 0.9%. NTT DoCoMo +3.9% targets a ROE of over 10% in 3 years and…

European Closing Note June 1st, 2015

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International Summary

posted by Matthew Kiselica on 06/01/2015 at 11:15 am
by Matthew Kiselica on 06/01/2015

Market Comments Europe ended the day with mixed performance.   A vague report a deal with Greece would be concluded by the end of the week helped the market pare losses but that momentum lost traction when no follow up announcements were made. A lackluster U.S. open was also no help following mixed macro data.   To the contrary of the earlier rumors,  Italian FM Padoan was quoted as saying a Grexit “is certainly possible.”  While Athens was closed today, the Greek 10 yr. sovereign advanced by over 25 bps.  Most of of the rest of the region’s nations also saw their sovereign yields erode with the other PIIGS members seeing increases of c. 5 bps or more.  Sector performance saw healthcare lead with a 1% gain followed by travel and leisure and media.  Basic resources and energy created the downward pull with losses in the neighborhood of 0.8%.  Volumes were lower by c. 15.0%. The strength in healthcare was led by Roche +1.3% following positive oncological studies.  CNBC also noted there was some positive production data which helped lifted the sector in general. A pullback in both Brent and WTI of over 1% contributed to the softness among energy names.…

Market Comments Europe ended the day with mixed performance.   A vague report a deal with Greece would be concluded by the end of the week helped the market pare losses but that momentum lost traction when no follow up announcements were made. A lackluster U.S. open was also no help following mixed macro data.   To the contrary of the earlier rumors,  Italian FM Padoan was quoted as saying a Grexit “is certainly possible.”  While Athens was closed today, the Greek 10 yr. sovereign advanced by over 25 bps.  Most of of the rest of the region’s nations also saw their sovereign yields erode with the other PIIGS members seeing increases of c. 5 bps or more.  Sector performance saw healthcare lead with a 1% gain followed by travel and leisure and media.  Basic resources and energy created the downward pull with losses in the neighborhood of 0.8%.  Volumes were lower by c. 15.0%. The strength in healthcare was led by Roche +1.3% following positive oncological studies.  CNBC also noted there was some positive production data which helped lifted the sector in general. A pullback in both Brent and WTI of over 1% contributed to the softness among energy names.…

International Summary June 1, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/01/2015 at 7:03 am
by Clayton Duff on 06/01/2015

Asian Headlines Asian markets kicked off the week somewhat stronger with mainland China nicely higher, rebounding quite a bit from last Thursday/Friday’s drubbing. China’s official Manufacturing PMI rose in May to 50.2 just shy of the 50.3 est. and April’s 50.1 reading. Within that, new export orders and employment continued to contract. HSBC’s May Manufacturing PMI was 49.2 matching est. and vs. April’s 48.9 reading.  Again, reduced exports leading to the first contraction in output in 2015.  With this said, expectations of continued easing from the PBoC.  The PBoC also warned about a tick up in bad loans. Also, in what could have weighed today, 23 IPO’s are expected this week.  Huatai Securities +4.8% IPO’d today.   Zhaojin Mining -7.9% to pay 2.7b yuan for Shandong Ruihai stake. The prior number was for 1.2B Yuan but more gold resources were found thus raising the price. Word out that China may launch its first stock index option in September.  Macau’s gaming revenue fell in May for the twelfth straight month. Revenue fell 37.1% to 20.35b patacas. Japanese stocks closed flat, rebounding from earlier losses post Friday’s weakness in the States.  Toshiba +3.3% won the ability to push back its earnings release thus…

Asian Headlines Asian markets kicked off the week somewhat stronger with mainland China nicely higher, rebounding quite a bit from last Thursday/Friday’s drubbing. China’s official Manufacturing PMI rose in May to 50.2 just shy of the 50.3 est. and April’s 50.1 reading. Within that, new export orders and employment continued to contract. HSBC’s May Manufacturing PMI was 49.2 matching est. and vs. April’s 48.9 reading.  Again, reduced exports leading to the first contraction in output in 2015.  With this said, expectations of continued easing from the PBoC.  The PBoC also warned about a tick up in bad loans. Also, in what could have weighed today, 23 IPO’s are expected this week.  Huatai Securities +4.8% IPO’d today.   Zhaojin Mining -7.9% to pay 2.7b yuan for Shandong Ruihai stake. The prior number was for 1.2B Yuan but more gold resources were found thus raising the price. Word out that China may launch its first stock index option in September.  Macau’s gaming revenue fell in May for the twelfth straight month. Revenue fell 37.1% to 20.35b patacas. Japanese stocks closed flat, rebounding from earlier losses post Friday’s weakness in the States.  Toshiba +3.3% won the ability to push back its earnings release thus…

European Close May 29, 2015

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International Summary

posted by Clayton Duff on 05/29/2015 at 12:00 pm
by Clayton Duff on 05/29/2015

European indices closed at lows today, erasing a couple weeks worth of work.  With rebalancing today, volumes accelerating by day’s end to finish up 26%. All sectors were solidly in the red with Autos, Chemicals, Healthcare, Media, and Construction weaker by over 2%. European indices gave up earlier gains, trading lower as the US fell.  And today we continue to hear rumors of Grexit with denials later issued.  After the close, a Greek official said they will make their IMF payment on the 5th. Total’s -2% CEO today noting the turnaround in oil could take longer than it did in ’08 with the co focusing more on gas than oil now.  While he expects the dividend to stay where it is, they will not buy back shares until oil prices do rise.  He said don’t believe the rumors that their Hutchinson rubber unit is up for sale but did not rule out a sale in the future. Airport firm Fraport -2.2% as their CEO reiterated at their AGM he sees Frankfurt headcount up 4% vs the FY target of 2-3%.  UBS cut the name to Neutral. This weekend, watch for the official PMI and the HSBC China Manufacturing PMI reading…

European indices closed at lows today, erasing a couple weeks worth of work.  With rebalancing today, volumes accelerating by day’s end to finish up 26%. All sectors were solidly in the red with Autos, Chemicals, Healthcare, Media, and Construction weaker by over 2%. European indices gave up earlier gains, trading lower as the US fell.  And today we continue to hear rumors of Grexit with denials later issued.  After the close, a Greek official said they will make their IMF payment on the 5th. Total’s -2% CEO today noting the turnaround in oil could take longer than it did in ’08 with the co focusing more on gas than oil now.  While he expects the dividend to stay where it is, they will not buy back shares until oil prices do rise.  He said don’t believe the rumors that their Hutchinson rubber unit is up for sale but did not rule out a sale in the future. Airport firm Fraport -2.2% as their CEO reiterated at their AGM he sees Frankfurt headcount up 4% vs the FY target of 2-3%.  UBS cut the name to Neutral. This weekend, watch for the official PMI and the HSBC China Manufacturing PMI reading…

International Summary May 29th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/29/2015 at 7:07 am
by Matthew Kiselica on 05/29/2015

Asian Headlines China was in focus today as investors waited to see how the market would respond to yesterday’s sharp selloff and Shanghai saw volatile trading as a follow up.  After an initial uptick, the market quickly plunged 4% before rallying to the upside over the course of the morning.  The afternoon session saw a gain of over 1.5% before another pullback of 2% before settling for the day to the downside small.  After a day like that, we are sure traders were happy to end the week.  Tech and healthcare were the sectors that provided the biggest lift to the market.  Evergrande (-27.0%) placed shares below the initial price range.   Chow Tai Fook (+1.3%) reportedly is considering a bid for Glenn’s favorite pearl jeweler, Tasaki (+9.5%).  Macau’s GDP shrank 24.5% y/y during Q1 but the underlying gaming stocks were mixed. Japan’s trading day amounted to a push with selling pressure into the close mostly erasing gains on the day. Healthcare lagged declining by close to 1% and financials saw some profit taking.  Most other sector moves were 0.5% or less.  April CPI rose 0.3% y/y vs. the 0.2% estimate and well below the prior reading of 2.2%.   The ¥ showed…

Asian Headlines China was in focus today as investors waited to see how the market would respond to yesterday’s sharp selloff and Shanghai saw volatile trading as a follow up.  After an initial uptick, the market quickly plunged 4% before rallying to the upside over the course of the morning.  The afternoon session saw a gain of over 1.5% before another pullback of 2% before settling for the day to the downside small.  After a day like that, we are sure traders were happy to end the week.  Tech and healthcare were the sectors that provided the biggest lift to the market.  Evergrande (-27.0%) placed shares below the initial price range.   Chow Tai Fook (+1.3%) reportedly is considering a bid for Glenn’s favorite pearl jeweler, Tasaki (+9.5%).  Macau’s GDP shrank 24.5% y/y during Q1 but the underlying gaming stocks were mixed. Japan’s trading day amounted to a push with selling pressure into the close mostly erasing gains on the day. Healthcare lagged declining by close to 1% and financials saw some profit taking.  Most other sector moves were 0.5% or less.  April CPI rose 0.3% y/y vs. the 0.2% estimate and well below the prior reading of 2.2%.   The ¥ showed…

European Close May 28, 2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/28/2015 at 11:25 am
by Clayton Duff on 05/28/2015

A reversal of yesterday’s action in Europe with markets falling with the US open.  By day’s end, volumes were 18% weaker on the session. Tech managed to finish up .88% with Food names up small.  As earlier, Auto and Insurers are weaker by over a percent with the balance of sectors down as well. Markets came off of lows with the IMF noting Greece is expected to make their IMF payment.  However, a EU official did note that despite what Greece was mentioning, both sides were still a fair distance apart on an agreement. Cap Gemini +.2% confirmed their FY operating margin at 9.5-9.8%, ahead of the 9.2% seen last year.  They added they hope to tick that higher to 12.5-13%. STMicro +3.6% higher with one broker noting the Avago/Broadcom deal could portend to STM picking a unit from Avago. Swatch +.3% as their CEO said global demand for Swiss watches remains strong with a Swatch mobile payment-empowered model due soon. Kingfisher +2.2% sees 1Q total retail profit at £150M, ahead of the 148.5M estimates.  They company continues to lower costs as it closes several more B&Q underperforming stores. Tonight, Japanese jobs data out along with CPI, Industrial Production, and Vehicle…

A reversal of yesterday’s action in Europe with markets falling with the US open.  By day’s end, volumes were 18% weaker on the session. Tech managed to finish up .88% with Food names up small.  As earlier, Auto and Insurers are weaker by over a percent with the balance of sectors down as well. Markets came off of lows with the IMF noting Greece is expected to make their IMF payment.  However, a EU official did note that despite what Greece was mentioning, both sides were still a fair distance apart on an agreement. Cap Gemini +.2% confirmed their FY operating margin at 9.5-9.8%, ahead of the 9.2% seen last year.  They added they hope to tick that higher to 12.5-13%. STMicro +3.6% higher with one broker noting the Avago/Broadcom deal could portend to STM picking a unit from Avago. Swatch +.3% as their CEO said global demand for Swiss watches remains strong with a Swatch mobile payment-empowered model due soon. Kingfisher +2.2% sees 1Q total retail profit at £150M, ahead of the 148.5M estimates.  They company continues to lower costs as it closes several more B&Q underperforming stores. Tonight, Japanese jobs data out along with CPI, Industrial Production, and Vehicle…

International Summary May 28th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/28/2015 at 7:16 am
by Matthew Kiselica on 05/28/2015

Asian Headlines Greater China was the story of the day as the region’s markets succumbed to heavy profit taking.  The markets already had a negative bias given further margin trading tightening by brokers.  However, the sentiment was further hurt when the PBoC sold repos draining liquidity from the financial system.  Selling accelerated during the latter portion of the session as buyers finally threw in the towel, sending the major indices to their respective lows.   Given the margin trading moves, brokers were initially some of the hardest names hit.  Banks also saw selling following a Chinese sovereign fund trimming positions in ICBC (-2.8%) & CCB (-3.7%).   By the end of the day day, selling had spread through all sectors and in Shanghai most saw losses of 5% or more.  The telecom sector was the only one in Shanghai to advance. Japan managed to gain for the 10th consecutive session as continued ¥ weakness pushes the market higher.  The ¥’s decline to 124 marks its weakest level against the Greenback since ’02.  Exporters lead the market to the upside.  Speculation of a reduction in cross-holdings, a potential buyback and price target increase at Credit Suisse lifted Mizuho Fncl (+5.9%).  April retail sales rose 5%…

Asian Headlines Greater China was the story of the day as the region’s markets succumbed to heavy profit taking.  The markets already had a negative bias given further margin trading tightening by brokers.  However, the sentiment was further hurt when the PBoC sold repos draining liquidity from the financial system.  Selling accelerated during the latter portion of the session as buyers finally threw in the towel, sending the major indices to their respective lows.   Given the margin trading moves, brokers were initially some of the hardest names hit.  Banks also saw selling following a Chinese sovereign fund trimming positions in ICBC (-2.8%) & CCB (-3.7%).   By the end of the day day, selling had spread through all sectors and in Shanghai most saw losses of 5% or more.  The telecom sector was the only one in Shanghai to advance. Japan managed to gain for the 10th consecutive session as continued ¥ weakness pushes the market higher.  The ¥’s decline to 124 marks its weakest level against the Greenback since ’02.  Exporters lead the market to the upside.  Speculation of a reduction in cross-holdings, a potential buyback and price target increase at Credit Suisse lifted Mizuho Fncl (+5.9%).  April retail sales rose 5%…

European Closing May 27, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/27/2015 at 11:45 am
by Clayton Duff on 05/27/2015

European markets seeing a nice rebound today, rallying higher at the US open to close near day’s highs.  On an encouraging note, markets shook off their slow volume this morning to pick up activity as indices rallied. All sectors finished in the green with Utilities, Construction, Chemicals, and Banks all seeing gains at 1.7% or better. In addition to the better sentiment in the States, word that Greek officials and creditors have made some headway concerning debt and pension issues.  This after a report this morning that the ELA was not increased .  Greek officials later said Greek bank deposits are safe and that while the pension system will be changed, pensions won’t be cut. Roche +1.6% will report new data related to rheumatoid arthritis and other autoimmune conditions at the European League Against Rheumatism Annual Congress to convene in Rome on June 10th. Bayer +1.8% said they will separate out their MaterialScience plastics division on September 1st.  CEO Dekkers noted that as the industry is going, they will market seeds and crop protection together. And, as we noted in our morning piece, IAG +3.2% winning the approval to purchase Aer Lingus with 30% Aer Lingus owner Ryanair +2.4% in the catbird…

European markets seeing a nice rebound today, rallying higher at the US open to close near day’s highs.  On an encouraging note, markets shook off their slow volume this morning to pick up activity as indices rallied. All sectors finished in the green with Utilities, Construction, Chemicals, and Banks all seeing gains at 1.7% or better. In addition to the better sentiment in the States, word that Greek officials and creditors have made some headway concerning debt and pension issues.  This after a report this morning that the ELA was not increased .  Greek officials later said Greek bank deposits are safe and that while the pension system will be changed, pensions won’t be cut. Roche +1.6% will report new data related to rheumatoid arthritis and other autoimmune conditions at the European League Against Rheumatism Annual Congress to convene in Rome on June 10th. Bayer +1.8% said they will separate out their MaterialScience plastics division on September 1st.  CEO Dekkers noted that as the industry is going, they will market seeds and crop protection together. And, as we noted in our morning piece, IAG +3.2% winning the approval to purchase Aer Lingus with 30% Aer Lingus owner Ryanair +2.4% in the catbird…

International Summary May 27th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/27/2015 at 6:21 am
by Matthew Kiselica on 05/27/2015

Asian Headlines The majority of markets gave ground as the weaker handoff from the West weighed upon market sentiment.  However, the recent market leaders Mainland China and Japan did manage advances on the day. Greater China was mixed but the Shanghai Composite did spend most of the afternoon to the upside. Earlier the region was impacted by reports of higher trading margin requirements by brokers.   Macro also dampened easing hopes following April Industrial companies profits which rose 2.6% y/y which is the first annual increase since Sept. ’14.  Following yesterday’s IMF/Yuan announcement, the PBoC set the Yuan mid-point at 6.1198 which is the weakest since April 28th.  Belle Intl’s (+3.0%) FY earnings surpassed expectations. The CK Hutchison shares are now trading ex the spin-off of CK Properties which will commence trading on June 3rd.   Zijin Mining (+16.4%) will spend $710m to purchase project stakes from Barrick Gold and Ivanhoe Mines.  All 9 stocks that debuted trading post their IPOs were limit up.   HSBC cut its 2015 Chinese GDP growth to 7.1% from 7.3% Japan fluctuated once again before nudging higher by the close. The prospect of higher interest rates in the States caused the ¥ to reach the 123 level at times during…

Asian Headlines The majority of markets gave ground as the weaker handoff from the West weighed upon market sentiment.  However, the recent market leaders Mainland China and Japan did manage advances on the day. Greater China was mixed but the Shanghai Composite did spend most of the afternoon to the upside. Earlier the region was impacted by reports of higher trading margin requirements by brokers.   Macro also dampened easing hopes following April Industrial companies profits which rose 2.6% y/y which is the first annual increase since Sept. ’14.  Following yesterday’s IMF/Yuan announcement, the PBoC set the Yuan mid-point at 6.1198 which is the weakest since April 28th.  Belle Intl’s (+3.0%) FY earnings surpassed expectations. The CK Hutchison shares are now trading ex the spin-off of CK Properties which will commence trading on June 3rd.   Zijin Mining (+16.4%) will spend $710m to purchase project stakes from Barrick Gold and Ivanhoe Mines.  All 9 stocks that debuted trading post their IPOs were limit up.   HSBC cut its 2015 Chinese GDP growth to 7.1% from 7.3% Japan fluctuated once again before nudging higher by the close. The prospect of higher interest rates in the States caused the ¥ to reach the 123 level at times during…

European Close 05/26/2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/26/2015 at 11:08 am
by Clayton Duff on 05/26/2015

European indices finished just off lows with the FTSE and the DAX at lows.  Volume continued to be lackluster, off 13% vs the last 20 day’s activity. Other than Travel names, all sectors finished down with Chemicals, Basic Resources, Energy, Utilities, and Autos all off by over a percent. With the US pulling back from recent highs, Europe rejecting 50 day moving average lines to finish mostly lower on the day. Recent Fed official comments raising concerns of a rate hike in the US along with verbal sparring between EU leaders and Greek officials weighing on markets.  The € trading off, now below 1.09 with the £ also seeing weakness. Fiat +3.7% higher on word the CEO Marchionne asked to meet with GM in March concerning a merger but was rejected.  Markets though are viewing his intent to find a buyer/partner for the firm as a positive. Ferragamo +3.7% blipping higher as they receive over 20% of their sales from China, which cut import duties on some luxury goods.  Tod’s +2% to benefit as well. Deutsche Bank -2.3% will pay a $55M fine to the US SEC to settle allegations related to a derivatives probe concerning collateralized insurance agreements.  The…

European indices finished just off lows with the FTSE and the DAX at lows.  Volume continued to be lackluster, off 13% vs the last 20 day’s activity. Other than Travel names, all sectors finished down with Chemicals, Basic Resources, Energy, Utilities, and Autos all off by over a percent. With the US pulling back from recent highs, Europe rejecting 50 day moving average lines to finish mostly lower on the day. Recent Fed official comments raising concerns of a rate hike in the US along with verbal sparring between EU leaders and Greek officials weighing on markets.  The € trading off, now below 1.09 with the £ also seeing weakness. Fiat +3.7% higher on word the CEO Marchionne asked to meet with GM in March concerning a merger but was rejected.  Markets though are viewing his intent to find a buyer/partner for the firm as a positive. Ferragamo +3.7% blipping higher as they receive over 20% of their sales from China, which cut import duties on some luxury goods.  Tod’s +2% to benefit as well. Deutsche Bank -2.3% will pay a $55M fine to the US SEC to settle allegations related to a derivatives probe concerning collateralized insurance agreements.  The…

International Summary May 26th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/26/2015 at 6:59 am
by Matthew Kiselica on 05/26/2015

Asian Headlines China once again led the region as Hong Kong returned from Buddha’s Birthday holiday to play catch up with the Mainland.  The same themes from yesterday continued to propel the markets: approval of HK/Mailland cross border mutual fund sales and the announcement of over 1,000 infrastructure projects.  Add to that mix, the reduction in certain import duties.  Therefore,  financials, infrastructure plays and shipping stocks continued to move higher i.e.: HK Exchange (+5.4%),    Citic Secs. (+2.5%), & China Shipping Cont (+1.8%).  Renhe Commercial Hold. (+24.5%)  stated it is unaware of any reason for recent price movement and volume in the shares.  Orient Overseas (-4.0%) was cut to neutral at Credit Suisse.  Well after the close, the IMF stated the Yuan is NO longer undervalued.  The currency has moved from c. 6.2065 to 6.2035. Japanese stocks vacillated after yesterday’s gains despite the ¥ weakening further to the 122 level.  Suntory Bev. (-1.7%) and Japan Tobacco (-0.15%) were in focus following Suntory’s purchase of JT’s beverage unit.  Nippon Paper (+3.5%) sees OP will more than double between FY ’18 and FY ’15.  The Nikkei alleges Toshiba (+0.15%) will not declare a final dividend due to the current accounting probe.    April Services PPI was…

Asian Headlines China once again led the region as Hong Kong returned from Buddha’s Birthday holiday to play catch up with the Mainland.  The same themes from yesterday continued to propel the markets: approval of HK/Mailland cross border mutual fund sales and the announcement of over 1,000 infrastructure projects.  Add to that mix, the reduction in certain import duties.  Therefore,  financials, infrastructure plays and shipping stocks continued to move higher i.e.: HK Exchange (+5.4%),    Citic Secs. (+2.5%), & China Shipping Cont (+1.8%).  Renhe Commercial Hold. (+24.5%)  stated it is unaware of any reason for recent price movement and volume in the shares.  Orient Overseas (-4.0%) was cut to neutral at Credit Suisse.  Well after the close, the IMF stated the Yuan is NO longer undervalued.  The currency has moved from c. 6.2065 to 6.2035. Japanese stocks vacillated after yesterday’s gains despite the ¥ weakening further to the 122 level.  Suntory Bev. (-1.7%) and Japan Tobacco (-0.15%) were in focus following Suntory’s purchase of JT’s beverage unit.  Nippon Paper (+3.5%) sees OP will more than double between FY ’18 and FY ’15.  The Nikkei alleges Toshiba (+0.15%) will not declare a final dividend due to the current accounting probe.    April Services PPI was…

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