Trading Desk

1911 total posts

CAPIS Global Markets 3/21/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/21/2019 at 7:05 am
by Matthew Kiselica on 03/21/2019

Asian Markets Most of the region notches modest gains following yesterday’s FOMC decision and statements.  You may have heard about it.  Japan was closed for the Vernal Equinox. Sectors were mixed.  IT led with a gain of 1%.  That was largely due to semi stocks following Micron’s results.  More on this in the U.S. section.  Materials are the day’s next best performer.  Telcos end the day off more than 1% and see below. It was a busy rate decision day.  Taiwan, Indonesia and the Philippines each saw their respective central banks stand firm with their benchmark rates. Important Headlines China Mobile -4.8% initially responded well to it FY18 results.  The company’s FY NI of CNY 117.8b is a touch better than consensus and the prior year.  However, it is not providing 5G capex guidance.  This provided some doubt on the products roll out. Geely Auto’s +2.3% FY Revenues of CNY 106.6b and NI of CNY 12.55b are both inline with consensus.  It has provided some relief to recent concerns for the sector.  While noting 2019 will slow, it sees “huge growth potential” for the Chinese markets. New China Life’s +7.7% FY18 NI is a touch below expectations.  However, the value…

Asian Markets Most of the region notches modest gains following yesterday’s FOMC decision and statements.  You may have heard about it.  Japan was closed for the Vernal Equinox. Sectors were mixed.  IT led with a gain of 1%.  That was largely due to semi stocks following Micron’s results.  More on this in the U.S. section.  Materials are the day’s next best performer.  Telcos end the day off more than 1% and see below. It was a busy rate decision day.  Taiwan, Indonesia and the Philippines each saw their respective central banks stand firm with their benchmark rates. Important Headlines China Mobile -4.8% initially responded well to it FY18 results.  The company’s FY NI of CNY 117.8b is a touch better than consensus and the prior year.  However, it is not providing 5G capex guidance.  This provided some doubt on the products roll out. Geely Auto’s +2.3% FY Revenues of CNY 106.6b and NI of CNY 12.55b are both inline with consensus.  It has provided some relief to recent concerns for the sector.  While noting 2019 will slow, it sees “huge growth potential” for the Chinese markets. New China Life’s +7.7% FY18 NI is a touch below expectations.  However, the value…

CAPIS EU Close – 3/20/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/20/2019 at 12:56 pm
by Clayton Duff on 03/20/2019

European indices finished near lows with losses though held somewhat in check.  The German DAX though continued to underperform on the before-mentioned weakness in BMW and Bayer.  The UK and Italy saw losses of ~25bps though, outperforming the region even as all sectors closed lower. Autos fell 2.61% with over half of the sectors experiencing losses of over a percent.  Utilities and Food names saw slight losses.  Volume in the region was down on the day by roughly 6%. Comments in relation to a delay of Brexit continue to hit headlines with PM May insisting June 30th is her target delay date.  A EU Commission draft paper noted even that would be difficult to approve.  France noted another UK Parliament vote that did not agree to a plan would essentially pave the way for a no-deal Brexit. UBS -2.4% held in well despite reporting 1Q IB revenues off by a 1/3 YoY.  The firm though made positive comments related to their asset management division with positive inflows noted. Their CEO called the 1Q “One of the Worst” in recent history noting a very tough environment.  A slowing in hiring is expected along with continued cost cuts In the luxury space…

European indices finished near lows with losses though held somewhat in check.  The German DAX though continued to underperform on the before-mentioned weakness in BMW and Bayer.  The UK and Italy saw losses of ~25bps though, outperforming the region even as all sectors closed lower. Autos fell 2.61% with over half of the sectors experiencing losses of over a percent.  Utilities and Food names saw slight losses.  Volume in the region was down on the day by roughly 6%. Comments in relation to a delay of Brexit continue to hit headlines with PM May insisting June 30th is her target delay date.  A EU Commission draft paper noted even that would be difficult to approve.  France noted another UK Parliament vote that did not agree to a plan would essentially pave the way for a no-deal Brexit. UBS -2.4% held in well despite reporting 1Q IB revenues off by a 1/3 YoY.  The firm though made positive comments related to their asset management division with positive inflows noted. Their CEO called the 1Q “One of the Worst” in recent history noting a very tough environment.  A slowing in hiring is expected along with continued cost cuts In the luxury space…

CAPIS Global Markets 3/20/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/20/2019 at 6:50 am
by Matthew Kiselica on 03/20/2019

Asian Markets Once again, the region saw mixed trading with minimal moves across the markets.  Naturally, investors are cautious ahead of today’s FOMC meeting.  Also, reports allege China is becoming more contentious in trade talks. Most sectors traded lower.  Utilities were off c. 1% with losses seen among energy and telcos of roughly 0.5%.  Real estate improved by c. 0.5% with Japanese names once again seeing solid demand. Thailand left rates unchanged in a unanimous decision. Other Important Headlines Samsung Elec. +0.3% warns of a “difficult year” foreseeing a decline to smartphone sales.  The shares spent most of the session lower before seeing a small bounce into the close. Nintendo -3.2%, Sony -3.4% and other video gaming related names gave ground with Google declaring its intent to enter the space.  It is creating a video streaming service called Stadia. Xiaomi’s -4.6% quarterly NI is ahead of expectations.  However, its Q4 shipments are lower by 25.0% y/y.  Nomura cut its rating to Neutral while Citigroup reduced its price target to HK$15 from HK$16. In the agri-science space, Nufarm -24.0% issued a profit warning.  The company sees its FY19 EBITDA range below consensus.  It notes a slow start to the year in…

Asian Markets Once again, the region saw mixed trading with minimal moves across the markets.  Naturally, investors are cautious ahead of today’s FOMC meeting.  Also, reports allege China is becoming more contentious in trade talks. Most sectors traded lower.  Utilities were off c. 1% with losses seen among energy and telcos of roughly 0.5%.  Real estate improved by c. 0.5% with Japanese names once again seeing solid demand. Thailand left rates unchanged in a unanimous decision. Other Important Headlines Samsung Elec. +0.3% warns of a “difficult year” foreseeing a decline to smartphone sales.  The shares spent most of the session lower before seeing a small bounce into the close. Nintendo -3.2%, Sony -3.4% and other video gaming related names gave ground with Google declaring its intent to enter the space.  It is creating a video streaming service called Stadia. Xiaomi’s -4.6% quarterly NI is ahead of expectations.  However, its Q4 shipments are lower by 25.0% y/y.  Nomura cut its rating to Neutral while Citigroup reduced its price target to HK$15 from HK$16. In the agri-science space, Nufarm -24.0% issued a profit warning.  The company sees its FY19 EBITDA range below consensus.  It notes a slow start to the year in…

CAPIS EU Close – 3/19/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/19/2019 at 12:53 pm
by Clayton Duff on 03/19/2019

European indices top-ticked at the open of the US markets, giving up small gains into the close.  Germany led on the day with strong gains in Autos and Pharmas.  Apart from Construction all sectors finished to the upside with Autos up 2.41% on the day.  Basic Resources, Retailers, and Industrials gained over a percent. On the SXXP 448 members of the 600 were up on the day with volume a disappointing 18% lower.  On the Brexit front, the EU’s head negotiator said any extension to the divorce need to be linked to something new.  He added that plans to be in place for a no-deal Brexit.  PM May noted any delay should be as short as possible adding a general election is not in the best interest nationally. Earlier this morning TTN reported the ECB may have to consider stocks if they enact further QE due to lack of bonds. However, a sharp deterioration in the economy would have to occur with a real recession noted. Concerning TLTR ops they do not see any action before December. Bucking the strength in retail, Asos fell over 7% on the day in quite an eventful session of trading.  Initially the name was…

European indices top-ticked at the open of the US markets, giving up small gains into the close.  Germany led on the day with strong gains in Autos and Pharmas.  Apart from Construction all sectors finished to the upside with Autos up 2.41% on the day.  Basic Resources, Retailers, and Industrials gained over a percent. On the SXXP 448 members of the 600 were up on the day with volume a disappointing 18% lower.  On the Brexit front, the EU’s head negotiator said any extension to the divorce need to be linked to something new.  He added that plans to be in place for a no-deal Brexit.  PM May noted any delay should be as short as possible adding a general election is not in the best interest nationally. Earlier this morning TTN reported the ECB may have to consider stocks if they enact further QE due to lack of bonds. However, a sharp deterioration in the economy would have to occur with a real recession noted. Concerning TLTR ops they do not see any action before December. Bucking the strength in retail, Asos fell over 7% on the day in quite an eventful session of trading.  Initially the name was…

CAPIS Global Markets 3/19/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/19/2019 at 6:27 am
by Matthew Kiselica on 03/19/2019

Asian Markets A rather dull session today.  The majority of markets recorded scant moves on either side of the flat mark.  Investors appear to be taking a cautious stance as the FOMC meeting commences with the decision due tomorrow. Correspondingly, sector moves were modest.  Consumer staples fell more than 0.5% largely due Chinese names seeing profit taking following yesterday’s surge.  Real estate, telcos and energy improved by less than 0.5%. Down Under, the RBA minutes revealed the bank sees “no need for near term changes to rates.”  The bank is keeping a keen eye on a balance between a tight labour (not a typo) market and “considerable uncertainty” pertaining to consumption. Important Headlines Ahead of results due tomorrow, Tencent +0.3% is reportedly targeting a 10.0% reduction to management. Rio Tinto +1.7% despite a U.S. court ruling the mining giant must face an SEC lawsuit regarding the valuation of coal assets in Mozambique.  The gains were driven by yesterday’s strength in the space and strong iron ore prices. Bernstein sees Macau gross gaming revenues as “muted” for Q1.  The broker is cutting its March estimates.  It now projects a decline of 3% to 5% y/y from its previous estimate of -1%…

Asian Markets A rather dull session today.  The majority of markets recorded scant moves on either side of the flat mark.  Investors appear to be taking a cautious stance as the FOMC meeting commences with the decision due tomorrow. Correspondingly, sector moves were modest.  Consumer staples fell more than 0.5% largely due Chinese names seeing profit taking following yesterday’s surge.  Real estate, telcos and energy improved by less than 0.5%. Down Under, the RBA minutes revealed the bank sees “no need for near term changes to rates.”  The bank is keeping a keen eye on a balance between a tight labour (not a typo) market and “considerable uncertainty” pertaining to consumption. Important Headlines Ahead of results due tomorrow, Tencent +0.3% is reportedly targeting a 10.0% reduction to management. Rio Tinto +1.7% despite a U.S. court ruling the mining giant must face an SEC lawsuit regarding the valuation of coal assets in Mozambique.  The gains were driven by yesterday’s strength in the space and strong iron ore prices. Bernstein sees Macau gross gaming revenues as “muted” for Q1.  The broker is cutting its March estimates.  It now projects a decline of 3% to 5% y/y from its previous estimate of -1%…

CAPIS EU Close – 3/18/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/18/2019 at 12:48 pm
by Clayton Duff on 03/18/2019

As noted in the morning note European indices remained in a range throughout the session. Basic Resources remained in the lead joining Banks, Energy, and Retail with gains of over a percent. Tech continued to ease a bit lower, finished off a percent with the split of gainers to losers evening split sector-wise. The UK FTSE100 was the best performer in the region with the Pound steadily working lower throughout the session.  Yesterday the British Chambers of Commerce lowered their FY19 and FY20 growth forecasts.   This morning Parliamentary Speaker Bercow said PM May will not be allowed to stage a third vote unless serious changes are made to her plan. Conglomerate Okla fell 2.2% on headlines their CEO is stepping down.  Their Chairman wants a Norwegian to take over but evidently is adamant that a person of Nordic-descent heads the firm.  He cited the nature of their culture would demand it. Insurer Talanx rallied 2.7% post earnings.  The firm though is facing losses on exposure to the Ethiopian Air Boeing 737 Max crash.  The company also highlighted larger natural catastrophe losses vs FY17. Brazil’s Ibovespa is trading higher today, breaching the 100,000 level for the first time ever. From earlier:…

As noted in the morning note European indices remained in a range throughout the session. Basic Resources remained in the lead joining Banks, Energy, and Retail with gains of over a percent. Tech continued to ease a bit lower, finished off a percent with the split of gainers to losers evening split sector-wise. The UK FTSE100 was the best performer in the region with the Pound steadily working lower throughout the session.  Yesterday the British Chambers of Commerce lowered their FY19 and FY20 growth forecasts.   This morning Parliamentary Speaker Bercow said PM May will not be allowed to stage a third vote unless serious changes are made to her plan. Conglomerate Okla fell 2.2% on headlines their CEO is stepping down.  Their Chairman wants a Norwegian to take over but evidently is adamant that a person of Nordic-descent heads the firm.  He cited the nature of their culture would demand it. Insurer Talanx rallied 2.7% post earnings.  The firm though is facing losses on exposure to the Ethiopian Air Boeing 737 Max crash.  The company also highlighted larger natural catastrophe losses vs FY17. Brazil’s Ibovespa is trading higher today, breaching the 100,000 level for the first time ever. From earlier:…

CAPIS Global Markets 3/18/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/18/2019 at 6:41 am
by Matthew Kiselica on 03/18/2019

Asian Markets A solid start to the week with all major indices in the green.  The markets in Greater China lead the way.  China announced a number of initiatives that pleased investors. Among those are relaxing income tax on overseas income  and possible changes to local property tax rules. All the major sectors gained.  Real estate and consumer goods better by more than 2%.  Among Chinese consumer goods pork producers and distillers were leaders.  Bloomberg Industries notes Chinese consumer trends should bolster prospects.  Many other sectors gained more than 1%. Regarding the Sino-U.S. trade talks, a meeting between Pres. Trump and Pres. Xi is now said to be penciled in for June.  Perhaps a sign of decreasing angst between the two parties, Chinese holdings of U.S. Treasuries saw a marginal increase for the 2nd consecutive month.  China’s January Treasury holdings are $1.13t vs. $1.12t during December. Japan’s February trade balance is ahead of expectations.  However, that was because imports slumped more than exports. Other Important Headlines It was a tough day for Prada -10.6%.  The companies FY sales are better by 6%.  However, that is an overall decline from the 9.4% growth during H1.  The company notes sales in the…

Asian Markets A solid start to the week with all major indices in the green.  The markets in Greater China lead the way.  China announced a number of initiatives that pleased investors. Among those are relaxing income tax on overseas income  and possible changes to local property tax rules. All the major sectors gained.  Real estate and consumer goods better by more than 2%.  Among Chinese consumer goods pork producers and distillers were leaders.  Bloomberg Industries notes Chinese consumer trends should bolster prospects.  Many other sectors gained more than 1%. Regarding the Sino-U.S. trade talks, a meeting between Pres. Trump and Pres. Xi is now said to be penciled in for June.  Perhaps a sign of decreasing angst between the two parties, Chinese holdings of U.S. Treasuries saw a marginal increase for the 2nd consecutive month.  China’s January Treasury holdings are $1.13t vs. $1.12t during December. Japan’s February trade balance is ahead of expectations.  However, that was because imports slumped more than exports. Other Important Headlines It was a tough day for Prada -10.6%.  The companies FY sales are better by 6%.  However, that is an overall decline from the 9.4% growth during H1.  The company notes sales in the…

CAPIS EU Close- March 15th

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/15/2019 at 12:57 pm
by Clayton Duff on 03/15/2019

Post the sharp move higher just before lunch prompted by Germany’s Seibert in relation to reviewing any Brexit delay request from the UK, indices trailed off from there. Indices though still retained gains on the day with some decent returns seen.  On the week the FTSE 100 finished up 1.75% with the DAXI up 1.99% and the CAC up 3.33%.  Today, all sectors expect Basic Resources, Media, and Energy were up with solid gains seen in several sectors.  Tech names led with strength in chipmakers, specifically in France.  Telcos, Insurers, and Financials joined Personal Goods and Construction in gains of over a percent.  The auto industry hung in well with new car registrations seeing a contraction in weakness in February vs January’s 4.6% drop. In the face of the US’ push to get manufacturing back into the States, STMicroelectronics +5% rallied today post yesterday’s plan announcement by France.  The country is looking to incentivize chipmakers and their suppliers to locate factories in France with a €1B grant.  The French Ministry noted STM is among the recipients along with Soitec +2.6%.  The move is part of a bigger plan titled Nano 2022 that will see a total of €5B allocated to…

Post the sharp move higher just before lunch prompted by Germany’s Seibert in relation to reviewing any Brexit delay request from the UK, indices trailed off from there. Indices though still retained gains on the day with some decent returns seen.  On the week the FTSE 100 finished up 1.75% with the DAXI up 1.99% and the CAC up 3.33%.  Today, all sectors expect Basic Resources, Media, and Energy were up with solid gains seen in several sectors.  Tech names led with strength in chipmakers, specifically in France.  Telcos, Insurers, and Financials joined Personal Goods and Construction in gains of over a percent.  The auto industry hung in well with new car registrations seeing a contraction in weakness in February vs January’s 4.6% drop. In the face of the US’ push to get manufacturing back into the States, STMicroelectronics +5% rallied today post yesterday’s plan announcement by France.  The country is looking to incentivize chipmakers and their suppliers to locate factories in France with a €1B grant.  The French Ministry noted STM is among the recipients along with Soitec +2.6%.  The move is part of a bigger plan titled Nano 2022 that will see a total of €5B allocated to…

TGIF Global Markets 3/15/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/15/2019 at 7:01 am
by Matthew Kiselica on 03/15/2019

Asian Markets Most of the region sees solid gains.  The Chinese markets were boosted by Chinese Prem. Liu stating the VAT will be reduced on April 1st.  There were also a number of positive Sino-U.S. trade negotiation comments from both parties despite any meeting between Pres. Trump and Pres. Xi being pushed back until April. Rounding out the day’s positives, the People’s National Congress approved relaxation of foreign investment rules. We would be remiss to not mention a terrible attack on Mosques in Christchurch, New Zealand.  Our thoughts and prayers go out to all victims and families.  This caused Australia and New Zealand to lag the region. All major sectors saw advances.  Consumer discretionary, industrials, IT and real estate improved by at least 1%. The BoJ concluded its two day policy meeting with no change to rates or asset purchases.  To recap, those are: short term rate unchanged at -0.1%, JGB purchases with an annual pace of about ¥80t and ETF purchases at about ¥6t. This was as expected.  However, the central bank is lowering its economic outlook.  At his press conference, Gov. Kuroda defended the 2% inflation target.   Other Important Headlines Chinese February m/m home price increases slowed…

Asian Markets Most of the region sees solid gains.  The Chinese markets were boosted by Chinese Prem. Liu stating the VAT will be reduced on April 1st.  There were also a number of positive Sino-U.S. trade negotiation comments from both parties despite any meeting between Pres. Trump and Pres. Xi being pushed back until April. Rounding out the day’s positives, the People’s National Congress approved relaxation of foreign investment rules. We would be remiss to not mention a terrible attack on Mosques in Christchurch, New Zealand.  Our thoughts and prayers go out to all victims and families.  This caused Australia and New Zealand to lag the region. All major sectors saw advances.  Consumer discretionary, industrials, IT and real estate improved by at least 1%. The BoJ concluded its two day policy meeting with no change to rates or asset purchases.  To recap, those are: short term rate unchanged at -0.1%, JGB purchases with an annual pace of about ¥80t and ETF purchases at about ¥6t. This was as expected.  However, the central bank is lowering its economic outlook.  At his press conference, Gov. Kuroda defended the 2% inflation target.   Other Important Headlines Chinese February m/m home price increases slowed…

CAPIS Global Markets 3/14/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/14/2019 at 6:56 am
by Matthew Kiselica on 03/14/2019

Asian Markets For the most part, the markets showed muted reaction to the outcome of yesterday’s Brexit “no deal” vote.  The real driver for trading is the day’s Chinese macro data.  February industrial production is short of consensus and hits a 17 year low.  The February jobless rate rose from January’s reading.  Chinese officials noted the impact of the Lunar New Year may carry over. This caused the Chinese mainland markets to see solid declines.  Japan had been trading to the upside but pulled back to score minimal losses.  The rest of the region was mixed. The technology sector settled lower by about 1% with real estate off by c. 0.7%.  The energy sector gained 0.5% following crude’s surging due to the weekly U.S. inventory data. Other Important Headlines Samsonite Intl +5.4% sees its FY earnings beating the highest estimate. China Unicom’s +3.3% earnings are also better than the range.  The company’s strong data usage and subscriber growth are offsetting price reductions. Down Under, CBA -0.15% will not spin-off its wealth management and mortgage unit. Daiwa House +0.15% will take an ¥11.7b charge due to “an accounting disparity” at a Chinese affiliate. European Markets Europe has been trading to the…

Asian Markets For the most part, the markets showed muted reaction to the outcome of yesterday’s Brexit “no deal” vote.  The real driver for trading is the day’s Chinese macro data.  February industrial production is short of consensus and hits a 17 year low.  The February jobless rate rose from January’s reading.  Chinese officials noted the impact of the Lunar New Year may carry over. This caused the Chinese mainland markets to see solid declines.  Japan had been trading to the upside but pulled back to score minimal losses.  The rest of the region was mixed. The technology sector settled lower by about 1% with real estate off by c. 0.7%.  The energy sector gained 0.5% following crude’s surging due to the weekly U.S. inventory data. Other Important Headlines Samsonite Intl +5.4% sees its FY earnings beating the highest estimate. China Unicom’s +3.3% earnings are also better than the range.  The company’s strong data usage and subscriber growth are offsetting price reductions. Down Under, CBA -0.15% will not spin-off its wealth management and mortgage unit. Daiwa House +0.15% will take an ¥11.7b charge due to “an accounting disparity” at a Chinese affiliate. European Markets Europe has been trading to the…

CAPIS EU Close – 3/13/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/13/2019 at 1:23 pm
by Clayton Duff on 03/13/2019

With the US’ S&P moving through and holding above the 2800 level European indices worked higher in the afternoon.  As the Pound worked higher ahead of the No-deal Brexit vote the UK equity market gave up a some earlier gains.  The balance of markets saw light gains as well with all but the Personal Goods and Utility sectors up.  Gains there were fairly impressive with Energy up 1.64% as the US’ DOE reading showed a surprising draw in inventories.  Basic Resources moved up 1.08% with Chemicals also up over a percent. Post headlines noting they are considering selling their wine business Pernod Ricard +.3% leapt from lower levels to close slightly up on the session.  The stock is at a 26 year high with the possible sell allowing them to focus on higher margin business. Retailer Clas Ohlson fell 11% after noting it sees FY operating margins light at +3% vs the prior view of +4-6%.  They point to higher supply chain expenses along with marketing costs.  Their FY view coupled with recent performance in the 3Q equates to a larger-than-expected 4Q loss. From ealier: Adidas -2.4%, Inditex -4.5%, and Balfour Beatty -.2%. As noted earlier economic releases are fairly…

With the US’ S&P moving through and holding above the 2800 level European indices worked higher in the afternoon.  As the Pound worked higher ahead of the No-deal Brexit vote the UK equity market gave up a some earlier gains.  The balance of markets saw light gains as well with all but the Personal Goods and Utility sectors up.  Gains there were fairly impressive with Energy up 1.64% as the US’ DOE reading showed a surprising draw in inventories.  Basic Resources moved up 1.08% with Chemicals also up over a percent. Post headlines noting they are considering selling their wine business Pernod Ricard +.3% leapt from lower levels to close slightly up on the session.  The stock is at a 26 year high with the possible sell allowing them to focus on higher margin business. Retailer Clas Ohlson fell 11% after noting it sees FY operating margins light at +3% vs the prior view of +4-6%.  They point to higher supply chain expenses along with marketing costs.  Their FY view coupled with recent performance in the 3Q equates to a larger-than-expected 4Q loss. From ealier: Adidas -2.4%, Inditex -4.5%, and Balfour Beatty -.2%. As noted earlier economic releases are fairly…

CAPIS Global Markets 3/13/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/13/2019 at 6:48 am
by Matthew Kiselica on 03/13/2019

Asian Markets A mix across the region as investors digest the implications of the latest Brexit vote.  More on this in the European section.  Reports the U.S. is telling China it must keep tariffs “on the table” in trade talks didn’t help.  Most core markets traded lower while peripherals advanced.  Worth noting, many exchanges saw light volume.  Korean data indicates the lowest turnover since Christmas Eve.  There is a fair amount of Chinese data due tonight which may have prompted cautious trading. The majority of major sectors traded to the downside.  IT was more than 1.5% with industrials and consumer discretionary off c. 1%.  Real estate managed to advance about 0.5%. The “Aussie” moved lower as macro economic data continues to show weakness.  The Westpac March Consumer Confidence Index slipped from the prior reading.  The -4.8% m/m decline is the largest since 2015.  S. Korea’s unemployment rate for February is below expectations.  Japan’s February PPI is a touch higher than expected while January Core Machinery Orders fall more than consensus. Important Headlines Ping An +1.6% responded well to the earnings we highlighted yesterday.  The company will also implement a share buyback up to CNY 10b. ZTE’s  -7.6% parent (Zhongxingxin Telecom)…

Asian Markets A mix across the region as investors digest the implications of the latest Brexit vote.  More on this in the European section.  Reports the U.S. is telling China it must keep tariffs “on the table” in trade talks didn’t help.  Most core markets traded lower while peripherals advanced.  Worth noting, many exchanges saw light volume.  Korean data indicates the lowest turnover since Christmas Eve.  There is a fair amount of Chinese data due tonight which may have prompted cautious trading. The majority of major sectors traded to the downside.  IT was more than 1.5% with industrials and consumer discretionary off c. 1%.  Real estate managed to advance about 0.5%. The “Aussie” moved lower as macro economic data continues to show weakness.  The Westpac March Consumer Confidence Index slipped from the prior reading.  The -4.8% m/m decline is the largest since 2015.  S. Korea’s unemployment rate for February is below expectations.  Japan’s February PPI is a touch higher than expected while January Core Machinery Orders fall more than consensus. Important Headlines Ping An +1.6% responded well to the earnings we highlighted yesterday.  The company will also implement a share buyback up to CNY 10b. ZTE’s  -7.6% parent (Zhongxingxin Telecom)…

CAPIS Global Markets 3/12/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/12/2019 at 6:51 am
by Matthew Kiselica on 03/12/2019

Asian Markets Following the strong U.S. gains, the region posted solid gains.  Word PM May has been able to hammer out a last minute Brexit deal gave the markets additional momentum.  More on this in the European section.  For the second consecutive session, Australia lagged. Australia continues to see weaker economic data.  Various housing related statistics all declined during January.  NAB confidence results also show weakening sentiment. All major sectors gained and many end the day better more than 1%.  Those include industrials, IT, telcos, real estate and healthcare.   Other Important Headlines Morgan Stanley is bullish on both the Chinese and Emerging Markets by year end.  The broker sees the MSCI Emerging Markets Index higher by 8%. Hon Hai +1.1% Chair Gou was adamant his firm has not violated agreements with Apple.  This follows word Apple has filed a patent infringement suit against subsidiary FIH Mobile +1.0%. ISS is recommending two of Elliott’s nominees for Hyundai Motor’s +3.5% board.  However, the shareholder advisory agency is not in favor Elliott’s dividend proposal. Bernstein estimates Macau gaming revenues are down 5% m/m as of March 10th. Contemporary Amperex Tech +3.5% traded well following word it is negotiating with Tesla to supply…

Asian Markets Following the strong U.S. gains, the region posted solid gains.  Word PM May has been able to hammer out a last minute Brexit deal gave the markets additional momentum.  More on this in the European section.  For the second consecutive session, Australia lagged. Australia continues to see weaker economic data.  Various housing related statistics all declined during January.  NAB confidence results also show weakening sentiment. All major sectors gained and many end the day better more than 1%.  Those include industrials, IT, telcos, real estate and healthcare.   Other Important Headlines Morgan Stanley is bullish on both the Chinese and Emerging Markets by year end.  The broker sees the MSCI Emerging Markets Index higher by 8%. Hon Hai +1.1% Chair Gou was adamant his firm has not violated agreements with Apple.  This follows word Apple has filed a patent infringement suit against subsidiary FIH Mobile +1.0%. ISS is recommending two of Elliott’s nominees for Hyundai Motor’s +3.5% board.  However, the shareholder advisory agency is not in favor Elliott’s dividend proposal. Bernstein estimates Macau gaming revenues are down 5% m/m as of March 10th. Contemporary Amperex Tech +3.5% traded well following word it is negotiating with Tesla to supply…

CAPIS EU Close – 3/11/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/11/2019 at 12:51 pm
by Clayton Duff on 03/11/2019

Ahead of tomorrow’s possible Brexit vote in parliament Europe ended up on modest gains.  Apart from Personal Goods all sectors moved higher with most performing better than regional indices.  Basic Resources led followed by banks, Chemicals, Industrials, and Autos.  Each saw gains of 1% or more. Tech names led were also up with strong sentiment post the upgrade to Apple.  On the output cut by the Saudis oil price moved higher allowing the sector to pare Friday’s Norwegian-based selloff. PM May may be forced to delay her Brexit vote tomorrow with many Tories said to oppose her plan.  Pressure is still on for her to quit with the EU said to be writing up a large bill against the UK for their delay in getting a deal done. Swiss IT consultant Acando ended 44% higher with CGI Nordic bidding SEK41.45 for the firm. Oil explorer Cairn Energy fell 11% as it does not see India ponying up $1.4B owed it from a court case.  India had assessed restrospective tax actions against them with Cairn winning a settlement amount from the UK-India Bilateral Investment Treaty.  Cairn now sees the payment year-end at the soonest. Airlines were mixed with Ryanair down 2.1%. …

Ahead of tomorrow’s possible Brexit vote in parliament Europe ended up on modest gains.  Apart from Personal Goods all sectors moved higher with most performing better than regional indices.  Basic Resources led followed by banks, Chemicals, Industrials, and Autos.  Each saw gains of 1% or more. Tech names led were also up with strong sentiment post the upgrade to Apple.  On the output cut by the Saudis oil price moved higher allowing the sector to pare Friday’s Norwegian-based selloff. PM May may be forced to delay her Brexit vote tomorrow with many Tories said to oppose her plan.  Pressure is still on for her to quit with the EU said to be writing up a large bill against the UK for their delay in getting a deal done. Swiss IT consultant Acando ended 44% higher with CGI Nordic bidding SEK41.45 for the firm. Oil explorer Cairn Energy fell 11% as it does not see India ponying up $1.4B owed it from a court case.  India had assessed restrospective tax actions against them with Cairn winning a settlement amount from the UK-India Bilateral Investment Treaty.  Cairn now sees the payment year-end at the soonest. Airlines were mixed with Ryanair down 2.1%. …

CAPIS Global Markets 3/11/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/11/2019 at 7:04 am
by Matthew Kiselica on 03/11/2019

Asian Markets Most of region advanced seeing a bounce from Friday’s sharp declines.  The Chinese markets led the way due to several factors: Trade chatter, supportive comments from PBoC Gov. Yi and benign inflation data.  India set national elections to be conducted in various phases between April 11th and May 19th.  The final results will be disclosed on May 23rd. PBoC Gov. Yi says the U.S. and China have reached “consensus” on “crucial” topics.  He specifically mentioned the yuan and G-20 commitments on currency matters.  He also indicates the central bank has room for additional reserve ratio reductions but the scope for the size is smaller than “previous years.”  He promises credit growth and support for “small firms.” This resulted in all the major sectors finishing to the upside.  Industrials, IT, consumer discretionary, telcos, materials, consumer staples and utilities each advanced by at least 1%.  The comments by PBoC Gov. Yi boosted Chinese mid and small caps which is why Shenzhen led the region. Other Important Headlines Nissan +1.1%, Mitsubishi +0.7% and Renault +2.5% are conducting talks regarding their strategic alliance.  A press conference is schedule after the Tokyo Exchange close tomorrow. The Kyodo alleges Hitachi Ltd +5.6% is considering…

Asian Markets Most of region advanced seeing a bounce from Friday’s sharp declines.  The Chinese markets led the way due to several factors: Trade chatter, supportive comments from PBoC Gov. Yi and benign inflation data.  India set national elections to be conducted in various phases between April 11th and May 19th.  The final results will be disclosed on May 23rd. PBoC Gov. Yi says the U.S. and China have reached “consensus” on “crucial” topics.  He specifically mentioned the yuan and G-20 commitments on currency matters.  He also indicates the central bank has room for additional reserve ratio reductions but the scope for the size is smaller than “previous years.”  He promises credit growth and support for “small firms.” This resulted in all the major sectors finishing to the upside.  Industrials, IT, consumer discretionary, telcos, materials, consumer staples and utilities each advanced by at least 1%.  The comments by PBoC Gov. Yi boosted Chinese mid and small caps which is why Shenzhen led the region. Other Important Headlines Nissan +1.1%, Mitsubishi +0.7% and Renault +2.5% are conducting talks regarding their strategic alliance.  A press conference is schedule after the Tokyo Exchange close tomorrow. The Kyodo alleges Hitachi Ltd +5.6% is considering…

CAPIS EU Close – 3/8/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/08/2019 at 12:47 pm
by Clayton Duff on 03/08/2019

While lower, European indices at least finished off of lows with volume up 6% on the session. For the week the German Dax closed down 1.16% with the FTSE 100 up .09%.  Chinese growth concerns and weak job (even shutdown, weather, etc-skewed) growth in the US weighed. The Telco sector ended with a small gains with the balance of sectors lower.  Travel and Basic Resources was off nearly 2% with Energy not far behind. Weighing on the energy sector Norway’s $1T sovereign wealth fund said they will offload exploration firms from the portfolio to reduce vulnerability if oil price declines continue permanently.  Diversified names were spared but 134 companies labeled as either exploration and production are targeted. Autos fell on a Der Spiegel story noting the EU could soon weigh heavy fines against BMW -1.3%, VW -1.9%, and Daimler -.7% in relation to a cartel probe concerning emissions. Up to €1B could be levied against each manufacturer with antitrust authorities alleging collusion into reducing the effectiveness of vehicle exhaust systems. GVC Holding fell 14% with both their Chairman and CEO offloading nearly 3M shares.   An analyst at Goodbody noted the large sells were alarming to shareholders. From earlier: Essilor -6.3%,…

While lower, European indices at least finished off of lows with volume up 6% on the session. For the week the German Dax closed down 1.16% with the FTSE 100 up .09%.  Chinese growth concerns and weak job (even shutdown, weather, etc-skewed) growth in the US weighed. The Telco sector ended with a small gains with the balance of sectors lower.  Travel and Basic Resources was off nearly 2% with Energy not far behind. Weighing on the energy sector Norway’s $1T sovereign wealth fund said they will offload exploration firms from the portfolio to reduce vulnerability if oil price declines continue permanently.  Diversified names were spared but 134 companies labeled as either exploration and production are targeted. Autos fell on a Der Spiegel story noting the EU could soon weigh heavy fines against BMW -1.3%, VW -1.9%, and Daimler -.7% in relation to a cartel probe concerning emissions. Up to €1B could be levied against each manufacturer with antitrust authorities alleging collusion into reducing the effectiveness of vehicle exhaust systems. GVC Holding fell 14% with both their Chairman and CEO offloading nearly 3M shares.   An analyst at Goodbody noted the large sells were alarming to shareholders. From earlier: Essilor -6.3%,…

TGIF Global Markets 3/8/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/08/2019 at 6:45 am
by Matthew Kiselica on 03/08/2019

Risk-Off Markets The markets are in a top-down risk off mode due to Chinese trade below expectations.  Both exports and imports slumped during February (All figures in macro section).  Even accounting for the Lunar New Year, it is poor results.  This underscores global growth concerns and impact of the trade battle.  Perhaps a silver lining is this will encourage China to be  even more willing to reach a deal with the U.S. This is probably no surprise and certainly no help to today’s sentiment, the Brookings Institute published a paper claiming China has overstated its GDP its data for years. Adding to macro slowdown woes, German Factory orders unexpectedly declined during January.   One supportive data point is Q4 Japanese GDP above expectations. Asian Markets All the major indices suffered major declines with the China markets leading the way lower.  It didn’t help that Citic Secs. made a sell call on PICC Group A shs -10.0%following its 400% increase since the November Shanghai Listing.  Hong Kong had the Hang Seng rebalance on today’s close.  All major sectors ended the day in the red.  Miners and financials gave ground by c. 3%.  They were followed by losses of 2% or more include…

Risk-Off Markets The markets are in a top-down risk off mode due to Chinese trade below expectations.  Both exports and imports slumped during February (All figures in macro section).  Even accounting for the Lunar New Year, it is poor results.  This underscores global growth concerns and impact of the trade battle.  Perhaps a silver lining is this will encourage China to be  even more willing to reach a deal with the U.S. This is probably no surprise and certainly no help to today’s sentiment, the Brookings Institute published a paper claiming China has overstated its GDP its data for years. Adding to macro slowdown woes, German Factory orders unexpectedly declined during January.   One supportive data point is Q4 Japanese GDP above expectations. Asian Markets All the major indices suffered major declines with the China markets leading the way lower.  It didn’t help that Citic Secs. made a sell call on PICC Group A shs -10.0%following its 400% increase since the November Shanghai Listing.  Hong Kong had the Hang Seng rebalance on today’s close.  All major sectors ended the day in the red.  Miners and financials gave ground by c. 3%.  They were followed by losses of 2% or more include…

CAPIS Global Markets 3/7/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/07/2019 at 6:33 am
by Matthew Kiselica on 03/07/2019

Asian Markets A mix across the region today.  Underscoring that point, even the markets in Greater China end the day with disparate performance.  Peripherals were generally higher. While the markets were mixed, all the major sectors ended the day lower.  Consumer discretionary, telcos, consumer staples, real estate and healthcare all off more than 0.5%. Important Headlines Mizuho -1.5% created weakness among the Japanese financials following the 86% cut to profit forecasts we flagged yesterday. Chip maker Renesas -14.6% (Limit Down) provided another blow to the Japanese market.  The Nikkei reported the company will halt production at several factories during May and August.  The implications reverberated across suppliers, peers and customers.  It it is another bit of negative news for the auto sector and suppliers which the company supplies with chips. Speaking of the auto sector, Geely Auto’s -7.7% Feb. auto sales skidded lower 24.0% y/y.  The sales decline along with margin worries are what weighed upon the name.  Chairman Li foresees the Chinese auto industry restructuring over the next 3-5 years. Credit Suisse downgraded the Macau gaming sector to neutral from positive.  The analyst must be a kindred spirit noting its “time to take some chips off the table.” McDonalds…

Asian Markets A mix across the region today.  Underscoring that point, even the markets in Greater China end the day with disparate performance.  Peripherals were generally higher. While the markets were mixed, all the major sectors ended the day lower.  Consumer discretionary, telcos, consumer staples, real estate and healthcare all off more than 0.5%. Important Headlines Mizuho -1.5% created weakness among the Japanese financials following the 86% cut to profit forecasts we flagged yesterday. Chip maker Renesas -14.6% (Limit Down) provided another blow to the Japanese market.  The Nikkei reported the company will halt production at several factories during May and August.  The implications reverberated across suppliers, peers and customers.  It it is another bit of negative news for the auto sector and suppliers which the company supplies with chips. Speaking of the auto sector, Geely Auto’s -7.7% Feb. auto sales skidded lower 24.0% y/y.  The sales decline along with margin worries are what weighed upon the name.  Chairman Li foresees the Chinese auto industry restructuring over the next 3-5 years. Credit Suisse downgraded the Macau gaming sector to neutral from positive.  The analyst must be a kindred spirit noting its “time to take some chips off the table.” McDonalds…

CAPIS European Close Recap – 3/6/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/06/2019 at 12:46 pm
by Clayton Duff on 03/06/2019

Post lunch European indices rallied with word new targeted long-term loans are being discussed within the ECB.  Press reports of an announcement of weaker inflation growth expectations to be possibly  announced soon only supported that expectation. (Remember the ECB meets tomorrow).  However that move was short-lived with indices erasing that entire move by an hour into the US session.  On the session the region saw mixed moves with the Stoxx 600 flat on the day on volume 7% higher. The split of sectors up vs down was even with Basic Resources leader while Autos continued to lag. Burberry -4% led the luxury space lower after Goldman Sachs said the company will need to outlay big bucks to retain their brand momentum. As noted earlier tobacco names benefited from the US’ FDA head leaving: BATS +5.2%, Imperial Brands +1.4%.  Yesterday Logitech +2.2% provided a positive FY20 view with their CEO today noting M&A is front and center with the ability to do a large deal. From earlier: Schaeffler -6.2%, Daimler -1.3%, BMW -.7%, VW -1.4%, Fiat +3.7%, ING Group -2.2%, and Dialog Semi +2.2%. Tonight, Australia reports its Trade Balance with a tighter surplus expected.  Retail sales are expected to show…

Post lunch European indices rallied with word new targeted long-term loans are being discussed within the ECB.  Press reports of an announcement of weaker inflation growth expectations to be possibly  announced soon only supported that expectation. (Remember the ECB meets tomorrow).  However that move was short-lived with indices erasing that entire move by an hour into the US session.  On the session the region saw mixed moves with the Stoxx 600 flat on the day on volume 7% higher. The split of sectors up vs down was even with Basic Resources leader while Autos continued to lag. Burberry -4% led the luxury space lower after Goldman Sachs said the company will need to outlay big bucks to retain their brand momentum. As noted earlier tobacco names benefited from the US’ FDA head leaving: BATS +5.2%, Imperial Brands +1.4%.  Yesterday Logitech +2.2% provided a positive FY20 view with their CEO today noting M&A is front and center with the ability to do a large deal. From earlier: Schaeffler -6.2%, Daimler -1.3%, BMW -.7%, VW -1.4%, Fiat +3.7%, ING Group -2.2%, and Dialog Semi +2.2%. Tonight, Australia reports its Trade Balance with a tighter surplus expected.  Retail sales are expected to show…

CAPIS Global Markets 2/6/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/06/2019 at 6:49 am
by Matthew Kiselica on 03/06/2019

Asian Markets A mix across the region with the markets in Greater China outperforming.  Statements at the People’s National Congress sparked buying interest in the latter portions of the trading session.  Australia also performed well. Q4 GDP is below expectations and comments from the RBA indicate a more dovish stance.  This sent the “Aussie” lower.  Worrisome comments from BoJ member Harada weighed in Japan. This all resulted in most sectors managing to advance.  Financials and miners improved by 1%.  Consumer staples and healthcare were down small.  China indicates it will look to cap some pharmaceutical prices. The commentary from the China’s People’s National Congress focused upon “steady growth in consumption.”  Tax cuts , “targeted, critical infrastructure spending” and further relaxation of foreign investment were some of the positives.  Sectors being targeted include green energy vehicles, 5G, energy efficient appliances and heathcare reform. Other Important Headlines The BoJ is raising its purchase of 5-to-10 year bonds by ¥50b. Capital Group has increased its holding in PICC Group +1.3% H shs to 8.08% from 0.49%. Real estate developer China Evergrande +1.3% sees its FY18 earnings higher by at least 90.0%. Sanrio +7.3% is working with Warner Brother’s to create a Hello Kitty…

Asian Markets A mix across the region with the markets in Greater China outperforming.  Statements at the People’s National Congress sparked buying interest in the latter portions of the trading session.  Australia also performed well. Q4 GDP is below expectations and comments from the RBA indicate a more dovish stance.  This sent the “Aussie” lower.  Worrisome comments from BoJ member Harada weighed in Japan. This all resulted in most sectors managing to advance.  Financials and miners improved by 1%.  Consumer staples and healthcare were down small.  China indicates it will look to cap some pharmaceutical prices. The commentary from the China’s People’s National Congress focused upon “steady growth in consumption.”  Tax cuts , “targeted, critical infrastructure spending” and further relaxation of foreign investment were some of the positives.  Sectors being targeted include green energy vehicles, 5G, energy efficient appliances and heathcare reform. Other Important Headlines The BoJ is raising its purchase of 5-to-10 year bonds by ¥50b. Capital Group has increased its holding in PICC Group +1.3% H shs to 8.08% from 0.49%. Real estate developer China Evergrande +1.3% sees its FY18 earnings higher by at least 90.0%. Sanrio +7.3% is working with Warner Brother’s to create a Hello Kitty…

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