Trading Desk

1822 total posts

CAPIS EU Close – 11/12/2018

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International Summary

posted by Clayton Duff on 11/12/2018 at 12:49 pm
by Clayton Duff on 11/12/2018

European markets steadily worked lower throughout the session, gaining no support from the US with tech names there again accelerating lower. iPhone demand is again in focus with affects seen in Europe as well.  With oil higher on expectations of a paring of production by OPEC (specifically the Saudis) Energy names closed up slightly on the day after paring gains starting near the US open. As noted earlier the move up may be short-lived as the production cut is dependent on continued weakness in demand for Texas tea. Media closed flat with the balance of sectors down.  Tech was the clear loser, off 3.7%, as a sector with Personal goods down 2.13%.  Retail and Banks followed with sector losses of 1.96% and 1.30% respectively.  Only 111 Stoxx 600 names finished higher with volume on the day down ~20%.  Germany was the hardest hit with IT names, specifically Infineon -7.8%, taking the brunt of the selling.  Italy closed at their lows even as their FinMin attempted to appease the EU Commission by attempting to amend their budget forecasts. In a bid to lower overall costs and speed up the rollout of 5G Vodafone +.3% and Telecom Italia +2.8% are said to…

European markets steadily worked lower throughout the session, gaining no support from the US with tech names there again accelerating lower. iPhone demand is again in focus with affects seen in Europe as well.  With oil higher on expectations of a paring of production by OPEC (specifically the Saudis) Energy names closed up slightly on the day after paring gains starting near the US open. As noted earlier the move up may be short-lived as the production cut is dependent on continued weakness in demand for Texas tea. Media closed flat with the balance of sectors down.  Tech was the clear loser, off 3.7%, as a sector with Personal goods down 2.13%.  Retail and Banks followed with sector losses of 1.96% and 1.30% respectively.  Only 111 Stoxx 600 names finished higher with volume on the day down ~20%.  Germany was the hardest hit with IT names, specifically Infineon -7.8%, taking the brunt of the selling.  Italy closed at their lows even as their FinMin attempted to appease the EU Commission by attempting to amend their budget forecasts. In a bid to lower overall costs and speed up the rollout of 5G Vodafone +.3% and Telecom Italia +2.8% are said to…

CAPIS Global Markets 11/12/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 11/12/2018 at 6:43 am
by Matthew Kiselica on 11/12/2018

Asian Markets The mainland Chinese markets soared while the rest of the region was mixed.  The Chinese gains were driven by a number of factors.  The government made additional comments about providing support to small, private companies.  Also, the PBoC indicated it would take action as needed with the Chinese economy “undergoing profound changes” and seeing “downward pressure.”   A record Single’s Day at Alibaba was the icing on the cake.  Small caps led the way and Shenzhen and ChiNext gained more than 2%. Sectors were mixed.  IT and industrials gained shy of 1%.  Health care and telcos gave way by c. 0.5%. Corporate News Alibaba’s Singles’ Day resulted in a record $30.7b in sales, up 27% from last years’ 37% growth. After the close, Softbank -0.1% laid out the details of its mobile unit IPO.  It aims to raise c. ¥2.4t which is roughly $21.1b.   That would value the company at ¥7.18t.  The price range will be set on November 30th. Toyo Tire +1.9% gained despite suffering y/y declines to 9mo. revenues -3.5%, OP -7.8% and NI -3.6%.  Cuts FY forecasts: revenues -1.3%, -6.7% and NI -18.2%! Coca-Cola Bottlers +6.4% announced a share buy back up of up to 5.77%…

Asian Markets The mainland Chinese markets soared while the rest of the region was mixed.  The Chinese gains were driven by a number of factors.  The government made additional comments about providing support to small, private companies.  Also, the PBoC indicated it would take action as needed with the Chinese economy “undergoing profound changes” and seeing “downward pressure.”   A record Single’s Day at Alibaba was the icing on the cake.  Small caps led the way and Shenzhen and ChiNext gained more than 2%. Sectors were mixed.  IT and industrials gained shy of 1%.  Health care and telcos gave way by c. 0.5%. Corporate News Alibaba’s Singles’ Day resulted in a record $30.7b in sales, up 27% from last years’ 37% growth. After the close, Softbank -0.1% laid out the details of its mobile unit IPO.  It aims to raise c. ¥2.4t which is roughly $21.1b.   That would value the company at ¥7.18t.  The price range will be set on November 30th. Toyo Tire +1.9% gained despite suffering y/y declines to 9mo. revenues -3.5%, OP -7.8% and NI -3.6%.  Cuts FY forecasts: revenues -1.3%, -6.7% and NI -18.2%! Coca-Cola Bottlers +6.4% announced a share buy back up of up to 5.77%…

TGIF Global Markets – 11/9/2018

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International Summary

posted by Clayton Duff on 11/09/2018 at 10:52 am
by Clayton Duff on 11/09/2018

Asian Markets The markets were already better offered by the prospect of U.S. rate hikes.  However, selling increased when the head of China’s banking commission stated at least 1/3 of new corporate lending should be given to private companies. All the major indices finish in the red with Greater China leading the way.  The same can also be said of the sectors in the region.  Telcos fell by more than 2% with financials, energy and real estate off more than 1%.  Chinese autos didn’t help either.  October Chinese auto sales fell 11.7% y/y.  This is the 4th consecutive monthly decline. There were a number of important macro releases.  Both the October Chinese CPI and PPI were inline with expectations.  Comments from the RBA helped Australia outperform to end the day down small.  The central bank stated it will refrain from any rate hikes in the near term as it remains cautious due to trade and Chinese slowdown concerns. Well after the local close, Japan received some positive news.  Reports allege the government is considering a ¥10T stimulus package to offset 2nd phase of the planned sales tax increase. Important Corporate Headlines Moody’s put Takeda Pharma -2.3% on watch for a…

Asian Markets The markets were already better offered by the prospect of U.S. rate hikes.  However, selling increased when the head of China’s banking commission stated at least 1/3 of new corporate lending should be given to private companies. All the major indices finish in the red with Greater China leading the way.  The same can also be said of the sectors in the region.  Telcos fell by more than 2% with financials, energy and real estate off more than 1%.  Chinese autos didn’t help either.  October Chinese auto sales fell 11.7% y/y.  This is the 4th consecutive monthly decline. There were a number of important macro releases.  Both the October Chinese CPI and PPI were inline with expectations.  Comments from the RBA helped Australia outperform to end the day down small.  The central bank stated it will refrain from any rate hikes in the near term as it remains cautious due to trade and Chinese slowdown concerns. Well after the local close, Japan received some positive news.  Reports allege the government is considering a ¥10T stimulus package to offset 2nd phase of the planned sales tax increase. Important Corporate Headlines Moody’s put Takeda Pharma -2.3% on watch for a…

CAPIS Global Markets – 11/8/2018

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International Summary

posted by Clayton Duff on 11/08/2018 at 12:45 pm
by Clayton Duff on 11/08/2018

Asian Markets Despite the strong gains in the States, momentum did not carry over to all of the Asian markets.  Only Japan came close, closing up 1.82% on strong gains in Energy, Utilities, Health Care, and Consumer Staples.  Gains in China and Hong Kong gave way to tepid moves later in the day. Energy names were leaders or at least in the top tier of gainers.  India was closed. Economic releases were heavy side with Japan reporting Core Machine orders that showed a contraction in activity. Bank lending held steady with foreign purchases of Japanese equities rising. On a Dollar basis, China’s trade surplus in October grew from $31.28B to $34.01B but was shy of estimates. Exports rose 15.6%, ahead of the revised September reading and well ahead of the estimate. Imports rallied 21.4% vs the 14.5% prior reading/current estimate.  New Zealand left rates unchanged but RBNZ Gov Orr said a rate cut is possible if GDP readings disappoint.  Malaysia also left rates unchanged at 3.25%, as expected. Important Corporate News Toshiba +12.0% rocketed higher with a plethora of news.  The firm’s 5 year plan includes nearly $2B in cost cuts with intentions to offload its UK nuclear arm while…

Asian Markets Despite the strong gains in the States, momentum did not carry over to all of the Asian markets.  Only Japan came close, closing up 1.82% on strong gains in Energy, Utilities, Health Care, and Consumer Staples.  Gains in China and Hong Kong gave way to tepid moves later in the day. Energy names were leaders or at least in the top tier of gainers.  India was closed. Economic releases were heavy side with Japan reporting Core Machine orders that showed a contraction in activity. Bank lending held steady with foreign purchases of Japanese equities rising. On a Dollar basis, China’s trade surplus in October grew from $31.28B to $34.01B but was shy of estimates. Exports rose 15.6%, ahead of the revised September reading and well ahead of the estimate. Imports rallied 21.4% vs the 14.5% prior reading/current estimate.  New Zealand left rates unchanged but RBNZ Gov Orr said a rate cut is possible if GDP readings disappoint.  Malaysia also left rates unchanged at 3.25%, as expected. Important Corporate News Toshiba +12.0% rocketed higher with a plethora of news.  The firm’s 5 year plan includes nearly $2B in cost cuts with intentions to offload its UK nuclear arm while…

CAPIS Global Markets – 11/7/2018

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International Summary

posted by Clayton Duff on 11/08/2018 at 6:49 am
by Clayton Duff on 11/08/2018

Asian Markets Markets across Asia looked poised to close higher after small gains in the US ahead of the elections. Most indices spent at least the morning session if not much of the day to the upside before core market gains evaporated quickly late day.  The Nikkei slipped on sizable losses in Energy with Industrials and Financials also weaker.  The ¥ ultimately gained after several sharp intra-day moves in either direction. Losses in Hong Kong and mainland China were kept in-check while Australia registered a small gain on IT and Real Estate names. Economic releases in the region were scant with Japanese real cash earnings showing a slowing decline from prior results. The PBoC skipped OMO’s today but did sell a total of 20B Yuan of bills in Hong Kong. A press report out in China noted government plans for new tax cuts were in motion but no details were provided. Markets that overlapped with Europe were higher across the board. Important Corporate News The Hong Kong Exchange +1.2% closed up after a strong NI reading.  Derivatives trading surged 55% for the 9M by volume. Both OP and NI at Kubota +2.9% were ahead of consensus and seen as a…

Asian Markets Markets across Asia looked poised to close higher after small gains in the US ahead of the elections. Most indices spent at least the morning session if not much of the day to the upside before core market gains evaporated quickly late day.  The Nikkei slipped on sizable losses in Energy with Industrials and Financials also weaker.  The ¥ ultimately gained after several sharp intra-day moves in either direction. Losses in Hong Kong and mainland China were kept in-check while Australia registered a small gain on IT and Real Estate names. Economic releases in the region were scant with Japanese real cash earnings showing a slowing decline from prior results. The PBoC skipped OMO’s today but did sell a total of 20B Yuan of bills in Hong Kong. A press report out in China noted government plans for new tax cuts were in motion but no details were provided. Markets that overlapped with Europe were higher across the board. Important Corporate News The Hong Kong Exchange +1.2% closed up after a strong NI reading.  Derivatives trading surged 55% for the 9M by volume. Both OP and NI at Kubota +2.9% were ahead of consensus and seen as a…

Mid-Term Global Markets – 11/6/2018

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International Summary

posted by Clayton Duff on 11/06/2018 at 11:08 am
by Clayton Duff on 11/06/2018

Asian Markets Mainland China underperformed but shook off earlier losses in IT (See Apple below) and Communication names to close marginally lower.  Other markets finished higher on decent gains with Japan and Australia leading. Oil prices are continuing to work lower, falling to April levels with $60.00 seemingly the next stop.  On oil, Japan’s Trade Minister took note of the White Houses’ attempt to keep prices lower, allowing Japan to purchase a reduced amount of oil from Iran via a sanctions waiver.  Singapore and Malaysia were closed.  Most sectors finished to the upside led by Japanese names.  Health care and energy gained about 1% while IT ended the day down small. Down Under, the RBA left rates unchanged as expected but slightly revised GDP for this year and next a bit higher.  Rates are expected to remain as-is with the central bank noting the low level of rates is supporting the economy with inflation moving slightly higher as unemployment continues to come down. Important Corporate Headlines Despite initial strong gains on earnings,  Softbank -2% ended the day lower.  The stock opened up 4% but steadily worked lower for much of the session. In a press conference to investors, Chairman Son first addressed…

Asian Markets Mainland China underperformed but shook off earlier losses in IT (See Apple below) and Communication names to close marginally lower.  Other markets finished higher on decent gains with Japan and Australia leading. Oil prices are continuing to work lower, falling to April levels with $60.00 seemingly the next stop.  On oil, Japan’s Trade Minister took note of the White Houses’ attempt to keep prices lower, allowing Japan to purchase a reduced amount of oil from Iran via a sanctions waiver.  Singapore and Malaysia were closed.  Most sectors finished to the upside led by Japanese names.  Health care and energy gained about 1% while IT ended the day down small. Down Under, the RBA left rates unchanged as expected but slightly revised GDP for this year and next a bit higher.  Rates are expected to remain as-is with the central bank noting the low level of rates is supporting the economy with inflation moving slightly higher as unemployment continues to come down. Important Corporate Headlines Despite initial strong gains on earnings,  Softbank -2% ended the day lower.  The stock opened up 4% but steadily worked lower for much of the session. In a press conference to investors, Chairman Son first addressed…

CAPIS Global Markets – 11/5/2018

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International Summary

posted by Clayton Duff on 11/05/2018 at 10:51 am
by Clayton Duff on 11/05/2018

Asian Markets Asia kicked off the week to the downside with IT names again the main culprit. While Hong Kong and Japan saw sizable losses, the mainland Chinese markets held in fairly well.  That was thanks to comments from President Xi.  He stated his nation will make further reductions to import tariffs and will import over $30T in goods over the next 15 years with service imports seen above $10T.  Once again, he pledged to open their markets to the world.  He added Shanghai will establish a new equity board for high tech companies. Earlier, the China Securities Journal said they expect the PBoC to make RRR cuts for some banks next quarter. PMI Service and Composite readings were out with several other notable economic releases which weighed.  PMI Services in China stayed in expansion territory but the 50.8 reading was well light the 52.8 expected and 53.1 prior reading.  Hong Kong ticked higher, to 48.6 from 47.9, but remained in contraction territory. Encouragingly in Japan, PMI Services rose to 52.4 besting the 50.2 prior view. Australia also saw gains. IT weighed upon the region.  Real Estate names were weak with the HKMA noting more time is needed to assess whether…

Asian Markets Asia kicked off the week to the downside with IT names again the main culprit. While Hong Kong and Japan saw sizable losses, the mainland Chinese markets held in fairly well.  That was thanks to comments from President Xi.  He stated his nation will make further reductions to import tariffs and will import over $30T in goods over the next 15 years with service imports seen above $10T.  Once again, he pledged to open their markets to the world.  He added Shanghai will establish a new equity board for high tech companies. Earlier, the China Securities Journal said they expect the PBoC to make RRR cuts for some banks next quarter. PMI Service and Composite readings were out with several other notable economic releases which weighed.  PMI Services in China stayed in expansion territory but the 50.8 reading was well light the 52.8 expected and 53.1 prior reading.  Hong Kong ticked higher, to 48.6 from 47.9, but remained in contraction territory. Encouragingly in Japan, PMI Services rose to 52.4 besting the 50.2 prior view. Australia also saw gains. IT weighed upon the region.  Real Estate names were weak with the HKMA noting more time is needed to assess whether…

TGIF Global Markets 11/02/2018

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International Summary

posted by Matthew Kiselica on 11/02/2018 at 6:51 am
by Matthew Kiselica on 11/02/2018

It is a top down day as word out of Washington sparked a global rally.  The day was already off to a good start following Pres. Trump’s tweet regarding his “good conversation” with Chinese Pres. Xi.  Then the markets made sharp gains in response to a report Pres. Trump has asked his cabinet to draft a possible Chinese trade deal.  This will be presented and discussed at the the G-20 meeting in Argentina at the end of the month.  Another positive is the U.S. has granted 8 nation’s exemptions to the Iranian oil sanctions to be imposed on Nov. 5th.  Those nation’s include Japan, India and S. Korea. Asian Markets Asia had solid gains with the Greater Chinese markets leading the way.  Australia lagged following a miss with retail sales and the energy sector weighing upon the ASX200.  All the major sectors ended the day in the green.  Telcos advanced more than 4% with health care higher by c. 3%.  Most of the rest gained more than 2%.  Within travel names,  Chinese airlines ascended thanks to a stronger yuan and lower crude prices. European Markets Europe has been higher since the open and spent most of the morning thus far…

It is a top down day as word out of Washington sparked a global rally.  The day was already off to a good start following Pres. Trump’s tweet regarding his “good conversation” with Chinese Pres. Xi.  Then the markets made sharp gains in response to a report Pres. Trump has asked his cabinet to draft a possible Chinese trade deal.  This will be presented and discussed at the the G-20 meeting in Argentina at the end of the month.  Another positive is the U.S. has granted 8 nation’s exemptions to the Iranian oil sanctions to be imposed on Nov. 5th.  Those nation’s include Japan, India and S. Korea. Asian Markets Asia had solid gains with the Greater Chinese markets leading the way.  Australia lagged following a miss with retail sales and the energy sector weighing upon the ASX200.  All the major sectors ended the day in the green.  Telcos advanced more than 4% with health care higher by c. 3%.  Most of the rest gained more than 2%.  Within travel names,  Chinese airlines ascended thanks to a stronger yuan and lower crude prices. European Markets Europe has been higher since the open and spent most of the morning thus far…

CAPIS Global Markets 11/01/2018

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International Summary

posted by Matthew Kiselica on 11/01/2018 at 1:25 pm
by Matthew Kiselica on 11/01/2018

Asian Markets Most of the region managed to advance following comments from the Politburo.  A meeting chaired by Pres. Xi released statements indicating “timely action” is required to counter the slowing Chinese economy.  This boosted most of the markets; however, Japan was the exception.  A number of key disappointing earnings and pressure in the telecommunications sector weighed there.  Energy and utilities were also weaker.  Real estate gained more than 1% with IT consumer discretionary and materials ahead by more than 0.5%. Major Headlines NTT Docomo -14.7% accounted for the weakness in the Japanese telco sector.  Bowing to pressure from the government, the company announced it will lower some of its mobile rates by as much as 40.0%. BHP Billiton +2.8% plans to reward shareholders with a $10.4b share buyback and issue a special dividend following the sale of its onshore U.S. shale assets. OCBC’s +3.8% Q3 NI rose 12% and beat consensus.  Lending and net interest margin improved. Yahoo Japan’s -8.7% quarterly earnings and outlook were light of expectations. Nomura Holding -4.9% continue to see struggling operations in Europe. A short fall in revenues at the broker’s retail and wholesale operations results in an unexpected net loss. Hyundai Heavy -2.8% noted…

Asian Markets Most of the region managed to advance following comments from the Politburo.  A meeting chaired by Pres. Xi released statements indicating “timely action” is required to counter the slowing Chinese economy.  This boosted most of the markets; however, Japan was the exception.  A number of key disappointing earnings and pressure in the telecommunications sector weighed there.  Energy and utilities were also weaker.  Real estate gained more than 1% with IT consumer discretionary and materials ahead by more than 0.5%. Major Headlines NTT Docomo -14.7% accounted for the weakness in the Japanese telco sector.  Bowing to pressure from the government, the company announced it will lower some of its mobile rates by as much as 40.0%. BHP Billiton +2.8% plans to reward shareholders with a $10.4b share buyback and issue a special dividend following the sale of its onshore U.S. shale assets. OCBC’s +3.8% Q3 NI rose 12% and beat consensus.  Lending and net interest margin improved. Yahoo Japan’s -8.7% quarterly earnings and outlook were light of expectations. Nomura Holding -4.9% continue to see struggling operations in Europe. A short fall in revenues at the broker’s retail and wholesale operations results in an unexpected net loss. Hyundai Heavy -2.8% noted…

CAPIS Global Recap – 10/31/2018

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International Summary

posted by Clayton Duff on 10/31/2018 at 6:50 am
by Clayton Duff on 10/31/2018

Asian Headlines Asian indices managed another positive session today with solid gains across the board.  This was despite official Manufacturing PMI out of China light estimates.  The reading for October came at 50.2, still expansionary, but under the 50.6 estimate and 50.8 prior reading.   The BoJ was in focus, leaving rates unchanged at their meeting. They did though slightly lower GDP for this year while, wait for it, lowering CPI views as well out to FY21.   Also on the eco front South Korean Industrial Production slipped 2.5% in September after slight growth in August. In China, along with the weaker Manu reading Non-Manu PMI missed in China as well, coming in at 53.9, with the Composite down to 53.1.  The PBoC while skipping OMO’s last night did set the midpoint rate for the Yuan again weaker.  Of interest the central bank there will sell yuan bills next week in Hong Kong, both 3 month and 1 year bills. In addition the BoJ, Industrial Production for September was also released in Japan showing a slowing of 1.1%, worse than expected. Unsurprisingly vehicle production was down but at a slower pace than previously seen.  Moves on earnings included Honda +6.5% which boosted…

Asian Headlines Asian indices managed another positive session today with solid gains across the board.  This was despite official Manufacturing PMI out of China light estimates.  The reading for October came at 50.2, still expansionary, but under the 50.6 estimate and 50.8 prior reading.   The BoJ was in focus, leaving rates unchanged at their meeting. They did though slightly lower GDP for this year while, wait for it, lowering CPI views as well out to FY21.   Also on the eco front South Korean Industrial Production slipped 2.5% in September after slight growth in August. In China, along with the weaker Manu reading Non-Manu PMI missed in China as well, coming in at 53.9, with the Composite down to 53.1.  The PBoC while skipping OMO’s last night did set the midpoint rate for the Yuan again weaker.  Of interest the central bank there will sell yuan bills next week in Hong Kong, both 3 month and 1 year bills. In addition the BoJ, Industrial Production for September was also released in Japan showing a slowing of 1.1%, worse than expected. Unsurprisingly vehicle production was down but at a slower pace than previously seen.  Moves on earnings included Honda +6.5% which boosted…

CAPIS Global Recap – 10/29/2018

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International Summary

posted by Clayton Duff on 10/29/2018 at 6:55 am
by Clayton Duff on 10/29/2018

Asian Headlines Asian markets kicked off the week in a mixed fashion with mainland China underperforming.  South Korea too was a laggard with a loss of over 5% seen on the Kosdaq.  Japan and Hong Kong saw rather subdued moves by the end of the session with a decent gain on the day Down Under. Earnings and M&A are front and center today with some economic data in focus.  Friday China reported Industrial Profits up just 4.1% YoY for September vs the prior +9.2% reading.  This is the slowest growth seen since March.  That of course weighed but note that according to the China Securities Depository and Clearing corporation 3479 of the 3491 companies listed on the Shanghai and Shenzhen have pledged their equity as collateral against bank loans.  It is being reported the Banking/Insurance Regulatory Commission is suggesting banks Not forcing liquidation of pledged shares. Great Wall Motor fell 8% post earnings with several downgrades weighing as well.  Watch automakers tomorrow with headlines out this morning the country may halve its car purchase tax.  Yanzhou Coal fell 16% on earnings and forecast reduction at CICC. Earnings after the close include Ping An which reported 3Q NI at 21.3B Yuan with…

Asian Headlines Asian markets kicked off the week in a mixed fashion with mainland China underperforming.  South Korea too was a laggard with a loss of over 5% seen on the Kosdaq.  Japan and Hong Kong saw rather subdued moves by the end of the session with a decent gain on the day Down Under. Earnings and M&A are front and center today with some economic data in focus.  Friday China reported Industrial Profits up just 4.1% YoY for September vs the prior +9.2% reading.  This is the slowest growth seen since March.  That of course weighed but note that according to the China Securities Depository and Clearing corporation 3479 of the 3491 companies listed on the Shanghai and Shenzhen have pledged their equity as collateral against bank loans.  It is being reported the Banking/Insurance Regulatory Commission is suggesting banks Not forcing liquidation of pledged shares. Great Wall Motor fell 8% post earnings with several downgrades weighing as well.  Watch automakers tomorrow with headlines out this morning the country may halve its car purchase tax.  Yanzhou Coal fell 16% on earnings and forecast reduction at CICC. Earnings after the close include Ping An which reported 3Q NI at 21.3B Yuan with…

CAPIS Global Recap – 10/26/2018

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International Summary

posted by Clayton Duff on 10/26/2018 at 6:43 am
by Clayton Duff on 10/26/2018

Asian Headlines Asian markets did not benefit from the small rebound in the States other than seeing more subdued losses today.  Loss leaders were similar to yesterday with Nikkei losers including Communication and IT names.  IT name collapsed again in Hong Kong with the sector off more than 8% while Health Care and Communication names weighed heavily as well. The mainland closed flattish with Real Estate names again higher post the earlier cut in mortgage rates.  Consumer Staples slipped on the session. The PBoC set the reference rate at just above 6.95 today, its weakest level since January of last year as Premier Li said the country will not engage in competitive yuan devaluation.  Post the close a US press report noted the 7 level vs the Dollar was important with the government likely to step in to intervene there.  The Kospi fell nearly 2% but the Kosdaq stumbled to the tune of 3.5%. Australia ended flat. Contributing to the weakness were disappointing results from Google and Amazon post the close yesterday.  On the better sentiment front China and Japan are forging closer ties on their 3 day meeting.  50 memorandums of understanding are were signed today between companies from…

Asian Headlines Asian markets did not benefit from the small rebound in the States other than seeing more subdued losses today.  Loss leaders were similar to yesterday with Nikkei losers including Communication and IT names.  IT name collapsed again in Hong Kong with the sector off more than 8% while Health Care and Communication names weighed heavily as well. The mainland closed flattish with Real Estate names again higher post the earlier cut in mortgage rates.  Consumer Staples slipped on the session. The PBoC set the reference rate at just above 6.95 today, its weakest level since January of last year as Premier Li said the country will not engage in competitive yuan devaluation.  Post the close a US press report noted the 7 level vs the Dollar was important with the government likely to step in to intervene there.  The Kospi fell nearly 2% but the Kosdaq stumbled to the tune of 3.5%. Australia ended flat. Contributing to the weakness were disappointing results from Google and Amazon post the close yesterday.  On the better sentiment front China and Japan are forging closer ties on their 3 day meeting.  50 memorandums of understanding are were signed today between companies from…

CAPIS Global Recap – 10/25/2018

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International Summary

posted by Clayton Duff on 10/25/2018 at 6:49 am
by Clayton Duff on 10/25/2018

Asian Headlines The ugliness spilled over into the Asian session overnight with Japan seeing losses similar to that seen in the States.  All sectors fell with IT down nearly 5%.  The Nikkei finished below the 400day and is now down 6.5% on the year.  China performed much better with the Shanghai flat and Shenzhen off small.  IT names still saw weakness with Staples surprisingly leading lower on the Shanghai.  Hong Kong fell only a percent though IT names were trounced.  Korea too saw sizable losses with Australia hard hit on Health Care, Discretionary, and Material names. Ahead of a visit to China, PM Abe said he seeks a “new dimension” with ties to China as the two seek to strengthen their relationship as tensions rise with the US. Real Estate names led in China after the government lowered mortgage rates in some Tier 1 cities.  Developers like Poly Development +5.6% and Greenland Holdings +4% rallied on the session.  However many names saw losses even though earnings for some were to the upside. Anhui Conch fell 2.1% even after 9M NI grew 111% to CNY 20.7B. In the household/personal chemical space, Kao closed off 2.9% in Japan after 3Q sales missed along with…

Asian Headlines The ugliness spilled over into the Asian session overnight with Japan seeing losses similar to that seen in the States.  All sectors fell with IT down nearly 5%.  The Nikkei finished below the 400day and is now down 6.5% on the year.  China performed much better with the Shanghai flat and Shenzhen off small.  IT names still saw weakness with Staples surprisingly leading lower on the Shanghai.  Hong Kong fell only a percent though IT names were trounced.  Korea too saw sizable losses with Australia hard hit on Health Care, Discretionary, and Material names. Ahead of a visit to China, PM Abe said he seeks a “new dimension” with ties to China as the two seek to strengthen their relationship as tensions rise with the US. Real Estate names led in China after the government lowered mortgage rates in some Tier 1 cities.  Developers like Poly Development +5.6% and Greenland Holdings +4% rallied on the session.  However many names saw losses even though earnings for some were to the upside. Anhui Conch fell 2.1% even after 9M NI grew 111% to CNY 20.7B. In the household/personal chemical space, Kao closed off 2.9% in Japan after 3Q sales missed along with…

CAPIS EU Close – 10/24/2018

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International Summary

posted by Clayton Duff on 10/24/2018 at 12:43 pm
by Clayton Duff on 10/24/2018

European indices rallied until an hour after lunch before turning south once again.  Moves on the day varied with the FTSE managing a small gain as the Pound weakened today.  Losses elsewhere were kept in check but Italy was again the standout, falling 1.7% on the day. On a sector basis Retailers led, up over a percent with Media up roughly a percent.  The split of gainers to losers was even with Autos off over 2%.  Basic Resources, Tech, and Banks saw losses of over a percent.  On the auto front VW -4.3% weighed on slower Chinese sales with German names facing continued pushback on diesel emissions.  With several cities threatening to impose diesel bans the government is pushing hard for the auto industry to provide retrofits. The Loonie is stronger on the session post a rate hike by the BoC and the removal of the word “gradual” in relation to future rate increases. They see the neutral rate currently between 2.5-3.5% with GDP running inline with the pace of inflation at 2% over the next couple of years.   Sweden earlier had kept rates unchanged.   The South African Rand moved sharply lower with the mid-term budget statement there noting rising…

European indices rallied until an hour after lunch before turning south once again.  Moves on the day varied with the FTSE managing a small gain as the Pound weakened today.  Losses elsewhere were kept in check but Italy was again the standout, falling 1.7% on the day. On a sector basis Retailers led, up over a percent with Media up roughly a percent.  The split of gainers to losers was even with Autos off over 2%.  Basic Resources, Tech, and Banks saw losses of over a percent.  On the auto front VW -4.3% weighed on slower Chinese sales with German names facing continued pushback on diesel emissions.  With several cities threatening to impose diesel bans the government is pushing hard for the auto industry to provide retrofits. The Loonie is stronger on the session post a rate hike by the BoC and the removal of the word “gradual” in relation to future rate increases. They see the neutral rate currently between 2.5-3.5% with GDP running inline with the pace of inflation at 2% over the next couple of years.   Sweden earlier had kept rates unchanged.   The South African Rand moved sharply lower with the mid-term budget statement there noting rising…

CAPIS Global Markets 10/24/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 10/24/2018 at 6:45 am
by Matthew Kiselica on 10/24/2018

Asian Markets Most of the region vacillated throughout the session with the markets ending the day mixed.  The China Securities Times reported some companies have received funds from the government.  However, this failed to create any lasting buying interest in the Chinese markets.  The day had no clear direction and the varied performance among the indices reflected that.  Following yesterday’s sharp pullback in crude, energy fell by well over 1%.  IT, healthcare, and basic materials fell by 0.5% or more.  Financials gained more than 0.5% and were followed by real estate and utilities. Top Headlines Included Komatsu -5.0% and other construction machinery peers suffered following yesterday’s Caterpillar results. Tencent -0.7% and other video gaming peers gave way following word China has halted the approval process for gaming licenses.  Keep an eye on NetEase on our side of the pond. The U.S. eliminated an anti-dumping duty on certain products produced by Lotte Chem +6.5% and several other S. Korean chemical names. LG Display -0.3% posted mixed Q3 results.  Sales were a touch light, OP a strong beat but NI missed consensus by c. 50.0%. Newcrest Mining’s  +2.9% Q1 gold output declined but the company maintained its FY19 gold output forecast. Subaru -7.0%…

Asian Markets Most of the region vacillated throughout the session with the markets ending the day mixed.  The China Securities Times reported some companies have received funds from the government.  However, this failed to create any lasting buying interest in the Chinese markets.  The day had no clear direction and the varied performance among the indices reflected that.  Following yesterday’s sharp pullback in crude, energy fell by well over 1%.  IT, healthcare, and basic materials fell by 0.5% or more.  Financials gained more than 0.5% and were followed by real estate and utilities. Top Headlines Included Komatsu -5.0% and other construction machinery peers suffered following yesterday’s Caterpillar results. Tencent -0.7% and other video gaming peers gave way following word China has halted the approval process for gaming licenses.  Keep an eye on NetEase on our side of the pond. The U.S. eliminated an anti-dumping duty on certain products produced by Lotte Chem +6.5% and several other S. Korean chemical names. LG Display -0.3% posted mixed Q3 results.  Sales were a touch light, OP a strong beat but NI missed consensus by c. 50.0%. Newcrest Mining’s  +2.9% Q1 gold output declined but the company maintained its FY19 gold output forecast. Subaru -7.0%…

CAPIS EU Close – 10/23/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 10/23/2018 at 1:53 pm
by Clayton Duff on 10/23/2018

Indices managed a small rebound post the early morning lows but as US futures continued to fall fresh lows were hit less than an hour after the US open.  Fortunately markets saw another rebound as US markets shook off morning losses. Even though, all Stoxx 600 sectors finished down led by Tech (-3.73%), Energy and Basic Resources (-2.6%), and Industrials (-2.24%). Back to the Stoxx 600 volume was up 14% today with only 66 names closing higher.  As noted Tech led lower with AMS the biggest culprit.  Also weighing heavily Atos fell 22% after noting FY operating margins will be at the lower end of the projected range with organic revs less than half the growth expected.  CEO comments noting a more uncertain and challenging environment did not encourage markets. Also in the tech space Logitech -10.7% was another notable laggard today even as 2Q sales met estimates. The company reaffirmed FY19 sales and adj op income views but markets were disappointed with no improvement in expectations. After the close a press story out reported the EU antitrust agency is expressing concern that the marriage of Siemens’ -.8% and Alstom’s -1.4% rail units will hurt competition. Also out post the…

Indices managed a small rebound post the early morning lows but as US futures continued to fall fresh lows were hit less than an hour after the US open.  Fortunately markets saw another rebound as US markets shook off morning losses. Even though, all Stoxx 600 sectors finished down led by Tech (-3.73%), Energy and Basic Resources (-2.6%), and Industrials (-2.24%). Back to the Stoxx 600 volume was up 14% today with only 66 names closing higher.  As noted Tech led lower with AMS the biggest culprit.  Also weighing heavily Atos fell 22% after noting FY operating margins will be at the lower end of the projected range with organic revs less than half the growth expected.  CEO comments noting a more uncertain and challenging environment did not encourage markets. Also in the tech space Logitech -10.7% was another notable laggard today even as 2Q sales met estimates. The company reaffirmed FY19 sales and adj op income views but markets were disappointed with no improvement in expectations. After the close a press story out reported the EU antitrust agency is expressing concern that the marriage of Siemens’ -.8% and Alstom’s -1.4% rail units will hurt competition. Also out post the…

CAPIS Global Markets 10/23/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 10/23/2018 at 7:16 am
by Matthew Kiselica on 10/23/2018

Asian Markets What a difference a day makes!  The Asian markets were already going to be better offered following the failure of follow through gains in the West.  But that selling sentiment was given additional impetus by comments out of China.  Speaking to a group of U.S. investors, government official Zhang Qingli stated his nation would rather not have a trade war but “does not fear such a war.”  This brought trade tensions to the forefront once again.  Japanese FM Aso stated the nation’s sales tax increase will be implemented as planned.  The icing on the selling cake was a strong USD and ¥ in flight to safety. All of this resulted in terrible sector performance.  All the major sectors ended the day lower.  Consumer staples and heath care were off 3%.  Loss of 2% or more were seen among industrials, IT, telcos, basic materials, real estate and utilities.  Gold miners outperformed among the basic materials as the precious metal moved higher due to risk-off sentiment. European Markets Europe opened lower by 1.2% and reached lows of -1.7% about 3 hours into the session.  At one point, less than 40 members of the Euro Stoxx 600 were in the green. …

Asian Markets What a difference a day makes!  The Asian markets were already going to be better offered following the failure of follow through gains in the West.  But that selling sentiment was given additional impetus by comments out of China.  Speaking to a group of U.S. investors, government official Zhang Qingli stated his nation would rather not have a trade war but “does not fear such a war.”  This brought trade tensions to the forefront once again.  Japanese FM Aso stated the nation’s sales tax increase will be implemented as planned.  The icing on the selling cake was a strong USD and ¥ in flight to safety. All of this resulted in terrible sector performance.  All the major sectors ended the day lower.  Consumer staples and heath care were off 3%.  Loss of 2% or more were seen among industrials, IT, telcos, basic materials, real estate and utilities.  Gold miners outperformed among the basic materials as the precious metal moved higher due to risk-off sentiment. European Markets Europe opened lower by 1.2% and reached lows of -1.7% about 3 hours into the session.  At one point, less than 40 members of the Euro Stoxx 600 were in the green. …

CAPIS EU Close – 10/22/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 10/22/2018 at 12:48 pm
by Clayton Duff on 10/22/2018

As noted on our morning piece early gains evaporated with markets steadily working lower just after lunch today.  Friday’s lows held with Italy even finishing above last week’s levels despite being the underperformer today. (Moodys cut their sovereign rating to Baa3 from Baa2 but with a Stable outlook).  On the Stoxx 600 just over 200 names though gained on the day with volume down 14%. On a sector basis Chemicals, Personal goods, and Food names inked very small gains with Energy and Telcos registering losses of just over a percent.  The balance of sectors saw smaller losses. Tech firm AMS +4.8% reported a strong 3Q set of results while upping 4Q revs.  4Q adj ebit margin is now sees up 16-20%. Linde +2.9% moved higher after getting the nod from the US’ FTC to merge with Praxair assuming they sell assets in 9 different markets.   Linde shares will be listed in both New York and on the Frankfurt. Lloyds +.5% ended the day higher but shed larger gains earlier on a Financial Times note the bank is planning a £2B share buyback. Telefonica -.5% is delaying their £10B UK IPO offering of O2 until after Brexit citing uncertainty in the…

As noted on our morning piece early gains evaporated with markets steadily working lower just after lunch today.  Friday’s lows held with Italy even finishing above last week’s levels despite being the underperformer today. (Moodys cut their sovereign rating to Baa3 from Baa2 but with a Stable outlook).  On the Stoxx 600 just over 200 names though gained on the day with volume down 14%. On a sector basis Chemicals, Personal goods, and Food names inked very small gains with Energy and Telcos registering losses of just over a percent.  The balance of sectors saw smaller losses. Tech firm AMS +4.8% reported a strong 3Q set of results while upping 4Q revs.  4Q adj ebit margin is now sees up 16-20%. Linde +2.9% moved higher after getting the nod from the US’ FTC to merge with Praxair assuming they sell assets in 9 different markets.   Linde shares will be listed in both New York and on the Frankfurt. Lloyds +.5% ended the day higher but shed larger gains earlier on a Financial Times note the bank is planning a £2B share buyback. Telefonica -.5% is delaying their £10B UK IPO offering of O2 until after Brexit citing uncertainty in the…

CAPIS Global Markets 10/22/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 10/22/2018 at 6:55 am
by Matthew Kiselica on 10/22/2018

Asian Markets Once again, China was the star of the day dominating trading and headlines.  The Chinese markets and related indices surged following supportive chatter from various key players.  Over the weekend, the nation released a draft plan to cut personal income taxes.  Also, Pres. Xi pledged “unwavering” support for non-state firms.  Following similar government comments from Friday, various exchanges promised to assist companies in reducing “share-pledge” overhang.  This resulted in multiple percentage point advances for the Sino markets. This sparked buying interest across the rest of the region with a major exception.  Australia declined on political uncertainty.  An election for the parliamentary seat that had been held by former PM Turnbull appears to be won by opposition candidate Kerryn Phelps.  While mail-in votes are being tallied, her victory will cost PM Morrison’s party to lose its one seat majority.  India also traded lower as Europe lost steam.  S. Korean gains were hampered by rate hike fears following comments from the BoK and strong import-export data. Other Important Headlines Chinese September Home Prices showed slowing m/m increases of 1.0% vs. 1.5% during August.  Increases occurred in 64 of the 70 cities in the survey vs. 67 previously.  However, y/y the…

Asian Markets Once again, China was the star of the day dominating trading and headlines.  The Chinese markets and related indices surged following supportive chatter from various key players.  Over the weekend, the nation released a draft plan to cut personal income taxes.  Also, Pres. Xi pledged “unwavering” support for non-state firms.  Following similar government comments from Friday, various exchanges promised to assist companies in reducing “share-pledge” overhang.  This resulted in multiple percentage point advances for the Sino markets. This sparked buying interest across the rest of the region with a major exception.  Australia declined on political uncertainty.  An election for the parliamentary seat that had been held by former PM Turnbull appears to be won by opposition candidate Kerryn Phelps.  While mail-in votes are being tallied, her victory will cost PM Morrison’s party to lose its one seat majority.  India also traded lower as Europe lost steam.  S. Korean gains were hampered by rate hike fears following comments from the BoK and strong import-export data. Other Important Headlines Chinese September Home Prices showed slowing m/m increases of 1.0% vs. 1.5% during August.  Increases occurred in 64 of the 70 cities in the survey vs. 67 previously.  However, y/y the…

TGIF Global Markets 10/19/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 10/19/2018 at 10:47 am
by Matthew Kiselica on 10/19/2018

Asian Markets China dominated the day with a number of important headlines that caused the markets to respond in divergent fashion.   There were a number of important Chinese macro data points that showed the world’s second largest economy continues to see slowing growth.  Q3 GDP was a touch below estimates and was the slowest since Q1 of 2009. Retail sales beat but industrial production was also below estimates.  (All figures in our Markets and Macro Section.) The Chinese data prompted most of the non-Chinese markets to sell-off.  However, Shanghai, Shenzhen and Hong Kong bucked that trend.  The reason being was multiple Chinese authorities including the PBoC, Securities Regulators and the Banking and Insurance Commission made supportive comments.  Those comments included a pledge to to support non-state companies along with a call upon government backed funds to offset pressure created by share pledge selling.  This helped the Sino-exchanges make solid gains on the day. Chinese names propped up many sectors.  Financials gained more than 1% followed by consumers staples, real estate and health care.  Telcos and energy were down small. Other Important Headlines TSMC -0.2% erased most of its earlier losses in the wake of the Q3 results and Q4 outlook released…

Asian Markets China dominated the day with a number of important headlines that caused the markets to respond in divergent fashion.   There were a number of important Chinese macro data points that showed the world’s second largest economy continues to see slowing growth.  Q3 GDP was a touch below estimates and was the slowest since Q1 of 2009. Retail sales beat but industrial production was also below estimates.  (All figures in our Markets and Macro Section.) The Chinese data prompted most of the non-Chinese markets to sell-off.  However, Shanghai, Shenzhen and Hong Kong bucked that trend.  The reason being was multiple Chinese authorities including the PBoC, Securities Regulators and the Banking and Insurance Commission made supportive comments.  Those comments included a pledge to to support non-state companies along with a call upon government backed funds to offset pressure created by share pledge selling.  This helped the Sino-exchanges make solid gains on the day. Chinese names propped up many sectors.  Financials gained more than 1% followed by consumers staples, real estate and health care.  Telcos and energy were down small. Other Important Headlines TSMC -0.2% erased most of its earlier losses in the wake of the Q3 results and Q4 outlook released…

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