Trading Desk

1860 total posts

CAPIS EU Close Recap – 1/14/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/14/2019 at 12:51 pm
by Clayton Duff on 01/14/2019

Most European indices shook over late morning lows to end marginally lower on the day.  On a stronger Pound and continued lack of clarity on the Brexit issue London underperformed.  The healthcare sector fell nearly 3% there with Communications and IT over well over a percent. On a regional basis Personal goods ended down a percent with Telcos and Chemis weaker while Autos continued to hold much of their earlier gains.  With so many headlines concerning trade, Brexit, and US politics coupled with possible weather-related issues turnover on the Stoxx 600 day was over 10% lower. Post the restructuring announcement at AstraZeneca -3.6%, their chief medical officer Sean Bohen is leaving, making this the 3rd high-ranking executive to depart.  GlaxoSmithKline -2.3%, Hikma Pharma -3.5%.    Siemens -.2% and Alstom -2.3% both fell with a German regulator raising “serious doubts’ as to whether the deal will be allowed. Retailer JD Sports +6.4% leapt higher with pretax levels for the year seen at the upper end of views. Across the board for the last 11 months sales were up 15%. From earlier: Dialog Semi +1.9%, Continental +3%, and Premier Oil -12%. Tonight, import/export prices are expected from South Korea followed by German…

Most European indices shook over late morning lows to end marginally lower on the day.  On a stronger Pound and continued lack of clarity on the Brexit issue London underperformed.  The healthcare sector fell nearly 3% there with Communications and IT over well over a percent. On a regional basis Personal goods ended down a percent with Telcos and Chemis weaker while Autos continued to hold much of their earlier gains.  With so many headlines concerning trade, Brexit, and US politics coupled with possible weather-related issues turnover on the Stoxx 600 day was over 10% lower. Post the restructuring announcement at AstraZeneca -3.6%, their chief medical officer Sean Bohen is leaving, making this the 3rd high-ranking executive to depart.  GlaxoSmithKline -2.3%, Hikma Pharma -3.5%.    Siemens -.2% and Alstom -2.3% both fell with a German regulator raising “serious doubts’ as to whether the deal will be allowed. Retailer JD Sports +6.4% leapt higher with pretax levels for the year seen at the upper end of views. Across the board for the last 11 months sales were up 15%. From earlier: Dialog Semi +1.9%, Continental +3%, and Premier Oil -12%. Tonight, import/export prices are expected from South Korea followed by German…

CAPIS Coming of Age Day Global Markets 1/14/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/14/2019 at 6:47 am
by Matthew Kiselica on 01/14/2019

Asian Markets Chinese trade data is the day’s key driver of trading action.  China suffered an unexpected decline to both Imports and Exports during December.  Both numbers are the lowest result since Dec. 2016.  (All data posted below in our Markets and Macro Section.)  The results are creating two fears.  The trade spat between the U.S. and China is having a negative impact and domestic Chinese demand is slowing.  The overall Chinese trade balance with the U.S. for 2018 was the largest since 2006.  Perhaps the silver lining is this result may compel China to strike a deal with the U.S.  The next talks are scheduled to be held at the end of the month when Prem. Liu comes to the States.  Also on the macro front, FDI suffered a significant slump. This resulted in each of the major markets ending the day lower.  Australia outperformed with a minor down-tick.  It had underperformed on Friday.  Japan was closed for Coming of Age Day.  All the major sectors ended the day lower with telcos and energy off c. 1%. Other Important Headlines Geely Auto -3.2% says it has not reduced its 9.7% stake in Daimler -0.2%.  A Bloomberg report from Friday…

Asian Markets Chinese trade data is the day’s key driver of trading action.  China suffered an unexpected decline to both Imports and Exports during December.  Both numbers are the lowest result since Dec. 2016.  (All data posted below in our Markets and Macro Section.)  The results are creating two fears.  The trade spat between the U.S. and China is having a negative impact and domestic Chinese demand is slowing.  The overall Chinese trade balance with the U.S. for 2018 was the largest since 2006.  Perhaps the silver lining is this result may compel China to strike a deal with the U.S.  The next talks are scheduled to be held at the end of the month when Prem. Liu comes to the States.  Also on the macro front, FDI suffered a significant slump. This resulted in each of the major markets ending the day lower.  Australia outperformed with a minor down-tick.  It had underperformed on Friday.  Japan was closed for Coming of Age Day.  All the major sectors ended the day lower with telcos and energy off c. 1%. Other Important Headlines Geely Auto -3.2% says it has not reduced its 9.7% stake in Daimler -0.2%.  A Bloomberg report from Friday…

CAPIS EU Close Recap – 1/11/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/11/2019 at 12:59 pm
by Clayton Duff on 01/11/2019

European indices again rebounded from lower levels as the US market opened lower and quickly started working higher.  The Stoxx 600 has now recovered just under 6% from its closing low on December 27th as it has consolidated over the last three days. With moves subdued today we saw a fairly even split of both individual names along with sectors up vs down.  Personal Goods led, up over a percent with Food names not far behind.  Losses were slight in the underperforming Industrials and Construction sector. Deutsche Bank -.3% and Commerzbank +1.1%  have received an initial thumbs up to a possible merger derived from a letter from the office of the Finance Ministry.  In it, a Parliamentary Fin Sec noted they expect institutions should act in their best interest when asked about a possible merger.  The German gov is a 15% holder, the largest, of Commerzbank. Anheuser Busch rallied 3.7% with the firm said to be considering IPO its Asian biz which could reap $5B. Construction names closed mixed despite a rosier outlook from Bank of America ML.  The broker sees infrastructure names as appealing on a defensive standpoint while upgrading homebuilders.  On that they like the building material space…

European indices again rebounded from lower levels as the US market opened lower and quickly started working higher.  The Stoxx 600 has now recovered just under 6% from its closing low on December 27th as it has consolidated over the last three days. With moves subdued today we saw a fairly even split of both individual names along with sectors up vs down.  Personal Goods led, up over a percent with Food names not far behind.  Losses were slight in the underperforming Industrials and Construction sector. Deutsche Bank -.3% and Commerzbank +1.1%  have received an initial thumbs up to a possible merger derived from a letter from the office of the Finance Ministry.  In it, a Parliamentary Fin Sec noted they expect institutions should act in their best interest when asked about a possible merger.  The German gov is a 15% holder, the largest, of Commerzbank. Anheuser Busch rallied 3.7% with the firm said to be considering IPO its Asian biz which could reap $5B. Construction names closed mixed despite a rosier outlook from Bank of America ML.  The broker sees infrastructure names as appealing on a defensive standpoint while upgrading homebuilders.  On that they like the building material space…

CAPIS TGIF Global Markets 1/11/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/11/2019 at 7:14 am
by Matthew Kiselica on 01/11/2019

Asian Markets The majority of the region gains on word Chinese Premier Liu will come to the States Jan. 30th and 31st to resume trade talks.   There were two markets that did not participate in the advance.  India was weighed down by disappointing results from Tata Consulting -2.5%.  Australia also dipped with financials and basic resources weighing upon the ASX200. Overall, the majority of sectors ended the day higher.  IT lead with a gain about c. 1% while health care is the only major group that suffered a downtick, albeit minor. Plenty of Earnings and Updates Fast Retailing +6.2% shareholders were pleased with a 5.2% y/y increase in December sales.  Performance in markets overseas more than offset weakness in Japan.  The numbers were released after yesterday’s close. Also after yesterday’s close, TSMC’s +2.1% Q4 sales of NT$289.8b which was a smidge ahead of consensus.  Overall, reassuring following the recent scares in the sector. Seven & I’s -1.9% Q3 OP of ¥104.6b vs. the ¥111.2b estimate. Anhui Conch Cement -1.9% sees 2018 NI jumping 80%-100% y/y citing rising product pricing and structural reform in the cement sector. LG Display ‘s +0.75% CEO sees sales of OLED screens boosting total revenue by 50% by 2020.…

Asian Markets The majority of the region gains on word Chinese Premier Liu will come to the States Jan. 30th and 31st to resume trade talks.   There were two markets that did not participate in the advance.  India was weighed down by disappointing results from Tata Consulting -2.5%.  Australia also dipped with financials and basic resources weighing upon the ASX200. Overall, the majority of sectors ended the day higher.  IT lead with a gain about c. 1% while health care is the only major group that suffered a downtick, albeit minor. Plenty of Earnings and Updates Fast Retailing +6.2% shareholders were pleased with a 5.2% y/y increase in December sales.  Performance in markets overseas more than offset weakness in Japan.  The numbers were released after yesterday’s close. Also after yesterday’s close, TSMC’s +2.1% Q4 sales of NT$289.8b which was a smidge ahead of consensus.  Overall, reassuring following the recent scares in the sector. Seven & I’s -1.9% Q3 OP of ¥104.6b vs. the ¥111.2b estimate. Anhui Conch Cement -1.9% sees 2018 NI jumping 80%-100% y/y citing rising product pricing and structural reform in the cement sector. LG Display ‘s +0.75% CEO sees sales of OLED screens boosting total revenue by 50% by 2020.…

CAPIS EU Close Recap – 1/10/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/10/2019 at 1:24 pm
by Clayton Duff on 01/10/2019

After a weaker open European indices spent much of the session a tight range just above lows.  However, post the US open and it shaking off earlier lows Europe worked its way back to slight gains on the day.  Retailers finished down small with Utilities up over a percent.  Insurers, Banks, and Financials led even as yields fell on the day.   Volume on the Stoxx 600 was lower by 17%. Overnight inflation readings in China missed estimates with indices there closing down small as MOFCOM statements note talks continue between them and the US.  The large miss on the producer inflation side gave hopes to those looking for future rate cuts.  On the weakening economy auto sales were reported to be down for the 1st time in 20 years Tuesday leading to the government to announce moves to boost purchases in the space.  On that related names have mostly rallied the last couple of days.   Fast Retailing fell ahead of post-the-close results that showed global brands operating profit down 10% YoY for the quarter. Uniqlo sales in December though rose 5.2% YoY.  Names in the consumer cosmetics and toiletry space fell on new Chinese rules that will curtail sales there.…

After a weaker open European indices spent much of the session a tight range just above lows.  However, post the US open and it shaking off earlier lows Europe worked its way back to slight gains on the day.  Retailers finished down small with Utilities up over a percent.  Insurers, Banks, and Financials led even as yields fell on the day.   Volume on the Stoxx 600 was lower by 17%. Overnight inflation readings in China missed estimates with indices there closing down small as MOFCOM statements note talks continue between them and the US.  The large miss on the producer inflation side gave hopes to those looking for future rate cuts.  On the weakening economy auto sales were reported to be down for the 1st time in 20 years Tuesday leading to the government to announce moves to boost purchases in the space.  On that related names have mostly rallied the last couple of days.   Fast Retailing fell ahead of post-the-close results that showed global brands operating profit down 10% YoY for the quarter. Uniqlo sales in December though rose 5.2% YoY.  Names in the consumer cosmetics and toiletry space fell on new Chinese rules that will curtail sales there.…

CAPIS EU Close Recap – 1/9/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/09/2019 at 12:54 pm
by Clayton Duff on 01/09/2019

Europe remained better bid today with all but Spain up on the day with sentiment still hopeful for an announcement from the US and China.   Autos and Tech names finished with sector gains of over two percent with Basic Resources, Industrials, Construction, and Retail better by at least a percent.  Only the Banking and Food sector finished lower. In addition to the disappointing trade data out of Germany EU unemployement slipped to below 8% in November with Italy improving slightly to 10.5%.  Post the US open Canada’s central bank left rates unchanged while lowering FY19 inflation expectations to under 2%.  Looking back to November they saw inflation fall 1.7% with gas prices cited. By the end of the year though they see inflation around 2%. As oil markets recover along with home prices there they will look to up rates to achieve their inflation target assuming global trade policies get settled. On the auto front Fiat rallied 2.9% on word they may settle soon with the US’ DoJ concerning their diesel violations. Post the close of European trading Reuters reported VW +2.4% is expected to announce an expanded relationship with Ford at the Detroit Auto show. Italy’s Banca Carige remains…

Europe remained better bid today with all but Spain up on the day with sentiment still hopeful for an announcement from the US and China.   Autos and Tech names finished with sector gains of over two percent with Basic Resources, Industrials, Construction, and Retail better by at least a percent.  Only the Banking and Food sector finished lower. In addition to the disappointing trade data out of Germany EU unemployement slipped to below 8% in November with Italy improving slightly to 10.5%.  Post the US open Canada’s central bank left rates unchanged while lowering FY19 inflation expectations to under 2%.  Looking back to November they saw inflation fall 1.7% with gas prices cited. By the end of the year though they see inflation around 2%. As oil markets recover along with home prices there they will look to up rates to achieve their inflation target assuming global trade policies get settled. On the auto front Fiat rallied 2.9% on word they may settle soon with the US’ DoJ concerning their diesel violations. Post the close of European trading Reuters reported VW +2.4% is expected to announce an expanded relationship with Ford at the Detroit Auto show. Italy’s Banca Carige remains…

CAPIS Global Markets 1/09/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/09/2019 at 7:09 am
by Matthew Kiselica on 01/09/2019

Markets Overview It is a top down day with the markets higher across the globe on positive developments regarding the Sino-U.S. trade talks.  The negotiations were extended to include today after initially being schedule to end yesterday.  Both sides continue make encouraging commentary; however, details remain scant.  Investors may also have some relief this morning.   Pres. Trump did not make any drastic announcements last night in his address to the nation as he outlined his arguments for the border wall.  Icing on the cake came out of the U.K.  Late yesterday, Parliament passed a measure which makes the “no deal” Brexit scenario more difficult to occur. Here is how sectors performed across Asia and Europe.  Asia saw all the major sectors advance with many higher by 1% or more including: financials, consumer discretionary, IT, telcos, consumer staples and healthcare.  Europe is also seeing most sectors green.  Autos are higher by more than 3% with basic resources and tech improving more than 2%.  Telcos are off by c. 1% with utilities down small. There were a number of important macro developments.  Reports after the local close indicate China is targeting a 2.8% deficit target for this year.  A Bloomberg survey reveals…

Markets Overview It is a top down day with the markets higher across the globe on positive developments regarding the Sino-U.S. trade talks.  The negotiations were extended to include today after initially being schedule to end yesterday.  Both sides continue make encouraging commentary; however, details remain scant.  Investors may also have some relief this morning.   Pres. Trump did not make any drastic announcements last night in his address to the nation as he outlined his arguments for the border wall.  Icing on the cake came out of the U.K.  Late yesterday, Parliament passed a measure which makes the “no deal” Brexit scenario more difficult to occur. Here is how sectors performed across Asia and Europe.  Asia saw all the major sectors advance with many higher by 1% or more including: financials, consumer discretionary, IT, telcos, consumer staples and healthcare.  Europe is also seeing most sectors green.  Autos are higher by more than 3% with basic resources and tech improving more than 2%.  Telcos are off by c. 1% with utilities down small. There were a number of important macro developments.  Reports after the local close indicate China is targeting a 2.8% deficit target for this year.  A Bloomberg survey reveals…

CAPIS EU Close Recap – 1/8/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/08/2019 at 12:46 pm
by Clayton Duff on 01/08/2019

As the US pared initial gains European indices gave up some earlier advances as well with varied gains seen across the region.  Sweden, Switzerland, and France led respectively.  All sectors finished to the upside with solid returns in Retail +2.06% and Industrial names +1.88%.   Gains were broad with 470 of the 600 Stoxx Europe Index names to the upside but volume was down 10%. Volkswagen +1.7% is ramping up a charging/home-business electricity firm to supply charging abilities for EV’s.  The unit will compete directly with Tesla and will coincide with the release of VW’s ID electric car line set to launch next year.  In Europe there are currently 37 operable charging stations available with plans to have 400 by next year in a plan that includes VW, Daimler +.7%, BMW +.1%, and Ford +1.5%. In Austria, AT&S fell 6% after the electronics component-maker pared FY revenue growth estimates.   The move was a result of the weaker smartphone demand that has been front and center as of late.   Conversely AMS rallied 11% with Hauck & Aufhaeuser noting Apple weakness is priced in with the company possibly catching a win in the Android space. Airbus closed up 3.7% after audited figures showed…

As the US pared initial gains European indices gave up some earlier advances as well with varied gains seen across the region.  Sweden, Switzerland, and France led respectively.  All sectors finished to the upside with solid returns in Retail +2.06% and Industrial names +1.88%.   Gains were broad with 470 of the 600 Stoxx Europe Index names to the upside but volume was down 10%. Volkswagen +1.7% is ramping up a charging/home-business electricity firm to supply charging abilities for EV’s.  The unit will compete directly with Tesla and will coincide with the release of VW’s ID electric car line set to launch next year.  In Europe there are currently 37 operable charging stations available with plans to have 400 by next year in a plan that includes VW, Daimler +.7%, BMW +.1%, and Ford +1.5%. In Austria, AT&S fell 6% after the electronics component-maker pared FY revenue growth estimates.   The move was a result of the weaker smartphone demand that has been front and center as of late.   Conversely AMS rallied 11% with Hauck & Aufhaeuser noting Apple weakness is priced in with the company possibly catching a win in the Android space. Airbus closed up 3.7% after audited figures showed…

CAPIS Global Markets 1/08/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/08/2019 at 6:47 am
by Matthew Kiselica on 01/08/2019

Asian Markets Varied performance across the region as the markets await word regarding the Sino-U.S. trade talks.  Comments thus far indicate an agreement can be reached by the March 1st “trade war truce” deadline.  However, there has been nothing concrete for investors to seek their teeth into.   There were a number of key corporate results which impacted and we will those below address below. Correspondingly, sectors were also mixed.  Telcos, utilities and health care had gains of c. 0.5% or a touch better.  Consumer staples were off about the same. Important Headlines Samsung Elec. -1.7% spent most of the session to the down side following its Q4 results and outlook.  The company’s Q4 OP was only KRW 10.8t vs. consensus of KRW 13.8t.  Revenues also missed, falling 11% to KRW 59t vs. KRW 63.6t expected.  The coup de grace was the company indicating the start of FY ’19 will continue to see weakness. LG Elec.’s -3.6% also disappointed the market.  The consumer electronics maker suffered a 7% decline to sales with Q4 earnings only KRW 75.3b.  The was well below estimates of KRW 387m. Geely Auto % drove the auto sector lower after forecasting FY ’19 sales will be flat. …

Asian Markets Varied performance across the region as the markets await word regarding the Sino-U.S. trade talks.  Comments thus far indicate an agreement can be reached by the March 1st “trade war truce” deadline.  However, there has been nothing concrete for investors to seek their teeth into.   There were a number of key corporate results which impacted and we will those below address below. Correspondingly, sectors were also mixed.  Telcos, utilities and health care had gains of c. 0.5% or a touch better.  Consumer staples were off about the same. Important Headlines Samsung Elec. -1.7% spent most of the session to the down side following its Q4 results and outlook.  The company’s Q4 OP was only KRW 10.8t vs. consensus of KRW 13.8t.  Revenues also missed, falling 11% to KRW 59t vs. KRW 63.6t expected.  The coup de grace was the company indicating the start of FY ’19 will continue to see weakness. LG Elec.’s -3.6% also disappointed the market.  The consumer electronics maker suffered a 7% decline to sales with Q4 earnings only KRW 75.3b.  The was well below estimates of KRW 387m. Geely Auto % drove the auto sector lower after forecasting FY ’19 sales will be flat. …

CAPIS EU Close Recap – 1/7/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/07/2019 at 12:57 pm
by Clayton Duff on 01/07/2019

European indices closed mixed with subdued moves away from flattish levels. Switzerland was an underperformer, finishing down ~1% on weakness in the pharma space.  Indices did rebound somewhat post the US market adding to Friday’s gain.  On the session, there was an even split of Stoxx 600 sectors up vs down with Tech remaining in the lead, up 1.5%.  Retail, Travel, Basic Resources, and Media names all closed better than a percent while Healthcare fell 80 bps. Energy names in the region were split with the sector flat despite oil higher today. This morning Saudi Arabia was reported to be planning to lower crude exports by 7.1M bpd with a view toward moving oil to $80.00.  Earlier Goldman lowered their FY19 price expectations for prices citing global oil surpluses and US shale production. The pharma space was weaker with some focus on President Trump’s tweet that drug companies have not adhered to their pledge to lower prices.  Firms with heavy exposure to the US include AstraZeneca -1.4%, Novartis -2%, Roche -1.2%, and Sanofi -2%. From earlier: BT Group +.3%, Deutsche Telekom +.1%, Siemens -1.3%, Alstom -2%. Confidence readings are due out tomorrow in Europe along with German Industrial Production.  Home…

European indices closed mixed with subdued moves away from flattish levels. Switzerland was an underperformer, finishing down ~1% on weakness in the pharma space.  Indices did rebound somewhat post the US market adding to Friday’s gain.  On the session, there was an even split of Stoxx 600 sectors up vs down with Tech remaining in the lead, up 1.5%.  Retail, Travel, Basic Resources, and Media names all closed better than a percent while Healthcare fell 80 bps. Energy names in the region were split with the sector flat despite oil higher today. This morning Saudi Arabia was reported to be planning to lower crude exports by 7.1M bpd with a view toward moving oil to $80.00.  Earlier Goldman lowered their FY19 price expectations for prices citing global oil surpluses and US shale production. The pharma space was weaker with some focus on President Trump’s tweet that drug companies have not adhered to their pledge to lower prices.  Firms with heavy exposure to the US include AstraZeneca -1.4%, Novartis -2%, Roche -1.2%, and Sanofi -2%. From earlier: BT Group +.3%, Deutsche Telekom +.1%, Siemens -1.3%, Alstom -2%. Confidence readings are due out tomorrow in Europe along with German Industrial Production.  Home…

CAPIS Global Markets 1/7/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/07/2019 at 7:06 am
by Matthew Kiselica on 01/07/2019

Asian Markets A solid day for the markets following all the positives we highlighted on Friday including the Chinese reserve ratio cut.  Most of the major indices opened near their highs but then pared the advance over the course of the session.  Investors now await word regarding the Sino-U.S. trade talks which are being conducted today and tomorrow in China. All the major sectors gained.  IT led the way better by c. 2.8% following a 2% advance for industrials.  There were a plethora that ended the day higher by more than 1% including consumer discretionary, telcos, basic resources, real estate, energy and health care. Important Headlines Press reports allege Samsung Elec. +3.5% will target smartphone production below 300m units for FY ’19.  The company is due to report earnings tomorrow with consensus looking for a 12% y/y decline in Q4 OP. Apple suppliers were up more than 3% as as whole despite news stories indicating Apple will cut iPhone XR production by 50% during H1 of ’19. Familymart Uny -4.2%  fell despite raising its profit outlook for the FY by 10%.  However, the new outlook lags Bloomberg consensus by 2.5%. Takeda Pharma +7.5% will issue 770m new shares at ¥7,601…

Asian Markets A solid day for the markets following all the positives we highlighted on Friday including the Chinese reserve ratio cut.  Most of the major indices opened near their highs but then pared the advance over the course of the session.  Investors now await word regarding the Sino-U.S. trade talks which are being conducted today and tomorrow in China. All the major sectors gained.  IT led the way better by c. 2.8% following a 2% advance for industrials.  There were a plethora that ended the day higher by more than 1% including consumer discretionary, telcos, basic resources, real estate, energy and health care. Important Headlines Press reports allege Samsung Elec. +3.5% will target smartphone production below 300m units for FY ’19.  The company is due to report earnings tomorrow with consensus looking for a 12% y/y decline in Q4 OP. Apple suppliers were up more than 3% as as whole despite news stories indicating Apple will cut iPhone XR production by 50% during H1 of ’19. Familymart Uny -4.2%  fell despite raising its profit outlook for the FY by 10%.  However, the new outlook lags Bloomberg consensus by 2.5%. Takeda Pharma +7.5% will issue 770m new shares at ¥7,601…

CAPIS TGIF Global Markets 1/04/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/04/2019 at 1:14 pm
by Matthew Kiselica on 01/04/2019

Asian Markets Most of the markets advanced with China leading the way.  The U.S. trade delegation will head to China and conduct further negotiations with the Chinese Commerce Ministry next Monday and Tuesday.  There were further reasons for market optimism.  The Caixin Chinese Dec. Services PMI beat expectations and reached a 6 month high.   Also, Chinese Premier Li stated the nation will “step up countercyclical adjustments of macro policy.”  Japan reopened from a 4 day break and played “catch down.” The majority of sectors advanced with real estate, financials, telcos and utilities better by more than 1%.  IT was lower by more than 1% weighed down by Japanese Apple suppliers.  As a group, they fell by c. 5%. Well after the local close, the PBoC cut its reserve ratio by 1% point.  It will be implemented in two steps: a 0.5% point reduction on Jan. 15th and another 0.5% on Jan. 25th.  This will result in the rate reducing to 13.5%. Other Headlines of Importance Ping An Bank’s +5.0% NI rose 7% last quarter.  The bank saw NPL improvement and will adhere to stricter rules to identify non-performing loans. In addition to the Ping An Bank results, Chinese financials rose…

Asian Markets Most of the markets advanced with China leading the way.  The U.S. trade delegation will head to China and conduct further negotiations with the Chinese Commerce Ministry next Monday and Tuesday.  There were further reasons for market optimism.  The Caixin Chinese Dec. Services PMI beat expectations and reached a 6 month high.   Also, Chinese Premier Li stated the nation will “step up countercyclical adjustments of macro policy.”  Japan reopened from a 4 day break and played “catch down.” The majority of sectors advanced with real estate, financials, telcos and utilities better by more than 1%.  IT was lower by more than 1% weighed down by Japanese Apple suppliers.  As a group, they fell by c. 5%. Well after the local close, the PBoC cut its reserve ratio by 1% point.  It will be implemented in two steps: a 0.5% point reduction on Jan. 15th and another 0.5% on Jan. 25th.  This will result in the rate reducing to 13.5%. Other Headlines of Importance Ping An Bank’s +5.0% NI rose 7% last quarter.  The bank saw NPL improvement and will adhere to stricter rules to identify non-performing loans. In addition to the Ping An Bank results, Chinese financials rose…

CAPIS EU Close – 1/3/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/03/2019 at 12:48 pm
by Clayton Duff on 01/03/2019

Per our morning note European indices had worked off lows by lunch but with the open of the US market once again turned off. By day’s end indices had closed at or a bit lower than earlier lows but at least held above yesterday’s opening lows.  Telcos, Food, and Utilities managed small gains with the balance of sectors lower.  Industrials fell over two percent with sizable losses in Chemis, Travel, and Personal goods names (think luxury names specifically). And as noted earlier, Apple-related names were well offered today with millions wiped off of valuations.  Switzerland reopened today and finished higher after being shut yesterday but component maker AMS fell over 23%.  Per Bloomberg, the firm gets 20% of its revenue from Apple.  STMicro -12% gets 75% of their revs from Apple with Dialog Semi -10% and Infineon -4.7%. European names in the luxury space continue to slide post the disappointing Chinese PMI and yesterday’s Apple news. It appears Qualcomm is gaining steam against Apple as it looks like older iPhones will soon be prevented from being sold in Germany.  Kering -5.5% closed right at their 400 day, a trend line that has supported the name since mid-October.  Burberry -5.9% closed…

Per our morning note European indices had worked off lows by lunch but with the open of the US market once again turned off. By day’s end indices had closed at or a bit lower than earlier lows but at least held above yesterday’s opening lows.  Telcos, Food, and Utilities managed small gains with the balance of sectors lower.  Industrials fell over two percent with sizable losses in Chemis, Travel, and Personal goods names (think luxury names specifically). And as noted earlier, Apple-related names were well offered today with millions wiped off of valuations.  Switzerland reopened today and finished higher after being shut yesterday but component maker AMS fell over 23%.  Per Bloomberg, the firm gets 20% of its revenue from Apple.  STMicro -12% gets 75% of their revs from Apple with Dialog Semi -10% and Infineon -4.7%. European names in the luxury space continue to slide post the disappointing Chinese PMI and yesterday’s Apple news. It appears Qualcomm is gaining steam against Apple as it looks like older iPhones will soon be prevented from being sold in Germany.  Kering -5.5% closed right at their 400 day, a trend line that has supported the name since mid-October.  Burberry -5.9% closed…

CAPIS Global Markets 1/03/2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/03/2019 at 6:14 am
by Matthew Kiselica on 01/03/2019

Asian Markets Most of the markets gave way with a profit warning from Apple setting the day’s tone.  Most sectors fell with IT off more than 1%.  Financials and real estate managed modest gains.  Australia bucked the trend with energy and materials providing gains but most sectors gained.  Mainland China held up on a relative basis in anticipation of easing by the PBoC ahead of the Chinese New Year.  Japan remains closed. Apple was the Key The tech giant is cutting its revenue outlook citing a precipitous drop in Chinese demand.  Our basket of Apple suppliers excluding Japanese names fell by 2%.  Key names include: Samsung Elec. -3.0%, SK Hynix -4.8%, Hon Hai -1.7% and TSMC -1.8%. Other Important Market News Bank of Korea Gov. Lee noted both external risks and internal slowing investment are increasing growth risks both globally and internally. On a related note, most currencies hit lows with the “Aussie” hitting 10 year lows.  Conversely, the ¥ is stronger trading better than 108.  Around the local open, the currency was trading with a 104 handle before paring the advance.  It has been referred to as a flash crash. The real estate sector gains were driven by a…

Asian Markets Most of the markets gave way with a profit warning from Apple setting the day’s tone.  Most sectors fell with IT off more than 1%.  Financials and real estate managed modest gains.  Australia bucked the trend with energy and materials providing gains but most sectors gained.  Mainland China held up on a relative basis in anticipation of easing by the PBoC ahead of the Chinese New Year.  Japan remains closed. Apple was the Key The tech giant is cutting its revenue outlook citing a precipitous drop in Chinese demand.  Our basket of Apple suppliers excluding Japanese names fell by 2%.  Key names include: Samsung Elec. -3.0%, SK Hynix -4.8%, Hon Hai -1.7% and TSMC -1.8%. Other Important Market News Bank of Korea Gov. Lee noted both external risks and internal slowing investment are increasing growth risks both globally and internally. On a related note, most currencies hit lows with the “Aussie” hitting 10 year lows.  Conversely, the ¥ is stronger trading better than 108.  Around the local open, the currency was trading with a 104 handle before paring the advance.  It has been referred to as a flash crash. The real estate sector gains were driven by a…

CAPIS Global Recap – 1/2/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 01/02/2019 at 6:42 am
by Clayton Duff on 01/02/2019

Asian Headlines Asian indices closed lower on the day with Japan shut until Friday.  The Hang Seng fell nearly 3% with traders disappointed in the Caixin China PMI Manufacturing reading.  The result of the contractionary 49.7 reading was probably not a surprise though after the official reading from Sunday night.  That reading came at 49.4 vs the 50.0 expected and was the 1st contraction since July of 2016. (The official non-manu PMI reading actually rose, at 53.8, vs the 53.2 expected and 53.4 prior reading). All sectors finished lower in Hong Kong with IT, Health Care, and Energy off ~5%. Galaxy -4.9% and Sands China -4.4% both saw sizable losses despite December casino revenues up 16.6% YoY in Macau.   Sinopec -2.7% fell again, giving back Monday’s small rebound gains.   This of course is after the firm suspended two officials on what is said to be a sizable loss related to oil futures.  The loss has prompted the country’s asset regulator to inspect derivative trading accounts at several of the other large state-owned firms. Lower oil prices also weighed Down Under with the sector down over 2.5% while Energy fell 5.5% in Taiwan.  The TWSE fell 1.8% with President Xi making…

Asian Headlines Asian indices closed lower on the day with Japan shut until Friday.  The Hang Seng fell nearly 3% with traders disappointed in the Caixin China PMI Manufacturing reading.  The result of the contractionary 49.7 reading was probably not a surprise though after the official reading from Sunday night.  That reading came at 49.4 vs the 50.0 expected and was the 1st contraction since July of 2016. (The official non-manu PMI reading actually rose, at 53.8, vs the 53.2 expected and 53.4 prior reading). All sectors finished lower in Hong Kong with IT, Health Care, and Energy off ~5%. Galaxy -4.9% and Sands China -4.4% both saw sizable losses despite December casino revenues up 16.6% YoY in Macau.   Sinopec -2.7% fell again, giving back Monday’s small rebound gains.   This of course is after the firm suspended two officials on what is said to be a sizable loss related to oil futures.  The loss has prompted the country’s asset regulator to inspect derivative trading accounts at several of the other large state-owned firms. Lower oil prices also weighed Down Under with the sector down over 2.5% while Energy fell 5.5% in Taiwan.  The TWSE fell 1.8% with President Xi making…

CAPIS Global Recap – 12/28/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 12/28/2018 at 6:46 am
by Clayton Duff on 12/28/2018

Asian Headlines Post the encouraging late-day rebound in the States Asian indices closed mostly higher with the Nikkei ending slightly lower on the session.  Japan saw Industrial Production weaken in November albeit less than expected while retail sales eased from better levels. Trading in Japan is done for 2018 with their market to not reopen until next Friday.  Industrial Production fell 1.7% in South Korea but the Kospi managed a small gain on the day. From a meeting on the 20th the BoJ said they see global economic risks increasing adding yields should be allowed to be under zero at least temporarily. They added that inflation is not moving higher as expected with falling oil prices to delay achieving price targets.  At one point today the yield on their 10 year bond moved to zero. Chinese indices finished up with Hong Kong flat ahead of official PMI readings due this weekend there.  Expectations are that Manufacturing will hold steady right at the expansion/contraction line with non-Manu holding at 53.2.  On the Shanghai, Consumer Staples led with alcohol producers rallying as Utilities and RE names finished better as well.  Energy slipped despite strength in crude.  To note, local press reported officials…

Asian Headlines Post the encouraging late-day rebound in the States Asian indices closed mostly higher with the Nikkei ending slightly lower on the session.  Japan saw Industrial Production weaken in November albeit less than expected while retail sales eased from better levels. Trading in Japan is done for 2018 with their market to not reopen until next Friday.  Industrial Production fell 1.7% in South Korea but the Kospi managed a small gain on the day. From a meeting on the 20th the BoJ said they see global economic risks increasing adding yields should be allowed to be under zero at least temporarily. They added that inflation is not moving higher as expected with falling oil prices to delay achieving price targets.  At one point today the yield on their 10 year bond moved to zero. Chinese indices finished up with Hong Kong flat ahead of official PMI readings due this weekend there.  Expectations are that Manufacturing will hold steady right at the expansion/contraction line with non-Manu holding at 53.2.  On the Shanghai, Consumer Staples led with alcohol producers rallying as Utilities and RE names finished better as well.  Energy slipped despite strength in crude.  To note, local press reported officials…

CAPIS Global Recap – 12/27/2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 12/27/2018 at 6:57 am
by Clayton Duff on 12/27/2018

Asian Headlines Wednesday’s abatement of sellers in the US allowed for like action in some Asian markets while others continued moves lower.  The Nikkei was the standout, up nearly 4%, on broad strength.  The Energy sector led, up over 7%, with consumer discretionary names lagging but still up nearly 3%.  Australia’s ASX 200 also rallied with Energy in the lead there as well. While South Korea was mostly flat China and Hong Kong fell with Energy there the laggard.  Disappointing traders in China, Industrial Profits there fell 1.8% YoY in November after a previous increase of 3.6% in October. This was the first move down since 2015.  Buoying yesterday’s gains late day in the States of course were comments that mid-level talks will occur January 7th between them and the US.  That sentiment was evident early in Hong Kong with the market higher in the morning before turning south after lunch.  Also helping the region the PBoC made positive comments including commitments to keep the proper growth pace for GDP along with capital increases to up bank stock confidence.  Post the close, exports for November in Hong Kong fell vs an expected increase of 7.7%. Shares in ZTE fell 3.4%…

Asian Headlines Wednesday’s abatement of sellers in the US allowed for like action in some Asian markets while others continued moves lower.  The Nikkei was the standout, up nearly 4%, on broad strength.  The Energy sector led, up over 7%, with consumer discretionary names lagging but still up nearly 3%.  Australia’s ASX 200 also rallied with Energy in the lead there as well. While South Korea was mostly flat China and Hong Kong fell with Energy there the laggard.  Disappointing traders in China, Industrial Profits there fell 1.8% YoY in November after a previous increase of 3.6% in October. This was the first move down since 2015.  Buoying yesterday’s gains late day in the States of course were comments that mid-level talks will occur January 7th between them and the US.  That sentiment was evident early in Hong Kong with the market higher in the morning before turning south after lunch.  Also helping the region the PBoC made positive comments including commitments to keep the proper growth pace for GDP along with capital increases to up bank stock confidence.  Post the close, exports for November in Hong Kong fell vs an expected increase of 7.7%. Shares in ZTE fell 3.4%…

CAPIS EU Close – 12/12/2018

News Trading Desk International Summary

International Summary

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

Europe managed to string together two back to back days of gains on broad gains today.  546 names in the Stoxx 600 finished better with volume on the session up 4%.  All sectors finished to the upside with Basic Resources and Banks finishing up shy of 3%.  Energy gave up some gains after DOE readings showed a smaller draw than expected, down 1.2M vs the expected 3M barrel draw. On encouraging US/China-related trade snippets markets are attempting to work off of lows.  This includes the Huawei CFO being offered bail in Canada despite being retained in the country.  Additional headlines only fueled bids with Italy said to propose a budget deficit/GDP of 2% for next year. Later comments walked that back somewhat with an official stating the country is trying to reach a deal with the EU with a target of 2% to 2.2% of GDP.   This matches the EU’s target.  On that Italy outperformed on the day, closing up 1.91% with their 10 year moving below 3% for the first time since September. France too is working to cut their budget deficit with plans to lower spending to move their budget deficit to GDP to under 3%. PM May continues…

Europe managed to string together two back to back days of gains on broad gains today.  546 names in the Stoxx 600 finished better with volume on the session up 4%.  All sectors finished to the upside with Basic Resources and Banks finishing up shy of 3%.  Energy gave up some gains after DOE readings showed a smaller draw than expected, down 1.2M vs the expected 3M barrel draw. On encouraging US/China-related trade snippets markets are attempting to work off of lows.  This includes the Huawei CFO being offered bail in Canada despite being retained in the country.  Additional headlines only fueled bids with Italy said to propose a budget deficit/GDP of 2% for next year. Later comments walked that back somewhat with an official stating the country is trying to reach a deal with the EU with a target of 2% to 2.2% of GDP.   This matches the EU’s target.  On that Italy outperformed on the day, closing up 1.91% with their 10 year moving below 3% for the first time since September. France too is working to cut their budget deficit with plans to lower spending to move their budget deficit to GDP to under 3%. PM May continues…

CAPIS Global Markets 12 6 2018

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 12/06/2018 at 9:06 am
by Matthew Kiselica on 12/06/2018

Asian Markets The story of the day is the arrest of Huawei Tech CFO Meng Wanzhou.    Apparently, she has been arrested in Canada at the request of the United States.  Reports indicate the arrest occurred while Pres. Trump and Prem. Xi were conducting trade talks!  China is voicing its outrage and calling for her immediate release.  Here are more details pertaining to the story.  Naturally, the markets are worried about the impact this will have on trade negotiations. This drove all the Asian markets lower and most by well over 1%.  Sector performance was terrible.   All the major sectors were well to the downside.  Health care gave way by 3% with IT and telcos off by 2.5% or more.  Within IT, Apple suppliers ended the day down by 3.8%, as a whole.  (See Largan comments below.) Other Important Headlines The Huawei story wasn’t the only negative for the tech sector.  Apple supplier Largan Precision -9.95% sees December sales falling m/m.  This follows November sales which slumped 29.0% y/y. Sources allege Softbank’s -4.9% IPO of its telecom unit is fully subscribed including the over allotment shares.  That is a total of 176b shares, raising c. $24b.  The shares commence trading…

Asian Markets The story of the day is the arrest of Huawei Tech CFO Meng Wanzhou.    Apparently, she has been arrested in Canada at the request of the United States.  Reports indicate the arrest occurred while Pres. Trump and Prem. Xi were conducting trade talks!  China is voicing its outrage and calling for her immediate release.  Here are more details pertaining to the story.  Naturally, the markets are worried about the impact this will have on trade negotiations. This drove all the Asian markets lower and most by well over 1%.  Sector performance was terrible.   All the major sectors were well to the downside.  Health care gave way by 3% with IT and telcos off by 2.5% or more.  Within IT, Apple suppliers ended the day down by 3.8%, as a whole.  (See Largan comments below.) Other Important Headlines The Huawei story wasn’t the only negative for the tech sector.  Apple supplier Largan Precision -9.95% sees December sales falling m/m.  This follows November sales which slumped 29.0% y/y. Sources allege Softbank’s -4.9% IPO of its telecom unit is fully subscribed including the over allotment shares.  That is a total of 176b shares, raising c. $24b.  The shares commence trading…

CAPIS Global Recap – 12/5/2018 A Solemn Wednesday

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 12/05/2018 at 6:51 am
by Clayton Duff on 12/05/2018

Asian Headlines Fortunately losses in Asia were more contained than in the States with indices there shaking off early lows.  Energy names continued to lag as did Financials but at a considerably smaller impact than in the US.  Caixin Service PMI readings were a much-needed relief, coming in at 53.8 vs the 50.7 estimate and 50.8 prior reading. The PMI reading in Hong Kong continued to slip, at 47.1 vs the prior 48.6.  Service PMI in Japan held steady while GDP in the 3Q Down Under rose only .3% vs the +.6% QoQ reading expected. Markets were somewhat relived by comments from WH Adviser Navarro as he stated it was too early to lose faith on trade talks and that is important to get it right.  That was followed by China’s Commerce Ministry noting negotiations were pushing forward and were confident of trade talk results. They added agreed upon items would be implemented ASAP. (US soy and LNG imports are on that list). President Trump tweeted either a REAL DEAL with China will be completed or no deal with major tariffs to follow. Real Estate names were lower but could have been considerably worse post comments from CK Asset executive…

Asian Headlines Fortunately losses in Asia were more contained than in the States with indices there shaking off early lows.  Energy names continued to lag as did Financials but at a considerably smaller impact than in the US.  Caixin Service PMI readings were a much-needed relief, coming in at 53.8 vs the 50.7 estimate and 50.8 prior reading. The PMI reading in Hong Kong continued to slip, at 47.1 vs the prior 48.6.  Service PMI in Japan held steady while GDP in the 3Q Down Under rose only .3% vs the +.6% QoQ reading expected. Markets were somewhat relived by comments from WH Adviser Navarro as he stated it was too early to lose faith on trade talks and that is important to get it right.  That was followed by China’s Commerce Ministry noting negotiations were pushing forward and were confident of trade talk results. They added agreed upon items would be implemented ASAP. (US soy and LNG imports are on that list). President Trump tweeted either a REAL DEAL with China will be completed or no deal with major tariffs to follow. Real Estate names were lower but could have been considerably worse post comments from CK Asset executive…

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