Trading Desk

1958 total posts

TGIF Global Markets 7/5/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/05/2019 at 6:41 am
by Matthew Kiselica on 07/05/2019

Asian Markets After mixed performance yesterday, most of the core markets managed modest gains.  However, activity was muted with volumes dramatically lower due to yesterday’s U.S. holiday and the payroll data due this morning.  India is a standout to the downside.  Investors are disappointed by two key factors in the government’s fiscal plan.  There was less stimulus spending than anticipated and taxes will be increased for a higher bracket. Sectors were mixed.  Consumer staples fared well rising more than 1%.  Healthcare advanced more than 0.5%.  Energy ended the day lower by c. 0.5% followed by materials. Other Important Headlines Samsung Elec. -0.75% is the key corporate story.  The company’s preliminary  Q2 OP of KRW 6.5t is ahead of consensus: KRW 6.08t.  However, that includes a one-off customer related gain of KRW 900b.  It is speculated to have come from Apple.  Taking that out of the OP puts it below estimates. Iron ore futures in Shanghai tumbled when a Chinese mill association asked authorities to investigate the recent price surge.  Reports allege China is asking trusts to limit financing within the property sector.  The Shanghai Property Index fell more than 1% but pared a loss of 1.9%. After the close, China…

Asian Markets After mixed performance yesterday, most of the core markets managed modest gains.  However, activity was muted with volumes dramatically lower due to yesterday’s U.S. holiday and the payroll data due this morning.  India is a standout to the downside.  Investors are disappointed by two key factors in the government’s fiscal plan.  There was less stimulus spending than anticipated and taxes will be increased for a higher bracket. Sectors were mixed.  Consumer staples fared well rising more than 1%.  Healthcare advanced more than 0.5%.  Energy ended the day lower by c. 0.5% followed by materials. Other Important Headlines Samsung Elec. -0.75% is the key corporate story.  The company’s preliminary  Q2 OP of KRW 6.5t is ahead of consensus: KRW 6.08t.  However, that includes a one-off customer related gain of KRW 900b.  It is speculated to have come from Apple.  Taking that out of the OP puts it below estimates. Iron ore futures in Shanghai tumbled when a Chinese mill association asked authorities to investigate the recent price surge.  Reports allege China is asking trusts to limit financing within the property sector.  The Shanghai Property Index fell more than 1% but pared a loss of 1.9%. After the close, China…

CAPIS Global Markets 7/3/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/03/2019 at 7:00 am
by Matthew Kiselica on 07/03/2019

Asian Markets The majority of the region’s core markets saw selling pressure for a variety of factors.  A stronger ¥ weighed in Japan.  But that wasn’t the only concern.  A trade spat is brewing between Japan and S. Korea.  Local press reports say Japan is prepared to expand a list of tech products prohibited from export to S. Korea.  The reason is the potential to be used for military purposes.  Caixin Chinese Service and Composite PMIs created uncertainty in China. Most of the major sectors traded lower.  IT was the hardest hit off by 1.5%.  It was Japanese and S. Korean names that weighed.  Both utilities and real estate gained about 0.5% with yields falling. Other Important Headlines The Caixin June Chinese Service PMI is below expectations and at a 4 month low.  The Composite reading is lower m/m and is the lowest result since October 2016. The BoJ is increasing its purchases of 1-3 yr. JGBs.  However, it will reduce 3-5 year & 1o-25 year purchases.  This is inline with prior guidance from the central bank. Fast Retailing’s +2.7% June Uniqlo sales are a robust +27.3% y/y. ABC-Mart’s +1.5% June same store sales are better by 5.5% y/y. European…

Asian Markets The majority of the region’s core markets saw selling pressure for a variety of factors.  A stronger ¥ weighed in Japan.  But that wasn’t the only concern.  A trade spat is brewing between Japan and S. Korea.  Local press reports say Japan is prepared to expand a list of tech products prohibited from export to S. Korea.  The reason is the potential to be used for military purposes.  Caixin Chinese Service and Composite PMIs created uncertainty in China. Most of the major sectors traded lower.  IT was the hardest hit off by 1.5%.  It was Japanese and S. Korean names that weighed.  Both utilities and real estate gained about 0.5% with yields falling. Other Important Headlines The Caixin June Chinese Service PMI is below expectations and at a 4 month low.  The Composite reading is lower m/m and is the lowest result since October 2016. The BoJ is increasing its purchases of 1-3 yr. JGBs.  However, it will reduce 3-5 year & 1o-25 year purchases.  This is inline with prior guidance from the central bank. Fast Retailing’s +2.7% June Uniqlo sales are a robust +27.3% y/y. ABC-Mart’s +1.5% June same store sales are better by 5.5% y/y. European…

CAPIS Global Markets 7/2/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 07/02/2019 at 6:59 am
by Matthew Kiselica on 07/02/2019

Asian Markets Most of the markets treaded water although Hong Kong was the standout playing catch up following yesterday’s holiday.  Investors there focused more upon the Pres. Trump and Pres Xi meeting as opposed to yesterday storming of the local parliament by protesters. Most sectors advanced.  Telcos, consumer discretionary and healthcare were better close to 1%.  Financials gave way small while IT and energy lagged. Down Under, the RBA reduced its benchmark rate 25 bps to 1%, as expected.  The follow up statements were less dovish than expected and the “Aussie” climbed. Other Important Headlines Chinese Premier Li announced ownership limits on brokers will be ended “by 2020.”  The previous indication had been 2021. Byd +3.3% and peers rose following Pres. Xi’s pledge to support the EV vehicle sector. The Hong Kong listing of Ab Inbev’s +1.3% Asian ops ( as well as hops) has a price range of HK$40 to HK$47 per share.  That values Budweiser Brewing APAC at $54b to $64b.   The shares are expected to commence trading on the 19th. JP Morgan sees Japanese equities as the only asset class with the chance to have better performance during H2 vs. H1. After the close, Hong Kong retail…

Asian Markets Most of the markets treaded water although Hong Kong was the standout playing catch up following yesterday’s holiday.  Investors there focused more upon the Pres. Trump and Pres Xi meeting as opposed to yesterday storming of the local parliament by protesters. Most sectors advanced.  Telcos, consumer discretionary and healthcare were better close to 1%.  Financials gave way small while IT and energy lagged. Down Under, the RBA reduced its benchmark rate 25 bps to 1%, as expected.  The follow up statements were less dovish than expected and the “Aussie” climbed. Other Important Headlines Chinese Premier Li announced ownership limits on brokers will be ended “by 2020.”  The previous indication had been 2021. Byd +3.3% and peers rose following Pres. Xi’s pledge to support the EV vehicle sector. The Hong Kong listing of Ab Inbev’s +1.3% Asian ops ( as well as hops) has a price range of HK$40 to HK$47 per share.  That values Budweiser Brewing APAC at $54b to $64b.   The shares are expected to commence trading on the 19th. JP Morgan sees Japanese equities as the only asset class with the chance to have better performance during H2 vs. H1. After the close, Hong Kong retail…

CAPIS Global Recap – 6/27/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/27/2019 at 6:45 am
by Clayton Duff on 06/27/2019

Asian Headlines On hopes of a deal, or at least progress, on a trade deal coupled with an encouraging reading out of China indices in the region closed higher today.  President Trump said a deal now could be completed at the G20 with no additional tariffs to be accessed while President Xi agreed to meet with Trump on the condition no new tariffs.  After a weak April, Industrial Profits moved positive again, up 1.1%, but better nonetheless. Energy names led with new US draw readings and Iran woes conspiring to keep oil better. $60.00 WTI though is still a resistance level with a confluence of the the 50,100, and 200 day moving averages thus far keeping a cap on prices.  Moving into European hours prices have eased somewhat. On the equity front Japan Display closed up 18% after Apple is said to be considering injecting ¥10.7B into the firm and upping their orders as well. LCD orders from China would suffer accordingly.  Of interest, last year Apple made up over 60% of the firm’s sales. Taiwan’s Largan Precision closed 5% higher on positive comments from their Chairman noting the 2H should surpass the 1H.  News that Apple may add three…

Asian Headlines On hopes of a deal, or at least progress, on a trade deal coupled with an encouraging reading out of China indices in the region closed higher today.  President Trump said a deal now could be completed at the G20 with no additional tariffs to be accessed while President Xi agreed to meet with Trump on the condition no new tariffs.  After a weak April, Industrial Profits moved positive again, up 1.1%, but better nonetheless. Energy names led with new US draw readings and Iran woes conspiring to keep oil better. $60.00 WTI though is still a resistance level with a confluence of the the 50,100, and 200 day moving averages thus far keeping a cap on prices.  Moving into European hours prices have eased somewhat. On the equity front Japan Display closed up 18% after Apple is said to be considering injecting ¥10.7B into the firm and upping their orders as well. LCD orders from China would suffer accordingly.  Of interest, last year Apple made up over 60% of the firm’s sales. Taiwan’s Largan Precision closed 5% higher on positive comments from their Chairman noting the 2H should surpass the 1H.  News that Apple may add three…

CAPIS Global Recap – 6/26/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/26/2019 at 7:08 am
by Clayton Duff on 06/26/2019

Asian Headlines Markets in Asia closed near unchanged to slightly lower levels as investors wait for G-20 headlines. IT names though were a bit better bid in Japan while defensives slipped. IT joined Health Care to the upside in Hong Kong as well.  After headlines that no deal is expected at the G20 coupled with word the US is not willing to make concessions markets fell yesterday.  That sentiment carried over but ticked up with hopes that no new tariffs may be agreed upon in a goodwill gesture. Economic releases were light with focus on the New Zealand’s RBNZ leaving rates unchanged.  Members did talk about cutting rates but held off adding a lower cash rate may be needed over time.  Heading into lunch in Europe NZD is working higher.  Also on the currency front the Nikkei reported results of a study between them and the Center for Eco Research that showed 107 is the equilibrium exchange rate for the ¥ vs the Dollar. Oil prices are the upside post yesterday’s API inventory draw and continued Iranian sanctions. Gasoline prices are up over 3% with a Philly refinery to be shut post a recent fire there. To note, yesterday MSCI…

Asian Headlines Markets in Asia closed near unchanged to slightly lower levels as investors wait for G-20 headlines. IT names though were a bit better bid in Japan while defensives slipped. IT joined Health Care to the upside in Hong Kong as well.  After headlines that no deal is expected at the G20 coupled with word the US is not willing to make concessions markets fell yesterday.  That sentiment carried over but ticked up with hopes that no new tariffs may be agreed upon in a goodwill gesture. Economic releases were light with focus on the New Zealand’s RBNZ leaving rates unchanged.  Members did talk about cutting rates but held off adding a lower cash rate may be needed over time.  Heading into lunch in Europe NZD is working higher.  Also on the currency front the Nikkei reported results of a study between them and the Center for Eco Research that showed 107 is the equilibrium exchange rate for the ¥ vs the Dollar. Oil prices are the upside post yesterday’s API inventory draw and continued Iranian sanctions. Gasoline prices are up over 3% with a Philly refinery to be shut post a recent fire there. To note, yesterday MSCI…

CAPIS Global Markets 6/25/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/25/2019 at 6:50 am
by Matthew Kiselica on 06/25/2019

Asian Markets Most of the region traded lower in part due to U.S.-Iranian tensions.  Adding to selling pressure for the Chinese markets was the additional worries of reports several Chinese banks are being investigated for N. Korean sanction violations by the U.S.  Financials join in the worries related to the U.S. that are already weighing upon Chinese IT and telco names.  More on this in the headlines section.  India outpeformed on local buying following two days of losses. The vast majority of the major sectors traded lower weighed down by Chinese names.  Financials, telcos, IT and consumer discretionary gave ground by 0.5% or more.  Energy and materials were flattish.  Among material names gold miners outperformed due to the rise in the precious metal along with continued M&A stories in the sector. Important Headlines The Washington Post reports a judge ruled China Merchants Bank -7.7% and other Chinese lenders are violating N. Korean sanctions.  For its part, China Merchants says it complies with all regulations on the matter.  Shanghai Pudong Dev. Bank -3.1% is also allegedly involved. Nissan Motor’s -0.3% AGM saw Renault -1.0% receive larger representation on the board.  The Japanese automaker is seeking to mend the relationship with the…

Asian Markets Most of the region traded lower in part due to U.S.-Iranian tensions.  Adding to selling pressure for the Chinese markets was the additional worries of reports several Chinese banks are being investigated for N. Korean sanction violations by the U.S.  Financials join in the worries related to the U.S. that are already weighing upon Chinese IT and telco names.  More on this in the headlines section.  India outpeformed on local buying following two days of losses. The vast majority of the major sectors traded lower weighed down by Chinese names.  Financials, telcos, IT and consumer discretionary gave ground by 0.5% or more.  Energy and materials were flattish.  Among material names gold miners outperformed due to the rise in the precious metal along with continued M&A stories in the sector. Important Headlines The Washington Post reports a judge ruled China Merchants Bank -7.7% and other Chinese lenders are violating N. Korean sanctions.  For its part, China Merchants says it complies with all regulations on the matter.  Shanghai Pudong Dev. Bank -3.1% is also allegedly involved. Nissan Motor’s -0.3% AGM saw Renault -1.0% receive larger representation on the board.  The Japanese automaker is seeking to mend the relationship with the…

CAPIS Global Markets 6 24 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/24/2019 at 6:40 am
by Matthew Kiselica on 06/24/2019

Asian Markets A mix across the region to start the week.  The core markets recorded small moves on either side of the flat line.  Peripherals were generally weaker.   Investors are waiting to see what will develop regarding tensions between the U.S. and Iran while the G-20 meeting occurs at the end of the week. On the trade front, both the U.S. and China are said to be preparing for Pres. Trump and Pres. Xi to meet at the G-20.  The negotiating teams of both nations may meet tomorrow.  Also related to Pres. Trump,  N. Korea’s official news agency said Supreme Leader Kim received a personal letter from Pres. Trump.  It was said to contain “excellent content.” Other Important Headlines Concerns upon U.S. restrictions of 5G rollout for Chinese companies weighed upon the sector. Down Under, RBA Gov. Powell stated global macro condition risk is to the downside.  He also cast doubts on the effectiveness of QE if all central banks are easing. China Gas +5.9% fared well following results.  The company’s revenues are better y/y and its NI is ahead of consensus.  The icing on the cake is a c. 25% y/y dividend increase. After the close, reports indicate Fosun…

Asian Markets A mix across the region to start the week.  The core markets recorded small moves on either side of the flat line.  Peripherals were generally weaker.   Investors are waiting to see what will develop regarding tensions between the U.S. and Iran while the G-20 meeting occurs at the end of the week. On the trade front, both the U.S. and China are said to be preparing for Pres. Trump and Pres. Xi to meet at the G-20.  The negotiating teams of both nations may meet tomorrow.  Also related to Pres. Trump,  N. Korea’s official news agency said Supreme Leader Kim received a personal letter from Pres. Trump.  It was said to contain “excellent content.” Other Important Headlines Concerns upon U.S. restrictions of 5G rollout for Chinese companies weighed upon the sector. Down Under, RBA Gov. Powell stated global macro condition risk is to the downside.  He also cast doubts on the effectiveness of QE if all central banks are easing. China Gas +5.9% fared well following results.  The company’s revenues are better y/y and its NI is ahead of consensus.  The icing on the cake is a c. 25% y/y dividend increase. After the close, reports indicate Fosun…

CAPIS Global Recap – 6/20/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/20/2019 at 6:48 am
by Clayton Duff on 06/20/2019

Asian Headlines It was a risk-on day in China today with broad gains across the board today.  Gains were not limited to that market with all the Asian majors seeing a decent day.  Turnover on the mainland was strong but both Japan and Hong Kong lagged in that regard. The sectors of Consumer Staples and Financials both finished up over 3% in Shanghai with Communication and the RE sector up over a percent in Japan. This after the BoJ left rates and their policy for now unchanged. They reiterated rates will continue at an extremely low level for an extended period, through at least next spring. Also on the central bank front the RBA’s Lowe said a further reduction in the cash rate was “not unrealistic”.  He added that it was not “unrealistic” to think a single 25bp move would alter the growth path.  Despite the comments the $AUD has been to the upside vs the Dollar overnight. WTI is up ~3% today after the DOE reported a 3.1M barrel draw but the focus is more so on headlines that Iran shot down a US drone over the Strait of Hormuz.  The US has denied Iran’s assertion the drone violated…

Asian Headlines It was a risk-on day in China today with broad gains across the board today.  Gains were not limited to that market with all the Asian majors seeing a decent day.  Turnover on the mainland was strong but both Japan and Hong Kong lagged in that regard. The sectors of Consumer Staples and Financials both finished up over 3% in Shanghai with Communication and the RE sector up over a percent in Japan. This after the BoJ left rates and their policy for now unchanged. They reiterated rates will continue at an extremely low level for an extended period, through at least next spring. Also on the central bank front the RBA’s Lowe said a further reduction in the cash rate was “not unrealistic”.  He added that it was not “unrealistic” to think a single 25bp move would alter the growth path.  Despite the comments the $AUD has been to the upside vs the Dollar overnight. WTI is up ~3% today after the DOE reported a 3.1M barrel draw but the focus is more so on headlines that Iran shot down a US drone over the Strait of Hormuz.  The US has denied Iran’s assertion the drone violated…

CAPIS Global Recap – 6/17/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/17/2019 at 6:56 am
by Clayton Duff on 06/17/2019

Asian Headlines Trading in the far east started the week in an uninspiring fashion with summer doldrums certainly in play.  Scant moves away from the flatline were evident across the board with turnover noticeably lower.   Communication names were general winners with IT mostly lower.  Health Care and Financials worked higher in Hong Kong with CE Lam backing down protesters and shelving the extradition bill for now.  Throughout Asian hours oil held steady but is a bit lower in early European trading. The PBoC enacted another RRR cut today with CNY100B in funds being released. This helped Financials in Shanghai as well with several headlines referring to regulators working through the takeover and restructure of Baoshang Bank. It has been reported corporate creditors have received full repayment while interbank creditors have received less so. Down Under, Vocus Group -25% weighed on the Communication sector after AGL Energy pulled its bid for the firm.  This is now the 4th potential acquirer that has looked behind the curtain and said no thanks.  To note, tonight RBA minutes from June will be released. Samsung -.2% shook off earlier weakness post noting it sees memory chip demand “unlikely” to recover until the end of the…

Asian Headlines Trading in the far east started the week in an uninspiring fashion with summer doldrums certainly in play.  Scant moves away from the flatline were evident across the board with turnover noticeably lower.   Communication names were general winners with IT mostly lower.  Health Care and Financials worked higher in Hong Kong with CE Lam backing down protesters and shelving the extradition bill for now.  Throughout Asian hours oil held steady but is a bit lower in early European trading. The PBoC enacted another RRR cut today with CNY100B in funds being released. This helped Financials in Shanghai as well with several headlines referring to regulators working through the takeover and restructure of Baoshang Bank. It has been reported corporate creditors have received full repayment while interbank creditors have received less so. Down Under, Vocus Group -25% weighed on the Communication sector after AGL Energy pulled its bid for the firm.  This is now the 4th potential acquirer that has looked behind the curtain and said no thanks.  To note, tonight RBA minutes from June will be released. Samsung -.2% shook off earlier weakness post noting it sees memory chip demand “unlikely” to recover until the end of the…

CAPIS Global Recap – 6/14/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/14/2019 at 6:46 am
by Clayton Duff on 06/14/2019

Asian Headlines Mainland China led to the downside today, selling off in the afternoon hours on weakness in the IT and Communication space. Turnover was flat ahead a slew of data released after the close and noted below.  Hong Kong fell again with same sectors weak as some previously closed bank branches reopened.  The Nikkei conversely saw mild gains with the Energy sector leading as related names played catch to the attack headlines that hit post yesterday’s close.  Australia closed just above flat with Materials and Energy leading as iron ore continues to strengthen. The AUD$ fell with both National Australia Bank and Royal Bank of Canada both noting they see additional rate cuts ahead.  The Kiwi Dollar also fell on disappointing Manufacturing PMI data. Post the close Chinese Industrial Production grew at 5.0% in May, light of estimates and at the slowest pace in 17 years. Retail sales results were encouraging, ahead of estimates with Property Investment slowing a bit. Sony rallied 3% with a fund investing $1.5B into it with a push coming to offload their semiconductor unit. Bank of East Asia fell 9% on warnings of a “material decrease” in 1H NI, citing an expected impairment loss…

Asian Headlines Mainland China led to the downside today, selling off in the afternoon hours on weakness in the IT and Communication space. Turnover was flat ahead a slew of data released after the close and noted below.  Hong Kong fell again with same sectors weak as some previously closed bank branches reopened.  The Nikkei conversely saw mild gains with the Energy sector leading as related names played catch to the attack headlines that hit post yesterday’s close.  Australia closed just above flat with Materials and Energy leading as iron ore continues to strengthen. The AUD$ fell with both National Australia Bank and Royal Bank of Canada both noting they see additional rate cuts ahead.  The Kiwi Dollar also fell on disappointing Manufacturing PMI data. Post the close Chinese Industrial Production grew at 5.0% in May, light of estimates and at the slowest pace in 17 years. Retail sales results were encouraging, ahead of estimates with Property Investment slowing a bit. Sony rallied 3% with a fund investing $1.5B into it with a push coming to offload their semiconductor unit. Bank of East Asia fell 9% on warnings of a “material decrease” in 1H NI, citing an expected impairment loss…

CAPIS Global Markets 6 13 2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/13/2019 at 6:41 am
by Clayton Duff on 06/13/2019

Headlines in Asia After an uninspiring day in the US Asia followed up with a like result.  The bias on the day was to the downside, albeit on slight losses with mainland China up small.  Protests continued in Hong Kong with their market lower in the morning before closing flat by day’s end.  Legislators there delayed for the second time a meeting on the extradition bill.  The government HQ there is said to be shut today and tomorrow.  Cash demands there were again higher with money market rates up.  Oil prices have been in focus today with what is being called an attack in the Sea of Oman on 2 tankers.  Headlines hit post the close in Japan and Australia with Energy names both leading to the downside there.   Brent is up over $2.00 with WTI better by over $1.4. Chinese FDI rose 8.5% in May, ahead of the prior 6.3% gain seen.  State newspaper China Daily said moderate inflation and a current dovish environment will allow for the government to adjust credit to counter any risks that may arise if trade talks with the US continue to go south. LG Chem +3.6% inked a deal with China’s Geely Auto…

Headlines in Asia After an uninspiring day in the US Asia followed up with a like result.  The bias on the day was to the downside, albeit on slight losses with mainland China up small.  Protests continued in Hong Kong with their market lower in the morning before closing flat by day’s end.  Legislators there delayed for the second time a meeting on the extradition bill.  The government HQ there is said to be shut today and tomorrow.  Cash demands there were again higher with money market rates up.  Oil prices have been in focus today with what is being called an attack in the Sea of Oman on 2 tankers.  Headlines hit post the close in Japan and Australia with Energy names both leading to the downside there.   Brent is up over $2.00 with WTI better by over $1.4. Chinese FDI rose 8.5% in May, ahead of the prior 6.3% gain seen.  State newspaper China Daily said moderate inflation and a current dovish environment will allow for the government to adjust credit to counter any risks that may arise if trade talks with the US continue to go south. LG Chem +3.6% inked a deal with China’s Geely Auto…

CAPIS Global Markets 6 12 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/12/2019 at 6:43 am
by Matthew Kiselica on 06/12/2019

Asian Markets Following the losses in the West on trade concerns, the most of the region’s markets gave ground today.  Hong Kong suffered the most as citizens continue to protest a proposed extradition bill.  This is driving Hibor rates higher.  They are currently at levels not seen since 2008.   We all remember how well that year went. Most sectors end the day red.  Real estate, especially in Hong Kong and IT fell more than 1%.  Materials managed an advance of c. 0.25%. Important Headlines Chinese inflation data for both overall CPI and PPI were inline with expectations.  Food prices continue to accelerate gaining 7.7% y/y vs. the prior reading of 6.1%. Softbank -2.4% reacted to yesterday’s news a consortium of states filed an antitrust suit to block the T-Mobile/Sprint merger. China Tobacco +9.6% was on fire in its trading debut on the Hong Kong Exchange. After the local close, China released various lending data.  New CNY loans for May are below expectations. European Markets The European markets have been lower since the open.  Any attempts to pare the declines have faltered at c. 0.3%.  They are currently trading near the lows. Boris Johnson “officially” declared his candidacy to head the…

Asian Markets Following the losses in the West on trade concerns, the most of the region’s markets gave ground today.  Hong Kong suffered the most as citizens continue to protest a proposed extradition bill.  This is driving Hibor rates higher.  They are currently at levels not seen since 2008.   We all remember how well that year went. Most sectors end the day red.  Real estate, especially in Hong Kong and IT fell more than 1%.  Materials managed an advance of c. 0.25%. Important Headlines Chinese inflation data for both overall CPI and PPI were inline with expectations.  Food prices continue to accelerate gaining 7.7% y/y vs. the prior reading of 6.1%. Softbank -2.4% reacted to yesterday’s news a consortium of states filed an antitrust suit to block the T-Mobile/Sprint merger. China Tobacco +9.6% was on fire in its trading debut on the Hong Kong Exchange. After the local close, China released various lending data.  New CNY loans for May are below expectations. European Markets The European markets have been lower since the open.  Any attempts to pare the declines have faltered at c. 0.3%.  They are currently trading near the lows. Boris Johnson “officially” declared his candidacy to head the…

CAPIS Global Markets 6 11 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/11/2019 at 6:45 am
by Matthew Kiselica on 06/11/2019

Asian Markets Another solid day for the region with each of the core markets building upon yesterday’s gains.  The Mainland Chinese markets were the stars.  China is permitting local governments to use proceeds from special bond sales to fund “qualified major projects.”  This should boost infrastructure spending.  Australia needed to play catch up following yesterday’s holiday. All the major sectors close to the upside with Chinese names providing impetus.  Materials improved by 2% followed by consumer staples, IT and industrials. Other Important Headlines Another news item that caught Chinese investors eye is a report indicating the White House acting budget head is asking for a delay to the Huawei Tech business ban. The markets paid little attention to Pres. Trump saying he will impose additional tariffs on Chinese goods if Pres. Xi doesn’t meet with him at the G-20 meeting. Alibaba is said to have selected CICC and Credit Suisse as brokers for its Hong Kong listing.  The company is expected to officially file in the next “few weeks.” Down Under, AGL Energy -7.2% is proposing to purchase Vocus Group +8.8% at A$4.85 per share.  That is a 27.0% premium to Friday’s close (market was closed yesterday).  The prior bid…

Asian Markets Another solid day for the region with each of the core markets building upon yesterday’s gains.  The Mainland Chinese markets were the stars.  China is permitting local governments to use proceeds from special bond sales to fund “qualified major projects.”  This should boost infrastructure spending.  Australia needed to play catch up following yesterday’s holiday. All the major sectors close to the upside with Chinese names providing impetus.  Materials improved by 2% followed by consumer staples, IT and industrials. Other Important Headlines Another news item that caught Chinese investors eye is a report indicating the White House acting budget head is asking for a delay to the Huawei Tech business ban. The markets paid little attention to Pres. Trump saying he will impose additional tariffs on Chinese goods if Pres. Xi doesn’t meet with him at the G-20 meeting. Alibaba is said to have selected CICC and Credit Suisse as brokers for its Hong Kong listing.  The company is expected to officially file in the next “few weeks.” Down Under, AGL Energy -7.2% is proposing to purchase Vocus Group +8.8% at A$4.85 per share.  That is a 27.0% premium to Friday’s close (market was closed yesterday).  The prior bid…

CAPIS EU Recap – 6/10/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/10/2019 at 12:48 pm
by Clayton Duff on 06/10/2019

As noted earlier several large European markets were shut today with small gains seen today on sharply slower turnover.  Roughly 2/3’rds of the Stoxx 600 sectors finished higher with Basic Resources and Banks leading with gains of over a percent.  It was not only the US that saw merger activity with a few notable acquisitions in Europe as well. On the economic front ECB board members are wondering aloud that inflation continues to ease with a cut in rates being more talked about. Germany’s rep said the US/China trade spat may cut a percent off of global trade with the IMF’s Lagarde citing the spat in noting global GDP could slip .5% next year because of it. Finnish construction equipment seller Ramirent ticked up 65% with French firm Loxam offering to buy the firm for €9.00 a share.  The board recommends shareholders accept the bid.  The combination of company’s will see revenue of about €2.2B yearly with over 1000 branches. Air Liquide fell .7% on word they will offload their industrial gas unit to China’s Fujian, their customer in Southeast China. Finland’s Metso +1.6% is buying Canadian mobile crushing firm McCloskey for €279M. To the downside, gold miner Avesoro Resources…

As noted earlier several large European markets were shut today with small gains seen today on sharply slower turnover.  Roughly 2/3’rds of the Stoxx 600 sectors finished higher with Basic Resources and Banks leading with gains of over a percent.  It was not only the US that saw merger activity with a few notable acquisitions in Europe as well. On the economic front ECB board members are wondering aloud that inflation continues to ease with a cut in rates being more talked about. Germany’s rep said the US/China trade spat may cut a percent off of global trade with the IMF’s Lagarde citing the spat in noting global GDP could slip .5% next year because of it. Finnish construction equipment seller Ramirent ticked up 65% with French firm Loxam offering to buy the firm for €9.00 a share.  The board recommends shareholders accept the bid.  The combination of company’s will see revenue of about €2.2B yearly with over 1000 branches. Air Liquide fell .7% on word they will offload their industrial gas unit to China’s Fujian, their customer in Southeast China. Finland’s Metso +1.6% is buying Canadian mobile crushing firm McCloskey for €279M. To the downside, gold miner Avesoro Resources…

CAPIS Global Markets 6 10 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/10/2019 at 6:30 am
by Matthew Kiselica on 06/10/2019

Asian Markets A solid start to the week for the region’s markets following Friday’s U.S.-Mexican trade news.  As a refresher,  Pres. Trump suspended his threatened increase to Mexican tariffs.  He says a deal has been reached regarding border security along with agricultural products.  Friday’s headlines the Chinese government would seek to increase consumption of autos, home appliances and electronics was another factor.   The icing on the cake is the PBoC signaling it has scope for further easing, if needed.  Australia was closed. All major sectors advanced.  Consumer discretionary, real estate, consumer staples, telcos, healthcare and industrials improved by 1% or more.  Safe havens such as gold and the ¥ gave back some of the recent gains. Other Important Headlines China’s May trade surplus was also almost twice what was anticipated.  While imports in USD are below expectations, exports were a surprise increase.  (All figures in Markets & Macro section.)  There is some thought exporters were trying to get items shipped prior to the U.S. tariff increases. Japan’s Q1 GDP is bang inline with estimates. Reports over the weekend indicate both the French & Japanese governments are at odds regarding the future of the Renault/Nissan +0.8% alliance.  This is on top…

Asian Markets A solid start to the week for the region’s markets following Friday’s U.S.-Mexican trade news.  As a refresher,  Pres. Trump suspended his threatened increase to Mexican tariffs.  He says a deal has been reached regarding border security along with agricultural products.  Friday’s headlines the Chinese government would seek to increase consumption of autos, home appliances and electronics was another factor.   The icing on the cake is the PBoC signaling it has scope for further easing, if needed.  Australia was closed. All major sectors advanced.  Consumer discretionary, real estate, consumer staples, telcos, healthcare and industrials improved by 1% or more.  Safe havens such as gold and the ¥ gave back some of the recent gains. Other Important Headlines China’s May trade surplus was also almost twice what was anticipated.  While imports in USD are below expectations, exports were a surprise increase.  (All figures in Markets & Macro section.)  There is some thought exporters were trying to get items shipped prior to the U.S. tariff increases. Japan’s Q1 GDP is bang inline with estimates. Reports over the weekend indicate both the French & Japanese governments are at odds regarding the future of the Renault/Nissan +0.8% alliance.  This is on top…

D-Day Global Markets 6 6 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/06/2019 at 7:04 am
by Matthew Kiselica on 06/06/2019

Asian Markets There was certainly plenty of top down news for the markets to digest today.  Early on, the region was down as Pres. Trump stated “not enough” progress was made in US-Mexican trade talks.  Specifically regarding China, locals were not impressed by a new PBoC medium term loan facility of CNY 500b.  This was an injection of liquidity to offset maturing loans.  A large U.S.-Taiwan arms deal was also not taken well.  The ChiNext closed in bear market territory.  India gave ground following yesterday’s holiday and the RBI cutting its GDP forecasts for FY20.  The central bank now sees growth at 7% vs. 7.2% previously and changed its policy stance to accommodative.  S. Korea was closed in honor of its Memorial Day. However, China provided some lift to the markets which helped Hong Kong end the day higher.  Headlines hit that China intends to “boost” auto, home appliance and electronics consumption.  Details are vague but the markets that were open did catch a bid, as a result.  Most of the core markets were already closed including the Chinese mainland exchanges.  That headline coincided with Pres. Trump stating once again tariffs could be imposed on another $300b worth of Chinese…

Asian Markets There was certainly plenty of top down news for the markets to digest today.  Early on, the region was down as Pres. Trump stated “not enough” progress was made in US-Mexican trade talks.  Specifically regarding China, locals were not impressed by a new PBoC medium term loan facility of CNY 500b.  This was an injection of liquidity to offset maturing loans.  A large U.S.-Taiwan arms deal was also not taken well.  The ChiNext closed in bear market territory.  India gave ground following yesterday’s holiday and the RBI cutting its GDP forecasts for FY20.  The central bank now sees growth at 7% vs. 7.2% previously and changed its policy stance to accommodative.  S. Korea was closed in honor of its Memorial Day. However, China provided some lift to the markets which helped Hong Kong end the day higher.  Headlines hit that China intends to “boost” auto, home appliance and electronics consumption.  Details are vague but the markets that were open did catch a bid, as a result.  Most of the core markets were already closed including the Chinese mainland exchanges.  That headline coincided with Pres. Trump stating once again tariffs could be imposed on another $300b worth of Chinese…

CAPIS Global Markets 6 5 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/05/2019 at 7:07 am
by Matthew Kiselica on 06/05/2019

Asian Markets Most markets advanced with Japan leading the way.  The ¥ gave back some of its recent gains providing relief to exporters.  Australia moved higher with RBA Gov. Lowe making dovish comments following yesterday’s rate cut.  The Chinese May Caixin Services PMI is below expectations hitting a 4 month low.  S. Korea also had disappointing macro data.  Its currency a/c turned negative for the first time since 2012.  This was in part due to large offshore dividend payments.  Full figures in our macro section.  India (along with many Muslim nations) was closed for the start of Ramadan. Japanese names provided a lift to most sectors.  Consumer discretionary, IT, industrials and telcos each gained c. 1%.  Energy, healthcare and utilities lagged finishing around the flat line. Important Headlines Toyota Motors +2.5% sees the potential cost increases due to the proposed Mexican tariffs of up to $1b. While Byd -0.4% fell today, China is taking steps to bar entry to the electric vehicle space.  Additionally, it will foster key, efficient providers in the space. China Vanke’s +2.8% May contract sales rose 35.0% to CNY 58b. European Markets The region has been to the upside since the open.  Most of the markets…

Asian Markets Most markets advanced with Japan leading the way.  The ¥ gave back some of its recent gains providing relief to exporters.  Australia moved higher with RBA Gov. Lowe making dovish comments following yesterday’s rate cut.  The Chinese May Caixin Services PMI is below expectations hitting a 4 month low.  S. Korea also had disappointing macro data.  Its currency a/c turned negative for the first time since 2012.  This was in part due to large offshore dividend payments.  Full figures in our macro section.  India (along with many Muslim nations) was closed for the start of Ramadan. Japanese names provided a lift to most sectors.  Consumer discretionary, IT, industrials and telcos each gained c. 1%.  Energy, healthcare and utilities lagged finishing around the flat line. Important Headlines Toyota Motors +2.5% sees the potential cost increases due to the proposed Mexican tariffs of up to $1b. While Byd -0.4% fell today, China is taking steps to bar entry to the electric vehicle space.  Additionally, it will foster key, efficient providers in the space. China Vanke’s +2.8% May contract sales rose 35.0% to CNY 58b. European Markets The region has been to the upside since the open.  Most of the markets…

CAPIS Global Recap – 5/29/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/29/2019 at 6:56 am
by Clayton Duff on 05/29/2019

Asian Headlines After the disappointing finish in the States Asia closed mixed with a bias towards losses.  Like in the US, defensives saw selling with Consumer Staples and Utilities weighing on the Nikkei with Australia adding Industrials and Discretionary names to that list.  Shanghai managed a small gain with Staples conversely leading higher along with semiconductor-related names. Rare-earth names rallied with China threatening to cut the US off from supplies.  Semis fell elsewhere.   Bonds globally are bid higher after the US 10 year yield fell to levels not seen since September of 2017.  Post his trip to Japan, President Trump said higher tariffs may still be on tap. The PBoC continued to inject funds, this time ~$36B, hoping to sooth minds.  Market confidence continues to wane with concern after the gov took control of Baoshang Bank.  The Yuan continued to weaken despite the US calling the country a currency manipulator in the Semiannual Currency Report issued by the US Treasury.  Vietnam, Malaysia, Italy, and Ireland though were added to a watch list while India and Switzerland were removed. Taiwan saw overseas investors continue selling, 15 straight sessions now with state-owned brokers on their 14th day of acquisitions. Despite the selling the…

Asian Headlines After the disappointing finish in the States Asia closed mixed with a bias towards losses.  Like in the US, defensives saw selling with Consumer Staples and Utilities weighing on the Nikkei with Australia adding Industrials and Discretionary names to that list.  Shanghai managed a small gain with Staples conversely leading higher along with semiconductor-related names. Rare-earth names rallied with China threatening to cut the US off from supplies.  Semis fell elsewhere.   Bonds globally are bid higher after the US 10 year yield fell to levels not seen since September of 2017.  Post his trip to Japan, President Trump said higher tariffs may still be on tap. The PBoC continued to inject funds, this time ~$36B, hoping to sooth minds.  Market confidence continues to wane with concern after the gov took control of Baoshang Bank.  The Yuan continued to weaken despite the US calling the country a currency manipulator in the Semiannual Currency Report issued by the US Treasury.  Vietnam, Malaysia, Italy, and Ireland though were added to a watch list while India and Switzerland were removed. Taiwan saw overseas investors continue selling, 15 straight sessions now with state-owned brokers on their 14th day of acquisitions. Despite the selling the…

TGIF Global Markets 5/24/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/24/2019 at 6:58 am
by Matthew Kiselica on 05/24/2019

Today’s Top Story Two hours into the U.K. trading session, U.K. PM May announced she will step down as PM of her nation.  It was an emotional statement and as her voice trembled while stating she did her best for the “nation I love.”  She will remain at her post until June 7th giving her party time to select a new leader and PM.  It will be interesting to see who emerges.  Whatever happens, I don’t envy them the role. The markets have shown an interesting response.  The £ has made several attempts to advance but been unable to maintain any significant headway.  Later it moved to advance but it once again pulling back.  U.K. gilt yields higher by c. 1 bps, trimming modestly higher gain.  The FTSE is up +0.8% making a modest advance post the news.  More regarding the European markets later. Asian Markets Mixed and rather subdued markets following yesterday’s losses.  Energy names played catch-down following the selling in the States despite a small rebound overnight in WTI. Shanghai closed flat despite selling in IT names.  Both of those sector end the day lower c. 0.5%.  Providing support to the region were gains of c. 0.5% for…

Today’s Top Story Two hours into the U.K. trading session, U.K. PM May announced she will step down as PM of her nation.  It was an emotional statement and as her voice trembled while stating she did her best for the “nation I love.”  She will remain at her post until June 7th giving her party time to select a new leader and PM.  It will be interesting to see who emerges.  Whatever happens, I don’t envy them the role. The markets have shown an interesting response.  The £ has made several attempts to advance but been unable to maintain any significant headway.  Later it moved to advance but it once again pulling back.  U.K. gilt yields higher by c. 1 bps, trimming modestly higher gain.  The FTSE is up +0.8% making a modest advance post the news.  More regarding the European markets later. Asian Markets Mixed and rather subdued markets following yesterday’s losses.  Energy names played catch-down following the selling in the States despite a small rebound overnight in WTI. Shanghai closed flat despite selling in IT names.  Both of those sector end the day lower c. 0.5%.  Providing support to the region were gains of c. 0.5% for…

CAPIS Global Markets 5/22/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/22/2019 at 6:58 am
by Matthew Kiselica on 05/22/2019

Asian Markets The markets were subdued despite the solid performance during the U.S. trading session.   The Nikkei closed flat with the ¥ a bit stronger following mixed April trade data.   Exports again fell 2.4%, worse than expected while imports ticked up leaving a larger trade deficit than expected. Real Estate names were up 60bps while Financials pulled back somewhat. China’s Ambassador to the U.S. said his nation is ready to resume talks to address trade imbalances and offer to purchase more products and services from the US.  One former State Department official said a deal could take place by the end of next month but the recent break in talks will probably lead to a more drawn-out time line.   Adding to the tariff/Huawei mix, the U.S. may add five Chinese video surveillance firms to its list of firms unable to purchase US components.  Chinese espionage and treatment of a minority groups is cited for the possible action.  Despite that, the IT sector led with gains shy of 1% in Shanghai.  However, the nation’s major indices all settled lower. Other Important Headlines The Nikkei reports Tencent -0.6% is seeing slower growth in Chinese video ad sales. An executive of Hangzhou Nikvision…

Asian Markets The markets were subdued despite the solid performance during the U.S. trading session.   The Nikkei closed flat with the ¥ a bit stronger following mixed April trade data.   Exports again fell 2.4%, worse than expected while imports ticked up leaving a larger trade deficit than expected. Real Estate names were up 60bps while Financials pulled back somewhat. China’s Ambassador to the U.S. said his nation is ready to resume talks to address trade imbalances and offer to purchase more products and services from the US.  One former State Department official said a deal could take place by the end of next month but the recent break in talks will probably lead to a more drawn-out time line.   Adding to the tariff/Huawei mix, the U.S. may add five Chinese video surveillance firms to its list of firms unable to purchase US components.  Chinese espionage and treatment of a minority groups is cited for the possible action.  Despite that, the IT sector led with gains shy of 1% in Shanghai.  However, the nation’s major indices all settled lower. Other Important Headlines The Nikkei reports Tencent -0.6% is seeing slower growth in Chinese video ad sales. An executive of Hangzhou Nikvision…

Subscribe to Stay Informed

Stay informed by subscribing to information that matters to you. We'll email you when we post new content you want to see.