Trading Desk

1911 total posts

CAPIS EU Close – 3/5/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 03/05/2019 at 12:49 pm
by Clayton Duff on 03/05/2019

Today’s European results looked very familiar to yesterday with subdued results.  Indices ended mostly flattish to up small with no bold moves among sectors.  Trading in London though was better bid with broad gains as Consumer Staples, Health Care, RE, and IT led.  Similar moves were seen region-wide with Autos and Media names lagging.  Volume on the SXXP was 4% lower on the day.  Encouraging sales from Target in the US helped bid the consumer space with names like Unilever up 1.8%.  Retail sales met estimates in the EU with a swing to gains on a MoM basis. Service PMI readings in the region were generally better with small beats across the majors.  Inflation in Switzerland remains scant with MoM growth of just .4%.  The result only bolsters their central bank to retain their negative rate structure. On the earnings front safety-testing firm Eurofins fell 10% despite predicting FY19 revenue well ahead of FY18 levels.  The change in view disappointed investors with the firm to keep their M&A focus under €300M a year. Lighting company Zumtobel fell 12% post reporting a 9M net loss of €6.1M.  Lowering overall costs to agreeable levels has still not occurred with the firm to…

Today’s European results looked very familiar to yesterday with subdued results.  Indices ended mostly flattish to up small with no bold moves among sectors.  Trading in London though was better bid with broad gains as Consumer Staples, Health Care, RE, and IT led.  Similar moves were seen region-wide with Autos and Media names lagging.  Volume on the SXXP was 4% lower on the day.  Encouraging sales from Target in the US helped bid the consumer space with names like Unilever up 1.8%.  Retail sales met estimates in the EU with a swing to gains on a MoM basis. Service PMI readings in the region were generally better with small beats across the majors.  Inflation in Switzerland remains scant with MoM growth of just .4%.  The result only bolsters their central bank to retain their negative rate structure. On the earnings front safety-testing firm Eurofins fell 10% despite predicting FY19 revenue well ahead of FY18 levels.  The change in view disappointed investors with the firm to keep their M&A focus under €300M a year. Lighting company Zumtobel fell 12% post reporting a 9M net loss of €6.1M.  Lowering overall costs to agreeable levels has still not occurred with the firm to…

CAPIS Global Markets 3/4/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 03/04/2019 at 6:44 am
by Matthew Kiselica on 03/04/2019

Asian Markets The region’s markets had a solid day on word China and the U.S. continue to move make progress on trade talks.  The trade chatter says China is offering to lower tariffs on a number of U.S. goods including agricultural and autos.  In turn, the U.S. is said to be willing to remove or significantly reduce the tariffs imposed last year. The Shanghai Composite closed above 3,000 for the first time since June.  S. Korea lagged following its lowest Manuf. PMI reading since June of 2015.  The key autos there were also weak (More on this below).  All major sectors traded to the upside.  Real estate and healthcare gained c. 1.5%.  Tobacco stocks lagged and see Japan Tobacco below. After the close, China announced it will reduce its VAT on manufacturing products by 3 percentage points.  Morgan Stanley estimates this will equate to roughly 0.6% of GDP. Important Headlines Another plus for the Chinese markets are further detail of listing and IPO rules for the new Shanghai technology board.  This is an attempt to stem some of the Chinese company U.S. listings in recent years. BoJ Gov. Kuroda sees the 2% inflation target as “difficult to reach” by the…

Asian Markets The region’s markets had a solid day on word China and the U.S. continue to move make progress on trade talks.  The trade chatter says China is offering to lower tariffs on a number of U.S. goods including agricultural and autos.  In turn, the U.S. is said to be willing to remove or significantly reduce the tariffs imposed last year. The Shanghai Composite closed above 3,000 for the first time since June.  S. Korea lagged following its lowest Manuf. PMI reading since June of 2015.  The key autos there were also weak (More on this below).  All major sectors traded to the upside.  Real estate and healthcare gained c. 1.5%.  Tobacco stocks lagged and see Japan Tobacco below. After the close, China announced it will reduce its VAT on manufacturing products by 3 percentage points.  Morgan Stanley estimates this will equate to roughly 0.6% of GDP. Important Headlines Another plus for the Chinese markets are further detail of listing and IPO rules for the new Shanghai technology board.  This is an attempt to stem some of the Chinese company U.S. listings in recent years. BoJ Gov. Kuroda sees the 2% inflation target as “difficult to reach” by the…

CAPIS Global Markets 2/28/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/28/2019 at 7:37 am
by Matthew Kiselica on 02/28/2019

Asian Markets The region traded lower with growth concerns and an abrupt end to the U.S.-N. Korean Summit.  The early conclusion to the meeting was a huge negative for the KOPSI.  It also didn’t help it was a net sell in today’s global MSCI rebalance.  Most sectors traded lower with IT off more than 1% followed by telcos and real estate.  Healthcare was the only group to gain. Global macro fears were sparked by a number of important data points.  China’s February Manufacturing PMI is below consensus and is the 3rd consecutive month in which the gauge is below the key 50 level.   Some of the slowdown is due to the Lunar New Year during the month.  Japanese data also showed slowing trends.  The preliminary January industrial production results fell more than ancticipated and is the largest decline since January of last year. Retail sales also slumped more than thought.  In S. Korea, the BoK left rates unchanged, as expected. Other Important Headlines Sun Hung Kai Prop -2.2% and Rio Tinto +1.1% following yesterday’s results. In the Macau gaming sector, Galaxy Ent. -0.2% reported results.  While FY Revenues are well short of expectations, EBITDA was inline while NI beat. After…

Asian Markets The region traded lower with growth concerns and an abrupt end to the U.S.-N. Korean Summit.  The early conclusion to the meeting was a huge negative for the KOPSI.  It also didn’t help it was a net sell in today’s global MSCI rebalance.  Most sectors traded lower with IT off more than 1% followed by telcos and real estate.  Healthcare was the only group to gain. Global macro fears were sparked by a number of important data points.  China’s February Manufacturing PMI is below consensus and is the 3rd consecutive month in which the gauge is below the key 50 level.   Some of the slowdown is due to the Lunar New Year during the month.  Japanese data also showed slowing trends.  The preliminary January industrial production results fell more than ancticipated and is the largest decline since January of last year. Retail sales also slumped more than thought.  In S. Korea, the BoK left rates unchanged, as expected. Other Important Headlines Sun Hung Kai Prop -2.2% and Rio Tinto +1.1% following yesterday’s results. In the Macau gaming sector, Galaxy Ent. -0.2% reported results.  While FY Revenues are well short of expectations, EBITDA was inline while NI beat. After…

CAPIS Global Markets 2/27/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/27/2019 at 7:39 am
by Matthew Kiselica on 02/27/2019

Asian Markets An interesting day with word Pakistan has shot down two Indian fighters.  Prior to that news the markets had been having a decent day.  Japan, Australia and S. Korea all ended the day higher.  However, they had closed when Pakistan made their announcements.  The news created risk- off sentiment and the markets that were still open closed lower or dipped from higher levels.  Pakistan fell sharply but pared most of the loss. Sectors were mixed with minimal moves buoyed by the markets that were already closed.   IT fell more than 0.5% followed by industrials and materials.  An interesting combination of energy and healthcare improved by c. 0.2%. Other Important News from the Region Part of the gain in Japan was sparked by rebalances in both the Nikkei and TOPIX.  Takeda Pharma +2.1% is a significant increase.  Demand was forecast to be 50 m shares accounting for about 600% of its daily volume. Byd -4.5% slid following its results are below consensus.  However, both Credit Suisse and Citi are out defending the name.  Specifically, Citi cites weakness as a buying opportunity. Hyundai Motor +5.5% thrilled investors with a strategy update.   The company is targeting 9% ROE by FY22 and…

Asian Markets An interesting day with word Pakistan has shot down two Indian fighters.  Prior to that news the markets had been having a decent day.  Japan, Australia and S. Korea all ended the day higher.  However, they had closed when Pakistan made their announcements.  The news created risk- off sentiment and the markets that were still open closed lower or dipped from higher levels.  Pakistan fell sharply but pared most of the loss. Sectors were mixed with minimal moves buoyed by the markets that were already closed.   IT fell more than 0.5% followed by industrials and materials.  An interesting combination of energy and healthcare improved by c. 0.2%. Other Important News from the Region Part of the gain in Japan was sparked by rebalances in both the Nikkei and TOPIX.  Takeda Pharma +2.1% is a significant increase.  Demand was forecast to be 50 m shares accounting for about 600% of its daily volume. Byd -4.5% slid following its results are below consensus.  However, both Credit Suisse and Citi are out defending the name.  Specifically, Citi cites weakness as a buying opportunity. Hyundai Motor +5.5% thrilled investors with a strategy update.   The company is targeting 9% ROE by FY22 and…

CAPIS Global Markets 2/26/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/26/2019 at 11:18 am
by Matthew Kiselica on 02/26/2019

Asian Markets The region saw some pullback from yesterday’s gains.  Initially, the mainland Chinese manged to advance but gave ground later in the session.  In addition to profit taking, geopolitical risk may have taken some bid out of the region.  India launched air strikes upon what it described as terrorist camps inside Pakistan. Most sectors ended in the red.  Financials slid by more than 1% followed by IT, real estate and consumer discretionary names.  Defensives saw buying interest with healthcare improved by 0.5% and utilities also to the upside. Regarding geopolitics, Pres. Trump and Sup. Leader Kim Jong-un are both in Hanoi for the their second summit.  The two will continue to discuss “denuclearization” of the Korean peninsula. Other Important Headlines Standard Chartered’s +2.4% results are reassuring compared to the recent release from HSBC -0.4%.  The bank’s FY adj. PTP $3.86b is just a touch light of consensus.  The CET1 ratio of 14.2% is inline.  It maintains the income growth target of 5.7%.  It expects expenses to grow but will aim to reduce them c. $700m in FY19 through FY 21 Kubota -2.9% sees higher steel prices weighing upon OP by c. ¥11B.  To offset this, the company will increase…

Asian Markets The region saw some pullback from yesterday’s gains.  Initially, the mainland Chinese manged to advance but gave ground later in the session.  In addition to profit taking, geopolitical risk may have taken some bid out of the region.  India launched air strikes upon what it described as terrorist camps inside Pakistan. Most sectors ended in the red.  Financials slid by more than 1% followed by IT, real estate and consumer discretionary names.  Defensives saw buying interest with healthcare improved by 0.5% and utilities also to the upside. Regarding geopolitics, Pres. Trump and Sup. Leader Kim Jong-un are both in Hanoi for the their second summit.  The two will continue to discuss “denuclearization” of the Korean peninsula. Other Important Headlines Standard Chartered’s +2.4% results are reassuring compared to the recent release from HSBC -0.4%.  The bank’s FY adj. PTP $3.86b is just a touch light of consensus.  The CET1 ratio of 14.2% is inline.  It maintains the income growth target of 5.7%.  It expects expenses to grow but will aim to reduce them c. $700m in FY19 through FY 21 Kubota -2.9% sees higher steel prices weighing upon OP by c. ¥11B.  To offset this, the company will increase…

CAPIS Global Markets 2/25/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/25/2019 at 10:57 am
by Matthew Kiselica on 02/25/2019

Asian Markets It is very much a top down day.  Pres. Trump indicated he would extend the March 1st tariff deadline citing significant progress in the Sino-U.S. trade negotiations.  Agreements are said to have been reached concerning intellectual property and technology et. al.  Perhaps under the radar were comments from Chinese Pres. Xi.  In a Politburo meeting, he discussed a commitment to continued reform for the finance sector. Those two factors caused Chinese equities to surge.  Shanghai and Shenzhen posted their strongest percentage gains in several years coupled with volumes that were also at multiple year highs.  Bloomberg noted all equities that had the word “securities” in their name advanced the limit up 10.0%. Across the region and buoyed by Chinese names, financials gained c. 3.5% with industrials and IT better by 2% or more.  Defensives lagged and telcos ended the day down small as a group with Chinese names pulling back from recent highs. Other Important Factors Pres. Trump is also softening his stance regarding Huawei and may drop charges against the firm.  This bolstered ZTE Corp +1.7%. Australian financials lagged their peers in other markets.  The Labor Party threatened to impose a A$640m levy upon banks and financials…

Asian Markets It is very much a top down day.  Pres. Trump indicated he would extend the March 1st tariff deadline citing significant progress in the Sino-U.S. trade negotiations.  Agreements are said to have been reached concerning intellectual property and technology et. al.  Perhaps under the radar were comments from Chinese Pres. Xi.  In a Politburo meeting, he discussed a commitment to continued reform for the finance sector. Those two factors caused Chinese equities to surge.  Shanghai and Shenzhen posted their strongest percentage gains in several years coupled with volumes that were also at multiple year highs.  Bloomberg noted all equities that had the word “securities” in their name advanced the limit up 10.0%. Across the region and buoyed by Chinese names, financials gained c. 3.5% with industrials and IT better by 2% or more.  Defensives lagged and telcos ended the day down small as a group with Chinese names pulling back from recent highs. Other Important Factors Pres. Trump is also softening his stance regarding Huawei and may drop charges against the firm.  This bolstered ZTE Corp +1.7%. Australian financials lagged their peers in other markets.  The Labor Party threatened to impose a A$640m levy upon banks and financials…

CAPIS EU Close Recap – 2/22/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 02/22/2019 at 12:51 pm
by Clayton Duff on 02/22/2019

For the most part gains on the day were kept in-check with Sweden though better by a percent.   Basic Resources and Tech held the top two spots for gainers, finishing 1.935 and 1.16% better.  The skew of sectors higher to lower was roughly 2 to 1 as volume was ~13% lower on the day. For the week the German Dax finished better by 1.4% with the FTSE 100 down .8%.  The French CAC40 rose 1.22% with Switzerland up 1.16%. Autos closed mixed in the auto sector on concerns President Trump could levy tariffs on the space.  Headlines noted the EU will hit back if the President enacts the Commerce Departments suggestions for a 25% tariff. Daimler +.2%, BMW -flat, VW +.1%.  Volkswagen reported inline FY18 revenues with op profit also as expected.  The company sees FY19 adj op margin at 6.5-7.5% vs the 7.3% seen in 2018.  The company though lost a court case whereas they were trying to assert that the software used to cheat emission tests in Europe was indeed legal.  The court said no potentially putting the company on the hook to compensate customers like they did in the States. SocGen finished up 1.4% post headlines they may…

For the most part gains on the day were kept in-check with Sweden though better by a percent.   Basic Resources and Tech held the top two spots for gainers, finishing 1.935 and 1.16% better.  The skew of sectors higher to lower was roughly 2 to 1 as volume was ~13% lower on the day. For the week the German Dax finished better by 1.4% with the FTSE 100 down .8%.  The French CAC40 rose 1.22% with Switzerland up 1.16%. Autos closed mixed in the auto sector on concerns President Trump could levy tariffs on the space.  Headlines noted the EU will hit back if the President enacts the Commerce Departments suggestions for a 25% tariff. Daimler +.2%, BMW -flat, VW +.1%.  Volkswagen reported inline FY18 revenues with op profit also as expected.  The company sees FY19 adj op margin at 6.5-7.5% vs the 7.3% seen in 2018.  The company though lost a court case whereas they were trying to assert that the software used to cheat emission tests in Europe was indeed legal.  The court said no potentially putting the company on the hook to compensate customers like they did in the States. SocGen finished up 1.4% post headlines they may…

TGIF Global Markets 2/22/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/22/2019 at 6:46 am
by Matthew Kiselica on 02/22/2019

Asian Markets The mainland Chinese indices outperformed with trade hopes pushing them higher.  Pres. Trump will meet with China’s Vice. Prem. Liu at 2:30 PM Eastern. There were also some comments regarding the securities industry that helped (see comments below).  However, the rest of the markets were mixed, ending with modest moves. With Chinese names leading, all the major sectors finished to the upside.  Financials and IT improved by 1% or more. On the macro front, RBA Gov. Lowe sees no argument for any rate adjustments in the “near term.”  He notes the outlook is more balanced than 6 months ago.  The RBNZ signaled proposals to increase lender capital requirements could lead to a rate cut.  Japan’s CPI readings were inline with estimates.  Home prices in China rose at the slowest m/m rate since April of last year. (All figures in macro section.) Other Important Items from the Region Chinese brokers saw heavy buying interest following word the Securities Assoc. of China (China’s version of FINRA) is seeking industry feedback regarding fee and tax reductions. Both Chinese and Australian officials denied yesterday’s report of a ban upon Australian coal imports in the port of Dalian. Newcrest Mining +0.6% has been named…

Asian Markets The mainland Chinese indices outperformed with trade hopes pushing them higher.  Pres. Trump will meet with China’s Vice. Prem. Liu at 2:30 PM Eastern. There were also some comments regarding the securities industry that helped (see comments below).  However, the rest of the markets were mixed, ending with modest moves. With Chinese names leading, all the major sectors finished to the upside.  Financials and IT improved by 1% or more. On the macro front, RBA Gov. Lowe sees no argument for any rate adjustments in the “near term.”  He notes the outlook is more balanced than 6 months ago.  The RBNZ signaled proposals to increase lender capital requirements could lead to a rate cut.  Japan’s CPI readings were inline with estimates.  Home prices in China rose at the slowest m/m rate since April of last year. (All figures in macro section.) Other Important Items from the Region Chinese brokers saw heavy buying interest following word the Securities Assoc. of China (China’s version of FINRA) is seeking industry feedback regarding fee and tax reductions. Both Chinese and Australian officials denied yesterday’s report of a ban upon Australian coal imports in the port of Dalian. Newcrest Mining +0.6% has been named…

CAPIS Global Markets 2/21/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/21/2019 at 6:54 am
by Matthew Kiselica on 02/21/2019

Asian Markets Following yesterday’s Fed minutes, the markets were mixed and most ended the day with minor moves.  Word regarding Sino-U.S. trade talks remains positive.  The two parties are said to be drafting 6 MOUs on key issues.  However, a strengthening yuan and comments from Chinese Prem. Li caused the mainland exchanges to give back earlier gains. Premier Li reiterated the always prudent “prudent policy” statements.  He added the domestic economy would not be flooded with liquidity.  Additionally, the local press downplayed chances of a rate cut by the PBoC in the near term.  The measure would only be used as a “last resort” if the local economy slowed “sharply.” Elsewhere on macro related issues, Japan’s preliminary Feb. Manuf. PMI is below the contraction mark.  This is the first contraction since Aug. 2016.  Australia’s composite PMI also fell below 50 but employment gained more than anticipated. This resulted in muted sector changes.   Consumer discretionary and IT gained less than 0.5%.  A subsector that outperformed is the Chinese airlines thanks to the yuan strengthening.  While a handful of sectors ended the day lower, those declines are minimal. Other Important Headlines Miners outside of Australia, especially Chinese names, gained with reports indicating…

Asian Markets Following yesterday’s Fed minutes, the markets were mixed and most ended the day with minor moves.  Word regarding Sino-U.S. trade talks remains positive.  The two parties are said to be drafting 6 MOUs on key issues.  However, a strengthening yuan and comments from Chinese Prem. Li caused the mainland exchanges to give back earlier gains. Premier Li reiterated the always prudent “prudent policy” statements.  He added the domestic economy would not be flooded with liquidity.  Additionally, the local press downplayed chances of a rate cut by the PBoC in the near term.  The measure would only be used as a “last resort” if the local economy slowed “sharply.” Elsewhere on macro related issues, Japan’s preliminary Feb. Manuf. PMI is below the contraction mark.  This is the first contraction since Aug. 2016.  Australia’s composite PMI also fell below 50 but employment gained more than anticipated. This resulted in muted sector changes.   Consumer discretionary and IT gained less than 0.5%.  A subsector that outperformed is the Chinese airlines thanks to the yuan strengthening.  While a handful of sectors ended the day lower, those declines are minimal. Other Important Headlines Miners outside of Australia, especially Chinese names, gained with reports indicating…

CAPIS Global Markets 2/20/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/20/2019 at 6:55 am
by Matthew Kiselica on 02/20/2019

Asian Markets A solid day for the region with a number of factors driving the markets higher.  India, the recent laggard, traded well with both S. Arabia and Japan seeking to forge closer economic ties.  All major sectors gained with materials and utilities higher by 1%. The key remains trade talks.  As you know, Pres. Trump made comments indicating the current March 1st deadline for negotiations with China is not set in stone.  Adding to optimism for those talks, Sen. Portman sees a “partial deal” in place by that date.   Elsewhere on the trade front, Japan wants to iron out trade talks with the U.S. ahead of a summit in May.  Regarding summits, Pres. Trump is upbeat regarding his meeting with N. Korean Sup. Leader Kim Jong Un. On the macro front, Japanese Jan. exports fell more than expected while imports held up better than expected resulting in a higher deficit than anticipated.  Interestingly, exports to China are lower by 17.4% y/y.  This helped boost stimulus hopes in Japan but raised worries in China. Other Important Headlines Macau gaming names have been given a boost by better than expected results at Melco Resorts and Ent.  In response, Citi is raising…

Asian Markets A solid day for the region with a number of factors driving the markets higher.  India, the recent laggard, traded well with both S. Arabia and Japan seeking to forge closer economic ties.  All major sectors gained with materials and utilities higher by 1%. The key remains trade talks.  As you know, Pres. Trump made comments indicating the current March 1st deadline for negotiations with China is not set in stone.  Adding to optimism for those talks, Sen. Portman sees a “partial deal” in place by that date.   Elsewhere on the trade front, Japan wants to iron out trade talks with the U.S. ahead of a summit in May.  Regarding summits, Pres. Trump is upbeat regarding his meeting with N. Korean Sup. Leader Kim Jong Un. On the macro front, Japanese Jan. exports fell more than expected while imports held up better than expected resulting in a higher deficit than anticipated.  Interestingly, exports to China are lower by 17.4% y/y.  This helped boost stimulus hopes in Japan but raised worries in China. Other Important Headlines Macau gaming names have been given a boost by better than expected results at Melco Resorts and Ent.  In response, Citi is raising…

CAPIS Global Markets 2/19/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/19/2019 at 6:39 am
by Matthew Kiselica on 02/19/2019

Asian Markets The region had a mixed day with most markets recording minor index moves.  This followed a strong day yesterday as positive trade comments from both the U.S. and China prompted buying interest.  Sectors were mixed, overall.  Healthcare and telcos gave way by a little more than 0.5%.  Providing support were real estate and financials but the advances are shy of 0.5%. Perhaps the most important macro development is BoJ Gov. Kuroda’s presentation to parliament.  He stated continued strength in the ¥ would prompt the central bank to add stimulus, if needed.  This caused the currency to give ground.  The AUD was also trading lower.  The RBA minutes were released and the central bank is concerned about the impact of falling home prices for the overall economy. Important Headlines Hang Seng Bk’s +1.0% FY ’18 NI is a beat at HK$ 24.21b vs. HK$23.38b expected.  FY Net Interest Income is HK$30.05b.  CET1 RATIO is a robust 16.6%.  The company set its FY18 dividend of HK$3.60/sh. Nutritional and health care supplier Blackmores -25.0% unsettled related Chinese consumer plays.  The company says H2 sales will slow due to changes in Chinese consumer buying habits. Cochlear -8.15% projects it will reach its…

Asian Markets The region had a mixed day with most markets recording minor index moves.  This followed a strong day yesterday as positive trade comments from both the U.S. and China prompted buying interest.  Sectors were mixed, overall.  Healthcare and telcos gave way by a little more than 0.5%.  Providing support were real estate and financials but the advances are shy of 0.5%. Perhaps the most important macro development is BoJ Gov. Kuroda’s presentation to parliament.  He stated continued strength in the ¥ would prompt the central bank to add stimulus, if needed.  This caused the currency to give ground.  The AUD was also trading lower.  The RBA minutes were released and the central bank is concerned about the impact of falling home prices for the overall economy. Important Headlines Hang Seng Bk’s +1.0% FY ’18 NI is a beat at HK$ 24.21b vs. HK$23.38b expected.  FY Net Interest Income is HK$30.05b.  CET1 RATIO is a robust 16.6%.  The company set its FY18 dividend of HK$3.60/sh. Nutritional and health care supplier Blackmores -25.0% unsettled related Chinese consumer plays.  The company says H2 sales will slow due to changes in Chinese consumer buying habits. Cochlear -8.15% projects it will reach its…

CAPIS TGIF Global Markets 2/15/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/15/2019 at 7:01 am
by Matthew Kiselica on 02/15/2019

Asian Markets Following yesterday’s disappointing U.S. sales data, the region traded lower.  However, there are other reasons the markets saw selling pressure.  Rumors indicate both parties still have significant hurdles to overcome to reach a Sino-U.S. trade accord.  (More on this later.)  Macro concerns also raised their head again.  Both Chinese CPI and PPI fell short of consensus.  The PPI slowed for the 5th consecutive month during January. The selling was widespread and all the major sectors ended the day to the downside.  Losses of 1% or more were experienced in real estate, financials, telcos, real estate and materials.  Macau gaming stocks were out of favor.  Chinese actions to reign in shadow banking activity especially pertaining to foreign currency transactions are a major concern. Other Important Headlines Coca Cola Bottling Japan -8.9% suffered an even worse drubbing than its parent following results. Kubota’s -7.0% FY results for OP and NI are light of its own projections by 7.2% and 4.4%, respectively Dai-Ichi Life -4.7% increased it FY sales outlook but they remained a touch below consensus. Lotte Shopping’s -1.8% Q4 OP is KRW 90.28b, missing the lowest analysts estimate. BAIC Motor -3.2% sees FY 2018 NP higher 95% y/y citing growth of…

Asian Markets Following yesterday’s disappointing U.S. sales data, the region traded lower.  However, there are other reasons the markets saw selling pressure.  Rumors indicate both parties still have significant hurdles to overcome to reach a Sino-U.S. trade accord.  (More on this later.)  Macro concerns also raised their head again.  Both Chinese CPI and PPI fell short of consensus.  The PPI slowed for the 5th consecutive month during January. The selling was widespread and all the major sectors ended the day to the downside.  Losses of 1% or more were experienced in real estate, financials, telcos, real estate and materials.  Macau gaming stocks were out of favor.  Chinese actions to reign in shadow banking activity especially pertaining to foreign currency transactions are a major concern. Other Important Headlines Coca Cola Bottling Japan -8.9% suffered an even worse drubbing than its parent following results. Kubota’s -7.0% FY results for OP and NI are light of its own projections by 7.2% and 4.4%, respectively Dai-Ichi Life -4.7% increased it FY sales outlook but they remained a touch below consensus. Lotte Shopping’s -1.8% Q4 OP is KRW 90.28b, missing the lowest analysts estimate. BAIC Motor -3.2% sees FY 2018 NP higher 95% y/y citing growth of…

Valentine’s Day Global Markets 2/14/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/14/2019 at 7:00 am
by Matthew Kiselica on 02/14/2019

Asian Markets The region’s markets were mixed with most indices posting modest moves in either direction.  Investors showed little response to the earlier report the U.S. trade tariff  deadline may be extended by 60 days.  The exception is the KOSPI which advanced more than 1%.  The bulk of the day’s advance was buying on the close due to expiry. In keeping with the markets, sectors were mixed.  Consumer staples and healthcare gained less than 0.5% while telcos gave ground by about that market. China’s January trade balance was stronger than expected.  In USD terms, exports rose 9.1% y/y vs. a decline of 3.3% expected.  Imports dipped 1.5% but that is well ahead of the 10.2% slide anticipated.  This results in a trade surplus of $39.2b. Japan’s Q4 GDP rose 1.4% which is inline.   Other Important Headlines Telstra -2.2% cut its dividend and is seeing margin erosion as rollout of NBN data sharing increases costs and competition. Newcrest Mining’s -1.4% H1 earnings are better by 104%.  However, the cost per ounce is higher by 11% during the period. MGM China’s +0.9% Q4 adj. property Ebitda rose 11% to $167m, topping estimates. Sunny Optical -5.0% issued a profit warning for FY ’18. Both…

Asian Markets The region’s markets were mixed with most indices posting modest moves in either direction.  Investors showed little response to the earlier report the U.S. trade tariff  deadline may be extended by 60 days.  The exception is the KOSPI which advanced more than 1%.  The bulk of the day’s advance was buying on the close due to expiry. In keeping with the markets, sectors were mixed.  Consumer staples and healthcare gained less than 0.5% while telcos gave ground by about that market. China’s January trade balance was stronger than expected.  In USD terms, exports rose 9.1% y/y vs. a decline of 3.3% expected.  Imports dipped 1.5% but that is well ahead of the 10.2% slide anticipated.  This results in a trade surplus of $39.2b. Japan’s Q4 GDP rose 1.4% which is inline.   Other Important Headlines Telstra -2.2% cut its dividend and is seeing margin erosion as rollout of NBN data sharing increases costs and competition. Newcrest Mining’s -1.4% H1 earnings are better by 104%.  However, the cost per ounce is higher by 11% during the period. MGM China’s +0.9% Q4 adj. property Ebitda rose 11% to $167m, topping estimates. Sunny Optical -5.0% issued a profit warning for FY ’18. Both…

CAPIS EU Close Recap – 2/13/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 02/13/2019 at 12:42 pm
by Clayton Duff on 02/13/2019

European indices managed decent gains with broad sector strength.  Basic Resources, Travel, Tech, Food, and Financials all saw gains of a percent or more.  Indices closed not too far off of highs with volume off just over 15% on the day.  As the US pulled back from early post-open highs European indices gave back little from their better levels. The better sentiment related to US trade talks with China led to solid gains today in the luxury space.  Richemont rose 4.8% with Kering up 3%. Heineken chugged 6% higher with FY revs, including organic beer volumes, and earnings seen up on the year. EDF shook off earlier weakness to close up 1.8% on headlines that the French gov is looking to purchase the balance of shares it does not own and take the name private.  The move could allow the firm to continue to pare dependence on nuclear reactors with the government pushing it more towards renewables. As highlighted earlier, Osram +14% rallied with headlines that firms Bain and Carlyle may be teaming up to bid for the firm. Osram did confirm they are in talks. Heavy economic releases are expected in China including FDI, New Yuan Loans, and trade data…

European indices managed decent gains with broad sector strength.  Basic Resources, Travel, Tech, Food, and Financials all saw gains of a percent or more.  Indices closed not too far off of highs with volume off just over 15% on the day.  As the US pulled back from early post-open highs European indices gave back little from their better levels. The better sentiment related to US trade talks with China led to solid gains today in the luxury space.  Richemont rose 4.8% with Kering up 3%. Heineken chugged 6% higher with FY revs, including organic beer volumes, and earnings seen up on the year. EDF shook off earlier weakness to close up 1.8% on headlines that the French gov is looking to purchase the balance of shares it does not own and take the name private.  The move could allow the firm to continue to pare dependence on nuclear reactors with the government pushing it more towards renewables. As highlighted earlier, Osram +14% rallied with headlines that firms Bain and Carlyle may be teaming up to bid for the firm. Osram did confirm they are in talks. Heavy economic releases are expected in China including FDI, New Yuan Loans, and trade data…

CAPIS Global Markets 2/11/2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 02/11/2019 at 12:48 pm
by Matthew Kiselica on 02/11/2019

Asian Headlines The Chinese markets had a solid return to trading following last week’s holiday.  The gains were triggered by two factors.  Low level Sino-U.S. trade talks are being conducted with higher level meetings to be held on the 14th and 15th of this week.  In addition, Pres. Trump signaled he would talk with Chinese Pres Xi ahead of the tariff truce deadline of March 1st.  The second key for Chinese traders were a number of encouraging statistics from the Lunar New Year.  We will highlight some of them below.   Political turmoil is unsettling the markets in Thailand.  Japan was closed for National Foundation Day. Most sectors gained with the Chinese names providing the broad boost.  IT improved by c. 1.4% following by a 1% gain among consumer staples.  Energy gave ground by c. 0.3%. Important Headlines Some of the Chinese statistics we flagged above include Chinese visitors to Macau rose 25.6% y/y.  Retail and catering sales jumped 8.5% y/y to CNY 1.01t.  Tourism revenue was also higher by +8.2% y/y. On a related note, Tencent +1.85% and Netease +1.8% are experiencing solid game sale increases following the roll out of New Year themed games..  During the period, they rose 8.0%…

Asian Headlines The Chinese markets had a solid return to trading following last week’s holiday.  The gains were triggered by two factors.  Low level Sino-U.S. trade talks are being conducted with higher level meetings to be held on the 14th and 15th of this week.  In addition, Pres. Trump signaled he would talk with Chinese Pres Xi ahead of the tariff truce deadline of March 1st.  The second key for Chinese traders were a number of encouraging statistics from the Lunar New Year.  We will highlight some of them below.   Political turmoil is unsettling the markets in Thailand.  Japan was closed for National Foundation Day. Most sectors gained with the Chinese names providing the broad boost.  IT improved by c. 1.4% following by a 1% gain among consumer staples.  Energy gave ground by c. 0.3%. Important Headlines Some of the Chinese statistics we flagged above include Chinese visitors to Macau rose 25.6% y/y.  Retail and catering sales jumped 8.5% y/y to CNY 1.01t.  Tourism revenue was also higher by +8.2% y/y. On a related note, Tencent +1.85% and Netease +1.8% are experiencing solid game sale increases following the roll out of New Year themed games..  During the period, they rose 8.0%…

CAPIS Global Recap – 2/7/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 02/07/2019 at 6:55 am
by Clayton Duff on 02/07/2019

Asian Headlines Energy names led lower with losses of over 2% as Discretionary, Material, and Real Estate names also dipped at least 2% on the Nikkei. All sectors were lower but the index was supported by massive gains in Softbank Group.  Conversely Australia closed higher on broad gains with solid gains in Financials, Health Care, and Energy names. The Kospi closed flat on the session with the Kosdaq up nicely after being shut since last Friday.  And speaking of South Korea press there have reported the country will up by 8% it defense cost sharing with the US.  A contribution of roughly 1.0T Won is expected. Post its announcement to repurchase 10% of its shares Softbank Group rallied 18%.   Additionally their Vision Fund reported they liquidated its position in Nvidia reaping nearly ¥400B.  The firm will also utilize ¥700B of funds raised in the IPO to pay down debt. Japanese chemicals fell after Asahi Kasei -4.8% cut their FY forecast citing slowdown in China.  Specifically petrochemicals were a focus along with automakers and smartphones. Mitsubishi Chemicals slipped 6.1% after it disappointed on earnings.  Performance chemicals and petrochemicals saw lowered profit with scheduled maintenance weighing.  Higher fixed costs for display films was…

Asian Headlines Energy names led lower with losses of over 2% as Discretionary, Material, and Real Estate names also dipped at least 2% on the Nikkei. All sectors were lower but the index was supported by massive gains in Softbank Group.  Conversely Australia closed higher on broad gains with solid gains in Financials, Health Care, and Energy names. The Kospi closed flat on the session with the Kosdaq up nicely after being shut since last Friday.  And speaking of South Korea press there have reported the country will up by 8% it defense cost sharing with the US.  A contribution of roughly 1.0T Won is expected. Post its announcement to repurchase 10% of its shares Softbank Group rallied 18%.   Additionally their Vision Fund reported they liquidated its position in Nvidia reaping nearly ¥400B.  The firm will also utilize ¥700B of funds raised in the IPO to pay down debt. Japanese chemicals fell after Asahi Kasei -4.8% cut their FY forecast citing slowdown in China.  Specifically petrochemicals were a focus along with automakers and smartphones. Mitsubishi Chemicals slipped 6.1% after it disappointed on earnings.  Performance chemicals and petrochemicals saw lowered profit with scheduled maintenance weighing.  Higher fixed costs for display films was…

CAPIS Global Recap – 2/6/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 02/06/2019 at 6:48 am
by Clayton Duff on 02/06/2019

Asian Headlines Slight gains were seen in the few open markets today with the Nikkei inching higher on Real Estate and Energy names. Australia saw the IT and Industrials sectors finish with gains of over 2% as Discretionary names and Materials finished better by over a percent. South Korea remains shut but will reopen tomorrow. The Aussie Dollar fell overnight with RBA Gov Lowe noting he sees the interest rate outlook balanced which is opposed to the prior view of a likely increase.  PM Abe noted job growth was what was important as he added the BoJ had yet to achieve its ever-elusive 2% inflation target. Softbank -2.7% fell despite 3Q profit up 19% YoY. Sales grew 5% with markets disappointed that the forecast and dividend remained unchanged. Founder M. Son spoke that he feels the company is highly undervalued, 59% in fact, when accounting for the value of its telco unit, Alibaba holdings, Sprint and Yahoo Japan.  His hopes are that the buyback of stock fueled by funds from their telco unit IPO will close the gap. Toyota fell .7% after paring FY NI by a fair amount.  The stock recovered from earlier lows even after the firm reported…

Asian Headlines Slight gains were seen in the few open markets today with the Nikkei inching higher on Real Estate and Energy names. Australia saw the IT and Industrials sectors finish with gains of over 2% as Discretionary names and Materials finished better by over a percent. South Korea remains shut but will reopen tomorrow. The Aussie Dollar fell overnight with RBA Gov Lowe noting he sees the interest rate outlook balanced which is opposed to the prior view of a likely increase.  PM Abe noted job growth was what was important as he added the BoJ had yet to achieve its ever-elusive 2% inflation target. Softbank -2.7% fell despite 3Q profit up 19% YoY. Sales grew 5% with markets disappointed that the forecast and dividend remained unchanged. Founder M. Son spoke that he feels the company is highly undervalued, 59% in fact, when accounting for the value of its telco unit, Alibaba holdings, Sprint and Yahoo Japan.  His hopes are that the buyback of stock fueled by funds from their telco unit IPO will close the gap. Toyota fell .7% after paring FY NI by a fair amount.  The stock recovered from earlier lows even after the firm reported…

CAPIS Global Recap – 2/5/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 02/05/2019 at 6:48 am
by Clayton Duff on 02/05/2019

Asian Headlines Australia’s central bank was in focus today, leaving their cash rate target unchanged at 1.5%.  Light inflation was still a concern with lower oil prices again targeted but should gradually pick-up.  For 2019 they see underlying inflation running around 2.00%, moving to 2.25% next year. Wage growth continues to lag leading to weak household consumption but unemployment continues to decline.  To the upside business investment is on the increase as is spending for public infrastructure.   The AUD$ moved higher on the day but has pared some gains. PMI Services in the country held steady at 51.0 with retail sales contracting slightly.  Banks there rallied with the government not cracking down as hard as expected in relation to years of probes covering bank charges to sales of inappropriate products.  The 76 recommendations by the Royal Commission did not include a forced split between banks and wealth management/financial advice units.  Westpac rallied 7.4% with Commonwealth Bank of Australia up 4.7%. Australia & New Zealand Bank rose 6.5%.   Not all was rosy in the financial space with mortgage brokers lower after trailing commissions were banned.  Mortgage Choice ended down 25% with Australian Finance Group off 30%.   In the building space James Hardie…

Asian Headlines Australia’s central bank was in focus today, leaving their cash rate target unchanged at 1.5%.  Light inflation was still a concern with lower oil prices again targeted but should gradually pick-up.  For 2019 they see underlying inflation running around 2.00%, moving to 2.25% next year. Wage growth continues to lag leading to weak household consumption but unemployment continues to decline.  To the upside business investment is on the increase as is spending for public infrastructure.   The AUD$ moved higher on the day but has pared some gains. PMI Services in the country held steady at 51.0 with retail sales contracting slightly.  Banks there rallied with the government not cracking down as hard as expected in relation to years of probes covering bank charges to sales of inappropriate products.  The 76 recommendations by the Royal Commission did not include a forced split between banks and wealth management/financial advice units.  Westpac rallied 7.4% with Commonwealth Bank of Australia up 4.7%. Australia & New Zealand Bank rose 6.5%.   Not all was rosy in the financial space with mortgage brokers lower after trailing commissions were banned.  Mortgage Choice ended down 25% with Australian Finance Group off 30%.   In the building space James Hardie…

CAPIS Global Recap – 2/4/2019

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 02/04/2019 at 6:42 am
by Clayton Duff on 02/04/2019

Asian Headlines With Lunar New Year celebrations in full swing turnover in the region for markets that were open were lower.  Shanghai/Shenzhen and Taiwan were shut and will be all week.  Korea too took part in the celebrations and will be shut until Thursday.  Singapore saw a half session and will reopen Thursday as well.  Lastly Hong Kong traded in the morning and will be closed until Friday.  Caixin Service PMI readings were out over the weekend, holding in at 53.6 vs the prior 53.9 result. Japan is open all week and finished with slight gain on the day with Energy, Financials, and Health Care names strong.  Both Brent and WTI continue to work higher, appearing to want to move up from an inverse head-and-shoulders pattern.   Energy names buoyed Australia higher as well ahead of the RBA meeting later today.   Materials fell on the session with concrete firm Boral off 8% on a profit warning.  Today’s Building Approval number Down Under that showed a 23% YoY drop was no help either. Honda fell 3.5% after Friday highlighting a weak 3Q op income reading followed by by a disappointing FY result as well.  Currency moves were cited coupled with slowing sales…

Asian Headlines With Lunar New Year celebrations in full swing turnover in the region for markets that were open were lower.  Shanghai/Shenzhen and Taiwan were shut and will be all week.  Korea too took part in the celebrations and will be shut until Thursday.  Singapore saw a half session and will reopen Thursday as well.  Lastly Hong Kong traded in the morning and will be closed until Friday.  Caixin Service PMI readings were out over the weekend, holding in at 53.6 vs the prior 53.9 result. Japan is open all week and finished with slight gain on the day with Energy, Financials, and Health Care names strong.  Both Brent and WTI continue to work higher, appearing to want to move up from an inverse head-and-shoulders pattern.   Energy names buoyed Australia higher as well ahead of the RBA meeting later today.   Materials fell on the session with concrete firm Boral off 8% on a profit warning.  Today’s Building Approval number Down Under that showed a 23% YoY drop was no help either. Honda fell 3.5% after Friday highlighting a weak 3Q op income reading followed by by a disappointing FY result as well.  Currency moves were cited coupled with slowing sales…

CAPIS FOMC Day Global Markets 1 30 2019

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 01/30/2019 at 7:13 am
by Matthew Kiselica on 01/30/2019

Asian Markets Asia was mixed with the markets generally awaiting a slew of important items including today’s FOMC meeting and tomorrow’s Sino-U.S. trade talks.  S. Korea outpeformed.  The Finance Ministry is considering a reduction to a transaction tax charged on equity trades.  Sectors were mixed with minimal moves, overall.  Consumer staples, consumer discretionary, utilities and healthcare gave way by c. 0.5%. Real estate improved by more than 0.5% with miners ahead by about that mark. Important Headlines Apple suppliers were mixed following its results out after the U.S. close.  Overall, they are reassuring following recent worries.  Chip suppliers rallied but display sunk.  That was also due to LG Display -3.7% seeing pressure on panel/screens this year. China Life -1.9% suffered multiple downgrades following yesterday’s outlook cut.  The company now sees FY ’18 NI down 50 to 70%! After yesterday’s close, Daiwa Sec. -6.5% revealed a 47.0% decline in OP. On the macro side of things, Japan’s December retail sales beat expectations as did Australia’s Q4 CPI.   S. Korean department store sales continued to fall in December but at a much slower rate than November. After today’s close there were a slew of earnings out across the region.  Those include Advantest, Canon,…

Asian Markets Asia was mixed with the markets generally awaiting a slew of important items including today’s FOMC meeting and tomorrow’s Sino-U.S. trade talks.  S. Korea outpeformed.  The Finance Ministry is considering a reduction to a transaction tax charged on equity trades.  Sectors were mixed with minimal moves, overall.  Consumer staples, consumer discretionary, utilities and healthcare gave way by c. 0.5%. Real estate improved by more than 0.5% with miners ahead by about that mark. Important Headlines Apple suppliers were mixed following its results out after the U.S. close.  Overall, they are reassuring following recent worries.  Chip suppliers rallied but display sunk.  That was also due to LG Display -3.7% seeing pressure on panel/screens this year. China Life -1.9% suffered multiple downgrades following yesterday’s outlook cut.  The company now sees FY ’18 NI down 50 to 70%! After yesterday’s close, Daiwa Sec. -6.5% revealed a 47.0% decline in OP. On the macro side of things, Japan’s December retail sales beat expectations as did Australia’s Q4 CPI.   S. Korean department store sales continued to fall in December but at a much slower rate than November. After today’s close there were a slew of earnings out across the region.  Those include Advantest, Canon,…

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