Trading Desk

1911 total posts

European Close June 3rd, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/03/2015 at 12:57 pm
by Matthew Kiselica on 06/03/2015

Closing Comments Europe ended the day to the upside but saw selling pressure towards the close with a number of the major indices closing at or near their respective lows. Some of the latter day selling may have been reaction to headlines indicated sanctions against Russia would be extended for 6 more months at the upcoming EU summit later this month. However, the tone of the 2nd half of the day was largely positive.   The retail sector, banks and chems led while food/bevies, basic resources and energy lagged.  None of the major sectors moved by 1%.  Volumes were lower by c. 7% overall. The key afternoon news was the ECB rate decision and Mr. Draghi’s press conference.  The central bank made no policy changes but did raise its EU CPI forecasts for the year to 0.3% from flat. Mr. Draghi stated QE was having precisely the desired effect and there were signs the regions economy was improving.  Therefore, there was no need to add to the current easing plan.  This caused the € to rally from the low 1.11’s to 1.125 and better (see chart below).   Conversely, regional sovereign bonds sold off with yields seeing increases of multiple basis points.…

Closing Comments Europe ended the day to the upside but saw selling pressure towards the close with a number of the major indices closing at or near their respective lows. Some of the latter day selling may have been reaction to headlines indicated sanctions against Russia would be extended for 6 more months at the upcoming EU summit later this month. However, the tone of the 2nd half of the day was largely positive.   The retail sector, banks and chems led while food/bevies, basic resources and energy lagged.  None of the major sectors moved by 1%.  Volumes were lower by c. 7% overall. The key afternoon news was the ECB rate decision and Mr. Draghi’s press conference.  The central bank made no policy changes but did raise its EU CPI forecasts for the year to 0.3% from flat. Mr. Draghi stated QE was having precisely the desired effect and there were signs the regions economy was improving.  Therefore, there was no need to add to the current easing plan.  This caused the € to rally from the low 1.11’s to 1.125 and better (see chart below).   Conversely, regional sovereign bonds sold off with yields seeing increases of multiple basis points.…

CAPIS International Summary June 3, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/03/2015 at 6:53 am
by Clayton Duff on 06/03/2015

Asian Headlines Varied returns overnight with mainland China pausing from its recent runup to close flat on the session. Hong Kong managed gains with Japan, South Korea, and Australia lower on the session. China initially ticked up post the better HSBC Services PMI reading, with their economist noting the strongest upturn in three years.  Hong Kong finished higher but off of highs depite HSBC PMI data light vs the prior reading.   Per TTN, Markit economists noted weakening output on a faster contraction of new orders.  Additionally, new business from the mainland fell at the fastest rate since December of 2008.  The PBoC yesterday said they will allow lenders to issue Certificates of Deposit to individuals and companies as they continue the march toward interest-rate liberalization.  Geely Automotive -4% underperformed today after UBS cut the name to Sell from Neutral.  CK Hutchison Holdings fell 4% as its spinoff, Cheung Kong Property -flat– IPO’d today.  Note: after the close, BYD Co said they plan to raise up to 15B Yuan via an A-share placement. Japan finished down as the ¥ strengthened slightly post better Markit Services and Composite PMI data readings.  The BoJ’s Shrai forecasted that its 2% target will be achieved at the end…

Asian Headlines Varied returns overnight with mainland China pausing from its recent runup to close flat on the session. Hong Kong managed gains with Japan, South Korea, and Australia lower on the session. China initially ticked up post the better HSBC Services PMI reading, with their economist noting the strongest upturn in three years.  Hong Kong finished higher but off of highs depite HSBC PMI data light vs the prior reading.   Per TTN, Markit economists noted weakening output on a faster contraction of new orders.  Additionally, new business from the mainland fell at the fastest rate since December of 2008.  The PBoC yesterday said they will allow lenders to issue Certificates of Deposit to individuals and companies as they continue the march toward interest-rate liberalization.  Geely Automotive -4% underperformed today after UBS cut the name to Sell from Neutral.  CK Hutchison Holdings fell 4% as its spinoff, Cheung Kong Property -flat– IPO’d today.  Note: after the close, BYD Co said they plan to raise up to 15B Yuan via an A-share placement. Japan finished down as the ¥ strengthened slightly post better Markit Services and Composite PMI data readings.  The BoJ’s Shrai forecasted that its 2% target will be achieved at the end…

CAPIS European Close June 2, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/02/2015 at 12:04 pm
by Matthew Kiselica on 06/02/2015

European Headlines Europe ended the day to the downside with little constructive seen on the Greek front while the U.S. markets once again provided no definitive direction.  Eurogroup Finance Minister head Dijjsselbloem downplayed rumors a Hellenic deal was near stating it was “still far from a deal with Greece.”  Spain and Italy outperformed the region with banking stocks proving the lift.  However, across all of the markets basic resources was the only sector make any significant advance.  Personal goods pulled back by over 2% followed by food/bevies, healthcare and travel/leisure. The travel/leisure  sector was impacted by continued increases in crude prices.   OPEC holding an international seminar tomorrow with its production meeting following on Friday.  However, most analysts do not expect any cut to production.  That sentiment has been underscored by the Saudi Oil Minister stating crude demand was picking up.  The travel sector was also burdened by reports of bomb threats made to flights heading from Europe to the States.  However, later in the session the threats were said to be “not credible.” May U.S. auto sales were released and were a focus for the sector.  Fiat Chrysler’s -0.7%  sales surpassed the +2.6% estimate increasing by 4.0%.  The shares initially responded well…

European Headlines Europe ended the day to the downside with little constructive seen on the Greek front while the U.S. markets once again provided no definitive direction.  Eurogroup Finance Minister head Dijjsselbloem downplayed rumors a Hellenic deal was near stating it was “still far from a deal with Greece.”  Spain and Italy outperformed the region with banking stocks proving the lift.  However, across all of the markets basic resources was the only sector make any significant advance.  Personal goods pulled back by over 2% followed by food/bevies, healthcare and travel/leisure. The travel/leisure  sector was impacted by continued increases in crude prices.   OPEC holding an international seminar tomorrow with its production meeting following on Friday.  However, most analysts do not expect any cut to production.  That sentiment has been underscored by the Saudi Oil Minister stating crude demand was picking up.  The travel sector was also burdened by reports of bomb threats made to flights heading from Europe to the States.  However, later in the session the threats were said to be “not credible.” May U.S. auto sales were released and were a focus for the sector.  Fiat Chrysler’s -0.7%  sales surpassed the +2.6% estimate increasing by 4.0%.  The shares initially responded well…

Greek Debt, European Implied Volatility, & The VIX

News Trading Desk Volatility Monitor

Volatility Monitor

posted by CAPIS on 06/02/2015 at 8:00 am
by CAPIS on 06/02/2015

As many of you noticed, the Volatility Monitor was in dry-dock for a two week hiatus.  SPX futures are off 3 points to 2106.25.  Greek jitters continue to weigh on European bourses.  The spot VIX finished 13.97 yesterday.  The VIX futures are all higher by a dime on average given the negative tone. The first of four Greek debt repayments is due at the end of the week.  All four are to be made in the month of June and total 1.6 billion euros payable to the IMF.  The problem as we all know is Greece is struggling to make such a payment.  Negotiations for a common proposal between creditors and Greece still continue.  Last night Greece submitted a proposal but has yet to hear from creditor institutions.  Apparently that doesn’t matter to Greek Prime Minister Tsipras.  “..we are not waiting for them to submit their plan… Greece is the one that submits the plan.”  Pretty comedic stuff coming from the debtor nation. As the deadline draws near, European equity markets have been choppy as of late.  Implied volatility, however, has been rising steadily since March.  DAX 1-month IV has climbed nearly 70% to 24% while the Euro Stoxx 50…

As many of you noticed, the Volatility Monitor was in dry-dock for a two week hiatus.  SPX futures are off 3 points to 2106.25.  Greek jitters continue to weigh on European bourses.  The spot VIX finished 13.97 yesterday.  The VIX futures are all higher by a dime on average given the negative tone. The first of four Greek debt repayments is due at the end of the week.  All four are to be made in the month of June and total 1.6 billion euros payable to the IMF.  The problem as we all know is Greece is struggling to make such a payment.  Negotiations for a common proposal between creditors and Greece still continue.  Last night Greece submitted a proposal but has yet to hear from creditor institutions.  Apparently that doesn’t matter to Greek Prime Minister Tsipras.  “..we are not waiting for them to submit their plan… Greece is the one that submits the plan.”  Pretty comedic stuff coming from the debtor nation. As the deadline draws near, European equity markets have been choppy as of late.  Implied volatility, however, has been rising steadily since March.  DAX 1-month IV has climbed nearly 70% to 24% while the Euro Stoxx 50…

Chop ’till you drop

News Trading Desk Morning Macro News

Morning Macro News

posted by CAPIS on 06/02/2015 at 7:17 am
by CAPIS on 06/02/2015

Good Morning Tuesday! My vacation was sorely needed last week, as my wife is just 3 months away from having our twins (girls). Clan Callahan is about to get much busier and a whole lot fuller! Yesterday was my first day back, so I gave myself 24 hrs to try and better understand where our market is headed… and, like most everyone else, still am unsure! Generally speaking, looking at last week’s trade with the SPX dropping Tuesday to test 2100 and the 50 DMA, then rising off it back to 2120, then dropping near it Friday again… just says more of the same: Chop. SPX settled higher for the merry month of May by +1.05% to 2107.39, which was also the highest monthly Close ever. Yesterday we opened the new month with some selling pressure, tested near 2100 (really we tested a LOD of 2102.54, which was 2100.25 on ES) and found support there to test near 2120 again. MOC volume was big on the first day (sell-side), so you saw a nice move in the afternoon off highs to close near the midpoint; up +0.21% to 2111.73. This also put us smack dab in the middle of some flat trend…

Good Morning Tuesday! My vacation was sorely needed last week, as my wife is just 3 months away from having our twins (girls). Clan Callahan is about to get much busier and a whole lot fuller! Yesterday was my first day back, so I gave myself 24 hrs to try and better understand where our market is headed… and, like most everyone else, still am unsure! Generally speaking, looking at last week’s trade with the SPX dropping Tuesday to test 2100 and the 50 DMA, then rising off it back to 2120, then dropping near it Friday again… just says more of the same: Chop. SPX settled higher for the merry month of May by +1.05% to 2107.39, which was also the highest monthly Close ever. Yesterday we opened the new month with some selling pressure, tested near 2100 (really we tested a LOD of 2102.54, which was 2100.25 on ES) and found support there to test near 2120 again. MOC volume was big on the first day (sell-side), so you saw a nice move in the afternoon off highs to close near the midpoint; up +0.21% to 2111.73. This also put us smack dab in the middle of some flat trend…

CAPIS International Summary June 2, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/02/2015 at 6:48 am
by Clayton Duff on 06/02/2015

Asian Headlines A generally weaker bias in Asia today with the exception of mainland China which rallied again.  Goldman noted despite manufacturing ticking up slightly the PBoC easing bias is expected to continue. Also, Moodys raised it forecast on the Chinese property market to Stable with sales values expected to grow up to 5% through to June of next year. The HK line of HSBC -.4% fell after Sky News reported that the bank will announce on June 9th that it will be cutting between 10,000 and 20,000 employees. Zoomlion Heavy +12% will purchase a 57% stake in an Italian renewable co. for €57M. Macau May casino revenue fell 37.1% y/y vs. the 38.5% drop est. TTN reported “vague chatter is circulating that Macau business is declining so much that regulators are looking at lowering taxes.  Post the close, retail sales by value were reported to fall 2.2% YoY with volumes meeting estimates, up 2.4%. In Japan, workers wages increased faster than the cost of living for the first time in two years as real cash earnings rose 0.1% YoY. Overall wages including overtime and bonuses rose 0.9%. NTT DoCoMo +3.9% targets a ROE of over 10% in 3 years and…

Asian Headlines A generally weaker bias in Asia today with the exception of mainland China which rallied again.  Goldman noted despite manufacturing ticking up slightly the PBoC easing bias is expected to continue. Also, Moodys raised it forecast on the Chinese property market to Stable with sales values expected to grow up to 5% through to June of next year. The HK line of HSBC -.4% fell after Sky News reported that the bank will announce on June 9th that it will be cutting between 10,000 and 20,000 employees. Zoomlion Heavy +12% will purchase a 57% stake in an Italian renewable co. for €57M. Macau May casino revenue fell 37.1% y/y vs. the 38.5% drop est. TTN reported “vague chatter is circulating that Macau business is declining so much that regulators are looking at lowering taxes.  Post the close, retail sales by value were reported to fall 2.2% YoY with volumes meeting estimates, up 2.4%. In Japan, workers wages increased faster than the cost of living for the first time in two years as real cash earnings rose 0.1% YoY. Overall wages including overtime and bonuses rose 0.9%. NTT DoCoMo +3.9% targets a ROE of over 10% in 3 years and…

European Closing Note June 1st, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 06/01/2015 at 11:15 am
by Matthew Kiselica on 06/01/2015

Market Comments Europe ended the day with mixed performance.   A vague report a deal with Greece would be concluded by the end of the week helped the market pare losses but that momentum lost traction when no follow up announcements were made. A lackluster U.S. open was also no help following mixed macro data.   To the contrary of the earlier rumors,  Italian FM Padoan was quoted as saying a Grexit “is certainly possible.”  While Athens was closed today, the Greek 10 yr. sovereign advanced by over 25 bps.  Most of of the rest of the region’s nations also saw their sovereign yields erode with the other PIIGS members seeing increases of c. 5 bps or more.  Sector performance saw healthcare lead with a 1% gain followed by travel and leisure and media.  Basic resources and energy created the downward pull with losses in the neighborhood of 0.8%.  Volumes were lower by c. 15.0%. The strength in healthcare was led by Roche +1.3% following positive oncological studies.  CNBC also noted there was some positive production data which helped lifted the sector in general. A pullback in both Brent and WTI of over 1% contributed to the softness among energy names.…

Market Comments Europe ended the day with mixed performance.   A vague report a deal with Greece would be concluded by the end of the week helped the market pare losses but that momentum lost traction when no follow up announcements were made. A lackluster U.S. open was also no help following mixed macro data.   To the contrary of the earlier rumors,  Italian FM Padoan was quoted as saying a Grexit “is certainly possible.”  While Athens was closed today, the Greek 10 yr. sovereign advanced by over 25 bps.  Most of of the rest of the region’s nations also saw their sovereign yields erode with the other PIIGS members seeing increases of c. 5 bps or more.  Sector performance saw healthcare lead with a 1% gain followed by travel and leisure and media.  Basic resources and energy created the downward pull with losses in the neighborhood of 0.8%.  Volumes were lower by c. 15.0%. The strength in healthcare was led by Roche +1.3% following positive oncological studies.  CNBC also noted there was some positive production data which helped lifted the sector in general. A pullback in both Brent and WTI of over 1% contributed to the softness among energy names.…

International Summary June 1, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 06/01/2015 at 7:03 am
by Clayton Duff on 06/01/2015

Asian Headlines Asian markets kicked off the week somewhat stronger with mainland China nicely higher, rebounding quite a bit from last Thursday/Friday’s drubbing. China’s official Manufacturing PMI rose in May to 50.2 just shy of the 50.3 est. and April’s 50.1 reading. Within that, new export orders and employment continued to contract. HSBC’s May Manufacturing PMI was 49.2 matching est. and vs. April’s 48.9 reading.  Again, reduced exports leading to the first contraction in output in 2015.  With this said, expectations of continued easing from the PBoC.  The PBoC also warned about a tick up in bad loans. Also, in what could have weighed today, 23 IPO’s are expected this week.  Huatai Securities +4.8% IPO’d today.   Zhaojin Mining -7.9% to pay 2.7b yuan for Shandong Ruihai stake. The prior number was for 1.2B Yuan but more gold resources were found thus raising the price. Word out that China may launch its first stock index option in September.  Macau’s gaming revenue fell in May for the twelfth straight month. Revenue fell 37.1% to 20.35b patacas. Japanese stocks closed flat, rebounding from earlier losses post Friday’s weakness in the States.  Toshiba +3.3% won the ability to push back its earnings release thus…

Asian Headlines Asian markets kicked off the week somewhat stronger with mainland China nicely higher, rebounding quite a bit from last Thursday/Friday’s drubbing. China’s official Manufacturing PMI rose in May to 50.2 just shy of the 50.3 est. and April’s 50.1 reading. Within that, new export orders and employment continued to contract. HSBC’s May Manufacturing PMI was 49.2 matching est. and vs. April’s 48.9 reading.  Again, reduced exports leading to the first contraction in output in 2015.  With this said, expectations of continued easing from the PBoC.  The PBoC also warned about a tick up in bad loans. Also, in what could have weighed today, 23 IPO’s are expected this week.  Huatai Securities +4.8% IPO’d today.   Zhaojin Mining -7.9% to pay 2.7b yuan for Shandong Ruihai stake. The prior number was for 1.2B Yuan but more gold resources were found thus raising the price. Word out that China may launch its first stock index option in September.  Macau’s gaming revenue fell in May for the twelfth straight month. Revenue fell 37.1% to 20.35b patacas. Japanese stocks closed flat, rebounding from earlier losses post Friday’s weakness in the States.  Toshiba +3.3% won the ability to push back its earnings release thus…

European Close May 29, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/29/2015 at 12:00 pm
by Clayton Duff on 05/29/2015

European indices closed at lows today, erasing a couple weeks worth of work.  With rebalancing today, volumes accelerating by day’s end to finish up 26%. All sectors were solidly in the red with Autos, Chemicals, Healthcare, Media, and Construction weaker by over 2%. European indices gave up earlier gains, trading lower as the US fell.  And today we continue to hear rumors of Grexit with denials later issued.  After the close, a Greek official said they will make their IMF payment on the 5th. Total’s -2% CEO today noting the turnaround in oil could take longer than it did in ’08 with the co focusing more on gas than oil now.  While he expects the dividend to stay where it is, they will not buy back shares until oil prices do rise.  He said don’t believe the rumors that their Hutchinson rubber unit is up for sale but did not rule out a sale in the future. Airport firm Fraport -2.2% as their CEO reiterated at their AGM he sees Frankfurt headcount up 4% vs the FY target of 2-3%.  UBS cut the name to Neutral. This weekend, watch for the official PMI and the HSBC China Manufacturing PMI reading…

European indices closed at lows today, erasing a couple weeks worth of work.  With rebalancing today, volumes accelerating by day’s end to finish up 26%. All sectors were solidly in the red with Autos, Chemicals, Healthcare, Media, and Construction weaker by over 2%. European indices gave up earlier gains, trading lower as the US fell.  And today we continue to hear rumors of Grexit with denials later issued.  After the close, a Greek official said they will make their IMF payment on the 5th. Total’s -2% CEO today noting the turnaround in oil could take longer than it did in ’08 with the co focusing more on gas than oil now.  While he expects the dividend to stay where it is, they will not buy back shares until oil prices do rise.  He said don’t believe the rumors that their Hutchinson rubber unit is up for sale but did not rule out a sale in the future. Airport firm Fraport -2.2% as their CEO reiterated at their AGM he sees Frankfurt headcount up 4% vs the FY target of 2-3%.  UBS cut the name to Neutral. This weekend, watch for the official PMI and the HSBC China Manufacturing PMI reading…

International Summary May 29th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/29/2015 at 7:07 am
by Matthew Kiselica on 05/29/2015

Asian Headlines China was in focus today as investors waited to see how the market would respond to yesterday’s sharp selloff and Shanghai saw volatile trading as a follow up.  After an initial uptick, the market quickly plunged 4% before rallying to the upside over the course of the morning.  The afternoon session saw a gain of over 1.5% before another pullback of 2% before settling for the day to the downside small.  After a day like that, we are sure traders were happy to end the week.  Tech and healthcare were the sectors that provided the biggest lift to the market.  Evergrande (-27.0%) placed shares below the initial price range.   Chow Tai Fook (+1.3%) reportedly is considering a bid for Glenn’s favorite pearl jeweler, Tasaki (+9.5%).  Macau’s GDP shrank 24.5% y/y during Q1 but the underlying gaming stocks were mixed. Japan’s trading day amounted to a push with selling pressure into the close mostly erasing gains on the day. Healthcare lagged declining by close to 1% and financials saw some profit taking.  Most other sector moves were 0.5% or less.  April CPI rose 0.3% y/y vs. the 0.2% estimate and well below the prior reading of 2.2%.   The ¥ showed…

Asian Headlines China was in focus today as investors waited to see how the market would respond to yesterday’s sharp selloff and Shanghai saw volatile trading as a follow up.  After an initial uptick, the market quickly plunged 4% before rallying to the upside over the course of the morning.  The afternoon session saw a gain of over 1.5% before another pullback of 2% before settling for the day to the downside small.  After a day like that, we are sure traders were happy to end the week.  Tech and healthcare were the sectors that provided the biggest lift to the market.  Evergrande (-27.0%) placed shares below the initial price range.   Chow Tai Fook (+1.3%) reportedly is considering a bid for Glenn’s favorite pearl jeweler, Tasaki (+9.5%).  Macau’s GDP shrank 24.5% y/y during Q1 but the underlying gaming stocks were mixed. Japan’s trading day amounted to a push with selling pressure into the close mostly erasing gains on the day. Healthcare lagged declining by close to 1% and financials saw some profit taking.  Most other sector moves were 0.5% or less.  April CPI rose 0.3% y/y vs. the 0.2% estimate and well below the prior reading of 2.2%.   The ¥ showed…

European Close May 28, 2018

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/28/2015 at 11:25 am
by Clayton Duff on 05/28/2015

A reversal of yesterday’s action in Europe with markets falling with the US open.  By day’s end, volumes were 18% weaker on the session. Tech managed to finish up .88% with Food names up small.  As earlier, Auto and Insurers are weaker by over a percent with the balance of sectors down as well. Markets came off of lows with the IMF noting Greece is expected to make their IMF payment.  However, a EU official did note that despite what Greece was mentioning, both sides were still a fair distance apart on an agreement. Cap Gemini +.2% confirmed their FY operating margin at 9.5-9.8%, ahead of the 9.2% seen last year.  They added they hope to tick that higher to 12.5-13%. STMicro +3.6% higher with one broker noting the Avago/Broadcom deal could portend to STM picking a unit from Avago. Swatch +.3% as their CEO said global demand for Swiss watches remains strong with a Swatch mobile payment-empowered model due soon. Kingfisher +2.2% sees 1Q total retail profit at £150M, ahead of the 148.5M estimates.  They company continues to lower costs as it closes several more B&Q underperforming stores. Tonight, Japanese jobs data out along with CPI, Industrial Production, and Vehicle…

A reversal of yesterday’s action in Europe with markets falling with the US open.  By day’s end, volumes were 18% weaker on the session. Tech managed to finish up .88% with Food names up small.  As earlier, Auto and Insurers are weaker by over a percent with the balance of sectors down as well. Markets came off of lows with the IMF noting Greece is expected to make their IMF payment.  However, a EU official did note that despite what Greece was mentioning, both sides were still a fair distance apart on an agreement. Cap Gemini +.2% confirmed their FY operating margin at 9.5-9.8%, ahead of the 9.2% seen last year.  They added they hope to tick that higher to 12.5-13%. STMicro +3.6% higher with one broker noting the Avago/Broadcom deal could portend to STM picking a unit from Avago. Swatch +.3% as their CEO said global demand for Swiss watches remains strong with a Swatch mobile payment-empowered model due soon. Kingfisher +2.2% sees 1Q total retail profit at £150M, ahead of the 148.5M estimates.  They company continues to lower costs as it closes several more B&Q underperforming stores. Tonight, Japanese jobs data out along with CPI, Industrial Production, and Vehicle…

International Summary May 28th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/28/2015 at 7:16 am
by Matthew Kiselica on 05/28/2015

Asian Headlines Greater China was the story of the day as the region’s markets succumbed to heavy profit taking.  The markets already had a negative bias given further margin trading tightening by brokers.  However, the sentiment was further hurt when the PBoC sold repos draining liquidity from the financial system.  Selling accelerated during the latter portion of the session as buyers finally threw in the towel, sending the major indices to their respective lows.   Given the margin trading moves, brokers were initially some of the hardest names hit.  Banks also saw selling following a Chinese sovereign fund trimming positions in ICBC (-2.8%) & CCB (-3.7%).   By the end of the day day, selling had spread through all sectors and in Shanghai most saw losses of 5% or more.  The telecom sector was the only one in Shanghai to advance. Japan managed to gain for the 10th consecutive session as continued ¥ weakness pushes the market higher.  The ¥’s decline to 124 marks its weakest level against the Greenback since ’02.  Exporters lead the market to the upside.  Speculation of a reduction in cross-holdings, a potential buyback and price target increase at Credit Suisse lifted Mizuho Fncl (+5.9%).  April retail sales rose 5%…

Asian Headlines Greater China was the story of the day as the region’s markets succumbed to heavy profit taking.  The markets already had a negative bias given further margin trading tightening by brokers.  However, the sentiment was further hurt when the PBoC sold repos draining liquidity from the financial system.  Selling accelerated during the latter portion of the session as buyers finally threw in the towel, sending the major indices to their respective lows.   Given the margin trading moves, brokers were initially some of the hardest names hit.  Banks also saw selling following a Chinese sovereign fund trimming positions in ICBC (-2.8%) & CCB (-3.7%).   By the end of the day day, selling had spread through all sectors and in Shanghai most saw losses of 5% or more.  The telecom sector was the only one in Shanghai to advance. Japan managed to gain for the 10th consecutive session as continued ¥ weakness pushes the market higher.  The ¥’s decline to 124 marks its weakest level against the Greenback since ’02.  Exporters lead the market to the upside.  Speculation of a reduction in cross-holdings, a potential buyback and price target increase at Credit Suisse lifted Mizuho Fncl (+5.9%).  April retail sales rose 5%…

European Closing May 27, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/27/2015 at 11:45 am
by Clayton Duff on 05/27/2015

European markets seeing a nice rebound today, rallying higher at the US open to close near day’s highs.  On an encouraging note, markets shook off their slow volume this morning to pick up activity as indices rallied. All sectors finished in the green with Utilities, Construction, Chemicals, and Banks all seeing gains at 1.7% or better. In addition to the better sentiment in the States, word that Greek officials and creditors have made some headway concerning debt and pension issues.  This after a report this morning that the ELA was not increased .  Greek officials later said Greek bank deposits are safe and that while the pension system will be changed, pensions won’t be cut. Roche +1.6% will report new data related to rheumatoid arthritis and other autoimmune conditions at the European League Against Rheumatism Annual Congress to convene in Rome on June 10th. Bayer +1.8% said they will separate out their MaterialScience plastics division on September 1st.  CEO Dekkers noted that as the industry is going, they will market seeds and crop protection together. And, as we noted in our morning piece, IAG +3.2% winning the approval to purchase Aer Lingus with 30% Aer Lingus owner Ryanair +2.4% in the catbird…

European markets seeing a nice rebound today, rallying higher at the US open to close near day’s highs.  On an encouraging note, markets shook off their slow volume this morning to pick up activity as indices rallied. All sectors finished in the green with Utilities, Construction, Chemicals, and Banks all seeing gains at 1.7% or better. In addition to the better sentiment in the States, word that Greek officials and creditors have made some headway concerning debt and pension issues.  This after a report this morning that the ELA was not increased .  Greek officials later said Greek bank deposits are safe and that while the pension system will be changed, pensions won’t be cut. Roche +1.6% will report new data related to rheumatoid arthritis and other autoimmune conditions at the European League Against Rheumatism Annual Congress to convene in Rome on June 10th. Bayer +1.8% said they will separate out their MaterialScience plastics division on September 1st.  CEO Dekkers noted that as the industry is going, they will market seeds and crop protection together. And, as we noted in our morning piece, IAG +3.2% winning the approval to purchase Aer Lingus with 30% Aer Lingus owner Ryanair +2.4% in the catbird…

International Summary May 27th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/27/2015 at 6:21 am
by Matthew Kiselica on 05/27/2015

Asian Headlines The majority of markets gave ground as the weaker handoff from the West weighed upon market sentiment.  However, the recent market leaders Mainland China and Japan did manage advances on the day. Greater China was mixed but the Shanghai Composite did spend most of the afternoon to the upside. Earlier the region was impacted by reports of higher trading margin requirements by brokers.   Macro also dampened easing hopes following April Industrial companies profits which rose 2.6% y/y which is the first annual increase since Sept. ’14.  Following yesterday’s IMF/Yuan announcement, the PBoC set the Yuan mid-point at 6.1198 which is the weakest since April 28th.  Belle Intl’s (+3.0%) FY earnings surpassed expectations. The CK Hutchison shares are now trading ex the spin-off of CK Properties which will commence trading on June 3rd.   Zijin Mining (+16.4%) will spend $710m to purchase project stakes from Barrick Gold and Ivanhoe Mines.  All 9 stocks that debuted trading post their IPOs were limit up.   HSBC cut its 2015 Chinese GDP growth to 7.1% from 7.3% Japan fluctuated once again before nudging higher by the close. The prospect of higher interest rates in the States caused the ¥ to reach the 123 level at times during…

Asian Headlines The majority of markets gave ground as the weaker handoff from the West weighed upon market sentiment.  However, the recent market leaders Mainland China and Japan did manage advances on the day. Greater China was mixed but the Shanghai Composite did spend most of the afternoon to the upside. Earlier the region was impacted by reports of higher trading margin requirements by brokers.   Macro also dampened easing hopes following April Industrial companies profits which rose 2.6% y/y which is the first annual increase since Sept. ’14.  Following yesterday’s IMF/Yuan announcement, the PBoC set the Yuan mid-point at 6.1198 which is the weakest since April 28th.  Belle Intl’s (+3.0%) FY earnings surpassed expectations. The CK Hutchison shares are now trading ex the spin-off of CK Properties which will commence trading on June 3rd.   Zijin Mining (+16.4%) will spend $710m to purchase project stakes from Barrick Gold and Ivanhoe Mines.  All 9 stocks that debuted trading post their IPOs were limit up.   HSBC cut its 2015 Chinese GDP growth to 7.1% from 7.3% Japan fluctuated once again before nudging higher by the close. The prospect of higher interest rates in the States caused the ¥ to reach the 123 level at times during…

European Close 05/26/2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/26/2015 at 11:08 am
by Clayton Duff on 05/26/2015

European indices finished just off lows with the FTSE and the DAX at lows.  Volume continued to be lackluster, off 13% vs the last 20 day’s activity. Other than Travel names, all sectors finished down with Chemicals, Basic Resources, Energy, Utilities, and Autos all off by over a percent. With the US pulling back from recent highs, Europe rejecting 50 day moving average lines to finish mostly lower on the day. Recent Fed official comments raising concerns of a rate hike in the US along with verbal sparring between EU leaders and Greek officials weighing on markets.  The € trading off, now below 1.09 with the £ also seeing weakness. Fiat +3.7% higher on word the CEO Marchionne asked to meet with GM in March concerning a merger but was rejected.  Markets though are viewing his intent to find a buyer/partner for the firm as a positive. Ferragamo +3.7% blipping higher as they receive over 20% of their sales from China, which cut import duties on some luxury goods.  Tod’s +2% to benefit as well. Deutsche Bank -2.3% will pay a $55M fine to the US SEC to settle allegations related to a derivatives probe concerning collateralized insurance agreements.  The…

European indices finished just off lows with the FTSE and the DAX at lows.  Volume continued to be lackluster, off 13% vs the last 20 day’s activity. Other than Travel names, all sectors finished down with Chemicals, Basic Resources, Energy, Utilities, and Autos all off by over a percent. With the US pulling back from recent highs, Europe rejecting 50 day moving average lines to finish mostly lower on the day. Recent Fed official comments raising concerns of a rate hike in the US along with verbal sparring between EU leaders and Greek officials weighing on markets.  The € trading off, now below 1.09 with the £ also seeing weakness. Fiat +3.7% higher on word the CEO Marchionne asked to meet with GM in March concerning a merger but was rejected.  Markets though are viewing his intent to find a buyer/partner for the firm as a positive. Ferragamo +3.7% blipping higher as they receive over 20% of their sales from China, which cut import duties on some luxury goods.  Tod’s +2% to benefit as well. Deutsche Bank -2.3% will pay a $55M fine to the US SEC to settle allegations related to a derivatives probe concerning collateralized insurance agreements.  The…

A shortened week with lots of eco.

News Trading Desk Morning Macro News

Morning Macro News

posted by CAPIS on 05/26/2015 at 7:02 am
by CAPIS on 05/26/2015

Happy Tuesday to you all, I’m leaving tomorrow to take my pregnant wife (twins) and daughter down to Austin for some much needed R&R, so this will be my sole comment for the week. The low volume continued throughout last week as the Memorial Day weekend loomed large and new highs made on Wednesday with some sorry eco made everyone pause. As I said Wednesday morning, I was looking for (most likely) the High of Week with the FOMC Minutes. We did just that with a new ATH at 2134.72, which was faded almost instantly. Rather that continue to sell-off, the market took the opportunity to consolidate and simply create some value in the 2125-2130 range. Friday’s low volume into the holiday saw some profit taking into the Close  with us having no where to go. We settled lower by -0.22% to 2126.06, which was still a weekly increase of 0.16%. The 10-year yield is still hanging near its 50% retracement level of 2.1920 (see below chart), and finding support on its downward sloping (but flattening also) 200 DMA. As far as anything troubling with the current move higher for our SPX, I see the Dow Transport Index making new…

Happy Tuesday to you all, I’m leaving tomorrow to take my pregnant wife (twins) and daughter down to Austin for some much needed R&R, so this will be my sole comment for the week. The low volume continued throughout last week as the Memorial Day weekend loomed large and new highs made on Wednesday with some sorry eco made everyone pause. As I said Wednesday morning, I was looking for (most likely) the High of Week with the FOMC Minutes. We did just that with a new ATH at 2134.72, which was faded almost instantly. Rather that continue to sell-off, the market took the opportunity to consolidate and simply create some value in the 2125-2130 range. Friday’s low volume into the holiday saw some profit taking into the Close  with us having no where to go. We settled lower by -0.22% to 2126.06, which was still a weekly increase of 0.16%. The 10-year yield is still hanging near its 50% retracement level of 2.1920 (see below chart), and finding support on its downward sloping (but flattening also) 200 DMA. As far as anything troubling with the current move higher for our SPX, I see the Dow Transport Index making new…

International Summary May 26th, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/26/2015 at 6:59 am
by Matthew Kiselica on 05/26/2015

Asian Headlines China once again led the region as Hong Kong returned from Buddha’s Birthday holiday to play catch up with the Mainland.  The same themes from yesterday continued to propel the markets: approval of HK/Mailland cross border mutual fund sales and the announcement of over 1,000 infrastructure projects.  Add to that mix, the reduction in certain import duties.  Therefore,  financials, infrastructure plays and shipping stocks continued to move higher i.e.: HK Exchange (+5.4%),    Citic Secs. (+2.5%), & China Shipping Cont (+1.8%).  Renhe Commercial Hold. (+24.5%)  stated it is unaware of any reason for recent price movement and volume in the shares.  Orient Overseas (-4.0%) was cut to neutral at Credit Suisse.  Well after the close, the IMF stated the Yuan is NO longer undervalued.  The currency has moved from c. 6.2065 to 6.2035. Japanese stocks vacillated after yesterday’s gains despite the ¥ weakening further to the 122 level.  Suntory Bev. (-1.7%) and Japan Tobacco (-0.15%) were in focus following Suntory’s purchase of JT’s beverage unit.  Nippon Paper (+3.5%) sees OP will more than double between FY ’18 and FY ’15.  The Nikkei alleges Toshiba (+0.15%) will not declare a final dividend due to the current accounting probe.    April Services PPI was…

Asian Headlines China once again led the region as Hong Kong returned from Buddha’s Birthday holiday to play catch up with the Mainland.  The same themes from yesterday continued to propel the markets: approval of HK/Mailland cross border mutual fund sales and the announcement of over 1,000 infrastructure projects.  Add to that mix, the reduction in certain import duties.  Therefore,  financials, infrastructure plays and shipping stocks continued to move higher i.e.: HK Exchange (+5.4%),    Citic Secs. (+2.5%), & China Shipping Cont (+1.8%).  Renhe Commercial Hold. (+24.5%)  stated it is unaware of any reason for recent price movement and volume in the shares.  Orient Overseas (-4.0%) was cut to neutral at Credit Suisse.  Well after the close, the IMF stated the Yuan is NO longer undervalued.  The currency has moved from c. 6.2065 to 6.2035. Japanese stocks vacillated after yesterday’s gains despite the ¥ weakening further to the 122 level.  Suntory Bev. (-1.7%) and Japan Tobacco (-0.15%) were in focus following Suntory’s purchase of JT’s beverage unit.  Nippon Paper (+3.5%) sees OP will more than double between FY ’18 and FY ’15.  The Nikkei alleges Toshiba (+0.15%) will not declare a final dividend due to the current accounting probe.    April Services PPI was…

Capis European Close May 22, 2015

News Trading Desk International Summary

International Summary

posted by Matthew Kiselica on 05/22/2015 at 12:34 pm
by Matthew Kiselica on 05/22/2015

European Close   The region was mixed with a number of indices posting scant moves on the day.   An uninspiring Wall Street open along with little to no concrete Greek news from meetings in Riga  contributed to the lackluster day.  No sector moved by 1% but financials and healthcare led while tech and energy lagged. Volumes were lower by more than 30.0%; however, that was an improvement over earlier in the session when they were lower by more than 40.0%.   The lower volumes were impacted by the approaching U.S. holiday along with 3 day weekends in the U.K., Austria, Denmark,  Hong Kong, S, Korea, Norway, Sweden and Switzerland. The U.K. closed to the upside helped by Vodafone (+4.5%) and HSBC (+0.9%).   Vodafone continues to move on the potential for a link up with Liberty Global.  HSBC is exploring “options” regarding its Brazilian operations.  These helped offset weakness in the energy sector which declined due a pull back in crude. Elsewhere on the M&A front, Areva (-1.7%) carries on talks with EDF (+0.5%) and other other investors regarding some type of tie up and/or asset sales.  Dragon Oil (+0.7%) shrugged off initial profit taking following yesterday’s offer from Emirates National.   Richemont…

European Close   The region was mixed with a number of indices posting scant moves on the day.   An uninspiring Wall Street open along with little to no concrete Greek news from meetings in Riga  contributed to the lackluster day.  No sector moved by 1% but financials and healthcare led while tech and energy lagged. Volumes were lower by more than 30.0%; however, that was an improvement over earlier in the session when they were lower by more than 40.0%.   The lower volumes were impacted by the approaching U.S. holiday along with 3 day weekends in the U.K., Austria, Denmark,  Hong Kong, S, Korea, Norway, Sweden and Switzerland. The U.K. closed to the upside helped by Vodafone (+4.5%) and HSBC (+0.9%).   Vodafone continues to move on the potential for a link up with Liberty Global.  HSBC is exploring “options” regarding its Brazilian operations.  These helped offset weakness in the energy sector which declined due a pull back in crude. Elsewhere on the M&A front, Areva (-1.7%) carries on talks with EDF (+0.5%) and other other investors regarding some type of tie up and/or asset sales.  Dragon Oil (+0.7%) shrugged off initial profit taking following yesterday’s offer from Emirates National.   Richemont…

CAPIS International Summary May 22, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/22/2015 at 7:00 am
by Clayton Duff on 05/22/2015

Asian Headlines China finished off the week strong with South Korea nicely higher as well. Japan and Australia finishing just above flat. Shanghai hit a new 7 year high driven by Materials, Energy, and Consumer Staples. TTN noting margin debt rose 5% this week with the composite up over 7%. Easing hopes also still continue the weak PMI number and expectations for a soft summer. Li & Fung -2.3% after Walmart pulled some goods sourcing biz from the firm with concern other retailers may do the same. China Railway Construction +1.4% higher as consortium that it has 51% control of won a 4.99B yuan Israel rail project. BOC Hong Kong Holdings +8.2% as it will sell a bank unit and invest into banking ops/assets held currently by its parent. The Nikkei closed up small as the BoJ did as expected and gave a somewhat better economic assessment revision. They noted the economy “continues to recovery moderately” adding consumption and investment is improving. On this, concern over further easing.  Although the CPI rate is still flat, they reiterated inflation expectations are rising longer-term.  Canon -1.7%% shares were downgraded at Deutsche Bank to Sell. Australia –flat.  Cardno +19% an undisclosed investor bought…

Asian Headlines China finished off the week strong with South Korea nicely higher as well. Japan and Australia finishing just above flat. Shanghai hit a new 7 year high driven by Materials, Energy, and Consumer Staples. TTN noting margin debt rose 5% this week with the composite up over 7%. Easing hopes also still continue the weak PMI number and expectations for a soft summer. Li & Fung -2.3% after Walmart pulled some goods sourcing biz from the firm with concern other retailers may do the same. China Railway Construction +1.4% higher as consortium that it has 51% control of won a 4.99B yuan Israel rail project. BOC Hong Kong Holdings +8.2% as it will sell a bank unit and invest into banking ops/assets held currently by its parent. The Nikkei closed up small as the BoJ did as expected and gave a somewhat better economic assessment revision. They noted the economy “continues to recovery moderately” adding consumption and investment is improving. On this, concern over further easing.  Although the CPI rate is still flat, they reiterated inflation expectations are rising longer-term.  Canon -1.7%% shares were downgraded at Deutsche Bank to Sell. Australia –flat.  Cardno +19% an undisclosed investor bought…

CAPIS International Summary May 21, 2015

News Trading Desk International Summary

International Summary

posted by Clayton Duff on 05/21/2015 at 8:02 am
by Clayton Duff on 05/21/2015

Asian Headlines. Markets generally higher overnight in Asia with Hong Kong a small laggard as IT and Consumer Staples fell.  Focus of course was on the HSBC Manufacturing PMI data in China which again disappointed. Chinese manufacturing remained stagnant with HSBC’s Flash PMI reading at 49.1 just shy of the 49.3 estimate. New export orders declined with both domestic and overseas demand softening.  On the contractionary number (the 5th month in a row), Chinese names advanced again on speculation the government will step up efforts to stimulate the economy. Additionally, Premier Li noted the country still has the ability to meet their FY target of 7%.  China Cosco +8.6% and China Shipping Dev. +4.5% form a JV to buy 4 ships from Vale for $445m. Chalco -1.2% BI reports China’s aluminum surplus may worsen on direct power sales. Tomorrow, the BoJ will release its monetary policy statement with the Nikkei expecting an upward revision post Tuesday’s GDP surprise. Today, the Markit/JMMA May Flash Manufacturing PMI was released at 50.9 vs April’s 49.9 reading. Panasonic +2.3% Nomura raised the shares to Buy from Neutral. The firm will also focus funds towards the auto biz. Tokyo Electric +6.7% to revise business plan…

Asian Headlines. Markets generally higher overnight in Asia with Hong Kong a small laggard as IT and Consumer Staples fell.  Focus of course was on the HSBC Manufacturing PMI data in China which again disappointed. Chinese manufacturing remained stagnant with HSBC’s Flash PMI reading at 49.1 just shy of the 49.3 estimate. New export orders declined with both domestic and overseas demand softening.  On the contractionary number (the 5th month in a row), Chinese names advanced again on speculation the government will step up efforts to stimulate the economy. Additionally, Premier Li noted the country still has the ability to meet their FY target of 7%.  China Cosco +8.6% and China Shipping Dev. +4.5% form a JV to buy 4 ships from Vale for $445m. Chalco -1.2% BI reports China’s aluminum surplus may worsen on direct power sales. Tomorrow, the BoJ will release its monetary policy statement with the Nikkei expecting an upward revision post Tuesday’s GDP surprise. Today, the Markit/JMMA May Flash Manufacturing PMI was released at 50.9 vs April’s 49.9 reading. Panasonic +2.3% Nomura raised the shares to Buy from Neutral. The firm will also focus funds towards the auto biz. Tokyo Electric +6.7% to revise business plan…

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.