CAPIS Global Markets
Markets Overview It should come as no surprise Asia traded lower following all the trade headlines that prompted the markets in the West to sell-off on Friday. The Mainland Chinese markets fared better then peers. India was the standout with tax on foreign investors being scaled back. Money moved to safety with the ¥ strengthening…
Markets Overview
It should come as no surprise Asia traded lower following all the trade headlines that prompted the markets in the West to sell-off on Friday. The Mainland Chinese markets fared better then peers. India was the standout with tax on foreign investors being scaled back. Money moved to safety with the ¥ strengthening today, through 105 vs the dollar before paring the advance later.
Geopolitics also kept investors on the back foot. Iran has fired a new missile. Iran showed at the G7 and met with Macron apparently with Pres. Trump’s blessing. North Korea launched more missiles. Hong Kong protesters were met with teargas and bullets as sensor-equipped lampposts were toppled in their anti-surveillance rally.
All the major sectors end the day in the red. Telcos and IT are lower by 1.5% followed by energy, utilities and real estate.
Initially, Europe was adding to last week’s losses. However, the markets have made some progress following supportive comments from Pres. Trump. He claims Chinese representatives called over the weekend to resume trade talks. He also spoke about Pres. Xi in glowing terms. He also stated he does not want to impose tariffs on European autos. Volumes are decidedly lower with the U.K. closed.
Most sectors are trading well and autos are higher by more than 1%. Media, travel and financials are down small.
Corporate Headlines
- Sinopec -2.6% 1H IFRS Net fell 24% YoY. Their refining business is a culprit with the unit seeing operating profit down 51% even while exploration & production moved back into the black.
- H1 Anta Sport -1.4% revenues and NI are better than expected. This was the first report which included Amer Sports information.
- China Hongqiao -2.6% is cutting guidance and recommending against payment of an interim dividend.
On Our Side of the Pond
- Way south of the border, keep an eye on Brazil. Pres. Bolsonaro is coming under increasing pressure from global leaders for his handling of the fires ranging in the Amazon.
- PDC Energy has agreed to purchase SRC Energy for $971.5m.
Markets & Macro
| Event | Survey | Actual | Prior | Revised | ||
| JN | Leading Index CI | Jun F | — | 93.3 | 93.3 | — |
| JN | Coincident Index | Jun F | — | 100.4 | 100.4 | — |
| SP | PPI MoM | Jul | — | 0.50% | -0.80% | -1.10% |
| SP | PPI YoY | Jul | — | -0.80% | -0.60% | -0.80% |
| GE | IFO Business Climate | Aug | 95.1 | 94.3 | 95.7 | 95.8 |
| GE | IFO Expectations | Aug | 91.8 | 91.3 | 92.2 | 92.1 |
| GE | IFO Current Assessment | Aug | 98.8 | 97.3 | 99.4 | 99.6 |
| HK | Exports YoY | Jul | -8.20% | -5.70% | -9.00% | — |
| HK | Imports YoY | Jul | -8.30% | -8.70% | -7.50% | — |
| HK | Trade Balance HKD | Jul | -42.8b | -32.2b | -55.2b | — |
| US | Chicago Fed Nat Activity Index | Jul | 0 | -0.36 | -0.02 | 0.03 |
| US | Durable Goods Orders | Jul P | 1.20% | 2.10% | 1.90% | 1.80% |
| US | Durables Ex Transportation | Jul P | 0.00% | -0.40% | 1.00% | 0.80% |
| US | Cap Goods Orders Nondef Ex Air | Jul P | 0.00% | 0.40% | 1.50% | 0.90% |
| US | Cap Goods Ship Nondef Ex Air | Jul P | 0.10% | -0.70% | 0.30% | 0.00% |
| CA | Bloomberg Nanos Confidence | 23-Aug | — | — | 57.3 | — |
| US | Dallas Fed Manf. Activity | Aug | -4 | — | -6.3 | — |