CAPIS Global Recap – 4/25/2019
Asian Headlines Asian indices closed mixed with sizable losses registering in mainland China. There, the Shanghai and Shenzhen fell 2.43% and 3.41% respectively. Losses were broad with IT, Energy, and Industrials off with large losses. Slowing concerns by officials weighed. Note that the PBoC did drain liquidity adding it would provide low reserve rate requirements…
Asian Headlines
Asian indices closed mixed with sizable losses registering in mainland China. There, the Shanghai and Shenzhen fell 2.43% and 3.41% respectively. Losses were broad with IT, Energy, and Industrials off with large losses. Slowing concerns by officials weighed. Note that the PBoC did drain liquidity adding it would provide low reserve rate requirements for medium and smaller banks to support small and private businesses. And speaking of central banks, do not look for South Korea’s to up rates anytime soon with GDP readings for the 1Q disappointing. Their FinMin though said 2Q should recover with the 2H expected to be stronger.
Ahead of being closed next week Japan finished up 48bps with Real Estate, Utilities, and Consumer Staples lagging. The BoJ was in focus, leaving rates unchanged. They added though that rates will remain low until next spring adding they are considering an ETF lending facility. Asset purchase levels were also retained. Growth on the year was pared slightly as was next year’s outlook. GDP for FY21/22 is seen at 1.2% with CPI over the next few years maintained or pared slightly.
Australia and New Zealand were closed as they remembered their fallen soldiers on Anzac Day.
- Nissan fell 1.8% on disappointing FY readings that were light estimates. Because of the CEO scandal their CFO said domestic buyers are not purchasing their vehicles.
- Despite closing up today, Nintendo +1.3%, may see weakness in their ADR’s after sharply missing FY operating and NI views. Switch hardware sales are expected to miss estimates
- Memory chip firm SK Hynix +2.2% rallied despite light 1Q op profit as they see DRAM demand recovering with customer inventories draining.
European Headlines
Moves are varied in Europe with Sweden rallying post their central bank noting they will remain dovish for a longer period than previously seen. Elsewhere, moves away from flattish are tepid with little action in sectors as well. Travel and Utilities are up small while Tech names take a breather today despite some encouraging earnings reports out of the US yesterday afternoon. And earnings are the name of the game today with a plethora of releases out.
Deutsche Bank and Commerzbank -2.7% have come to the conclusion merging the two banking giants is just too difficult to attempt. DB -1.3% though with earnings and their outlook encouraging.
After a very tough start, Nokia is now down only 8%. This after they reported a surprise loss. The company though expects to meet FY estimates as 5G sales pick up.
Bayer +3.4% met estimates for the 1Q and expects to up their FY #’s leading to confirmation of their FY estimates. Friday is their annual meeting with mounting glyphosate-related claims no doubt to be in focus.
On strong sales in industrial compressor /gas compressors Atlas Copco +7.3% beat estimates. Orders from semi and flat panel producers were up along with power equipment for rental customers.
On another disappointing outlook, Laura Ashley is off 3.6% as they see FY result “significantly” below estimates.
| Event | Survey | Actual | Prior | Revised | |||
| SK | 25) | GDP SA QoQ | 1Q P | 0.30% | -0.30% | 1.00% | — |
| SK | 26) | GDP YoY | 1Q P | 2.40% | 1.80% | 3.10% | — |
| JN | 27) | Japan Buying Foreign Bonds | 19-Apr | — | ¥1170.0b | ¥591.1b | ¥598.7b |
| JN | 28) | Japan Buying Foreign Stocks | 19-Apr | — | -¥107.1b | -¥562.8b | — |
| JN | 29) | Foreign Buying Japan Bonds | 19-Apr | — | -¥443.8b | ¥562.9b | ¥562.7b |
| JN | 30) | Foreign Buying Japan Stocks | 19-Apr | — | ¥1426.6b | ¥528.5b | ¥527.4b |
| CH | 31) | Swift Global Payments CNY | Mar | — | 1.89% | 1.85% | — |
| JN | 32) | BOJ Policy Balance Rate | 25-Apr | -0.10% | -0.10% | -0.10% | — |
| JN | 33) | BOJ 10-Yr Yield Target | 25-Apr | 0.00% | 0.00% | 0.00% | — |
| NO | 34) | Industrial Confidence | 1Q | — | 6.9 | 9 | 8.7 |
| FI | 35) | Retail Sales Volume WDA YoY | Mar P | — | 1.00% | 1.60% | — |
| DE | 36) | Retail Sales MoM | Mar | — | 0.70% | 0.20% | 0.30% |
| DE | 37) | Retail Sales YoY | Mar | — | 0.50% | 1.20% | 1.30% |
| AS | 38) | Industrial Production SA MoM | Feb | — | 0.60% | 1.90% | 0.70% |
| AS | 39) | Industrial Prod. WDA YoY | Feb | — | 5.90% | 8.20% | 6.70% |
| SP | 40) | Unemployment Rate | 1Q | 14.45% | 14.70% | 14.45% | — |
| SW | 41) | Economic Tendency Survey | Apr | 101 | 102.7 | 101.7 | 101.9 |
| SW | 42) | Consumer Confidence | Apr | 95 | 95.8 | 94 | — |
| SW | 43) | Manufacturing Confidence s.a. | Apr | 107 | 108.4 | 107.5 | — |
| SP | 44) | PPI MoM | Mar | — | -0.20% | 0.20% | 0.00% |
| SP | 45) | PPI YoY | Mar | — | 2.40% | 1.90% | 1.70% |
| SW | 46) | Riksbank Interest Rate | 25-Apr | -0.25% | -0.25% | -0.25% | — |
| EC | 47) | ECB Publishes Economic Bulletin (Editorial) | |||||
| GR | 48) | Retail Sales YoY | Feb | — | -2.30% | -2.30% | -2.60% |
| UK | 49) | CBI Retailing Reported Sales | Apr | 0 | 13 | -18 | — |
| UK | 50) | CBI Total Dist. Reported Sales | Apr | — | 9 | -6 | — |