CAPIS Global Recap – 6/14/2019
Asian Headlines Mainland China led to the downside today, selling off in the afternoon hours on weakness in the IT and Communication space. Turnover was flat ahead a slew of data released after the close and noted below. Hong Kong fell again with same sectors weak as some previously closed bank branches reopened. The Nikkei…
Asian Headlines
Mainland China led to the downside today, selling off in the afternoon hours on weakness in the IT and Communication space. Turnover was flat ahead a slew of data released after the close and noted below. Hong Kong fell again with same sectors weak as some previously closed bank branches reopened. The Nikkei conversely saw mild gains with the Energy sector leading as related names played catch to the attack headlines that hit post yesterday’s close. Australia closed just above flat with Materials and Energy leading as iron ore continues to strengthen. The AUD$ fell with both National Australia Bank and Royal Bank of Canada both noting they see additional rate cuts ahead. The Kiwi Dollar also fell on disappointing Manufacturing PMI data.
- Post the close Chinese Industrial Production grew at 5.0% in May, light of estimates and at the slowest pace in 17 years. Retail sales results were encouraging, ahead of estimates with Property Investment slowing a bit.
- Sony rallied 3% with a fund investing $1.5B into it with a push coming to offload their semiconductor unit.
- Bank of East Asia fell 9% on warnings of a “material decrease” in 1H NI, citing an expected impairment loss based on HK$6.2B of downgraded Chinese property loans. Both CICC and Citi cut forecasts and reduced price targets on the name.
- Japanese shipping names fell with Morgan Stanley expressing concern on the space in light of continued US/Chines trade concerns. Kawasaki Kisen -1.4%, Mitsui OSK -.4%, and Nippon Yusen -1.7%.
European Headlines
European indices opened lower and have edged down since. Apart from Utilities all sectors are lower with a move lower 6 EST on a press report India is considering higher tariffs on US goods. On possibly an encouraging move the US is aid to have asked the WTO to pause their investigation into China intellectual property violations until December. Tech, Autos, Basic Resources, and Banks are lower by at least a percent with just under 100 names in the Stoxx 600 up today. Volumes are lower by nearly 20%.
After Broadcom missed 2Q revenue and cut expectations for FY revenues peers in Europe are leading to the downside today. STMicro and Dialog Semi are both off over 4% with AMS and Infineon down 7% and 6% respectively.
Volkswagen -1.6% plans to IPO its heavy truck unit Traton, hoping to reap €1.9B. The plan is to sell shares between €27-33 which would value the unit as much as €16.5B. The unit sells Scania and MAN trucks along with VW-branded vehicles in Brazil.
| Event | Survey | Actual | Prior | |||
| SK | 23) | Export Price Index MoM | May | — | 2.60% | 0.50% |
| SK | 24) | Export Price Index YoY | May | — | 0.40% | -0.40% |
| SK | 25) | Import Price Index YoY | May | — | 4.60% | 4.80% |
| SK | 26) | Import Price Index MoM | May | — | 2.20% | 1.50% |
| JN | 27) | Bloomberg June Japan Economic Survey (Table) | ||||
| NE | 28) | Trade Balance | Apr | — | 4.2b | 5.3b |
| NE | 29) | Retail Sales YoY | Apr | — | 4.70% | 1.10% |
| JN | 30) | Industrial Production MoM | Apr F | — | 0.60% | 0.60% |
| JN | 31) | Industrial Production YoY | Apr F | — | -1.10% | -1.10% |
| JN | 32) | Capacity Utilization MoM | Apr | — | 1.60% | -0.40% |
| FI | 33) | CPI MoM | May | — | -0.20% | 0.60% |
| FI | 34) | CPI YoY | May | — | 1.20% | 1.50% |
| FI | 35) | Current Account Balance | Apr | — | -4.24b | -0.47b |
| FI | 36) | GDP Indicator WDA (YoY) | Apr | — | 2.80% | 1.10% |
| GE | 37) | Wholesale Price Index YoY | May | — | 1.60% | 2.10% |
| GE | 38) | Wholesale Price Index MoM | May | — | 0.30% | 0.60% |
| IN | 39) | Wholesale Prices YoY | May | 3.03% | 2.45% | 3.07% |
| FR | 40) | CPI EU Harmonized MoM | May F | 0.20% | 0.10% | 0.20% |
| FR | 41) | CPI EU Harmonized YoY | May F | 1.10% | 1.10% | 1.10% |
| FR | 42) | CPI MoM | May F | 0.20% | 0.10% | 0.20% |
| FR | 43) | CPI YoY | May F | 1.00% | 0.90% | 1.00% |
| FR | 44) | CPI Ex-Tobacco Index | May | 103.93 | 103.86 | 103.76 |
| CH | 45) | Fixed Assets Ex Rural YTD YoY | May | 6.10% | 5.60% | 6.10% |
| CH | 46) | Industrial Production YoY | May | 5.40% | 5.00% | 5.40% |
| CH | 47) | Industrial Production YTD YoY | May | 6.10% | 6.00% | 6.20% |
| CH | 48) | Retail Sales YoY | May | 8.10% | 8.60% | 7.20% |
| CH | 49) | Retail Sales YTD YoY | May | 8.00% | 8.10% | 8.00% |
| CH | 50) | Surveyed Jobless Rate | May | — | 5.00% | 5.00% |
| CH | 51) | Property Investment YTD YoY | May | — | 11.20% | 11.90% |
| CH | 52) | China’s May Industrial Production, Retail Sales Data: TOPLive | ||||
| SW | 53) | CPI MoM | May | 0.10% | 0.30% | 0.70% |
| SW | 54) | CPI YoY | May | 2.00% | 2.20% | 2.10% |
| SW | 55) | CPIF MoM | May | 0.10% | 0.30% | 0.60% |
| SW | 56) | CPIF YoY | May | 1.90% | 2.10% | 2.00% |
| SW | 57) | CPIF Excl. Energy MoM | May | 0.10% | 0.30% | 0.60% |
| SW | 58) | CPIF Excl. Energy YoY | May | 1.50% | 1.70% | 1.60% |
| SW | 59) | CPI Level | May | 334.55 | 334.95 | 334.11 |
| IT | 60) | Industrial Sales WDA YoY | Apr | — | -0.70% | 1.30% |
| IT | 61) | Industrial Sales MoM | Apr | — | -1.00% | 0.30% |
| IT | 62) | Industrial Orders NSA YoY | Apr | — | -0.20% | -3.60% |
| IT | 63) | Industrial Orders MoM | Apr | — | -2.40% | 2.20% |
| HK | 64) | Industrial Production YoY | 1Q | — | 1.40% | 1.30% |
| HK | 65) | PPI YoY | 1Q | — | 0.80% | 0.30% |
| MB | 66) | CPI EU Harmonized YoY | May | — | 1.70% | 1.70% |
| MB | 67) | CPI EU Harmonized MoM | May | — | 1.40% | 3.00% |
| IC | 68) | International Reserves | May | — | 767b | 756b |
| IT | 69) | CPI FOI Index Ex Tobacco | May | — | 102.7 | 102.6 |
| IT | 70) | CPI EU Harmonized YoY | May F | 0.90% | 0.90% | 0.90% |
| CC | 71) | CPI Harmonized YoY | May | — | 0.20% | 1.20% |
| CC | 72) | CPI Harmonized MoM | May | — | 0.30% | 1.30% |
| IR | 73) | Trade Balance | Apr | — | 5355m | 4093m |
| PO | 74) | CPI MoM | May F | — | 0.10% | 0.10% |
| PO | 75) | CPI YoY | May F | — | 0.40% | 0.50% |
| PO | 76) | CPI EU Harmonized MoM | May F | — | 0.30% | 0.30% |
| PO | 77) | CPI EU Harmonized YoY | May F | — | 0.30% | 0.40% |
| IC | 78) | Unemployment Rate | May | — | — | 3.70% |
| BE | 79) | Trade Balance | Apr | — | — | -636.1m |