CAPIS Global Recap – 6/27/2019
Asian Headlines On hopes of a deal, or at least progress, on a trade deal coupled with an encouraging reading out of China indices in the region closed higher today. President Trump said a deal now could be completed at the G20 with no additional tariffs to be accessed while President Xi agreed to meet…
On hopes of a deal, or at least progress, on a trade deal coupled with an encouraging reading out of China indices in the region closed higher today. President Trump said a deal now could be completed at the G20 with no additional tariffs to be accessed while President Xi agreed to meet with Trump on the condition no new tariffs. After a weak April, Industrial Profits moved positive again, up 1.1%, but better nonetheless.
Energy names led with new US draw readings and Iran woes conspiring to keep oil better. $60.00 WTI though is still a resistance level with a confluence of the the 50,100, and 200 day moving averages thus far keeping a cap on prices. Moving into European hours prices have eased somewhat.
On the equity front Japan Display closed up 18% after Apple is said to be considering injecting ¥10.7B into the firm and upping their orders as well. LCD orders from China would suffer accordingly. Of interest, last year Apple made up over 60% of the firm’s sales.
Taiwan’s Largan Precision closed 5% higher on positive comments from their Chairman noting the 2H should surpass the 1H. News that Apple may add three lenses to its next iPhone buoyed the name as well.
Indices in Europe were also to the upside but 3 hours in gave up ground. Headlines hit that President Xi said he wants the US to drop punitive tariffs and give up demands for purchases. Additionally, in setting terms for a deal, he demanded the sales ban to Huawei for US technology to be lifted. The headlines of course are alarming some with Trump not known for accepting ultimatums. Yesterday’s report that Huawei personnel worked with China’s military on projects together will certainly be a sticking point as well.
Retailers lead on H&M’s turnaround with Banks better as well. Media and Energy names lead on the downside with losses under a percent. On the economic front EU confidence readings mostly missed survey levels but inflation readings thus far are up in Germany in the regionals.
Despite missing profit estimates Hennes & Mauritz is up 8.6% as investors view favorably their progress and paring of inventory. The firm is pushing inline sales while cutting back on new store openings. They again noted expectations for lower markdowns going forward.
Bayer is up 7% on confirmation Elliot Mgmt has invested in the firm to the tune of $1.3B. They will push to get a final settlement concerning glyphosate as the chemical maker hired a high-profile lawyer to defend them.
Additive-maker Chr Hansen is off 12% after they pared FY growth views to 7-8% from the prior 9-11% expectation. The firm has seen slowing demand for dietary supplements and natural colors prompting a curtail of their sales outlook.
Things are bit better today at Zumtobel +10% with better revenues expected this year. An improved cost structure has allowed for improved margins despite noting the market environment weakening.
Automotive/aerospace product-manufacturer Senior -11% was downgraded by Barclays with the firm said to be heavily dependent upon Boeing’s beleaguered 737 Max.
|SK||13)||Business Survey Manufacturing||Jul||—||75||75||—|
|SK||14)||Business Survey Non-Manufacturing||Jul||—||74||72||—|
|JN||15)||Retail Sales YoY||May||1.20%||1.20%||0.50%||0.40%|
|JN||16)||Retail Sales MoM||May||0.60%||0.30%||0.00%||-0.10%|
|JN||17)||Dept. Store, Supermarket Sales YoY||May||0.20%||-0.50%||-1.80%||—|
|JN||18)||Japan Buying Foreign Bonds||21-Jun||—||¥445.4b||¥327.3b||¥330.5b|
|JN||19)||Japan Buying Foreign Stocks||21-Jun||—||¥256.0b||¥232.5b||—|
|JN||20)||Foreign Buying Japan Bonds||21-Jun||—||-¥2012.4b||¥471.7b||¥535.7b|
|JN||21)||Foreign Buying Japan Stocks||21-Jun||—||-¥313.4b||-¥95.4b||-¥94.3b|
|CH||22)||Swift Global Payments CNY||May||—||1.95%||1.88%||—|
|CH||23)||Industrial Profits YoY||May||—||1.10%||-3.70%||—|
|SK||24)||Department Store Sales YoY||May||—||2.70%||-3.80%||—|
|SK||25)||Discount Store Sales YoY||May||—||-3.60%||-7.70%||—|
|CH||26)||Bloomberg June China Economic Survey (Table)|
|NE||27)||Producer Confidence Index||Jun||—||3.3||4.7||—|
|IN||28)||Bloomberg June India Economic Survey (Table)|
|FI||31)||Retail Sales Volume WDA YoY||May P||—||-0.30%||3.60%||—|
|FI||32)||House Price Index MoM||May||—||-0.10%||0.40%||0.50%|
|FI||33)||House Price Index YoY||May||—||-1.00%||0.00%||0.10%|
|NO||34)||Retail Sales W/Auto Fuel MoM||May||-1.00%||-1.30%||1.80%||1.90%|
|GE||35)||CPI Saxony MoM||Jun||—||0.50%||0.30%||—|
|GE||36)||CPI Saxony YoY||Jun||—||1.80%||1.40%||—|
|SP||37)||Total Mortgage Lending YoY||Apr||—||-2.50%||23.20%||—|
|SP||38)||House Mortgage Approvals YoY||Apr||—||-0.10%||15.80%||—|
|SP||39)||CPI MoM||Jun P||0.00%||-0.10%||0.20%||—|
|SP||40)||CPI YoY||Jun P||0.60%||0.40%||0.80%||—|
|SP||41)||CPI EU Harmonised MoM||Jun P||0.00%||-0.10%||0.20%||—|
|SP||42)||CPI EU Harmonised YoY||Jun P||0.70%||0.60%||0.90%||—|
|CH||43)||BoP Current Account Balance||1Q F||—||$49.0b||$58.6b||—|
|GE||45)||CPI Brandenburg MoM||Jun||—||0.50%||0.30%||—|
|GE||46)||CPI Brandenburg YoY||Jun||—||1.80%||1.30%||—|
|GE||47)||CPI Hesse MoM||Jun||—||0.10%||0.40%||—|
|GE||48)||CPI Hesse YoY||Jun||—||1.50%||1.40%||—|
|GE||49)||CPI Bavaria MoM||Jun||—||0.40%||0.10%||—|
|GE||50)||CPI Bavaria YoY||Jun||—||1.80%||1.60%||—|
|IT||51)||Consumer Confidence Index||Jun||111.4||109.6||111.8||111.6|
|GE||54)||CPI North Rhine Westphalia MoM||Jun||—||0.20%||0.20%||—|
|GE||55)||CPI North Rhine Westphalia YoY||Jun||—||1.70%||1.60%||—|
|AS||56)||WIFO Quarterly Economic Forecasts|
|PO||57)||Consumer Confidence Index||Jun||—||-8.3||-9||—|
|PO||58)||Economic Climate Indicator||Jun||—||2.4||2.3||—|
|EC||60)||Business Climate Indicator||Jun||0.27||0.17||0.3||—|
|EC||63)||Consumer Confidence||Jun F||-7.2||-7.2||-7.2||—|
|GE||66)||CPI MoM||Jun P||0.20%||—||0.20%||—|
|GE||67)||CPI YoY||Jun P||1.40%||—||1.40%||—|
|GE||68)||CPI EU Harmonized MoM||Jun P||0.10%||—||0.30%||—|
|GE||69)||CPI EU Harmonized YoY||Jun P||1.30%||—||1.30%||—|
|GE||70)||CPI Baden Wuerttemberg MoM||Jun||—||—||0.20%||—|
|GE||71)||CPI Baden Wuerttemberg YoY||Jun||—||—||1.50%||—|