CAPIS Global Recap – 9/11/2019
The CAPIS International Trading Desk wishes those affected by and who still remember daily the events of 9/11, now 18 years later, peace and continued healing. World Market Points Apart from mainland China all indices in the region finished higher with weakness in Defensives weighing in that market. Financials finished up post word the government…
The CAPIS International Trading Desk wishes those affected by and who still remember daily the events of 9/11, now 18 years later, peace and continued healing.
World Market Points
Apart from mainland China all indices in the region finished higher with weakness in Defensives weighing in that market. Financials finished up post word the government will remove QFII (qualified foreign institutional investor) and RQFII (yuan-based QFII) quota limits as they open up their markets more. Conversely the Hang Seng rallied nearly two percent on broad gains as Real Estate, Financials, and Industrials surged. Energy names joined Financials and Utilities for sizable gains in Japan while Materials led Down Under. South Korea Kospi was higher with the country expected to file a WTO complaint against Japan concerning their chip-making material ban. Word is some Japanese companies are looking to curtail production in Korea.
The improved sentiment on US/China trade talks helped markets. One story out of China noted that back in May 80% of the agreement between the two existed. Supposedly China will purchase more US ag products as it looks to finalize the deal with the US. There were several economic releases out including South Korea reporting unemployment down to 3.1% in August, considering better than the previous 4.0%. 3.1% is a 6 year low for the country. Down Under, Westpac Consumer Confidence slipped up 100, to 98.2. Of interest, the National Australia Bank sees the RBA cutting their benchmark rate to .5% by next February with another 25bps cut to follow if need be. After the close china reported New Yuan Loans at 1.210T Yuan, well above the prior 1.06T reading.
Ahead of the ECB meeting tomorrow and the expected reduction of the deposit facility rate European markets are to the upside today. Gains are broad with Financials leading with rates mixed today with a slight bias to lower bond prices. Basic Resources are also strong along with Banks, Tech, and Autos. In Italy, PM Conte won the second confidence vote with a new government expected to take office.
News in specific names
- Japan Post Insurance rallied +1.3% and Japan Post Bank finished up 2.8% despite Japan’s Financial Services Agency beginning investigations into the firm concerning sales practices.
- Amsterdam-listed Prosus opened higher but is currently flat on its initial day of trading today. The reference point was at €58.7 but the stock opened at €76. The spinoff from South Africa’s Naspers +4.5 % contains the firm’s stake in Tencent +1.7%. Prosus also has a South African listing as well.
- Fresh from its announced purchase of Refinitiv, the LSE is today up 4.5% after the Hong Kong Exchange made a bid of £20.45 cash and 2.495 shares of HKEX shares for the firm. The deal values the LSE at £83.61 a share.
- ArcelorMittal +1.9% is better with word they may offload their construction unit with a value of €700-800m seen in the business. The sale is expected next quarter.
- Casino +2.8% is racking up gains today on bid spec from Carrefour -1% as they deny they are interested.
| Event | Survey | Actual | Prior | Revised | |||
| SK | 48) | Unemployment rate SA | Aug | 4.00% | 3.10% | 4.00% | — |
| JN | 49) | BSI Large All Industry QoQ | 3Q | -1 | 1.1 | -3.7 | — |
| JN | 50) | BSI Large Manufacturing QoQ | 3Q | — | -0.2 | -10.4 | — |
| AU | 51) | Westpac Consumer Conf Index | Sep | — | 98.2 | 100 | — |
| AU | 52) | Westpac Consumer Conf SA MoM | Sep | — | -1.70% | 3.60% | — |
| SK | 53) | Bank Lending To Household Total | Aug | — | KR862.1t | KR854.7t | KR854.8t |
| SK | 54) | Bloomberg Sept. South Korea Economic Survey (Table) | |||||
| SP | 55) | Industrial Output NSA YoY | Jul | — | 2.90% | -1.80% | -1.90% |
| SP | 56) | Industrial Output SA YoY | Jul | 1.50% | 0.80% | 1.80% | 1.60% |
| SP | 57) | Industrial Production MoM | Jul | -0.30% | -0.40% | -0.20% | — |
| CH | 58) | Aggregate Financing CNY | Aug | 1604.5b | 1980.0b | 1010.0b | 1011.2b |
| CH | 59) | Money Supply M0 YoY | Aug | 4.50% | 4.80% | 4.50% | — |
| CH | 60) | Money Supply M1 YoY | Aug | 3.70% | 3.40% | 3.10% | — |
| CH | 61) | New Yuan Loans CNY | Aug | 1200.0b | 1210.0b | 1060.0b | — |
| CH | 62) | Money Supply M2 YoY | Aug | 8.20% | 8.20% | 8.10% | — |
| PO | 63) | CPI MoM | Aug F | — | -0.10% | -0.10% | — |
| PO | 64) | CPI YoY | Aug F | — | -0.10% | -0.10% | — |
| PO | 65) | CPI EU Harmonized MoM | Aug F | — | -0.10% | -0.10% | — |
| PO | 66) | CPI EU Harmonized YoY | Aug F | — | -0.10% | -0.10% | — |