Asian Markets

A push across as the region as most of the markets record minimal moves in the last trading day of the week.  Falling bond yields remain a trend.  Japan’s 10 yr. yield reached its lowest level since 2016, New Zealand’s an all time low and Australia’s approaching it.

Sectors were were mixed.  IT once gain led but today buy only 0.5%.  Healthcare was lower by  about that mark.

Important Headlines

• Tencent’s +0.5% results are providing some relief to investors.  Gaming revenues slumped but Jefferies sees them rebounding this year.  Also, it is managing to grow other business lines such as cloud and fintech.
• The crude sector saw results from both CNOOC +0.6% and Petrochina -2.0%.
• Both CK Asset +1.5% and CKH Holdings +1.3% traded well following their earnings.
• Elliott Management saw its dividend proposals defeated by shareholders of both Hyundai Motor -0.8% and Hyundai Mobis +0.5%.
• Eisai spent the entire session limit down following yesterday’s Biogen-aducanumab news.  The company was co-developing the Alzheimer treatment with Biogen.

European Markets

The region started to the upside for the first 30 minutes or so.  However, the markets fell into the red after German Markit Manuf. PMI was well below consensus.  Additionally, the EC and  French results are below forecasts and the key 50 level.

European core yields are also seeing substantial declines.  The yield on the German 10 yr. bund is in negative territory.  Italian yields are bucking the trend.  The new Italian bad loan scheme has stricter terms than the previous plan.  This is sending Italian yields higher and Italian banks weaker.

The majority of sectors are in the red.  Industrials and banks are off c. 1%.  Utilities and retail are managing to make some headway.

There are important developments regarding Brexit.  The EU has proposed an extension to the deadline.  It is now set for April 12th if the UK fails to agree to terms.  However, if a deal is reached, the date would be moved until the 22nd of May.

Snippets from the Region

• Deutsche Bk +0.2% sees FY19 revenues “slightly” better than FY18.  Merger discussion with Commerzbank-flat continue.
• Novartis-flat is setting April 9th as the date for Alcon spin-off.  Shareholders will receive 1 Alcon share for every 5 Novartis shares or ADRs held.
• An initial review following the money laundering scandal at Swedbank -1.2% permits CEO Bonnesen to retain her post.  The bank is conducting a deeper dive into the matter focusing upon 50 clients.

On Our Side of the Pond

• Nike is trading lower in the pre-market.  The headline results including EPS read well.  However, a miss in N. America is weighing.
• Tiffany is also seeing lower trading following results.
• Reports say Uber has elected to list on the NYSE.
• Canada will release retail sales and CPI with US due to see various Markit PMI readings and existing hope sales.

Markets and Macro