Thursday, June 30, 2016

Friday Watch

Evening Headlines

  • What Europe Wants Out of the Brexit Talks. (video)
  • Japan’s Prices Keep Falling in Challenge to Abe, Kuroda. With a little more than a week until Japan goes to the polls for an upper-house election, a batch of economic data released Friday underscores the challenge Prime Minister Shinzo Abe faces in convincing voters that his policies are working. Consumer prices excluding fresh food fell for a third straight month and household spending declined, undermining efforts to revitalize the world’s third-largest economy. While corporate confidence and unemployment were unchanged, there is still little pressure for higher wages.
  • China's Yuan Heads for Worst Quarter on Record. (video)
  • Asian Stocks Head for Best Week Since April on Stimulus Optimism. Asian stocks climbed, with the regional benchmark index heading for its biggest weekly advance since April, as policy makers signaled looser monetary policies to buffer the impact of Britain’s decision to leave the European Union. The MSCI Asia Pacific Index rose 0.3 percent to 129.23 as of 9:07 a.m. in Tokyo, heading for a 3.2 percent gain over the past five days as the region’s equities rebounded from losses caused by the U.K.’s shock decision on Europe.
  • Gold Gains for Fifth Week as Central Banks Poised for Easing. Gold headed for a fifth weekly gain as investors speculate central banks will have to continue supporting the global economy in the wake of Britain’s vote to quit the European Union. Bullion for immediate delivery was flat at $1,322.07 an ounce at 8.11 a.m. in Singapore, according to Bloomberg generic pricing. The metal is on course to end the week 0.5 percent higher and is on its longest weekly winning streak in two years.
Wall Street Journal:
Fox News:
  • Trump trouble in the burbs? (video) America’s suburbs: They’re sprawling, replete with shopping centers and bike paths – and they’re often where presidential elections are won or lost. But in a potential problem for the presumptive Republican nominee, Donald Trump has not fared so well in the ‘burbs so far this cycle.
Zero Hedge:
Business Insider:
Night Trading 
  • Asian equity indices are unch. to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 139.5 -1.75 basis points.
  • Asia Pacific Sovereign CDS Index 53.25 +2.5 basis points.
  • Bloomberg Emerging Markets Currency Index 72.60 +.07%
  • S&P 500 futures -.12%. 
  • NASDAQ 100 futures -.15%.
Morning Preview Links

Earnings of Note

  • None of note
Economic Releases  
10:00 am EST
  • The ISM Manufacturing for June is estimated at 51.3 versus 51.3 in May.   
  • The ISM Prices Paid for June is estimated at 63.5 versus 63.5 in May.
  • Construction Spending MoM for May is estimated to rise +.6% versus a -1.8% decline in April.
  • Total Vehicle Sales for June are estimated to fall to 17.29M versus 17.37M in May.
Upcoming Splits 
  • None of note
Other Potential Market Movers
  • The Fed's Mester speaking, Eurozone Manufacturing PMI, UK Manufacturing PMI and the (F) sales conference call could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by commodity and technology shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.

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