Thursday, November 10, 2016

Friday Watch

Evening Headlines
  • Emerging Asia Currencies Drop as Fed Rate-Hike Bets Sink Bonds. South Korea’s won tumbled with the Malaysian ringgit and a global bonds selloff extended into Asian trading amid speculation the Federal Reserve will boost interest rates to cap inflation as a Donald Trump-led administration steps up spending. The won sank to a four-month low and the ringgit slipped to levels last seen in January as Bloomberg’s dollar index held near an eight-month high. Australia’s 10-year bonds fell to their lowest since April, sliding with notes in New Zealand and South Korea. Most Asian stocks gained, led by a rally among banks. Technology shares tracked losses in Apple Inc. and Microsoft Inc. as the winners and losers of Trump’s victory become clearer. Crude oil was headed for its lowest close of the week, weighed down by glut concerns.
  • Trump Crushes China M&A.
  • China’s Tech Giants Are Cloning the Apple Store. With e-commerce growth slowing, tech leaders such as Alibaba and DJI push harder into local brick-and-mortar.
  • Bank of Korea Keeps Rate Unchanged as Political Storm Rages. South Korea’s central bank held its key rate at a record low as policy makers seek to calm markets amid uncertainty caused by the U.S. presidential election and a home-grown crisis that’s shaken President Park Geun-hye. The decision to keep the seven-day repurchase rate at 1.25 percent was projected by all but one of 19 economists surveyed by Bloomberg. Royal Bank of Scotland was the sole forecaster for a cut to 1 percent.
Wall Street Journal:
Night Trading 
  • Asian equity indices are -2.0% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 118.0 +.5 basis point. 
  • Asia Pacific Sovereign CDS Index 39.0 +2.25 basis points.
  • Bloomberg Emerging Markets Currency Index 70.21 -.21%
  • S&P 500 futures -.20%
  • NASDAQ 100 futures -.56%.
Morning Preview Links

Earnings of Note

  • (BAM)/.51
  • (JCP)/-.20
  • (ATW)/.60
Economic Releases 
10:00 am EST
  • Preliminary Univ. of Mich. Consumer Sentiment for November is estimated to rise to 87.9 versus 87.2 in October.
Upcoming Splits 
  • None of note
Other Potential Market Movers
  • The Fed's Fischer speaking, German Trade Balance report, OPEC Monthly Update, (DGX) investor day and the (GWW) analyst meeting could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by technology and consumer shares in the region. I expect US stocks to open modestly lower and to maintain losses into the afternoon. The Portfolio is 50% net long heading into the day.

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