Sunday, March 26, 2017

Monday Watch

Today's Headlines
  • Trump Said to Issue Far-Reaching Reversal of Obama Climate Push. President Donald Trump is set to sign a sweeping executive order on Tuesday aimed at promoting domestic oil, coal and natural gas by reversing much of his predecessor’s efforts to address climate change. The document lays out a broad blueprint for the Trump administration to dismantle the architecture that former President Barack Obama built to combat the phenomenon, according to details shared with Bloomberg News. Some of the changes would happen immediately, while others would take years to complete. The order will compel federal agencies to quickly identify any actions that could burden the production or use of domestic energy resources, including nuclear power, and then work to suspend, revise or rescind the policies unless they are legally mandated, are necessary for the public interest or promote development.
  • Momentum Builds for Yen to Break 110. The most oversold Group-of-10 currency since the U.S. election is making a comeback. A reassessment on the likelihood of pro-growth policies in the U.S. and a series of domestic and technical factors have combined to reignite buying interest in the yen, and analysts see more upside. Rising Japanese real interest rates, the yen’s haven status from global political uncertainty and technical signals monitored by foreign exchange traders have helped the currency rebound 7 percent from December lows against the dollar. Momentum is building and a further 2 percent rise to 108 yen per dollar is possible by June, according to market participants.
  • Dollar, S&P 500 Futures Drop. The dollar and U.S. equity futures built on Friday’s declines and gold climbed as investors shunned risk assets amid increased skepticism of U.S. President Donald Trump’s ability to implement his economic agenda after last week’s failed U.S. health-care deal. The yen rose 0.8 percent to 110.51 per dollar. The Bloomberg Dollar Spot Index fell 0.3 percent. Japan’s Topix lost 0.9 percent and Australia’s S&P/ASX 200 Index retreated 0.5 percent, led by a slide in materials producers.
Wall Street Journal:
Night Trading
  • Asian indices are -1.0% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 95.75 unch.
  • Asia Pacific Sovereign CDS Index 21.0 -4.25 basis points.
  • Bloomberg Emerging Markets Currency Index 72.57 +.08%.
  • S&P 500 futures -.67%.
  • NASDAQ 100 futures -.69%.

Earnings of Note
  • (CALM)/.23
  • (GIII)/-.12
  • (RHT)/.61
Economic Releases
10:30 am EST
  • Dallas Fed Manufacturing Activity for March is estimated to fall to 22.0 versus 24.5 in February.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Evans speaking, Fed's Kaplan speaking, 2Y T-Note auction, Germany IFO Index and the China Industrial Production report could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly lower and to maintain losses  into the afternoon. The Portfolio is 25% net long heading into the week.

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