Thursday, April 20, 2017

Friday Watch

Evening Headlines
  • Ignore China's Credit Risks at Your Peril, Says Top Bond Manager. Investors in Chinese debt aren’t paying enough attention to rising credit risks, according to a top bond fund manager. Some market participants have focused on the impact of an improving economy and rising money-market rates, while overlooking the possibility that defaults will increase, said He Qian, manager of Fortis Haitong Pure Bond Fund at HFT Investment Management Co. "It’s interesting that investors were paying more attention to credit risks this time last year, when there were not as many credit events," said He, whose $895 million fund has beaten 99 percent of its competitors since 2014, data compiled by Bloomberg show. "Such risks seem to have faded from investors’ memories.”
  • Asian Stocks Gain on Kuroda, U.S. Tax Reform Hopes. Asian stocks climbed on optimism for a U.S. tax overhaul. Weakness in the yen pushed Tokyo shares higher after Bank of Japan Governor Haruhiko Kuroda said he will keep accommodative policy in place. Japanese and Australian shares climbed, while futures contracts in Hong Kong were flat. The S&P 500 Index had its second best day since March as U.S. Treasury Secretary Steven Mnuchin said plans to reform taxes have progressed. The euro was steady after a police officer was shot in Paris just days before France’s presidential election starts. The yen traded at 109.35 per dollar as of 9:08 a.m. in Tokyo after dropping 0.4 percent on Thursday. Japan’s Topix index rose 0.8 percent, heading for its first weekly gain in more than a month. Australia’s S&P/ASX 200 Index climbed 0.6 percent. South Korea’s Kospi index added 0.5 percent. Hang Seng futures were up less than 0.1 percent.
Wall Street Journal:
Zero Hedge:
Business Insider:
Night Trading 
  • Asian equity indices are +.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 100.50 -2.5 basis points
  • Asia Pacific Sovereign CDS Index 24.75 unch.
  • Bloomberg Emerging Markets Currency Index 72.24 unch.
  • S&P 500 futures +.02%
  • NASDAQ 100 futures +.10%.
Morning Preview Links

Earnings of Note

  • (GE)/.17
  • (GNTX)/.31
  • (HON)/1.62
  • (IPG)/.03
  • (KSU)/1.16
  • (MAN)/1.11
  • (COL)/1.30
  • (SLB)/.25
  • (SWK)/1.19
  • (SHOO)/.43
  • (STI)/.84
Economic Releases
9:45 am EST 
  • Preliminary Markit US Manufacturing PMI for April is estimated to rise to 53.8 versus 53.3 in March.
  • Preliminary Markit US Service PMI for April is estimated to rise to 53.2 versus 52.8 in March.  
10:00 am EST
  • Existing Home Sales for March are estimated to rise to 5.6M versus 5.48M in February. 
Upcoming Splits
  • (GEO) 3-for-2
Other Potential Market Movers
  • The Fed's Kashkari speaking, Eurozone Services PMI report, UK Retail Sales report, (WYNN) annual meeting and the (SCHW) business update could also impact trading today.
BOTTOM LINE:  Asian indices are higher, boosted by technology and financial shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 100% net long heading into the day.

No comments: