Thursday, June 22, 2017

Friday Watch

Evening Headlines
  • Merkel's Praise Sets Tone for Macron Debut Among European Peers. Angela Merkel said she’ll present detailed plans for expanded German-French cooperation within three months with Emmanuel Macron, whom she credited with giving Europe a jolt of “creativity” and renewed purpose. Five weeks into his French presidency, the German chancellor gave Macron an effusive reception on Thursday at his first summit with fellow European Union leaders in Brussels. Having backed 39-year-old Macron over anti-EU candidate Marine Le Pen, Merkel is cheering his arrival as a chance for the EU to move forward after the U.K. voted to leave and U.S. President Donald Trump questioned the bloc’s reason to exist.
  • Asian Stocks Mixed While Oil Halts Losing Streak. Asian equities are ending the week on a tepid note, with oil remaining below $43 a barrel, after a series of Federal Reserve speakers did little to alter projections for the path of U.S. interest-rate increases. Japanese shares were little changed while Australian and South Korean equities nudged higher. Chinese equities are in the limelight as the nation’s banking watchdog raises scrutiny on some of the biggest dealmakers. Crude halted a losing streak after tumbling into a bear market, but concerns of a supply glut persisted, helping gold to continue climbing back from a one-month low. Japan’s Topix was little changed as of 9:28 a.m. in Tokyo. Australia’s S&P/ASX 200 Index and South Korea’s Kospi index each climbed 0.2 percent.
  • Get Ready for a Friday Trading Frenzy. The FTSE Russell’s rebalancing of stock indexes reliably boosts trading. At the same time, it rarely triggers big price swings in the market. Last year’s adjustment, which coincided with the Brexit vote, helped fuel a jump in volume to more than 15 billion shares, the highest total of the year. In four of the last five years, reconstitution day ranked in the 10 busiest trading sessions, data compiled by Bloomberg show.
Wall Street Journal:
Night Trading 
  • Asian equity indices are unch. to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 88.50 +1.5 basis points. 
  • Asia Pacific Sovereign CDS Index 19.25 +.75 basis point.
  • Bloomberg Emerging Markets Currency Index 72.49 -.03%.
  • S&P 500 futures +.08%.
  • NASDAQ 100 futures +.09%.
Morning Preview Links

Earnings of Note

  • (BBRY)/0.00
  • (FINL)/.23
Economic Releases 
9:45 am EST
  • Prelimnary Markit US Manufacturing PMI for June is estimated to rise to 53.0 versus 52.7 in May.
  • Preliminary Markit US Services PMI for June is estimated fall to 53.5 versus 53.6 in May.
10:00 am EST
  • New Home Sales for May is estimated to rise to 590K versus 569K in April.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Bullard speaking, Fed's Mester speaking, Fed's Powell speaking, Eurozone Manufacturing/Services PMI reports and the FTSE Russell Reconstitution Final Determinations could also impact trading today.
BOTTOM LINE:  Asian indices are mostly lower, weighed down by financial and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.

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