Wednesday, September 12, 2018

Thursday Watch

Evening Headlines
  • Asia Stocks Set for Gains, Dollar Slides. Asian investors prepared for some respite from the recent trade-inflicted concerns that have pummeled equities in the region amid optimism trade talks with China will resume. The dollar fell and the yuan climbed. Futures on equities in Hong Kong and China rose after reports the U.S. is trying to de-escalate trade friction, which also boosted the Australian dollar. The greenback dropped the most in almost three weeks. U.S. stocks ended Wednesday mixed, with chipmakers remaining under pressure. Crude oil posted its biggest two-day increase since June amid signs that global supplies are shrinking and as Hurricane Florence edged closer to the U.S. east coast. Futures on Japan’s Nikkei 225 added 0.1 percent. Futures on Hong Kong’s Hang Seng Index rose 1.4 percent. FTSE China A50 Index futures climbed 1.4 percent.  
Wall St. Journal:
Business Insider:
Night Trading 
  • Asian equity indices are -.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 79.25 +.5 basis point. 
  • Asia Pacific Sovereign CDS Index 12.75 unch.
  • Bloomberg Emerging Markets Currency Index 65.59 +.01%.
  • FTSE 100 futures +.55%.
  • S&P 500 futures -.04%.
  • NASDAQ 100 futures -.05%.
Morning Preview Links

Earnings of Note

Before the Open:
  • (KR)/.38
After the Close:
  • (ADBE)/1.69
Economic Releases
8:30 am EST
  • The CPI MoM for August is estimated to rise +.3% versus a +.2% gain in July.
  • The CPI Ex Food and Energy MoM for August is estimated to rise +.2% versus a +.2% gain in July. 
  • Real Average Hourly Earnings YoY for August.
  • Initial Jobless Claims for last week are estimated to rise to 210K versus 203K the  prior week. 
  • Continuing Claims are estimated to rise to 1710K versus 1707K prior.
2:00 pm EST
  • The Monthly Budget Deficit for August is estimated to widen to -$185.0B versus -$107.7B in July.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Quarles speaking, Fed's Bostic speaking, BoE rate decision, ECB rate decision, ECB Press Conference, Australia Unemployment Rate, German CPI report, $15B 30Y T-Bond auction, Bloomberg Sept. US Economic Survey, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, BMO Capital Back to School Education Conference, CL King Best Ideas Conference and the BofA Merrill Gaming/Lodging Conference could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by technology 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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