Sunday, November 11, 2018

Monday Watch

Today's Headlines
  • Asian Stocks Mixed as Investors Pause; Pound Slips. Stocks were mixed in Asia and futures pointed to higher starts for equity markets in London and New York as investors assessed whether the recent rallies can endure. The pound slipped as U.K. Prime Minister Theresa May fought to keep her Brexit divorce plan alive. Shares barely budged in Japan, Hong Kong and China, while they dipped in Australia. Asian equities shrugged off leads from a weak U.S. session on Friday when large-cap tech stocks dragged the Nasdaq 100 Index to a loss of more than 1.5 percent. Oil prices snapped a 10-day sell-off after the bear market for crude spurred OPEC and its allies to start laying the groundworkto cut supply in 2019. Yields on 10-year Treasuries, which don’t trade Monday thanks to a U.S. holiday, ended just below 3.2 percent on Friday. Japan’s Topix index was flat as of 11:27 a.m. in Tokyo. Hong Kong’s Hang Seng Index rose 0.3 percent. Australia’s S&P/ASX 200 Index was little changed. Shanghai Composite Index rose 0.4 percent. S&P 500 Index futures rose 0.3 percent. The S&P 500 fell 0.9 percent. FTSE 100 index futures gained 0.7 percent.  
Zero Hedge:       
Night Trading
  • Asian indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 86.25 +2.25 basis points.
  • Asia Pacific Sovereign CDS Index 9.5 unch.
  • Bloomberg Emerging Markets Currency Index 66.72 +.01%.
  • FTSE 100 futures +.70%.
  • S&P 500 futures +.35%.
  • NASDAQ 100 futures +.55%.

Earnings of Note
Before the Open:
  • None of note
After the Close:
  • (TDW)/-.32
  • (YY)/1.63
  • (EQH)/.91
Economic Releases
  • None of note
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan Machine Orders report, UBS Global Tech Conference and the CSFB Healthcare Conference could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by consumer and technology shares in the region. I expect US stocks to open modestly higher and to maintain gains into the afternoon.  The Portfolio is 50% net long heading into the week.

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