Sunday, November 25, 2018

Monday Watch

Today's Headlines
  • Asia Stocks to Slip, Treasuries Inch Toward 3%. Caution looks set to prevail in financial markets at the start of the week as worries about a slowing global economy showed little sign of abating. Australian shares fell at the open, while stock futures in Asia indicated lower starts in Japan and Hong Kong after the S&P 500 Index fell into correction territory on Friday. U.S. equity futures advanced, which may keep declines in the region in check. Oil ticked higher following its slump below $51 a barrel Friday that weighed on energy producers. The yield on 10-year Treasuries is back down at 3.04 percent, the lowest since September. The pound edged up after European Union leaders agreed to the Brexit deal from U.K. Prime Minister Theresa May. Futures on Japan’s Nikkei 225 indicated losses of about 1 percent as markets reopen after Friday’s holiday. Futures on Hong Kong’s Hang Seng Index slid 0.1 percent. Australia’s S&P/ASX 200 Index fell 0.6 percent. S&P 500 futures rose 0.3 percent.
Zero Hedge:          
Night Trading
  • Asian indices are -.5% to +.25% on average.
  • Asia Ex-Japan Inventment Grade CDS Index 97.75 -1.0 basis point.
  • Asia Pacific Sovereign CDS Index 10.75 unch.
  • Bloomberg Emerging Markets Currency Index 67.10 -.01%.
  • FTSE 100 futures -.19%.
  • S&P 500 futures +.27%.
  • NASDAQ 100 futures +.33%.

Earnings of Note
Before the Open:
  • (DSX)/.04
  • (JKS)/.15
  • (PDCO)/.37
After the Close:
  • (BKE)/.46
Economic Releases
8:30 am EST
  • The Chicago Fed National Activity Index for October is estimated to rise to .18 versus .17 in September.
  • The Dallas Fed Manufacturing Activity Index for November is estimated to fall to 24.5 versus 29.4 in October.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German Economic Survey, $39B 2Y T-Note auction, Citi Basic Materials Conference and the CSFB Tech/Media/Telecom Conference could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by industrial and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 50% net long heading into the week.

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