Wednesday, January 09, 2019

Thursday Watch

Evening Headlines
  • Stock Rally Eases With Asia Mixed; Yuan Holds Gain: Markets Wrap. The rally in global equities showed signs of stalling on Thursday, with Asian stocks opening mixed. U.S. stocks earlier climbed as investors cheered the dovish tone in minutes of the most recent Federal Reserve meeting. Oil held gains. Equities slipped in Japan, while they were little changed in South Korea and Australia. The S&P 500 Index posted a fourth day of gains as the Fed minutes revealed policy makers took a more cautious approach to further interest-rate increases, chiming with Chairman Jerome Powell’s tone from last week. Still, gains were limited amid concern the partial government shutdown will continue for some time. The offshore yuan stayed at the strongest since August as the U.S. and China laid the ground for resolvingtrade issues after three days of negotiations. The dollar and Treasuries were steady. Crude dipped after climbing above $52 a barrel and entering a bull market. Japan’s Topix index fell 0.9 percent as of 9:19 a.m. in Tokyo. Australia’s S&P/ASX 200 Index and South Korea’s Kospi were little changed. Hong Kong’s Hang Seng Index futures gained 0.2 percent. S&P 500 futures ticked 0.2 percent lower.
Wall St. Journal:   
Zero Hedge:
Night Trading 
  • Asian equity indices are -.50% to unch. on average.
  • Asia Ex-Japan Investment Grade CDS Index 90.75 -1.75 basis points
  • China Sovereign CDS 63.5 +1.0 basis point.
  • Bloomberg Emerging Markets Currency Index 67.96 -.03%.
  • FTSE 100 futures -.59%.
  • S&P 500 futures -.45%.
  • NASDAQ 100 futures -.51%.
Morning Preview Links

Earnings of Note

Before the Open:
  • None of note
After the Close:
  • (SNX)/3.25
Economic Releases
8:30 am EST
  • Initial Jobless Claims for last week are estimated to fall to 226K versus 231K the prior week.
  • Continuing Claims are estimated at 1740K versus 1740K prior.
10:00 am EST
  • Wholesale Trade Sales MoM for Nov.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Powell speaking, Fed's Quarles speaking, Fed's Bullard speaking, Fed's Barkin speaking, Fed's Evans speaking, China Industrial Production report, $16B 30Y Bond auction, Bloomberg US Economic Survey for Jan., weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report and the BofA Merrill Defense/Aerospace Forum 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 modestly lower and to strengthen into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the day.

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