Sunday, July 07, 2019

Monday Watch

Today's Headlines
  • Asian Stocks Set to Slip; Turkish Lira Tumbles. Stocks in Asia looked set for a muted start to the week after their U.S. counterparts retreated and Treasury yields rose Friday on the strong jobs report. Turkey’s lira fell after its central bank governor was replaced. Futures pointed to modest declines in Japan, Hong Kong and Australia after the S&P 500 slipped on low volumes. The 10-year Treasury yield rose past 2% on Friday and the dollar climbed as traders reassessed the path of Federal Reserve rate cuts. Turkish assets are in focus after President Recep Tayyip Erdogan’s shock decision to replace the country’s central bank governor fueled concern the regulator will lower borrowing costs more than expected. The S&P 500 Index fell 0.2% on Friday. Futures on Japan’s Nikkei 225 were little changed in Singapore. Hang Seng futures dipped 0.3%. Futures on Australia’s S&P/ASX 200 Index slipped 0.2%.
Zero Hedge:
Night Trading
  • Asian indices are +.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 63.50 +1.5 basis points.
  • China Sovereign CDS 40.75 unch.
  • Bloomberg Emerging Markets Currency Index 67.38 +.05%.
  • FTSE 100 futures n/a.
  • S&P 500 futures +.04%.
  • NASDAQ 100 futures +.02%.

Earnings of Note

Before the Open:
  • (AZZ)/.67
After the Close:
  • None of note
Economic Releases
3:00 pm EST
  • Consumer Credit for May is estimated to fall to $16.5B versus $17.497B in April.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The EU Industrial Production report could also impact trading today.
BOTTOM LINE: Asian indices are slightly higher, boosted by industrial and technology shares in the region. I expect US stocks to open mixed and to strengthen into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the week.

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