Sunday, September 29, 2019

Monday Watch

Today's Headlines
  • Stocks Set for Cautious Start on Trade Tensions. Stocks in Asia were set to start the week lower as investors weighed the latest signs of escalating trade tensions and awaited data on China’s economy. U.S. equity futures recovered some of Friday’s losses. Futures in Tokyo, Hong Kong and Sydney slipped after the S&P 500 retreated on Friday, when Bloomberg reported the Trump administration is considering sweeping limits to capital-market investments. The U.S. has no plans “at this time” to stop Chinese companies from listing on American exchanges, a Treasury official said over the weekend. Treasury futures retreated after U.S. bonds ended flat with the 10-year yield at 1.68%. In China, it’s the final day of trading before a week-long holiday. Futures on the S&P 500 Index rose 0.2% as of 8:07 a.m. in Tokyo. The underlying gauge fell 0.5% on Friday. Futures on Japan’s Nikkei 225 fell 0.3%. Hang Seng futures dropped 1.2%. Futures on Australia’s S&P/ASX 200 Index lost 0.2%.
Zero Hedge:
Night Trading
  • Asian indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 76.75 +.5 basis point.
  • China Sovereign CDS 48.5 +.75 basis point.
  • Bloomberg Emerging Markets Currency Index 65.31 -.02%.
  • FTSE 100 futures -.09%.
  • S&P 500 futures +.28%.
  • NASDAQ 100 futures +.30%.

Earnings of Note

Before the Open:
  • (CALM)/-.94
  • (THO)/1.49
After the Close:
  • None of note
Economic Releases
9:45 am EST
  • The MNI Chicago PMI for Sept. is estimated to fall to 50.0 versus 50.4 in Aug.
10:30 am EST
  • Dallas Fed Manufacturing Activity for Sept. is estimated to fall to 1.5 versus 2.7 in Aug. 
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German Unemployment Rate report could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by financial 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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