Thursday, May 21, 2020

Friday Watch

Evening Headlines
  • Asia Investors Hunt Property That Gains From Social Distancing. Asian stocks saw a muted open Friday as rising tension between the U.S. and China added to concern about the pace of economic recovery from the coronavirus pandemic. U.S. futures edged higher. Stocks were little changed in Tokyo, Seoul and Sydney, while futures in Hong Kong pointed lower. China responded to accusations from President Donald Trump, warning that it will safeguard its sovereignty, security and interests, and threatened countermeasures, dragging down a big Hong Kong exchange traded fund by almost 4%. The S&P 500 closed lower, with signs mounting that Trump will make his tough-on-China stance a key element of his re-election bid. The dollar and Treasuries were steady. S&P 500 futures rose 0.4% as of 9:01 a.m. in Tokyo. The S&P 500 fell 0.8% on Thursday. Japan’s Topix index added 0.1%. South Korea‘s Kospi was little changed. Australia’s S&P/ASX 200 Index slid less than 0.1%.  
Wall Street Journal:
Fox News:       
Zero Hedge:    
Night Trading 
  • Asian equity indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 106.5 -1.75 basis points.
  • China Sovereign CDS 47.5 +1.5 basis points.
  • Bloomberg Emerging Markets Currency Index 59.57 unch.
  • FTSE 100 futures +.22%.
  • S&P 500 futures +.31%.
  • NASDAQ 100 futures +.39%.
Morning Preview Links

Earnings of Note 

Before the Open:
  • (BABA)/6.07
  • (BKE)/-.14
  • (CPB)/.54
  • (DE)/1.65
  • (FL)/-.23
After the Close:
  • None of note
Economic Releases
  • None of note
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German PMI report could also impact trading today.
Market Hours
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are mostly higher, boosted by commodity and consumer 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 day.

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