Evening Headlines
Bloomberg:
- Bank of Korea Holds Policy Rate Steady, Reviews Economic Outlook. South Korea’s central bank left its key interest rate unchanged, choosing to assess the impact of a November increase as the nation’s currency trades near near a multi-year high. The decision on Thursday to keep the seven-day repurchase rate at 1.5 percent, in the next-to-last rate decision before Governor Lee Ju-yeol’s term ends in March, was forecast by all 17 analysts surveyed by Bloomberg. The central bank will release updates to its 2018 forecasts of 2.9 percent economic growth and 1.8 percent inflation later on Thursday.
- China's Top Nickel Producer Joins BHP in Preparing for EV Boom. China’s top nickel supplier aims to boost output of a material used in car batteries by 40 percent this year, joining the ranks of global producers ramping up operations to meet demand from electric vehicles.
- Crypto Lending Site's Shutdown Renews Ponzi Scheme Claims. BitConnect isn’t letting this week’s closure of its cryptocurrency exchange and lending operations deter it from attempting to raise funds though another digital token offering. That isn’t sitting well with existing coin owners, who have seen the value of the tokens tumble by as much as 95 percent since Monday. Critics on Twitter and Reddit have renewed allegations of fraud and are equating the company to a Ponzi scheme, where an operator pays off old investors by raising money from new ones.
- Asian Stocks Head for New Highs, Bonds Hold Losses.
Equity benchmark indexes in Japan, Australia and South Korea all
climbed, with technology shares leading gains on the MSCI Asia Pacific
Index. The S&P 500 Index posted its biggest gain in over a month,
amid hopes that tax cuts will boost profits. A global rise in yields has
pushed those on 10-year Japanese government bonds to their highest
since July, stretching toward a test of the Bank of Japan’s target
around zero percent. Japan’s Topix index rose 0.5 percent as of 9:23 a.m. in Tokyo.
Australia’s S&P/ASX 200 Index added 0.1 percent and South Korea’s Kospi index climbed 0.6 percent. Futures on Hong Kong’s Hang Seng Index gained 0.5 percent. Futures on the S&P 500 gained 0.1 percent after the underlying gauge advanced 0.9 percent on Wednesday.
- OPEC-Russia Oil Deal Faces a New Danger. When OPEC and Russia meet this weekend to review their strategy for clearing a global oil glut, they’ll face an unusual problem: it could be working just a bit too well. As their output cuts, coupled with robust global demand, tighten the market, crude prices have soared to a three-year high near $70 a barrel. That’s prompted warnings -- from Iran’s oil minister to Goldman Sachs Group Inc. -- of a fresh surge in U.S. production, wrecking all of OPEC’s hard work.
- Alcoa(AA) Profit Misses as Rising Costs Rain on Aluminum Parade. Rising costs took the shine off what was by most measures a strong year for Alcoa Corp. While the top U.S. aluminum maker’s adjusted fourth-quarter earnings swelled, the profit missed analysts’ estimates amid higher costs for energy and raw materials and unfavorable movements in exchange rates. Alcoa’s shares surged 92 percent last year as the prospect of China shutting outdated, illegal and polluting plants helped boost aluminum prices. It was the company’s best annual performance since 1999 and happened during its first year since splitting from parts-maker Arconic Inc. in late 2016.
Wall Street Journal:
MarketWatch.com- Koreas Strike Deal on Olympic Unity as U.S. Pressures North. South and North Korea will march under one flag at opening ceremony for Winter Games.
- Goldman Sachs(GS) Loses Its Trading Edge. In the fourth quarter, bank’s debt and commodities traders posted worst three-month stretch since end of 2008.
- Congress Remains Split on Immigration Path as Shutdown Looms. GOP leaders look to find enough votes to keep government funded past this weekend; lawmakers weigh competing visions on Dreamers, border wall.
CNBC:
Zero Hedge:
Business Insider:
Night Trading
Earnings of Note
Company/Estimate
Night Trading
- Asian equity indices are unch. to +.5% on average.
- Asia Ex-Japan Investment Grade CDS Index 61.5 +.5 basis point.
- Asia Pacific Sovereign CDS Index 10.5 +.5 basis point.
- Bloomberg Emerging Markets Currency Index 75.39 +.02%.
- S&P 500 futures +.03%.
- NASDAQ 100 futures -.05%.
Earnings of Note
Company/Estimate
- (BBT)/.80
- (BK)/.91
- (JBHT)/.84
- (KEY)/.36
- (MS)/.78
- (PPG)/1.19
- (TSM)/3.75
- (AXP)/1.54
- (CP)/3.19
- (IBM)/5.15
8:30 am EST
- Housing Starts for December are estimated to fall to 1275K versus 1297K in November.
- Building Permits for December are estimated to fall to 1295K versus 1298K in November.
- The Philly Fed Business Outlook Index for January is estimated to fall to 25.0 versus 26.2 in December.
- Initial Jobless Claims for last week are estimated to fall to 249K versus 261K the prior week.
- Continuing Claims are estimated to rise to 1900K versus 1867K prior.
- Bloomberg Economic Expectations Index for January.
- Bloomberg
consensus estimates call for a weekly crude oil inventory decline of
-2,075,100 barrels versus a -4,948,000 barrel decline the prior week.
Gasoline supplies are estimated to rise by +3,088,300 barrels versus a +4,135,000 barrel gain the prior week. Distillate inventories are estimated to rise by +1,169,200 barrels versus a +4,254,000
barrel gain the prior week. Finally, Refinery Utilization is estimated
to fall by -.37% versus a -1.4% decline the prior.
- None of note
Other Potential Market Movers
- The China retail sales report, Australia Unemployment report, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, ASCO Gastrointestinal Conference and the (MNST) Business Update could also impact trading today.