Sunday, December 10, 2017

Monday Watch

Today's Headlines
  • China Audit Finds Provinces Faked Data and Borrowed Illegally. China found some local governments inflated revenue levels and raised debt illegally in a nationwide audit, a setback for Beijing in its bid to boost the credibility of economic data after a run of scandals. Ten cities, counties or districts in the Yunnan, Hunan and Jilin provinces, as well as the southwestern city of Chongqing, inflated fiscal revenues by 1.55 billion yuan ($234 million), the National Audit Office said in a statement on its website dated Dec. 8.
  • Stocks in Asia Nudge Higher on Economy Optimism. Stocks in Asia made modest gains at the open after U.S. labor market figures lifted optimism in global growth, though trading promises to remain subdued as traders wind down going into the holiday season. Equity benchmarks advanced in Tokyo, closing on this year’s highs, and Seoul, while futures on Hong Kong markets signaled a firmer start. Data showed hiring increased by more than forecast in November and the unemployment rate held at a 17-year low paved the way for another U.S. interest-rate increase this week. The S&P 500 Index and Dow Jones Industrial Average closed at all-time highs on Friday in light volume. The dollar held on to last week’s gains as President Donald Trump prepares to give a closing argument for the proposed tax reform on Wednesday. Bitcoin futures began trading in Chicago, while the spot price gyrated. The Topix index added 0.2 percent as of 9:18 a.m. in Tokyo. The Nikkei 225 Stock Average gained 0.2 percent. Australia’s S&P/ASX 200 Index fluctuated. South Korea’s Kospi index rose less than 0.1 percent.
Wall Street Journal: 
Night Trading
  • Asian indices are -.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 72.5 -.25 basis point.
  • Asia Pacific Sovereign CDS Index 14.25 unch.
  • Bloomberg Emerging Markets Currency Index 73.03 +.04%.
  • S&P 500 futures +.05%.
  • NASDAQ 100 futures +.16%.

Earnings of Note
  • (CASY)/1.40
  • (NX)/.29
Economic Releases   
10:00 am EST
  • JOLTS Job Openings for October.
Upcoming Splits
  • (NSP) 2-for-1
Other Potential Market Movers
  • The Japan CPI report, $24B 3Y T-Note auction, $20B 10Y T-Note auction and the HSBC Real Estate Conference could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by technology and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 100% net long heading into the week.

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