Sunday, December 17, 2017

Monday Watch

Today's Headlines
  • Japan's November Exports Rise 16.2% Year-on-Year, Beating Estimates. Japan’s exports grew for a 12th straight month in November, as external demand fueled the nation’s longest stretch of economic growth since the 1990s. The value of exports rose 16.2 percent from a year earlier (forecast +14.7 percent). Imports increased 17.2 percent (forecast +18 percent). The trade surplus was 113.4 billion yen ($1 billion). The forecast was for a deficit of 40 billion yen.
  • EU Banks Told to Get Crisis-Ready by Removing Wind-Down Hurdles. Big euro-area lenders face a choice; clean up the complicated corporate structures that make them difficult to wind down in a crisis, or watch Elke Koenig do it for them. Koenig, head of the Brussels-based Single Resolution Board, said in an interview that streamlining banks’ architecture and ensuring they can fund their own demise without taxpayers’ help will be priorities in the year ahead. “You have banks where you end with something that looks more like a spider web than a clean structure,” Koenig said. The message that those banks will receive is: “Please tidy up,” she said.
  • Asia Stocks Set to Open Higher on U.S. Tax Plans. Futures contracts in Japan and Hong Kong advanced, and Australia’s equities opened higher, after the S&P 500 Index, Dow Jones Industrial Average and Nasdaq 100 Stock Index closed at records last week. Mid-week votes in the House and Senate are planned on the legislation that will reduce corporate and individual tax rates. Lawmakers are aiming for the bill to land on President Donald Trump’s desk for a signature before Christmas. Futures on the Nikkei 225 Stock Average were up about 0.7 percent as of 8:09 a.m. Tokyo time. Australia’s S&P/ASX 200 Index rose 0.5 percent in early trading. Contracts on the Hang Seng Index were up 0.5 percent.
Wall Street Journal:
  • Had bullish commentary on (ETP), (VZ), (T), (RIG), (SUI), (AMCX), (ONCE), (TCO), (SPG) and (EPD). 
Night Trading
  • Asian indices are unch. to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 70.0 -1.0 basis point.
  • Asia Pacific Sovereign CDS Index 13.5 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 73.21 -.01%.
  • S&P 500 futures +.15%.
  • NASDAQ 100 futures +.24%.

Earnings of Note
  • (HEI)/.58
Economic Releases   
10:00 am EST
  • The NAHB Housing Market Index for December is estimated at 70.0 versus 70.0 in November.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China November Property Price Report, China CPI report and the Eurozone CPI report 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 modestly higher and to maintain gains into the afternoon.  The Portfolio is 100% net long heading into the week.

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