Monday, April 09, 2018

Tuesday Watch

Evening Headlines
  • Live Now: Chinese President Xi Jinping Speaks at Boao Forum. Here is a quick CATCHUP as Xi's speech continues: Xi sees an "open and prosperous" approach to Asian economic development. Cold War and zero-sum mentalities are "out of place". Says dialogue is the way to resolve disputes. China will significantly lower import tariffs for vehicles. Says China will increase transparency, strengthen property-rights protection and oppose monopolies.  
  • Asian Stocks Trade Mixed as Focus on Xi Address: Markets Wrap. Japan’s Topix index was little changed as of 10:31 a.m. in Tokyo. Australia’s S&P/ASX 200 Index rose 0.3 percent. The Kospi index lost 0.5 percent. Hong Kong’s Hang Seng Index added 0.2 percent. The Shanghai Composite Index was little changed. Futures on the S&P 500 rose 0.1 percent.
Night Trading 
  • Asian equity indices are +.25% to +.75% on average.
  • Asia Ex-Japan Investment Grade CDS Index 77.25 -.75 basis point
  • Asia Pacific Sovereign CDS Index 12.50 -.75 basis point.
  • Bloomberg Emerging Markets Currency Index 74.55 +.04%.
  • FTSE 100 futures +.72%.
  • S&P 500 futures +1.0%.
  • NASDAQ 100 futures +1.22%.
Morning Preview Links

Earnings of Note

  • (MSM)/1.31
  • (LAYN)/-.16
  • (HCSG)/.38
Economic Releases
6:00 am EST
  • The NFIB Small Business Optimism Index for March is estimated to fall to 107.0 versus 107.6 in February.
8:30 am EST
  • PPI Final Demand MoM for March is estimated to rise +.1% versus a +.2% gain in February.
  • PPI Ex Food & Energy MoM for March is estimated to rise +.2% versus a +.2% gain in February.
10:00 am EST
  • Wholesale Trade Sales MoM for February is estimated to rise +.1% versus a -1.1% decline in January.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Chinese President Xi speaking, China Money Supply report, WasDe Crop report, $30B 3Y T-Note auction, weekly US retail Sales reports, Zuckerberg's testimony before Senate Committee and the (ETH) investor meeting could also impact trading today.
BOTTOM LINE:  Asian indices are higher, boosted by technology and industrial shares in the region. I expect US stocks to open higher and to maintain gains into the afternoon.  The Portfolio is 50% net long heading into the day.

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