Sunday, June 10, 2018

Monday Watch

Today's Headlines
  • Asia Stocks See Muted Start to Week; Dollar Drifts. Asian stocks are set for a slightly higher open Monday, with limited fallout from a tumultuous G-7 meeting. The dollar drifted and the yen steadied as President Donald Trump arrived in Singapore ahead of his summit with North Korea’s Kim Jong Un. The Canadian dollar fell most among its G-10 currency peers in the wake of the summit, which ended with deepening tensions over U.S. tariffs on imports from its allies and saw a dispute erupt between Trump and Prime Minister Justin Trudeau. U.S. equities closed in positive territory Friday, as the risk-off sentiment that gripped investors late in the week subsided. Treasury yields edged higher, while oil closed lower. Brazil’s real surged after the central bank pledged to support the currency, helping to reduce fears of emerging-market contagion. S&P 500 futures slipped early Monday. Nikkei 225 futures were up 0.1 percent in Singapore. Hang Seng futures rose 0.1 percent.
Zero Hedge:
Night Trading
  • Asian indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 79.0 +1.0 basis point.
  • Asia Pacific Sovereign CDS Index 13.25 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 71.11 +.05%.
  • FTSE 100 futures +.14%
  • S&P 500 futures -.11%.
  • NASDAQ 100 futures -.13%.

Earnings of Note
Before the Open:
  • None of note
After the Close:
  • (PLAY)/.92
  • (RH)/1.02
Economic Releases
  • None of note
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The US/North Korean Summit, UK Industrial Production report and the $32B 3Y T-Note auction could also impact trading today.
BOTTOM LINE: Asian indices are slightly lower, weighed down by financial and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.

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