Sunday, June 17, 2018

Monday Watch

Today's Headlines
  • Asian Stocks Open Mixed; Oil Drops Ahead of OPEC: Markets Wrap. Asian stocks declined amid investor concern the exchange of threats between China and the U.S. is the precursor of a full-blown trade war. Oil dropped, while the dollar edged higher as Treasury yields steadied just above 2.90 percent. Stocks fell in Japan as the yen advanced, while S&P 500 Index futures pointed to losses. South Korean equities also slipped , while they fluctuated in Australia. China and Hong Kong, markets more sensitive to deepening trade tensions, were closed for holidays. Oil extended a decline as Saudi Arabia and Russia prepared for a clash with other OPEC members and allies over whether to raise production. The pound ticked lower ahead of a parliament debate on the Brexit withdrawal bill. The Topix index fell 0.8 percent as of 9:48 a.m. in Tokyo. Australia’s S&P/ASX 200 Index was little changed. Kospi index fell 0.2 percent. S&P 500 Index futures lost 0.4 percent. The MSCI Asia Pacific Index declined 0.5 percent.
Zero Hedge:
Night Trading
  • Asian indices are -1.25% to -.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 77.50 +.5 basis point.
  • Asia Pacific Sovereign CDS Index 13.0 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 69.86 -.11%.
  • FTSE 100 futures -.13%
  • S&P 500 futures -.46%.
  • NASDAQ 100 futures -.63%.

Earnings of Note
Before the Open: 
  • None of note
After the Close:
  • None of note
Economic Releases
10:00 am EST
  • The NAHB Housing Market Index for June is estimated at 70.0 versus 70.0 in May.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Bostic speaking, Eurozone Trade Balance report and the JPMorgan Energy Conference could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by financial and technology 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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