Sunday, August 12, 2018

Monday Watch

Today's Headlines
  • Saudi Fund in Talks to Invest in Tesla(TSLA) Buyout Deal. Stocks, Euro Slip on Turkey Worries; Yen Gains: Markets Wrap. Stocks slipped in Asia with the euro and emerging-market currencies, with Treasuries and the yen nudging higher, as turmoil in Turkey that’s sparked wider concern of potential market contagion triggered action from banking regulators. Japanese stocks and U.S. equity futures fell, with trading set to be dominated by events in Turkey. President Recep Tayyip Erdogan maintained his defiance toward the U.S. and financial-market orthodoxy in speeches on Sunday even after the nation’s currency plummeted. The lira declined early Monday in Asia before recovering somewhat after the country’s banking regulator limited swaps transactions, triggering a slight easing to the risk-off mood in Asian trading. Japan’s Topix index slid 1.1 percent as of 9:20 a.m. in Tokyo. South Korea’s Kospi index lost 0.6 percent. Futures on Hong Kong’s Hang Seng Index dropped 0.7 percent. Australia’s S&P/ASX 200 Index sank 0.3 percent. Futures on the S&P 500 Index were down 0.2 percent
Zero Hedge:               
Night Trading
  • Asian indices are -1.0% to -.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 83.75 +3.75 basis points.
  • Asia Pacific Sovereign CDS Index 10.5 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 65.75 -.33%.
  • FTSE 100 futures -.25%
  • S&P 500 futures -.24%.
  • NASDAQ 100 futures -.26%.

Earnings of Note
Before the Open:
  • (JKS)/.33
  • (SYY)/.93
  • (TSG)/.55
After the Close:
  • (TDW)/-.42
  • (VIPS)/.94
  • (YY)/1.88
Economic Releases
  • None of note
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Monthly OPEC Oil Market report and the German Wholesale Price report could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by financial and industrial shares in the region. I expect US stocks to open modestly lower and to maintain losses into the afternoon.  The Portfolio is 25% net long heading into the week.

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