Sunday, August 26, 2018

Monday Watch

Today's Headlines
  • France Set for Economic Growth of 1.7% in 2019 as Cuts Deepen. Asian Stocks Push Higher; Yuan Gains on PBOC Move. Asian stocks started the week with modest gains following a fresh all-time high in their U.S. counterparts Friday, as the Federal Reserve reaffirmed a slow and gradual pace of policy tightening. The yuan extended its advance. Equities rose in Japan and South Korea, and were little changed in Australia, while futures trading from late Friday indicated gains for stocks in Hong Kong and China. The yuan’s gains were spurred by the People’s Bank of China move to restrain the influence of market forces that have been driving the currency lower versus the greenback. The dollar continued to decline and Treasury yields ticked higher. Japan’s Topix index rose 0.5 percent as of 9:12 a.m. in Tokyo. Australia’s S&P/ASX 200 Index slid 0.2 percent. South Korea’s Kospi index rose 0.3 percent. Futures on Hong Kong’s Hang Seng advanced 1 percent. S&P 500 Index futures rose 0.2 percent.
Night Trading
  • Asian indices are unch. to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 80.0 -.75 basis point.
  • Asia Pacific Sovereign CDS Index 10.5 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.98 +.08%.
  • FTSE 100 futures +.25%
  • S&P 500 futures +.20%.
  • NASDAQ 100 futures +.34%.

Earnings of Note
Before the Open:
  • (AMWD)/1.92
  • (KLXI)/1.11
After the Close:
  • (PAHC)/.42
Economic Releases
8:30 am EST
  • The Chicago Fed National Activity Index for July is .45 versus .43 in June.
10:30 am EST
  • The Dallas Fed Manufacturing Activity Index for July is estimated to fall to 30.0 versus 32.3 in July.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The German IFO Business Climate Index, 2Y T-Note auction and the Steel Summit Conference 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 modestly higher and to maintain gains into the afternoon.  The Portfolio is 100% net long heading into the week.

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