Thursday, December 27, 2018

Friday Watch

Evening Headlines
  • Furious U.S. Rebound Fails to Stoke Asia's Stocks. Wall Street’s wild afternoon rebound failed to carry through to Asia on Friday, with Japanese shares dropping at the open and U.S. futures sliding. The yen edged up, heading for its best two-week advance since February. Equity benchmarks fell in Tokyo, and saw modest gains in Sydney and Seoul after the S&P 500 Index erased a drop of almost 3 percent in its afternoon rebound -- the biggest upward reversal since 2010. It’s been a week of superlatives for stock traders, after American shares climbed the most in more than nine years on Wednesday. In other markets, 10-year Treasury yields held below 2.80 percent, and oil traded around $45 in New York. “From a time perspective, it’s a historic bull market and when you get that far into the cycle, people get more jittery,” said Sean O’Hara, president at Pacer ETFs. “It’s hard to explain moves” like the ones recently seen, he said. The MSCI Asia Pacific Index dipped 0.3 percent as of 9:09 a.m. in Tokyo. Japan’s Topix dropped 0.7 percent and the Nikkei 225 slipped 0.3 percent.
    Australia’s S&P/ASX 200 rose 0.3 percent. Kospi advanced 0.6 percent. Futures on the S&P 500 Index fell 0.3 percent after the underlying gauge climbed 0.9 percent at the close in New York
Wall St. Journal:
Zero Hedge:   
Night Trading 
  • Asian equity indices are .25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 97.5 -1.25 basis points
  • Asia Pacific Sovereign CDS Index 11.75 unch.
  • Bloomberg Emerging Markets Currency Index 66.80 +.04%.
  • FTSE 100 futures +1.06%.
  • S&P 500 futures -.29%.
  • NASDAQ 100 futures -.31%.
Morning Preview Links

Earnings of Note

Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
9:45 am EST
  • The Chicago Purchasing Manager Index for Dec. is estimated to fall to 60.3 versus 66.4 in Nov.
10:00 am EST
  • Pending Home Sales MoM for Nov. are estimated to rise +1.0% versus a -2.6% decline in Oct.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Eurozone PMI report could also impact trading today.
BOTTOM LINE:  Asian indices are mostly higher, boosted by technology and industrial shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the day.

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