Sunday, December 16, 2018

Monday Watch

Today's Headlines
  • Asian Stocks Mixed as Sell-off Eases; Yuan Steady. Stocks in Asia opened mixed, following two weeks of losses driven by a backdrop of uncertain trade conditions and signs that some key economies are slowing. Treasury yields steadied just below 2.90 percent. U.S. equity futures edged up with stocks in Japan, Australia and Hong Kong, while shares in Shanghai fluctuated. Treasuries held last week’s gains and the yen was steady after a bout of risk aversion that hammered global equities in recent sessions. The dollar is coming off the back of a strong week that took it to the highest in a month. Oil remains below $52 in New York. The yuan is little changed offshore. Japanese bonds are in focus as a recent slide in yields threatens to push the benchmark 10-year bond yield below zero percent. Japan’s Topix index added 0.2 percent as of 10:31 a.m. in Tokyo. Shanghai Composite Index was down 0.1 percent. Hang Seng Index up 0.1 percent. Australia’s S&P/ASX 200 Index rose 0.2 percent. Futures on the S&P 500 rose 0.2 percent.     
Zero Hedge:     
Night Trading
  • Asian indices are -.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 93.0 +.5 basis point.
  • Asia Pacific Sovereign CDS Index 9.75 +.25 basis point.
  • Bloomberg Emerging Markets Currency Index 66.70 +.01%.
  • FTSE 100 futures -.01%.
  • S&P 500 futures +.16%.
  • NASDAQ 100 futures +.23%.

Earnings of Note
Before the Open:
  • None of note
After the Close:
  • (HEI)/.48
  • (ORCL)/.78
  • (RHT)/.87
Economic Releases
8:30 am EST
  • Empire Manufacturing for Dec. is estimated to fall to 20.0 versus 23.3 in Nov.
10:00 am EST
  • The NAHB Housing Market Index for December is estimated to rise to 61.0 versus 60.0 in November.
4:00 pm EST
  • Net Long-Term TIC Flows for October.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The EU trade data and the RBA Minutes could also impact trading today.
BOTTOM LINE: Asian indices are mostly higher, boosted by industrial and technology shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 50% net long heading into the week.

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