Sunday, December 30, 2018

Monday Watch

Today's Headlines
  • Asian Stocks May Get Relief After Trump, Xi Talk. Asian stocks may get some relief Monday from recent wild swings after U.S. President Donald Trump reported “big progress” in trade talks with his Chinese counterpart. U.S. futures opened higher. Trading will be thin with major markets in Japan and China closed and shortened sessions elsewhere on the last day of 2018. Futures on the S&P 500 Index jumped and Australian shares gained at the start, while Hong Kong futures tipped a firmer open after Trump said in a tweet that negotiations were “moving along very well” toward a comprehensive deal and Chinese state media cited Xi Jinping saying he believed both sides wanted “stable progress.” U.S. stocks halted a two-day rally Friday as thin trading added to already-volatile markets, though the S&P 500 Index held onto its first weekly gain in a month. Treasuries, which rose on Friday, won’t be trading because of the holiday in Japan. Australia’s S&P/ASX 200 Index rose 0.7 percent as of 10:22 a.m. in Sydney. Hong Kong’s Hang Seng Index futures climbed 0.3 percent. S&P 500 futures rose 0.8 percent.
Zero Hedge:      
Night Trading
  • Asian indices are +.25% to +.5% on average.
  • Asia Ex-Japan Investment Grade CDS Index 96.75 -.75 basis point.
  • Asia Pacific Sovereign CDS Index 11.75 unch.
  • Bloomberg Emerging Markets Currency Index 66.95 +.10%.
  • FTSE 100 futures +.39%.
  • S&P 500 futures +.58%.
  • NASDAQ 100 futures +.83%.

Earnings of Note
Before the Open:
  • None of note
After the Close:
  • None of note
Economic Releases
10:30 am EST
  • The Dallas Fed Manufacturing Activity report for December is estimated to fall to 15.0 versus 17.6 in November.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The China Manufacturing PMI report could also impact trading today.
BOTTOM LINE: Asian indices are modestly higher, boosted by commodity and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the week.

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