Sunday, February 10, 2019

Monday Watch

Today's Headlines
  • Stocks in Asia Set to Dip as China Traders Return. Stocks look set to start the week on a cautious note as Chinese markets reopen ahead of a potentially pivotal week for U.S.-China trade talks, with doubt on the possibility for progress creeping back into markets. Resurgent worries on global growth are driving bonds higher and threatening to dent this year’s rally in riskier assets, with equities dipping last week. Futures indicate a lower start for shares in Australia and Hong Kong, with Chinese exchanges reopening after a one-week holiday during which a gauge of the country’s Hong-Kong traded firms declined. Japan is shut for a holiday, so Treasuries won’t trade until the London open after yields edged down to 2.63 percent on 10-year notes last week. Futures on Australia’s S&P/ASX 200 Index slid 0.1 percent in late Friday trading. Hong Kong’s Hang Seng Index futures retreated 0.4 percent.
Night Trading
  • Asian indices are -.25% to +.25% on average.
  • Asia Ex-Japan Investment Grade CDS Index 81.0 +.75 basis point.
  • China Sovereign CDS 57.25 -.25 basis point.
  • Bloomberg Emerging Markets Currency Index 68.37 +.02%.
  • FTSE 100 futures n/a.
  • S&P 500 futures +.03%.
  • NASDAQ 100 futures -.01%.

Earnings of Note
Before the Open:
  • (CNA)/.93
  • (DO)/-.40
  • (L)/.33
After the Close:
  • (DNB)/3.62
  • (VECO)/-.16
  • (VIPS)/1.26
  • (VNO)/1.14
Economic Releases
8:30 am EST
  • CPI revisions.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Fed's Bowman speaking, China/US mid level trade talks, China Foreign Direct Investments report, UK Industrial Production report, UK Trade Balance report, BIO Investor Conference, Credit Suissee Financial Services Forum and the (NSC) Analyst Conference could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by commodity and consumer shares in the region. I expect US stocks to open modestly lower and to rally into the afternoon, finishing modestly higher.  The Portfolio is 75% net long heading into the week.

No comments: