Good morning,
Earlier this week, I used the example of an investment banker getting a new telephone, highlighting how no one likes change. I can tell you now, the same goes for changing bus routes on my way to work this morning!
God, I miss the HK bus and train infrastructure!
US markets re-open little changed, however, its good to see that volumes hit averages, despite European volumes still lower.
European markets opened at the highs and trended lower throughout the session, closing at day lows. As mentioned earlier, volumes were lower by an average of 20%. London's oil and commodity heavy bench mark, the FTSE, closed down 1.2%, impacted heavily by BG Group, which plans to sell its stake in an LNG project to CNOOC. This stock alone took 24 points of the index.
FTSE -1.2% strong volume: O/P: cons.services, utilities U/P: oil&gas, health
CAC -0.9% v.low volume: O/P: utilities, technology U/P: basic mat, health
DAX -0.3% avg volume: O/P: cons.services, financial U/P: health, cons.goods
IBEX +0.1% v.low volume: O/P: financial, industrial U/P: basic mat, tech
Being all saints day, many of the European markets closed, including France, Italy, Spain and Portugal, was well as the Philippines here in Asia. From the sector charts, defensives were back in favor as the Euro remains unchanged at 1.2960. As the last of the Christmas trees start going, fund managers are reminded to start locking in gains for the year, and the term risk becomes a dirty word, much to the detriment of us humble brokers.
On this note, I would expect some profit taking in sectors like financials, technology and property. Just looking at the performance of Capitamall(CT SP), yields are now considerably lower, whilst retail sales are looking to stagnate.
Markets.Expect markets to open unchanged on the open, despite a strong rally into the close yesterday across most markets in the region. A possible cause being window dressing. This should see us trend flat over the first hour or two, before seeing profit taking pushing the index easier.
At these levels, basic materials are looking cheap as GDP estimates are still looking relatively lack luster 1 year out. Despite this, governments will be looking to boost construction spending, supporting jobs growth. This should also boost other sectors, such as industrial. Oil should also see support here, time to buy Petrochina(857)
Shorts, I am looking at Singapore property names and Australia financials.
Data.07:50 Japan foreign and domestic stock & bond data
08:00 S.Korea trade balance
08:30 Australia import/export data
09:00 China PMI
12:00 Thailand CPI
13:30 RBA commodity price index
15:00 UK Nationwide house prices
16:00 Turkey manufacturing PMI
16:15 Spain manufacturing PMI
17:30 UK PMI
19:30 US challenger job cuts
20:15 US ADP employment change
20:30 US Non farm productivity/jobless claims
22:00 US ISM manufacturing/construction spending
Events.18:00 Italy's Monti meets Germany's Steinbruck
22:30 IMF regular meeting
EU bans naked CDS's
Bonds.11:45 Japan 3 month, 10 year auction
Earnings.Western refining(US), Marathon Petrolum(US), Pfizer(US), Watson Pharma(US), United Therapeutics(US), Exxon Mobil(US), Alliant tech(US), Estee Lauder(US), Visteon(US), Cigna(US), Kellogg9US), Apache(US), Avis Budget(US), Yelp(US), Las Vegas sands(US), Starbucks(US), First solar(US), AIG(US), Onyx Pharma(US), Overseas Shipholding(US), Edison(US), Linkedin(US), RDSA(UK), BSKYB(UK), Smith & Nephew(UK), Lloyds(UK), BT(UK), Eisai(JP), Mitsui Chem(JP), Calbee(JP), Fuji Media(JP), Casio(JP), Nikon(JP), Sony(JP), Sharp(JP), Ibiden(JP), Cosmo oil(JP), Hankook tire(KR), Sumsung heavy(KR), Samsung C&T(KR), Hyundai hysco(KR), S-oil(KR), Woori Fin(KR), Rosneft(RU), Arcelik(TR)
Stoddart
No comments:
Post a Comment