TradeTheNews.com Staff
TradeTheNews.com
Economic Data
- (AU) AUSTRALIA MAY HOME LOANS M/M: 0.0% V -0.5%E; INVESTMENT LENDING: -0.9% V +1.3% PRIOR; OWNER-OCCUPIED LOAN VALUE: -0.7% V +1.3% PRIOR
- (NZ) NEW ZEALAND JUN FOOD PRICES M/M: 1.4% (1-year high) V 0.6% PRIOR
- (NZ) NEW ZEALAND JUN NON-RESIDENT BOND HOLDINGS: 64.2% V 64.6% PRIOR
- (PE) PERU CENTRAL BANK CUTS REFERENCE RATE BY 25 BPS TO 3.75% (vs EXPECTED HOLD AT 4.00%)
Index Snapshot (as of 02:30 GMT)
- Nikkei225 -0.3%, S&P/ASX +0.5%, Kospi -0.5%, Shanghai Composite +0.5%, Hang Seng +0.2%, Sept S&P500 +0.1% at 1,958
Commodities/Fixed Income/Currencies
- Aug gold flat at $1,339, Aug crude oil flat at $102.91/brl, Sept Copper flat at $3.27/lb
- GLD: SPDR Gold Trust ETF daily holdings falls 0.2 tonnes to 800.1 tonnes (first decline since June 17th)
- (JP) BOJ offers to buy ¥300B in 1-3yr JGB, ¥200B in 3-5yr JGB, ¥100B in 10-25yr JGB, ¥30B in JGB with maturity over 25-yr as well as ¥3T in T-bills
- (AU) Australia MoF (AOFM) sells A$500M in 3.25% bonds due 2018; Avg yield: 2.8022%; Bid-to-cover: 4.61x
- Weekly Fed Balance Sheet Total Assets Week ending July 9th: $4.38T v $4.38T prior; Reserve Bank Credit: $4.34T v $4.33T prior; M1 y/y change: 10.9% (10-month high) v 10.7% w/w; M2 y/y change: 6.4% (7-month high) v 6.3% w/w
Market Focal Points/Key Themes
- Cautious sentiment remains prevalent in the final trading session of the week, with turmoil in Portugal adding to valuation concerns. The yield on the Portuguese 10-year bond spiked over 20bps (up for the 4th session) after Banco Espirito Santo SA suspended trading in its shares due to a missed debt payment. Portugal central bank said it can avoid contagion risks, while a separate press report stated BES is defending itself by announcing it has a €2.1B capital buffer above minimum Common Equity Tier 1 threshold.
- In his first address since being confirmed as the Fed vice chair, Fisher spoke on financial reform, stating it may be appropriate for the Fed to raise big bank capital surcharges and offering support for stress tests and tighter capital rules. In the Q/A segment, he noted he does not think US faces serious asset price problems, which could potentially diminish market perception of Fisher being much more hawkish than Fed chair Yellen.
- Australia's 3rd biggest iron ore miner Fortescue announced Q4 shipments of 38.7Mt. This is up from 31.5Mt in Q3, however the final FY volume of 124.2Mt is below the most recent target of 127Mt. FMG shares were down nearly 1% in Sydney. In Tokyo, Canon started higher by over 3% after a Nikkei report that it would post a 10% increase in Q2 op profit - a 5th consecutive quarter of rising profitability.
Equities
US markets:
- JOEZ: Reports Q2 $0.01 v -$0.02e, R$48.2M v $49.0Me; +15.5% afterhours
- CUDA: Reports Q1 $0.07 v $0.03e, R$66.2M v $64.2Me; Guides Q2 $0.03-0.04 v $0.03e, R$66-67M v $64.4Me; Guides FY15 $0.14-0.18 v $0.14e, R$270-274M v $270Me - slides; +1.5% afterhours
- CVX: Issues interim Q2 update: Earnings to be higher than Q1 (implies >$2.36 v $2.78e); +0.2% afterhours
- GPS: Reports June SSS -2% v -0.8%e; -1.3% afterhours
- PSMT: Reports Q3 $0.70 v $0.70e, R$615M v $626Me; -4.4% afterhours
- RCII: Reports prelim Q2 $0.36-0.38 (Ex $0.05 restructure charge) v $0.49e, R$773M v $788Me; launches rent-to-own smartphone offering; -11.4% afterhours
- BABA: May start IPO roadshow as early as the end of July - financial press
Notable movers by sector:
- Consumer Discretionary: Fast Retailing 9983.JP -0.8% (Q3 results); Anhui Jianghuai Automobile 600418.CN +10.0% (announces asset restructure)
- Financials: Sinolink Securities 600109.CN +1.9% (H1 guidance)
- Materials: Sichuan Shuangma Cement 000935.CN +3.3% (H1 guidance); FMG.AU -0.6% (Q4 shipment results)
- Energy: Datang International Power Generation 991.HK -1.0% (H1 power generation results); Roc Oil ROC.AU +4.0% (received 2nd proposal)
- Technology: Canon 7751.JP +2.5% (speculation on Q2 results); Unilumin Group 300232.CN +10.0% (H1 guidance); Pegatron 4938.TW +2.5% (June results); Taiwan Semiconductor 2330.TW +1.9% (press speculation on cooperation with Apple on processor development)
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.