Traders Market Weekly: Bear Jitters as Risk Factors Deepen

Viewing 15 posts - 31 through 45 (of 80 total)
  • Author
  • #36932

    Allianz Subsidiary Pleads Guilty to Defrauding Investors as Part of $6 Billion Settlement
    Prosecutors also brought charges against three former Allianz employees, with two agreeing to plead guilty

    One of Allianz SE’s ALIZF -1.73% U.S. investing divisions pleaded guilty to securities fraud and agreed to pay about $6 billion in penalties and restitution to investors who suffered losses when some of the subsidiary’s hedge funds tanked during the March 2020 market selloff.

    Allianz Global Investors U.S. admitted Tuesday that it lacked internal controls and oversight for a series of private-investment funds and made false and misleading statements to investors, according to a plea agreement reached with the Manhattan U.S. attorney’s office. The U.S. subsidiary also settled civil-fraud claims brought by the Securities and Exchange Commission.

    The $6 billion will resolve the government’s criminal and civil claims, as well as those from defrauded investors. The agreement is among the largest criminal resolutions between a financial institution and the Justice Department in recent years.

    The settlements draw a line under one of the biggest early casualties of the market meltdown sparked by the Covid-19 pandemic. Investors, including pensions that managed the retirement plans of Arkansas teachers, Milwaukee city employees and New York City subway workers, lost billions on the funds.


    Brokerage research calls of note:
    Downgrades: CARR, DNA, WRBY


    WTI crude futures +2.3% to $115.02/bbl; wheat futures -2.5% to $12.45/bu; nat gas futures +1.2% to $8.50/mmbtu
    10-yr note yield +2 bps tp 2.99%; 2-yr note yield +3 bps to 2.70%


    S&P Futures vs Fair Value: -10.0
    10 yr Note: 2.967%
    USD/JPY: 129.15 -0.21
    EUR/USD: 1.0516 -0.0037
    Europe: FTSE: 0.0% DAX: 0.0% CAC: -0.1%
    Asia: Hang Seng: +0.2% Shanghai: -0.3% Nikkei: +0.9%
    Gold (1813.50 -5.40) Silver (21.63 -0.12) Crude (114.19 +1.79)


    The global equity markets are off to a muted start. S&P Futures are down about 10 points to trade around the 4075 area. After closing near the session high on Tuesday, the market has trickled back in the overnight trade. The high print was set early at 4095.00. Modest selling culminated with the low at 4064.50 before settling back to the current level.

    In Asia, China slid 0.3% while Japan added 0.9%. The Shanghai Composite never strayed far from the neutral zone, providing a lackluster day that lacked major economic data. In Japan, the Nikkei marked a fourth straight day of gains. First Quarter GDP contracted less than expected at -1.0%. This compared favorably to the forecast of -1.8%. Steel names were among the leaders with Japan Steel Works and Kobe Steel finishing up 4-5%.

    In Europe, the major bourses lack direction. Automakers are representing relative strength with BMW, Volkswagen and Stellantis up about 1%. Energy names continue to push higher with BP and Shell gaining 1-2%.


    Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note.
    Japan’s Nikkei: +0.9%
    Hong Kong’s Hang Seng: +0.2%
    China’s Shanghai Composite: -0.3%
    India’s Sensex: -0.2%
    South Korea’s Kospi: +0.2%
    Australia’s ASX All Ordinaries: +1.0%.


    China’s April House Prices 0.7% yr/yr (last 1.5%)
    Japan’s Q1 GDP -0.2% qtr/qtr (expected -0.4%; last 0.9%); -1.0% yr/yr (expected -1.8%; last 3.8%). Q1 GDP Capital Expenditure 0.5% qtr/qtr (expected 0.7%; last 0.4%) and Q1 GDP External Demand -0.4% qtr/qtr (expected -0.3%; last 0.1%). March Industrial Production 0.3% m/m, as expected (last 2.0%) and Capacity Utilization -1.6% m/m (last 1.5%)
    Australia’s Q1 Wage Price Index 0.7% qtr/qtr (expected 0.8%; last 0.7%); 2.4% yr/yr (expected 2.5%; last 2.3%). April MI Leading Index -0.2% m/m (last 0.3%)
    Former Bank of Japan policymaker Sakurai said that there is a chance that the central bank will adjust its yield curve control policy in the fall, adding that the yen could weaken to 140 per dollar.
    South Korean think tank KDI raised South Korea’s forecast for 2022 CPI to 4.2% from 1.7% while the growth forecast was reduced to 2.8% from 3.0%.
    The Chinese government will reportedly offer subsidies to some car buyers.


    Major European indices trade near their flat lines.
    STOXX Europe 600: -0.2%
    Germany’s DAX: -0.1%
    U.K.’s FTSE 100: -0.2%
    France’s CAC 40: -0.2%
    Italy’s FTSE MIB: UNCH
    Spain’s IBEX 35: +0.4%.


    Eurozone’s April CPI 0.6% m/m, as expected (last 2.4%); 7.4% yr/yr (expected 7.5%; last 7.5%). April Core CPI 1.0% m/m (expected 1.1%; last 1.1%); 3.5% yr/yr, as expected (last 3.0%)
    U.K.’s April CPI 2.5% m/m (expected 2.6%; last 1.1%); 9.0% yr/yr (expected 9.1%; last 7.0%). April Core CPI 0.7% m/m (expected 0.8%; last 0.9%); 6.2% yr/yr, as expected (last 5.7%). April Input PPI 1.1% m/m, as expected (last 4.6%) and Output PPI 2.3% m/m (expected 1.0%; last 1.9%)
    The U.K. may bring forward the income tax cut that is being planned for next year.
    European Central Bank policymaker Rehn cautioned against feeding a change to inflation expectations, repeating his expectations for an initial rate hike this summer.
    The U.K.’s CPI remained above target for the ninth consecutive month in April.
    Finland and Sweden officially applied for NATO accession.


    Target (TGT 166.80, -48.48): -22.5% after missing EPS estimates on above-consensus revenue, citing “unusually high costs” that impacted profitability. Target guided FY23 revenue in-line with expectations.
    Lowe’s (LOW 188.50, -5.53): -2.9% despite beating EPS estimates and reaffirming its FY23 EPS and revenue guidance.
    TJX Cos. (TJX 57.00, +0.81): +1.8% after beating EPS estimates on below-consensus revenue. The company guided Q2 EPS below consensus.
    Analog Devices (ADI 167.00, +3.16): +1.9% after beating top and bottom-line estimates and guiding Q3 EPS and revenue above consensus.
    Doximity (DOCS 29.35, -4.42): -13.1% after guiding JunQ revenue below consensus. The company topped earnings expectations, guided FY23 revenue above consensus, and authorized up to $70 million for share buybacks.


    U.S. Treasuries are on track for a lower start, making for a continuation of yesterday’s retreat. Treasury futures climbed after yesterday’s cash close, continuing their slow advance into the night.

    The market reached highs during the early portion of the European session, but the past four hours have seen a slide to fresh lows.

    Overnight action saw a mixed showing from global equity markets while sovereign debt trades mostly lower.

    Japan’s Q1 GDP report showed a smaller than expected contraction while CPI figures from the eurozone and the U.K. remained elevated.


    DOW & markets are plunging on RECORD GAS prices & supply-chain issues
    DUTCH TULIP bulbs on WALL STREET & US treasuries are all on sale – lol
    and WAR in RUSSIA is impacting INFLATION in a major way as OIL supplies are now more limited
    although we were heading in wrong direction on climate change policies + restart of economy
    A little humor on high gas prices shared below – lol 🙂


    ohhhhh the humanity … DOW @ minus 1100 @ 3pm
    WALL STREET is almost as risky at the “KRYTO”s 😉
    Logically, $4+ gas prices + 8% inflation are unstable forces at work


    Johnny Hindsight’s trade of the day
    Bright Green $BGXX
    New Cannabis IPO 45.96 +82%

Viewing 15 posts - 31 through 45 (of 80 total)
  • You must be logged in to reply to this topic.