Traders Market Weekly: Inflation Obsession in Worsening Liquidity

Viewing 15 posts - 46 through 60 (of 62 total)
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    South Korean press reported that Samsung is not planning to cut memory chip production. South Korea’s foreign reserves fell at their fastest pace in 14 years in September, reaching their lowest level since July 2020. The Reserve Bank of Australia is expected to release the findings of its financial stability review tomorrow.
    India’s September Nikkei Services PMI 54.3 (expected 57.0; last 57.2)
    Hong Kong’s September Manufacturing PMI 48.0 (last 51.2)
    Australia’s August trade surplus AUD8.32 bln (expected AUD10.10 bln; last AUD8.73 bln). August Imports 4.0% m/m (last 5.0%) and Exports 3.0% m/m (last -10.0%). September AIG Construction Index 46.5 (last 47.9)
    New Zealand’s September ANZ Commodity Price Index -0.5% m/m (last -3.4%)


    European indices trade in the red.

    —Equity Markets—

    STOXX Europe 600: -0.2%
    Germany’s DAX: -0.2%
    U.K.’s FTSE 100: -0.9%
    France’s CAC 40: -0.5%
    Italy’s FTSE MIB: -1.0%
    Spain’s IBEX 35: -0.5%


    Shell noted that Q3 profit will be impacted by reduced chemical and oil refining margins and weaker natural gas trading. The Bank of England’s decision maker panel survey showed that companies are planning to hike prices by 6.6% next year. Fitch affirmed the U.K.’s AA- rating but lowered the outlook to Negative from Stable.
    Eurozone’s August Retail Sales -0.3% m/m (expected -0.4%; last -0.4%); -2.0% yr/yr (expected -1.7%; last -1.2%)
    Germany’s August Factory Orders -2.4% m/m (expected -0.7%; last 1.9%)
    U.K.’s September Construction PMI 52.3 (expected 48.0; last 49.2)
    Spain’s August Industrial Production 5.5% yr/yr (expected 4.8%; last 5.4%)


    The S&P 500 futures are down 7 points and are trading 0.3% below fair value.
    The Nasdaq 100 futures are down 6 points and are trading 0.1% below fair value.
    The Dow Jones Industrial Average futures are down 61 points and are trading 0.2% below fair value.


    Pinterest (PINS 25.86 +1.23 +4.99%): upgraded to Buy from Neutral at Goldman
    Twitter (TWTR 50.25 -1.05 -2.05%): still negotiating terms to close deal with Elon Musk, according the The Wall Street Journal; Apollo Global Management (APO), which was looking to provide $1.0 bln for Elon Musk’s Twitter buyout, is no longer in talks with Mr. Musk, according to Reuters
    Shell plc (SHEL 51.08 -2.94 -5.44%): Q3 profit will be impacted by reduced chemical and oil refining margins and weaker natural gas trading
    Eli Lilly (LLY 330.00 -1.78 -0.54%): receives FDA Fast Track designation for tirzepatide for the treatment of adults with obesity, or overweight with weight-related comorbidities
    McCormick (MKC 72.99 -0.32 -0.44%): misses by $0.04, reports revs in-line; reaffirms FY22 EPS guidance, revs guidance
    Splunk (SPLK 80.01 -3.30 -3.96%): files lawsuit against Cribl, alleging patent infringement, copyright infringement, unfair competition, and other claims
    Verizon (VZ 39.31 +0.56 +1.45%): upgraded to Outperform from Perform at Oppenheimer
    Constellation Brands (STZ 241.01 +5.06 +2.14%): beats by $0.36, beats on revs; guides FY23 EPS above consensus
    Conagra (CAG 34.86 +1.06 +3.14%): beats by $0.05, beats on revs; reaffirms FY23 EPS guidance


    U.S. Treasuries are on track for a mostly lower start with shorter tenors expected to pace the early selling while the long bond is set to begin with a slight gain.

    In Europe, the British pound, gilts, and U.K. equities are facing some pressure.

    2-yr: +3 bps to 4.16%
    3-yr: +1 bp to 4.18%
    5-yr: +2 bps to 3.98%
    10-yr: +1 bp to 3.77%
    30-yr: -1 bp to 3.76%


    Dow 29,926.94 -346.93 -1.15%
    S&P 500 3,744.52 -38.76 -1.02%
    Nasdaq 11,073.31 -75.33 -0.68%
    GlobalDow 3,286.43 -31.39 -0.95%
    Gold 1,721.80 1.00 0.06%
    Oil 88.93 1.17 1.33%
    Bitcoin 20,039


    Equity indices in the Asia-Pacific region ended the week on a lower note while markets in China remained closed.

    —Equity Markets—

    Japan’s Nikkei: -0.7% (+4.6% for the week)
    Hong Kong’s Hang Seng: -1.5% (+3.0% for the week)
    China’s Shanghai Composite: CLOSED (UNCH for the week)
    India’s Sensex: -0.1% (+1.3% for the week)
    South Korea’s Kospi: -0.2% (+3.6% for the week)
    Australia’s ASX All Ordinaries: -0.8% (+4.5% for the week)


    Chinese equities will resume trading on Monday, but markets in Japan and South Korea will be closed to start next week.
    Japan’s Prime Minister Kishida confirmed that additional steps will be taken to offset higher gas prices. South Korea’s finance ministry noted that it will be prepared to provide foreign exchange liquidity to financials if needed.
    China’s September FX Reserves $3.029 trln (expected $3.000 trln; last $3.055 trln)
    Japan’s August Household Spending -1.7% m/m (expected 0.2%; last -1.4%); 5.1% yr/yr (expected 6.7%; last 3.4%). August overall wage income 1.7% yr/yr (last 1.3%). August Leading Index 2.0% m/m (last -1.4%) and Coincident Indicator 1.6% m/m (last 0.9%)


    Major European indices trade near their flat lines.

    —Equity Markets—

    STOXX Europe 600: -0.4% (+1.8% week-to-date)
    Germany’s DAX: -0.9% (+2.1% week-to-date)
    U.K.’s FTSE 100: -0.3% (+1.2% week-to-date)
    France’s CAC 40: -0.6% (+2.5% week-to-date)
    Italy’s FTSE MIB: -0.4% (+1.8% week-to-date)
    Spain’s IBEX 35: -0.4% (+1.3% week-to-date)


    British Prime Minister Truss would not rule out the possibility for widespread blackouts during the winter if her country fails to import enough energy.
    Credit Suisse offered to buy back up to $3 bln worth of debt.
    The European Central Bank has reportedly told some banks that it expects them to implement dividend and compensation limits due to a fear about a wave of defaults.
    Germany’s August Retail Sales -1.3% m/m (expected -1.1%; last 0.7%); -4.3% yr/yr, as expected (last -2.3%). August Industrial Production -0.8% m/m (expected -0.5%; last -0.3%). August Import Price Index 4.3% m/m (expected 2.0%; last 1.4%); 32.7% yr/yr (expected 29.9%; last 28.9%)
    U.K.’s September Halifax House Price Index -0.1% m/m (last 0.3%); 9.9% yr/yr (last 11.4%)
    France’s August trade deficit EUR15.30 bln (expected deficit of EUR14.80 bln; last deficit of EUR14.80 bln)
    Italy’s August Retail Sales -0.4% m/m (last 1.3%); 4.3% yr/yr (last 4.1%)
    Swiss September Unemployment Rate 2.1%, as expected (last 2.1%)


    Twitter (TWTR 48.90, -0.49, -0.99%): trial appears to be stayed by Delaware court until Oct 28 to permit the parties to close on the transaction, according to the court docket
    Chewy (CHWY 38.24, +0.30, +0.79%): initiated with an Outperform at Oppenheimer
    Credit Suisse (CS 4.5500, +0.26, +6.06%): announces public tender offers for debt securities
    Advanced Micro (AMD 64.30, -3.55, -5.23%): lowers Q3 revenue and gross margin guidance due to lower than expected PC demand and a significant inventory correction in PC supply chain
    Taiwan Semiconductor Manufacturing (TSM 72.45, -1.90, -2.56%): reports Sep revs increased 36.4% yr/yr to ~NT$208.25 bln; reports Q3 revs above consensus
    Levi Strauss (LEVI 15.08, -0.85, -5.34%): beats by $0.03, misses on revs; lowers FY22 EPS and revenue guidance


    The S&P 500 futures are down 47 points and are trading 0.3% below fair value. The Nasdaq 100 futures are down 205 points and are trading 1.7% below fair value. The Dow Jones Industrial Average futures are down 252 points and are trading 0.8% above fair value.

    Equity futures dropped noticeably following today’s release of the Employment Situation report for September, which reflected continued growth in headline employment and monthly average hourly earnings, giving the Fed room to continue its aggressive rate hike campaign.

    Treasury yields shot higher following the release. The 2-yr note yield, at 4.28% a short time ago, now sits at 4.32%. The 10-yr note yield, at 3.83% a short time ago, now sits at 3.89%.

    The US Dollar Index also shot higher following the release. The US Dollar Index was at 112.09 a short time ago,but rose to 112.43.


    FILL UP TODAY … as I took our Toyota Avalon & filled it while price is $3.35 in SW VA
    as OIL/GAS prices rising quickly for a bad “OCTOBER surprise for all.
    Here’s a great group/song to add to the playlist … NRBQ was awesome in the day


Viewing 15 posts - 46 through 60 (of 62 total)
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