tybs
Morning Mrkt Report
Futures Drop,Despite Stimulus Hopes After Dire Chinese Data; Yields Plunge
() and bold are addition's and edited as usual.
It's about time we had some bad news which, as everyone knows, is great news for central-bank supported, centrally-planned markets.
The global equity bounce following what many misinterpreted as softer rhetoric by POTUS on the trade dispute with China, fizzled on Wednesday despite dismal Chinese data,
Chinese retail sales at 16 year low
while fresh Italian debt woes kept BTFDers on the sidelines.
Ironically, China's data miss was not the catalyst for the drop. As we reported last night, in April every Chinese economic metric posted a sharp decline and missed expectations:
Retail sales rose just 7.2% (against +8.7% in March) - lowest since May 2003 (the 7.2% year-on-year rise in retail sales is actually weaker than all the estimates. The lowest was 7.5%, and the median was 8.6%)
Industrial Production growth slumped from a hope-filled +6.5% YTD YoY in March to 6.2%.
Fixed Asset Investment slowed to just 6.1% YoY.
However, considering the surge in Chinese stocks, which closed 1.9% higher as traders speculated Beijing will consider more measures to support the economy after data showed weaker-than-expected growth in April, the only thing about the dismal Chinese data is that it wasn't even worse to prompt even greater global hopes for a Chinese stimulus. In the US, Treasury yields sank to the lowest level since March,
See cap#5
but they jumped for Italy’s debt, as the nation’s deputy premier Matteo Salvini talked up tensions over the country’s deficit.
see cap#3
Market Snapshot
S&P 500 futures down at 2,829.25
MXAP up 0.5% to 155.33
MXAPJ up 0.4% to 510.12
Nikkei up 0.6% to 21,188.56
Topix up 0.6% to 1,544.15
Hang Seng Index up 0.5% to 28,268.71
Shanghai Composite up 1.9% to 2,938.68
'''(although not announced sure they hit the
ctrl-p button, how else does that habben
on cap #3)'''
Sensex up 0.5% to 37,485.81
Australia S&P/ASX 200 up 0.7% to
6,284.20
Kospi up 0.5% to 2,092.78
STOXX Europe 600 down 0.1% to 375.80
German 10Y yield fell 2.4 bps to -0.094%
Euro up 0.08% to $1.1213
Italian 10Y yield rose 2.9 bps to 2.355%
see cap#4-for 2 year
Spanish 10Y yield fell 0.5 bps to 0.966%
Brent futures down 0.3% to $71.06/bbl
Gold spot up 0.1% to $1,298.37
U.S. Dollar Index down 0.1% to 97.47
'''(liquidity issue's notwithstanding for the
system)'''
US Event Calendar
7am: MBA Mortgage Applications, prior
2.7%
8:30am: Empire Manufacturing, est. 8, prior
10.1
8:30am: Retail Sales Advance MoM, est.
0.2%, prior 1.6%; Retail Sales Ex Auto
MoM,
est. 0.7%, prior 1.2%; Retail Sales Control
Group, est. 0.3%, prior 1.0%
9:15am: Industrial Production MoM, est.
0.0%, prior -0.1%; Manufacturing (SIC)
Production, est. 0.0%, prior 0.0%
10am: NAHB Housing Market Index, est. 64,
prior 63
10am: Business Inventories, est. 0.0%, prior
0.3%
4pm: Net Long-term TIC Flows, prior
$51.9b; Total Net TIC Flows, prior $21.6b
deficit
In the US this afternoon we’ve got the April retail sales report due up where the consensus expects a +0.3% mom core and control group reading. We’ll also get the May empire manufacturing reading, April industrial production reading, May NAHB housing market index reading and March business inventories print. Away from the data we’ve got the Fed’s Quarles and Barkin due to speak, along with the ECB’s Coeure and Praet.
https://www.zerohedge.com/news/2019-05-15/markets-slide-despite-stimulus-hopes-after-dire-chinese-data-yields-plunge
https://www.bloomberg.com/markets/stocks/futures
https://www.marketwatch.com/investing/bond/tmubmusd30y?countrycode=bx
ZH still has a douchebag at douchebank for the summary-left out.
>ANONS always follow the Gold.
for you
for day crew, dropped last night
Northrup Grumman Chair sells shares-has no share's registered for sale left-does not mean they have none left.
shareholder meeting began a little over an hour ago.
Northrop Grumman Corporation is one of the American leaders of the design, manufacturing and marketing of defense systems and equipments. Net sales (including intragroup) break down by family of products and services as follows:
-
aerospace systems (42.6%);
-
electronic equipments (40.5%): radars,
sensors, air traffic control, communication,
supervision systems, etc. The group also
provides information and command systems;
-
technical services (16.9%): infrastructure
management, maintenance, integration and
training services.
Net sales break down by source of income into sale of products (58.9%) and services (41.1%).
The United States account for 77.7% of net sales.
https://www.marketscreener.com/NORTHROP-GRUMMAN-CORPORAT-13763/company/
Cap#1
https://www.secform4.com/insider-trading/1133421.htm
Ford recalling 270,000 cars in North America that could roll away
WASHINGTON (Reuters) - Ford Motor Co said Wednesday it is recalling 270,000 Ford Fusion cars in North America that could roll away.
The automaker said the recall covers Fusion cars from the 2013 through 2016 model year that have a shifter cable that may detach from the transmission allowing a driver to remove the ignition key when the vehicle is not in park.
Ford is aware of three reports of property damage and one injury report potentially related to the issue. Ford said owners should always use the parking brake and will be notified when a fix is available.
https://www.reuters.com/article/us-ford-recall/ford-recalling-270000-cars-in-north-america-that-could-roll-away-idUSKCN1SL1MW
AES Corp. Director buys $39.9m in shares-May 9th.
The AES Corporation is one of the world's leading electricity producers and distributors. The activity is organized around 2 areas:
-
electricity production and sale: owned, at the
end of 2018, of 108 power plants worldwide,
with a production capacity of 31,792 MW;
-
electricity distribution.
Net sales are distributed geographically as follows: the United States (32.2%), Chile (19.4%), Brazil (4,9%), Argentina (4.5%), Mexico (3.7%) and other (35.3%).
https://www.marketscreener.com/AES-CORPORATION-THE-11547/company/
https://www.secform4.com/insider-trading/874761.htm
> US secretary of the Treasury Mnuchin confirmed, without giving much detail, that the US-China trade talks are still ongoing.
say's this every time a microphone is in front of him…too bad he can't get a damn thing done.
Putting the adult's in the room is what it will take, anything short of this will result in moar jaw-boning by munchkins
>This is not 2018 again in the FX market.
hahahahahahaha-see cap#2 for yuan printing in February, have done moar since but not on that scale.
from January 30th
Central Banks Are on the Biggest Gold-Buying Spree in a Half Century
Central banks bought more bullion last year than anytime since 1971, when the U.S. ended the gold standard.
Governments added 651.5 tons of gold to their coffers in 2018, a 74 percent increase from the previous year, according to a report from the World Gold Council.
Russia, which is "de-dollarizing" its reserves, was the biggest buyer, followed by Turkey and Kazakhstan. Hungary also made a large purchase, citing gold’s lack of counterparty risk and role as a hedge against changes in the international finance system, the WGC said.
“Central banks chose to significantly increase their gold reserves, reinforcing the importance of gold as a reserve asset,” the WGC said.
Central banks are expected to acquire an additional 600 tons this year, according to the consulting firm Metals Focus Ltd. The buys, which will help the banks diversify their foreign-exchange assets in a time of extraordinary political volatility, signal a growing confidence in the metal’s value moving forward.
The banks "were not net buyers even a decade ago," said Juan Carlos Artigas, director of investment research at the WGC, in a telephone interview. "As their foreign reserves expand, they are increasingly diversifying away from pure dollar exposure."
Slowing global growth, a weaker U.S. dollar and a drive by central banks to expand the amount of gold they hold could be a winning trifecta for investors seeking a recovery in the metal’s price after its first annual loss in three years.
Gold prices ended 2018 little changed, but rallied toward the end of the year amid concerns about Brexit, a falling stock market and expectations for a less aggressive U.S. monetary policy. The trend has continued this month, with bullion climbing to the highest since May.
https://www.bloomberg.com/news/articles/2019-01-31/gold-demand-up-amid-biggest-central-bank-buying-spree-in-decades
It would…however they have no one to sell them to and whatever they could sell on the open market would devalue the remaining tranches they continue to hold.
In short….fucked
the trade war article. Saxo bank "analyst" is quite liberal with his own reality construct. Some is true except the FOREX statement, it's worse.
FWIW