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- Happy Election Day! As Americans go to the Polls to vote, Global stocks are edging down on the final day of “election uncertainty
- US Index futures are pointing to a negative open to the start of trading in NY with the Dow Jones minis –0.24%, S&P500 minis –0.26% and Nasdaq 100 minis –0.37%
- The ratio of US bank stock prices to US utility stock prices has dropped to close to its lowest level for CY2018 (after reaching a 3-year high in January): stock market strategists view this ratio as a measure of how traders are reacting to a shift to a tighter interest rate environment. Utilities stocks trade as proxies to bonds
- The VIX is moving up this morning and is currently at 20.16 after closing at 19.96 yesterday
- SPY November 14, November 16 & January 2019 OTM Puts, Weatherford International (WFT) January 2019 OTM Puts, XLU March 2019 OTM Calls, VXX November 09 OTM Puts and EEM November 09 OTM Puts are the most actively traded options contracts in the US pre-market
- US 10-Year Treasury Bonds are higher with yields down -0.95 basis points to 3.1913%
- The US Treasury 2s-10s Spread has narrowed 0.13 basis points to 0.29%
- WTI Crude is currently little changed -0.06% to USD$63.1/bbl with the Brent-WTI spread down USD$-0.4 to USD$8.71/bbl
- Gold is currently up 0.29% to USD$1235.04/oz
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- Alibaba (BABA) said it will do its part to help global enterprises import USD$200 billion of goods into China over the next 5 years. Alibaba sees a growing demand from China’s middle class as a way to whittle down the present trade surplus. Alibaba has said it will “do its part” to reverse the surplus. Alibaba is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
- Associated British Foods (ABF LN) reported results that included sales growth at its Primark unit that grew 5.2% at constant exchange rates. Associated British Foods full year operating profit of 1.4 billion pounds while consensus was for 1.39 billion. Comparable sales fell 2.1% at Primark and Associated British Foods sees its sugar unit delivering results significantly lower than today. Associated British Foods is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas.
- Deutsche Post (DPW GR) reported results below consensus. Deutsche Post delivered 3Q ebit of 376mn euros, below 393.9mn euros consensus. Deutsche Post 3Q revenue of 14.85 billion euros came in line with consensus of 14.94 billion euros. Deutsche Post reiterated its guidance of 5 billion euros operating profit by 2020. Deutsche Post is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
- Imperial Brands (IMB LN) said in intends to build an inventory of cigarettes ahead of Brexit. Imperial Brands will stockpile USD$40mn worth of cigarettes, about 2.6mn packs. Imperial Brands reported weak adjusted operating profit of 3.77 pounds for the full year, a 0.1% growth, while consensus was for a drop. Imperial Brands is rated “Neutral” in our United Kingdom All-Cap Global Top Stock Ideas.
- Siemens Gamesa (SGRE SM) reported full year sales of 9.12 billion euros, coming 1.6% below consensus. Siemens Gamesa reported adjusted ebit of 693mn euros, above consensus of 660mn euros. Siemens Gamesa sees full year 2019 revenue of 10-11 billion euros. Siemens Gamesa is the renewable energy unit of Siemens. Siemens Gamesa is not rated in our Global Top Stock Ideas.
- Toyota (7203 JP) raised its full year forecast, bucking the trend among carmakers. Toyota boosted its full year operating profit to 2.4 trillion yen, up from 2.3 trillion yen. Toyota also plans a share buyback of up to 250 billion yen or 1.44% of outstanding stock. Toyota said it has kept costs in check allowing it to increase guidance. Toyota is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
- Zalando (ZAL GR) reported its first operating loss in a quarter in three years. Zalando reported a 3Q loss of 39mn euros, a loss that came better than the 45mn euros loss that was expected. Zalando saw customers wait to buy fall/winter clothing with the persistent warm weather and were forced to offer more sales to keep them buying. Zalando is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
- European stocks are dropping to start the morning as the overhang of the US midterm elections weighs on investor sentiment
- The Euro Stoxx 600 is currently down -0.28%, the FTSE 100 has declined -0.6%, the DAX has fallen -0.22%, and the CAC 40 is lower by -0.25%
- UK Prime Minister Theresa May is holding her Cabinet meeting today to update Cabinet members about BREXIT negotiations as the UK and EU inch closer towards a dea
- Barclays is forecasting that UK stocks will underperform their Eurozone peers, irrespective of the outcome of BREXIT negotiations, as the investment bank expects to see the British Pound rally into year-end
- Bloomberg is reporting that options traders are betting that the recent calm in the MSCI Turkey iShares (TUR) will end as the cost to hedge 3-month options has steadily increased over the past few days – month to date, TUR is +12%
- Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.56x
- Oil & Gas (+0.02%), Telecommunications (-0.89%), and Basic Resources (-0.49%) stocks are the top performers in the Euro Stoxx 600 today
- Automobiles & Parts (-0.63%), Food & Beverage (-0.1%), and Utilities (-0.5%) stocks are the worst performers in the Euro Stoxx 600 today
- 44 stocks in the Euro Stoxx 600 are at 4-week highs while 11 stocks are at 4-week lows
- 5 stocks in the Euro Stoxx 600 are overbought while 8 stocks are oversold according to the 16-day RSI Measure
- VSTOXX, the European stocks equivalent of the VIX, is moving down this morning and is currently at 14.23 after closing at 18.33 yesterday
- EUR€ is currently little changed against the USD$ at 1.14
- GBP£ is currently up +0.153% against the USD$ to 1.3061
- CHF is currently little changed against the USD$ at 0.9958
- German 10-Year Bunds are higher with yields down -1.2 basis points to 0.414%
- UK 10-Year GILTs are lower with yields up 1.1 basis points to 1.512%
- Asia stocks closed positive in overnight trading as market commentators raise the suggestion that maybe Monday’s sell-off was just a “blip”
- Chinese Vice President Wang Qishan, an ally of Chinese President Xi Jinping, during Bloomberg’s New Economy conference in Singapore, states that China remains open to discussing solutions to ending the escalation in trade tensions between the US and China but will not be “bullied and oppressed by imperialist powers”
- The Nikkei 225 finished up +1.14%, the Hang Seng ended up +0.72%, the Hang Seng China Enterprise up +0.83%, and the CSI 300 was -0.6%
- Better than expected results from Toyota (7203 JP, TM) boosted sentiment for Japanese stocks and stocks across other Asian regional markets — Toyota increased its profit outlook and announced a USD$2.2bn stocks buyback programs
- Japanese stocks are on pace to report the biggest numbers of earnings misses since 2016. Notable disappointing earnings results include: Nintendo, Cannon and Fanuc Corp
- Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 4.49x
- 14 stocks in the Nikkei 225 hit 4-week highs while 22 stocks reached 4-week lows
- 0 stocks in the Nikkei 225 closed overbought while 14 stocks closed oversold according to the 16-day RSI Measure
- Investor sentiment for Hong Kong stocks finished positive with the advance/decline ratio for the Hang Seng closing at 4.56x
- 3 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
- 0 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
- Japan 10-Year Government Bonds are lower with yields up 0.3 basis points to 0.131%
- JGBs 2s-10s Spread has widened 0.1 basis points to 0.26%
- JPY¥ is currently little changed against the USD$ at 113.14