A quick look at the projected equity curves for popular trading strategies
Archives of “April 17, 2019” day
rssChina 1-10 Year Bear flattener -7 bps 1 year +9, 10 yr +2
Bloomberg Dollar Index trading range. 30DMA shows narrowest trading range since Sep 2014
Nikkei 225 closes higher by 0.25% at 22,277.97
Tokyo’s main index pushes higher on firmer session for Asian equities
Risk is slightly more optimistic to begin the new day and that’s very much reflected in the way Asian stocks have performed so far. Chinese data earlier allowed markets to breathe a sigh of relief and that’s what we’re seeing across risk assets ahead of European trading.
The Shanghai Composite is up by 0.4% currently, while US 10-year yields are up by 1 bps to 2.60%. USD/JPY stays flat at 111.99 currently as price continues to do battle around the 112.00 handle for the third day running this week.
The BOJ is about to overtake GPIF to become the biggest holder of Japanese stocks
Japan’s Government Pension Investment Fund (GPIF) manages the largest pool of retirement savings in the world.
UP until now they’ve been the country’s largest holder of equities.
The BOJ ‘Hold my beer’ QQE policy, though, will soon see the Bank overtake the fund.
The Nikkei says the Bank will overtake the GPIF in 2020 as top shareholder in Tokyo-listed companies
- BOJ held over 28 trillion yen (around $250 billion) in exchange-traded funds as of the end of March, equating to 4.7% of the total market capitalization of the first section of the Tokyo Stock Exchange
- Given the bank has a buy target of 6 trillion yen in new purchaseseach year, its holdings will put it ahead of GPIF in November. of 2020
- GPIF are currently on 6%
–
If any ForexLive traders are travelling to Japan, do not leave your luggage unattended. The BOJ will snap that up too.
Mine!
China Q1 GDP: 1.4% q/q (expected 1.4%) and 6.4% y/y (expected 6.3%)
Xinhua reporting early – January to March economic growth data coming up from China
1.4 % q/q
- expected 1.4%, prior 1.5%
6.4 % y/y – came out prior to scheduled time and showing a beat
- expected 6.3%, prior 6.4%
ps. March activity data out at the same time, posted separately
Nippon Paint to buy Australia’s DuluxGroup for $2.7bn
The board of Australia’s DuluxGroup has unanimously backed a A$3.8bn ($2.7bn) takeover bid from Japan’s Nippon Paint, the paint and coatings maker said on Wednesday.
Nippon Paint offered to pay A$9.80 a share for the Sydney-listed company, a 27.8 per cent premium on its closing price on Tuesday, DuluxGroup said in a statement to the Australian Stock Exchange.
Shares in DuluxGroup surged 27.6 per cent, while Nippon Paint stocks fell 3.7 per cent on the news.
“The Board has carefully considered the strategic options available to DuluxGroup to maximise value value, including continuing to pursue domestic and global growth as a standalone company, and we have unanimously concluded that the transaction with Nippon is in the best interest of our shareholders,” DuluxGroup chairman Graeme Liebelt said.
DuluxGroup said the offer would give the company “increased opportunity” to pursue its growth ambitions and said no changes were expected to its leadership or operations. It said the offer gave DuluxGroup an implied enterprise value of $4.2bn.
Nippon Paint said it had “essentially no operations in Australia or New Zealand”.
Shareholders will vote on the deal in July.
Japan trade balance for March: Y 528.5bn (expected Y 363.2bn)
March 2019 trade balance from Japan, exports held down by trade wars
Trade balance: Y 528.5bn
- expected Y 363.2bn, prior was Y 334.9bn
Trade balance (adjusted): Y -177.8bn
- expected Y -242.5bn, prior was Y 116.1bn
Exports -2.4% y/y:, not quite as bad as expected
- expected -2.6%, prior was -1.2%
Imports +1.1% y/y, a miss
- expected 2.8%, prior was -6.7%
Yen unresponsive. What else is new?
ICYMI: Satellite images show movement at North Korea’s main nuclear site
Some news doing the rounds referring to satellite imagery taken last week of North Korea’s main nuclear site.
Which is the Yongbyon nuclear site
The Center for Strategic and International Studies in Washington DC says images show activity near the site’s Uranium Enrichment Facility and Radiochemistry Laboratory, and that:
- “n the past, these specialized railcars appear to have been associated with the movement of radioactive material or reprocessing campaigns.
Something to keep an eye on.
But its not surprising really. If nuclear development ever did halt in NK (which is very doubtful) it would have restarted again after the failure of the Hanoi summit since.
Winners are grinners! (reprised)Private survey data shows a surprise draw in crude oil inventory
This is the private survey of inventories, official data is Wednesday morning (US time).
- Reuters poll of analysts had the median estimate at a build (headline inventory) of 1.9 million barrels.
- Platts survey had the expected build at 1.8 million barrels
Comes in at a draw instead.
