Archives of “June 13, 2019” day

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Nikkei 225 closes lower by 0.46% at 21,032.00

  
Analysis, Global Indices

Tokyo’s main index slips alongside Asian stocks on softer risk mood

Nikkei 13-06

Tech stocks were the leading losers in the Nikkei today as Japanese stocks fell in general after a poorer performance by US equities in overnight trading.

Lingering global trade tensions and continued protests in Hong Kong isn’t helping with sentiment in the region but also the fact that US equity futures are down by 0.2% won’t help to alleviate the risk mood to start the European morning.
The yen is bid as a result though gains are more measured compared to what they were in early Asian trading. USD/JPY holds at 108.36 currently, off the lows earlier at 108.17.

China Daily reports economists expecting cuts to interest rates or RRRs in coming weeks

  
  Analysis

China Daily is an official English language newspaper owned by Communist Party of China

PBOC expected to cut interest rates or reserve ratio requirements
  • To counter “downside risks”
  • to maintain liquidity in the financial market
  • support infrastructure investment
We’ve been getting similar signals for various China sources (other papers, media, official comments etc) for a while now.

G20 meet June 28 & 29 – FX will be a hot topic. We’ll get a big cue on June 24 on how hot.

  
Analysis, Forex
The reason I highlight this is because on June 24, just a few days before the G20 summit (June 28 and 29) is the US Commerce Dept. makes its final ruling on the proposal on June 24th.
This could well be another front opened up in trade negotiations.
Yen might be a target? Yuan also, of course. And given Trump’s comments just this weak on an undervalued EUR, EUR also. Actually, given the USD strength is anyone safe?
In late May we reported on news the US Commerce Department is proposing a  new rule to impose anti-subsidy duties on products from countries that undervalue their currencies against the USD.

BoA on yen, short Eur and USD against it.

  
Analysis, Forex

Bank of America / Merrill Lynch  like a short EUR/JPY and short USD/JPY

Concerns of negatives to increase in markets ahead of the G20 (June 28/9). Has the potential to see risk off sentiment.
  • recommend selling USD/JPY
BoA says markets are complacent (cite low volatility)
  • “We have a relatively optimistic view for the end game, but are concerned that things can get worse before getting better”
Risk is  a comprehensive agreement at the G-20, but even if so, re-pricing of the Fed to limit risk-on market move, which would limit the downside for yen.

Lower day for major indices but nothing to worry about….

  
Analysis, US Market

Nasdaq down the most on the day.

Stocks traded mostly in the red today. The S&P traded up 0.1% at the highs and the Dow traded up 0.13%.  The Nasdaq never got in the black today.
Nevertheless, it wasn’t necessarily a day to “write home about”. Call it down, but there were some shares that did ok too.
Nasdaq down the most on the day.
The final numbers are showing:
  • The S&P fell -0.20%
  • The Nasdaq fell -0.38%
  • The Dow fell -0.17%.
The indices are nearer the lows of the day at the close, but again, it is not a disaster.
Some winners today included:
  • Beyond Meat, +12.64%
  • J&J, was 1.41%
  • United Continental, +1.23%
  • Stryker, +1.19%
  • Delta Airlines, +1.04%
  • Gilead, +1.03%
  • Pfizer, +1.01%
  • United Technologies, +0.96%
  • Box, +0.96%
  • Verizon, +0.93%
  • Merck, +0.90%
  • Walmart, +0.82%
  • McDonald’s, +0.82%
  • Twitter, +0.78%
  • Visa, +0.76%
  • Celgene, +0.61%

Losers today included:

  • First Solar, -6.8%
  • Micron, -5.4%
  • Tesla, -3.61%
  • Nvidia, -3.02%
  • Wells Fargo, -2.94%
  • Morgan Stanley, -2.40%
  • QUALCOMM -2.32%
  • Goldman Sachs, -2.32%
  • Cisco, -2.19%
  • Charles Schwab, -1.75%
  • Facebook -1.72%
  • Netflix, -1.63%
  • Alibaba, -1.60%
  • Citigroup, -1.58%
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