Trading Room: Asian Session

[William Gilday]

Welcome To Asia On A Friday June 24th, 2016

Hello traders go to be with you as we have arrived to Friday and should be an exciting day. We will have the results of the Brexit vote around the London open with the final result. There is no data in Asia today and the day is low on news releases. We have in London German IFO Business Climate. In the U.S. we have Core durable goods data and that will end the week.

However we have a full day of trading and of course the talk of the day will be Brexit. We have seen oil above 50.00$ P/B and Gold is back at the 1260.00 price level a small dip.

OK let us take a look at the markets as they closed in the U.S.and will give a summary of the complete trading day.

(US) Market Close Summary **Headlines**- Markets signal UK to stay in EU- Weekly initial jobless claims fall to multi decade lows again- New home sales drop and prices decline but market remains healthy- California Insurance Commissioner Jones calls on DOJ to block the proposed AET/HUM merger, believes bigger is not better- Volkswagen said to pay $10.2B total to settle emissions cheating issue - press- Reportedly Lions Gate (15% stake) has once again approached Starz about a potential merger - TheStreet.com - (US) Nevada Gaming Commission approves USFantasy to conduct daily fantasy sports contests; to begin operations in August- All 33 major banks meet minimum capital requirements in Fed stress tests**European post close highlights**(UK) Latest Brexit poll: 52% for remain, 48% for leave - YouGov/Times poll_Summary:_US equity markets surged higher from the open and maintained gains throughout the session today on broad confidence the 'Remain' side of the UK Brexit vote was poised to defeat the 'Leave' camp, with referendum results set to begin trickling out into the early morning. The Dollar and Yen dropped as investors moved out of safe haven currencies, and Treasuries slipped notably lower. WTI crude futures caught a bid and closed back above $50/bbl, while gold ended down modestly. Gains in equities were broad-based, with particular strength in financials and energy names. Post market, the Fed released bank stress tests results which showed all 33 banks met minimum capital requirements. Fast-food chain Sonic shares dipped after reporting a miss on revenue and underwhelming same-store sales numbers. And GBP/USD broke back above the 1.49 handle as the world awaited Brexit results.**Equities:**- Dow Jones +1.3%- S&P500 +1.3%- Nasdaq +1.6% - US 2-yr: +3bps at 0.78%- 10-yr: +5bps at 1.74%- 30-yr: +6bps at 2.56%- 2-10 spread: +2bps at 0.96% **Commodities**: - Aug crude oil $50.15, +2.1%- August Gold $1,259/oz, -0.8%- July Silver $17.33/oz, +0.1%- July Copper $2.163/oz, +1.3%**Notable afterhours (17:00):**EMES: Divests fuels business to Sunoco in deal valued at ~$179M; +18.5%SONC: Reports Q3 $0.43 v $0.42e, R$165M v $168Me; -5.9% Related ( UPDTE ) - Source TradeTheNews.com

Traders thank you so much for being with me for the past week and will talk with you soon.......William

 

[William Gilday]

Welcome to Asia On A Tuesday June 28th, 2016

Hello traders and welcome to Asia, WOW what a ride it has been this week and last Friday. Brexit has really played a large drop in this big sell off in the Euro and UK and U.S. The only positive markets was the Asia markets with the markets in the green.

My comments on this is this traders I really do not think that the UK had a plan in place that such a vote would turn against them. It was evident when 12 MPS resigned and walk out. I listen to PM Cameron yesterday and I have to say he has calmed some people in reference to travel, living and trade between the two countries. The question is will this stand buy the end. Again the UK had no plan be and for that the reaction has effected many people in the markets around the world. To make matters worse Moody's and Fitch have both downgraded the UK and will have an effect I would say for a medium period.

OK let us take a look at the summary after the close of the markets yesterday:

(US) Market Close Summary **Headlines**- (UK) Govt spokesperson Bower: Reiterates viewpoint that a second referendum is not remotely in the cards- (US) June preliminary Markit Services PMI misses expectations but remains in growth territory- European officials continue to react to UK vote (Cameron addresses Parliament/Merkel calls for process to start)- (US) June Dallas Fed manufacturing activity -18 v -15e- Monsanto: EC competition commissioner says will closely scrutinize Bayer deal - press**European post close highlights**- Germany Fin Min Schaeuble: after the Brexit vote, the EU cannot just continue on in the same old way - comments in Germany- Ball Corp to replace Rexam in FTSE 100 after completing Rexam merger- S&P cuts UK sovereign rating two notches to AA from AAA; outlook Negative- Fitch cuts UK sovereign rating one notch to AA from AA+; outlook Negative_Summary:_Fallout from the UK referendum continued to dominate trading globally. Interest rates on both sides of the Atlantic remained under substantial pressure along with equity valuations. The GBP fell to a fresh 30-year low against the Dollar before S&P downgraded the UK's sovereign rating two notches. Crude prices were heavy once again but that was no help to the transportation sector which was a leader on the downside. Banks and Airline stocks were particularly hard hit, and once again defensive groups like utilities and telecom held up better.**Equities:**- Dow Jones -1.5%- S&P500 -1.8%- Nasdaq -2.4% - US 2-yr: -5bps at 0.61%- 10-yr: -12bps at 1.46%- 30-yr: -15bps at 2.28%- 2-10 spread: -7bps at 0.85% **Commodities**: - Aug crude oil $46.68, -2.0%- August Gold $1,330/oz, +0.6%- July Silver $17.79/oz, -0.0%- July Copper $2.126/oz, +0.7%**Notable afterhours (17:00):**RGLS: Announces clinical hold of RG-101; reports second serious adverse event of jaundice; -58.2% afterhours Related ( UPDTE ) - Source TradeTheNews.com


Traders there is no data in Asia or London all the high impact data will be in the U.S. Session.

Thank you traders and we will talk soon....William

 

[William Gilday]

Welcome Traders To Asia Mid Week June 29th, 2016

Hello traders good to be back with you today as we have approached mid week and expecting a good trading day. The fire of Brexit looks to be cooling off as all the markets have had some kind of a rally, happy to see that.

The data releases for today are light however we do have a good amount of medium impact data today. We have two high impact events in the U.S. session Pending Home Sales and Crude Oil Inventories.

OK traders let us take a look at the market close yesterday:

(US) Market Close Summary **Headlines**- Global markets attempt to stabilize in wake of Brexit carnage- Carnival Corp relinquishes early gains following solid EPS and guidance- June Richmond Fed data disappoints, while consumer confidence beats- FDA approves Epclusa for Hep C, but Gilead sets treatment price lower than Harvoni and Sovaldi- Nike earnings disappoint on gross margins and worldwide futures orders**European post close highlights**- EU leaders gather to discuss Brexit- (EU) ECB's Nowotny (Austria): markets appear to be quieting and balancing out; there was an overreaction in banking shares after the Brexit vote- (EU) ECB's Draghi reportedly sees Brexit reducing Eurozone GDP by as much as 0.5%, growth impact could last for 3 years - press- ABE.ES: OHL to sell 7% stake in Albertis, price guidance of €11.65/shr- (TR) Reports of two explosions and gunfire at Ataturk Airport in Istanbul, Turkey - press_Summary:_Investors saw a return of moderate willingness to take on risk assets for the first time since the UK vote on Friday. Stock indices bounced on a global basis, while the flows into fixed income took a breather. Commodity markets lifted and post-Brexit currency trading flows reversed. Equities rallied all day, led by banks, transports, and biotechs. Nike shares dipped -6% post-market after reporting a slight miss on revenue and lighter than expected futures orders.**Equities:**- Dow Jones +1.6%- S&P500 +1.8%- Nasdaq +2.1% - US 2-yr: +1bps at 0.61%- 10-yr: flat at 1.46%- 30-yr: flat at 2.28%- 2-10 spread: -1bps at 0.85% **Commodities**: - Aug crude oil $47.88, +3.4%- August Gold $1,314/oz, -0.8%- July Silver $17.80/oz, +0.3%- July Copper $2.177/oz, +2.6%**Notable afterhours (16:50):** - Source TradeTheNews.com

Thank you traders and we will keep you updated during this Asia session........William

 

[William Gilday]

JPY Retail Sales Data Just Released Mixed

Hello traders let us take a look at the numbers for the retail sales that was just released:

*(JP) JAPAN MAY RETAIL SALES M/M: 0.0% V 0.0%E; RETAIL TRADE Y/Y: -1.9% V -1.6%E - Large Retailers' Sales: -2.2% v -1.5%e Related ( USD/JPY EWJ JPY/USD JOF JGB ) - Source TradeTheNews.com

(JP) Japan PM Abe: Fin Min Aso and BOJ Gov Kuroda need to continue watching market developments; Risks remains after G7 provided some relief - Should make sure Japanese companies in UK have sufficient access to funds- Prepared to mobilize all available policy measures to support economy- Excessive FX volatility would harm stability Related ( USD/JPY EUR/JPY EWJ GBP/JPY AUD/JPY JPY/USD JPY/EUR CAD/JPY JOF JGB ) - Source TradeTheNews.com

Thank you traders talk soon.......William

 

[William Gilday]

Hello Traders And Welcome To Asia June 30th, 2016

Hello traders and great to be back with you as we are at Thursday of our trading week and the last day of the month and the end of the quarter. Traders earnings season is very close so we will keep you updated on that. Good news as the markets are rebounding from Brexit and regain there loses.

Traders there is no data today in Asia as we do have some medium impact data to be released. Traders we have high impact data in the London and the U.S. sessions today plenty to see some price action.

OK let us take a look at the close of the markets testerday after the U.S. close :

(US) Market Close Summary **Headlines**- Post-Brexit rebound strengthens - US income and spending data supportive of 2+% growth- Diamond Hospitality goes private in $2.2B deal- GE Capital gets approval to drop SIFI status- Crude prices rise after DOE data**European post close highlights**- (UK) FTSE 100 ends session +3.2%, erasing all of its post-Brexit losses - CRGI.IT: Board approves plan to sell €1.8B bad loans; targets 2020 rev of €827M, ROE 7%- (UK) Scotland First Minister Sturgeon: in meeting with EU's Juncker, he was very sympathetic to Scotland's concerns- WDI.DE: Enters North America market with purchase of Citi Prepaid Card Services- MON: Reportedly demanding $10-15/shr more from Bayer over its $122/shr merger offer, or about $7B more which would raise deal value toward $69B - German press_Summary:_The rebound in global stock markets got more aggressive as the trading session progressed. The UK's FTSE 100 is back to levels not seen since before the referendum, while US markets are better than half way back overall. The buying was broad-based, with all S&P sectors moving to the upside. Crude prices pushed back towards the $50 mark, helped by bullish weekly inventory statistics. Treasury prices sold off into the cash equity close, with the 30-year reversing more than a point off of earlier highs.After the close, US bank stocks moved higher as the Fed announced that nearly all of them passed the CCAR capital plan review. Citigroup's announcement got a particularly positive reception as it announced a 220% dividend increase and $8.6B share buyback plan. Tractor Supply shares plummeted as it announced weaker than expected preliminary results for the spring selling season.**Equities:**- Dow Jones +1.6%- S&P500 +1.7%- Nasdaq +1.9% **Treasuries:**- US 2-yr: +2bps at 0.63%- 10-yr: +2bps at 1.48%- 30-yr: flat at 2.28%- 2-10 spread: flat at 0.85% **Commodities**: - Aug crude oil $49.47, +3.4%- August Gold $1,321/oz, +0.3%- July Silver $18.33/oz, +2.7%- July Copper $2.192/oz, +1.0%**Notable afterhours (17:30):**PRGS: Reports Q2 $0.33 adj v $0.30e, R$96.7M v $95.3Me (1 est); +3.6%C: Fed does not object to its CCAR plan; approves $8.6B (~7% of market cap) share buyback and 220% dividend increase to $0.16/shr (implied yield 1.52%); +2.4%JPM: Fed does not object to its CCAR plan; approves $10.6B (4.7% of market cap) share buyback and maintains dividend at $0.48/shr (implied yield 3.2%); +1.3%PIR: Reports Q1 -$0.07 v -$0.06e, R$418.4M v $421Me; Cuts FY guidance; -6.3%TSCO: Reports prelim Q2 $1.85B v $1.93Be, SSS -0.5% v +5.6% y/y; cuts FY16 guidance; -7.3% Related ( UPDTE ) - Source TradeTheNews.com

Thank you traders and we will talk soon .......William

 

[William Gilday]

Welcome Traders To Asia Friday July 4th, 2016

Hello traders and good to be with you as we start our last trading day of the week and the start of a new month. Just some notes Gold still remains at the 1300.00$ level as Oil dips down to the 48.76 $ level. The markets still looking strong as they again work to make back all the loses from Brexit. Today Hong Kong and Canada is on Holiday. The U.S. will be on Holiday Monday July 4th.

OK let us take a look at how the markets did yesterday at the close of U.S. :

(US) Market Close Summary **Headlines**- Chicago PMI touches more than a 1-year high- British Pound falls after BOE Carney foreshadows summer stimulus- Nevada May gaming revenue sees sharp decline- M&A picks up: STRZA/LGF terms are agreed upon; Hershey rebukes offer from Mondelez - US Treasury markets remain strong- Banks get little boost from generally positive CCAR results- (US) USDA Q2 Grain Stock Report: corn 4.72B bu v 4.53Be, soybeans 870M bu v 829Me, wheat 981M bu v 982Me- (MX) Mexico Central Bank raises overnight rate by 50bps to 4.25%, more than expected- Tesla Model S in Autopilot mode reportedly involved in fatal crash**European post close highlights**- Reportedly ECB to consider looser QE rules after Brexit depletes the pool of eligible debt - press- FTSE 100 closes at highest level since August_Summary:_The post Brexit rebound in US stock markets appeared to be losing momentum at the NY open, but a pickup in M&A activity helped it find another gear. US indices finished at the highs, recouping another 1.3% in what was a wild end to the month and the quarter. All the major S&P sectors were in the green while the VIX dropped another 6%. US Treasury prices pushed higher and may have been steered by quarter/month end flows along with dovish commentary coming from central banks on both sides of the Atlantic. After the close, Tesla shares dropped upon NHTSA's disclosure that a 2015 Tesla Model S vehicle was involved in a fatal crash while in Autopilot mode. US regulators opened an investigation into the vehicle and its autonomous component. Micron also declined following weak revenue in Q3, citing decreases in sales of trade Non-Volatile products, and the chipmaker announced layoffs to help it save $300M in FY17.**Equities:**- Dow Jones +1.3%- S&P500 +1.4%- Nasdaq +1.3% **Treasuries:**- US 2-yr: -4bps at 0.59%- 10-yr: +1bps at 1.49%- 30-yr: +3bps at 2.31%- 2-10 spread: +5bps at 0.90% - Source TradeTheNews.com

Thank you traders and we will talk soon as we have data today in the Asia session......William

 

[William Gilday]

JPY Data Just Released July 1st, 2016

Traders this is the JPY data that has just been released:

*(JP) JAPAN MAY JOBLESS RATE: 3.2% V 3.2%E- Job-To-Applicant Ratio: 1.36 v 1.35e (related EWJ JGB JOF JPY/USD USD/JPY)06:30*(JP) JAPAN MAY OVERALL HOUSEHOLD SPENDING Y/Y: -1.1% V -1.1%E; 3rd straight decline- no revisions (related EWJ JGB JOF JPY/USD USD/JPY)06:30*(JP) JAPAN MAY NATIONAL CPI Y/Y: -0.4% (3rd straight decline, 3-year low) V -0.5%E; CPI EX FRESH FOOD (CORE) Y/Y: -0.4% (3-year low) V -0.4%E- CPI Ex Fresh Food and energy (core-core): 0.6% v 0.6%e; 10-month low (related EWJ JGB JOF JPY/USD USD/JPY)06:30*(JP) JAPAN JUN TOKYO CPI YOY: -0.5% V -0.4%E; CPI EX-FRESH FOOD YOY: -0.5% (6th straight decline, 3-year low) V -0.5%E- CPI Ex Food/ Energy YoY: 0.4% v 0.4%e; 5-month low (related AUD/JPY CAD/JPY EUR/JPY EWJ GBP/JPY JGB JOF JPY/EUR JPY/USD USD/JPY) - Source TradeTheNews.com


Thank you traders we will talk soon......William

 

[William Gilday]

Weicome to Asia on a Monday July 4th, 2016

Hello traders and here we are on a monday the beginning of a new trading week. Traders there is no U.S. session today as they are on Holiday. I expect the markets to be very slow today as there is very little data to be released an no data in Asia today. The only high impact is in the London session with GBP Manufacturing PMI , that is it.

Traders I recommend you trade a demo account today........

OK let us look at the week in review from last week this is long bur worth the time to read this.

TradeTheNews.com Weekly Market Update: Brexit Turmoil Fades, For Now Global markets began the week under a dark cloud of uncertainty in the wake of the UK voters' decision to leave the EU. On Monday investors continued to flee from risk assets as ratings agencies cut the UK's sovereign ratings, European banking stocks got pummeled, and the British Pound hit new 30 year lows. Uncertainty persisted about the timing and path forward on separation from the European Union, and the leadership transition in the Conservative Party (and perhaps also the Labour Party) dominated the conversation in London along with the markets' reaction. The S&P traded down through the 200 day moving average for the first time since March and money surged into global bonds markets sending US Treasury yields to levels not seen since 2012. The Brexit vote propelled gold to a new 15-month high above $1,300, and pound sterling remained under pressure. Cooler heads prevailed by the end of the week and stocks reversed higher. For the week the DJIA gained 3.1%, the S&P500 rose 3.2%, and the Nasdaq added 3.3%, while the UK's FTSE-100 surged over 7%, notching its best performing week in nearly five years.At the opening bell on Tuesday, though, confidence was resurfacing as investors took a step back to fully evaluate the landscape. Despite somewhat tougher talk by European officials it was becoming clear that the UK government had no intention of invoking article 50 before a new PM is installed. Hope built that the resulting 2+ years before any agreement needs to be reached should allow cooler heads to prevail and officials to hammer out a mutually beneficial trade pacts. Policymaker responses also went a long way to underpin improving sentiment. Central bankers from around the world chimed in they were prepared to take measures to ensure liquidity and proper functioning of financial markets. South Korea announced a $17B stimulus package and China's president Li pledged he won't allow a rollercoaster ride in Chinese capital markets. Importantly, despite the surge in volatility there were no reports of dislocations in the capital markets or the global banking system. On Thursday the BOE's Carney plainly stated that further easing was likely this summer and that only solidified the growing belief the US Fed was likely on hold through year end. The notion the UK vote would keep central banks rates lower for even longer than previously thought helped fuel a dramatic rebound in equity markets.By Friday most major stock indices had returned to levels seen heading into the UK vote but the flow of money into government bond markets had yet to really subside. The FTSE was the first to recapture its post Brexit losses while the GBP remained devalued by ~13%. The 10-year GILT went for wild ride and by weeks end the yield touched record lows below 0.9%. German Bund yields fell further into the negative territory while the Euro rebounded from a 1.09 low to stabilize around 1.11. US stocks surged into the end of the quarter aided calming words from central banks and a slew of M&A announcements. The US 10-year yield slipped more than 10 basis points since Friday's close to trade sub 1.5%, and remains down more than 20 basis points from where it stood before the UK vote. The US Dollar index is holding up about 2.5% since the Brexit vote. Asia's FX flows were just as volatile as the Brexit effects played out. The USD/JPY after briefly trading below 99 on Friday, retraced back above 103 on improving risk sentiment. Verbal intervention remained heavy in Japan, where PM Abe held a meeting with BOJ Deputy Governor Nakaso and Finance Minister Aso. The PBoC's first fixing after the Brexit set the Yuan at 6.65, the lowest setting since Dec 2010. An intraday spike up above 6.70 sparked rumors that PBOC officials were willing to tolerate USD/CNY as high as 6.75. Data for the week was mixed and ultimately overshadowed by the Brexit news in terms of any market-moving effect, but some key data points were notable. The US Markit services PMI report was a bit more subdued than estimated, noting any rebound in the economy from the weak first quarter was largely confined to April, and that growth has since faded again. The Commerce Department revised first quarter GDP growth upwards from an annual rate of 0.8% to 1.1%, which is still the weakest pace in a year, portending the US economy remains vulnerable to global externalities. On the other hand, the Chicago PMI reading surged in June to its highest reading since January 2015, with managers noting improved production and new orders. US initial jobless claims came in slightly above estimates but remained at a level consistent with a healthy labor market, as the reading remained below 300K for the 69th consecutive week. US consumer confidence rebounded in June according to the Conference Board; however, it's important to note this data was gathered up to a week before the Brexit vote.In deal news this week, it was disclosed that Hershey was in talks with Mondelez but it rejected a $107/share offer of equally proportioned cash and stock and determined that the offer "provided no basis for further discussion." Nevertheless, shares of Hershey and other US foods producers rose sharply on Thursday on the prospects of more M&A in the sector. After years of winking at each other Lionsgate and Starz finally tied the knot, in a $4.4B merger deal creating a bigger player in the content world. Private equity also got into the act this week as Apollo Global bought Diamond Resorts for $2.2B, paying a 26% premium. Related ( UPDTE ) - Source TradeTheNews.com


Thank you traders and I will talk with you in about 24 hours.....William

 

[William Gilday]

Welcome to Asia on A Tuesday July 5th, 2016

Hello traders welcome back after a long weekend as I really do not have a lot of information for you today.

We have in the Asia session Retail Sails that will be a high impact event. Alsu in AUD we have a rate decision and we expect no changes, followed by a rates statement today.

In London we have GDP Services PMI and BOE Carney speaks today.

The U.S. is very quit today with little low impact data today.

We will keep you updated with the AUD data as it is released.

Thank you traders and we will talk soon.......William

 

[William Gilday]

JUPY News Data Release

*(JP) JAPAN JUN SERVICES PMI: 49.4 (first contraction in 2 months) V 50.4 PRIOR; COMPOSITE PMI: 49.0 V 49.2 PRIOR Comments: A contraction in business activity at Japanese services firms resumed in June, after a slight increase mid-way through the second quarter of 2016. The main driver behind the fall in output was a marked decline in total new orders, which decreased at the sharpest rate in nearly five years. A number of panellists blamed the appreciation of the yen against the dollar as a factor hampering sales, while some commented on the earthquakes that occurred back in April as still having a detrimental effect on demand. Moreover, expectations towards the outlook were muted. Employment was scaled back for the first time in three months suggesting firms are less confident. Business sentiment also eased to the weakest in over one year, as uncertainty surrounding the Chinese economy and fears that demand will fall due to the impending sales tax increase weighed on positivity. Related ( USD/JPY EUR/JPY EWJ GBP/JPY AUD/JPY JPY/USD JP - Source TradeTheNews.com


Thanks traders talk soon.....