Article / 09 January 2018 at 1:47 GMT

Morning Report APAC: Equities buoyant on Wall St lead

APAC Sales Trading Desk / Saxo Capital Markets
Singapore
  • Oil prices made minor gains due to tension in Iran, and a slowdown in US drilling
  • Agricultural commodities are generally lower amid abundant global supplies
  • Bitcoin fell  amid regulatory concerns in South Korea and a Chinese crackdown
  • Gold has potential for upside gains in 2018

By Saxo APAC Sales Trading

Economic data of the day (Singapore Time)
nnn










Speeches (Singapore Time)

  • 2300: US – Fed’s Neel Kashkari speaks on Moderated Panel.

Overnight news, Korea

  • The South Korea and North Korea are having their first high level talks in two years in Panmunjom, to discuss the North joining the next winter Olympics and possibly start to renegotiate Pyongyang's nuclear program.

Overnight news, Bitcoin

  • Bitcoin fell 17% amid regulatory concerns in South Korea and a Chinese crackdown on power use by currency miners. The Securities and Exchange Commission also applied more scrutiny to firms claiming a crypto connection. It suspended trading in Hong Kong-based UBI Blockchain Internet, which jumped more than 900% last year, due to "unusual and unexplained market activity." (Bloomberg)

Overnight news, China

  • China’s regulators are targeting the estimated 1 trillion yuan online cash micro-lending industry that has drawn criticism for exorbitant interest rates and underhand lending practices.
  • Chinese billionaire Jack Ma’s Ant Financial issued a record 238 billion yuan ($37 billion) in 2017 of asset-backed securities (ABS) backed by consumer loans. It allowed them to remove these loans from its balance sheet but authorities announced on December 1 they were requiring micro lenders to consolidate ABS into their balance sheets.
  • FX Reserves: news came on Sunday that Reserves increased $20.7 billion to $3.14 trillion in December. China’s foreign-currency holdings rose $129bn in 2017, posting the first annual gain since 2014 amid tighter capital controls, a stronger yuan and resilient economic growth.
 

Foreign exchange

nnn
 















  • We saw some profit taking in short USD positions overnight, with no major news in the market. 
  • EURUSD was the main mover lower with the market heavily positioned on long euro/crosses. With the one month vol below 6. It is worth looking at EUR put around that maturity for a quick selloff.
  • Emerging Markets: South Korean authorities are starting erbal interventions on KRW, warning about the strong won. The USDKRW saw a small retracement move higher. 


Foreign exchange movements

nnn













  • We are seeing low delta buyers of USDJPY in ¥114.0/¥114.5 strikes for two weeks, in very good sizes.
  • The USDCNH vol curve is under pressure with good selling interest in the front end.


Rates
nnn










  • US yields were hardly changed amid light schedule of data releases and a quiet trading day.
  • European yields were lower with buying into risk of the Catalonian political situation, and peripherals outperformed.


Commodities 

 nnn

 

 


Equities

nnn

 















US equities

  • GoPro plunged 12.77% on close today as the company announced a disastrous preliminary fourth-quarter numbers on Monday. Revenue is expected to be at around $370 million which is. 37% declined year on year. GoPro was down more than 20% yesterday at one point until news broke out that it has hired JPMorgan to explore a possible sale.
  • Seagate soared on news that it was one of the early investors on Ripple, a type of cryptocurrency which has recently soared in value and challenging long standing Ethereum in the number 2 spot (in market value). However, the news were sold into as the stock retreated almost $4 from its intraday high before closing only $3.06 higher.

European equities

  • In Europe, shares in the UK retailer Mothercare fell  27.5% after the retailer issued a profit warning and fell to its all-time low. Mothercare is now predicting a pre-tax profit of £1m to £5mln for its financial year to the end of March. Mothercare closed at 44.95 pence.
  • Pharmaceutical company Galapagos NV rose 4.53% as on positive tests from its positive preliminary results in an osteoarthritis study.

Hong Kong equities

  • In Hong Kong, Value Partners (0806.HK) rose 5.2% after issuing a positive profit alert, expecting the net profit to increase significantly to about HK$2 billion for the year ended December 31, 2017 as compared to $HK137.5 million in the previous year. Next resistance for asset management company would be at $HK9.06, its high in 2017.

 

nnn

 While grain prices have fallen amid plentiful harvests, expectations of colder weather may help to give prices a boost. Photo: Shutterstock

 

– Edited by Robert Ryan


This report was compiled by the Saxo APAC Sales trading team in Singapore – the home of social trading. Follow the team on @SaxoStrats or post your comment below to engage with Saxo Bank's social trading platform. Follow us on @SaxoStrats on Twitter

All material contained herein is provided for your general information. The information and commentaries are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Saxo Capital Markets Pte. Ltd. (“SCM SG”). Any expression of opinion (which may be subject to change without notice) is personal to the presenter and/or author; they do not reflect the view or opinion of SCM SG or its affiliates, neither do they constitute an endorsement of SCM SG’s view or analysis of the same.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. SCM SG does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment based on any commentaries or information provided here.
For further information, please click here.  


Saxo Capital Markets Pte Ltd ("Saxo Capital Markets") is a licensed subsidiary of Saxo Bank A/S, an online trading and investment specialist. Saxo Capital Markets serves as the APAC headquarters and holds a capital markets services licence under the Monetary Authority of Singapore; and a commodity broker licence issued by the International Enterprise Singapore. Clients can trade Forex, CFDs, Stocks, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, the leading multi-asset online trading platforms.
Trading risks are magnified by leverage - losses can exceed your deposits. Trade only after you have acknowledged and accepted the risks. You should carefully consider whether trading in leveraged products is appropriate for you based on your financial circumstances. Please consider our Risk Warning and General Business Terms before trading with us. Please see full General Disclaimer.

Thousands of serious traders receive free news and analysis from Saxo Capital Markets each day. Saxo Capital Markets never sends these emails unsolicited; they are sent following acceptance of your membership and subscription request by Saxo Capital Markets at saxomarkets.com.sg. If you do not wish to receive any emails from Saxo Capital Markets in the future, please reply to this email with the word "UNSUBSCRIBE" in the subject header.

Copyright | Disclaimer | Risk Warning | Privacy Policy | Contact Us
Samsung Hub | 3 Church Street | # 30-01 | Singapore 049483
Company No. 200601141M


Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail