CAPIS Capital Institutional Services : Global Recap 1/31/17

Asian Headlines

Following the declines in the West, Asia traded lower across the board as investors continue to eye President Trump's actions with trepidation on their global impact. Mainland China, Hong Kong, Taiwan and Malaysia remain closed. Hong Kong will reopen tomorrow.

Japan led the region lower due a stronger ¥ which gained in part due to flight to safety but in reaction to the BoJ. The central bank concluded its meeting today with no changes to policy. However, it did raise its current FY GDP estimate to 1.4% from its prior outlook of 1.0%. It also sees inflation approaching its 2% target during FY '18. The strengthening currency caused exporters to trade lower. There were also plenty of corporate stories for investors to focus upon. There was Sony's -2.3% impairment charge announcement from yesterday. NEC -17.4% tumbled after it slashed its FY profit forecast by 70% and NI by 60%! Other results included Daiwa Secs. -1.3%, Canon -1.3% and East Japan Railway -2.9% After the close, Nintendo cut its profit outlook by about 1/3. Nomura and Mizuho also reported.

S. Korea reopened from its New Year festivities to trade lower. Autos and energy were especially out of favor. Both Hyundai Glovis -9.0% and Hyundai Mobis -4.9% missed with results. CIMB cut Mobis to hold. LG Elec. -4.1% responded well to an agreement to supply compressors to Haier Elec.

Australia saw all sectors lower with basic materials and energy off more than 1%. Business conditions rose to 11 from 6 during December while business confidence was unchanged at 6. Iluka Resources -3.0% sees an A$220m - A$230m FY loss as the result of asset impairments. Fortescue's +2.8% CEO says iron ore price gains are supported by China's improved steel demand. Beach Energy -1.3% raised its FY17 output forecast but cut its FY17 capex forecast.

European Headlines

The region has spent most of the day to the upside. However, it has faded from the highs and some indices are now flat to down small. Most sectors are green with retail, financials, and autos up about 0.5%. Financials though are off of highs and have taken some of the bid out of the market. Healthcare is leading lower with several other sectors in the red. Volumes are flat on the day.

Deutsche Bnk +1.2% will pay a total of $629m in fines related to trading on behalf of wealthy Russian clients who moved money out of the country to hide illicit funds.

H&M +5.6% leads the retail sector after posting better than expected PTP and provided up beat annual growth outlook.

Traders are shredding UPM-Kymenne -10.5% following results that showed 5 of its 6 business units underperformed expectations. Some investors were anticipating an additional dividend which did not come to fruition.

Investors are losing appetite for Givaudan -3.8% due to disappointment in results and its dividend.

Most commodities are trading to the upside with copper up well over 1%. Gold is trading above the $1,200 level.

Aetna had strong headline numbers on our side of the pond.

Market and Macro Data

	Event		Survey	Actual	Prior	Revised
FR	GDP QoQ	4Q A	0.40%	0.40%	0.20%	-
FR	GDP YoY	4Q A	1.10%	1.10%	1.00%	0.90%
GE	Retail Sales MoM	Dec	0.60%	-0.90%	-1.80%	-1.70%
GE	Retail Sales YoY	Dec	0.50%	-1.10%	3.20%	3.50%
FR	PPI MoM	Dec	-	0.90%	0.80%	0.70%
FR	PPI YoY	Dec	-	1.70%	-0.20%	-0.50%
FR	CPI EU Harmonized MoM	Jan P	-0.50%	-0.20%	0.30%	-
FR	CPI EU Harmonized YoY	Jan P	1.20%	1.60%	0.80%	-
FR	CPI MoM	Jan P	-0.50%	-0.20%	0.30%	-
FR	CPI YoY	Jan P	1.10%	1.40%	0.60%	-
FR	Consumer Spending MoM	Dec	0.20%	-0.80%	0.40%	0.60%
FR	Consumer Spending YoY	Dec	2.10%	1.50%	3.30%	3.70%
SP	CPI YoY	Jan P	2.40%	3.00%	1.60%	-
SP	CPI MoM	Jan P	-1.10%	-0.50%	0.60%	-
SP	CPI EU Harmonised MoM	Jan P	-1.60%	-0.90%	0.50%	-
SP	CPI EU Harmonised YoY	Jan P	2.20%	3.00%	1.40%	-
GE	Unemployment Change (000's)	Jan	-5k	-26k	-17k	-20k
GE	Unemployment Claims Rate SA	Jan	6.00%	5.90%	6.00%	-
SP	Current Account Balance	Nov	-	3.3b	2.0b	-
IT	Unemployment Rate	Dec P	11.80%	12.00%	11.90%	12.00%
UK	Net Consumer Credit	Dec	1.7b	1.0b	1.9b	-
UK	Net Lending Sec. on Dwellings	Dec	3.2b	3.8b	3.2b	3.1b
UK	Mortgage Approvals	Dec	69.2k	67.9k	67.5k	-
UK	Money Supply M4 MoM	Dec	-	-0.50%	0.40%	-
UK	M4 Money Supply YoY	Dec	-	6.20%	6.40%	-
UK	M4 Ex IOFCs 3M Annualised	Dec	-	3.50%	4.20%	4.60%
EC	Unemployment Rate	Dec	9.80%	9.60%	9.80%	9.70%
EC	GDP SA QoQ	4Q A	0.50%	0.50%	0.30%	0.40%
EC	GDP SA YoY	4Q A	1.70%	1.80%	1.70%	1.80%
EC	CPI Estimate YoY	Jan	1.50%	1.80%	1.10%	-
EC	CPI Core YoY	Jan A	0.90%	0.90%	0.90%	-
IT	PPI MoM	Dec	-	0.60%	-0.20%	-
IT	PPI YoY	Dec	-	0.90%	-0.30%	-
IN	Fiscal Deficit INR Crore	Dec	-	43254	34489	-
IN	Eight Infrastructure Industries	Dec	-	5.60%	4.90%	-
IN	GDP Annual Estimate YoY	2016	-	7.90%	7.20%	-