CAPIS Capital Institutional Services : Global Recap – 1/6/17

Asian Headlines

Asian indices wrapped up their first full week of 2017 in mixed fashion with moves again subdued. After a fairly heavy week of economic data new releases were scant with Australia reporting its first trade surplus since early 2014.

The Yuan pared some of the last two day's gains even as the PBoC set the rate at its strongest since early last month. With both the CNY and offshore Yuan seeing volatility this week the central bank is said to be looking into rate expectation management. In a seemingly related note China authorities are consider antitrust and tax probes of US companies in response to President-elect Trump's so-called trade war of words. Dongfeng Motor -1.4% fell after reported December sales of 362k vehicles. China Evergrande closed flat despite reporting FY contract sales up 85% on the year.

Speaking of Trump, Japan took the brunt of the focus yesterday post a tweet concerning Toyota and its plans for production in Mexico. Toyota fell 1.7% overnight did report Chinese FY vehicle sales down 6.7% YoY while noting European sales rose 6%. As we highlighted several days ago and the vacuum created by the lack of VW diesels, hybrid sales for company now account for 32% of its sales there. After the close yesterday Fast Retailing -6.7% reported Uniqlo sales down 5% YoY. Listen up Spicoli….VANS producer ABC-Mart +2.8% rallied after noting SSS for December was up 3.9% YoY. Dude.

Australia's Trade Balance swung to an A$1.243B surplus in November as Exports were up 8% YoY while imports held steady. Higher iron ore prices assisted as well. Copper names fell overnight with Gold producers ticking up on higher prices yesterday. Oz Minerals -1.8%, Northern Star Resources +2.1%.

European Headlines

Europe is trading lower today with the EuroStoxx 600 at least holding above the last two session's lows. There is some strength in Autos and Chemis with the balance of sectors in the red with losses held to minor moves. Oil continues to tick up with reports Saudi Arabia is holding to the OPEC production agreement by cutting production by 486k bpd. Volume is about a quarter slower than the last month's turnover as Sweden, Finland, Austria, as well as Greece and Poland are shut today.

Confidence readings released today for the EZ are generally better with Retail Sales across the region down as expected for November. In Germany both retail sales and factory orders fell more than expected in November while France reported a narrowed Trade deficit.

Sanofi -2.8% is weighing on the sector post yesterday's court directive that prevent them and Regeneron from selling their cholesterol drug Praluent in the US. The court ruled it infringed upon Amgen's Repatha drug with Praluent not to be sold here for 12 years.

Fiat Chrysler +4.5% is accelerating higher today after Chairman Marchionne noted they are confident in their 2018 goals with plans to reduce debt over the next two years. The strength in Jeep and Dodge sales and the profitability generated by those vehicles has seen the stock rally as of late with specific goals to be laid out by the company by month-end.

		Event		Survey	Actual	Prior	Revised
NO	1)	Credit Indicator Growth YoY	Nov	-	4.80%	5.00%	-
GE	2)	Retail Sales MoM	Nov	-0.90%	-1.80%	2.40%	2.50%
GE	3)	Retail Sales YoY	Nov	1.20%	3.20%	-1.00%	-0.80%
GE	4)	Factory Orders MoM	Nov	-2.40%	-2.50%	4.90%	5.00%
GE	5)	Factory Orders WDA YoY	Nov	3.60%	3.00%	6.30%	-
NO	6)	Industrial Production MoM	Nov	-	0.50%	10.70%	10.10%
NO	7)	Industrial Production WDA YoY	Nov	-	1.30%	0.70%	-
NO	8)	Ind Prod Manufacturing MoM	Nov	-	-0.10%	0.20%	-
NO	9)	Ind Prod Manufacturing WDA YoY	Nov	-	-4.20%	-3.40%	-
FR	10)	Trade Balance	Nov	-4800m	-4377m	-5202m	-5154m
FR	11)	Current Account Balance	Nov	-	-2.3b	-3.5b	-3.2b
SZ	12)	Foreign Currency Reserves	Dec	649.0b	645.3b	648.0b	647.8b
UK	13)	Unit Labor Costs YoY	3Q	1.70%	2.30%	1.90%	2.20%
EC	14)	Economic Confidence	Dec	106.8	107.8	106.5	106.6
EC	15)	Business Climate Indicator	Dec	0.47	0.79	0.42	0.41
EC	16)	Industrial Confidence	Dec	-0.4	0.1	-1.1	-
EC	17)	Services Confidence	Dec	12	12.9	12.1	12.2
EC	18)	Consumer Confidence	Dec F	-5.1	-5.1	-5.1	-
EC	19)	Retail Sales MoM	Nov	-0.40%	-0.40%	1.10%	1.40%
EC	20)	Retail Sales YoY	Nov	1.90%	2.30%	2.40%	3.00%
IR	21)	Live Register Level SA (000's)	Dec	-	282.4	285.6	285.7
IR	22)	Live Register Monthly Change	Dec	-	-3.3k	-2.8k	-2.6k
IR	23)	Industrial Production MoM	Nov	-	16.30%	-3.60%	-2.20%
IR	24)	Industrial Production YoY	Nov	-	14.10%	-6.40%	-4.60%
IR	25)	Consumer Confidence Index	Dec	-	-	97.8	-