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Writer's pictureSimon Charles Hooper

01/05/23 Briefing


The S&P 500 futures are down 4 points and are trading slightly below fair value. The Nasdaq 100 futures are down 15 points and are trading 0.1% below fair value. The Dow Jones Industrial Average futures are down 14 points and are trading slightly below fair value.

Stock futures are flattish as investors await key events later this week, including the FOMC decision on Wednesday, the ECB meeting and Apple's (AAPL) earnings report on Thursday, and the April Employment Report on Friday. 

At 10:00 a.m. ET, market participants will receive the April ISM Manufacturing Index (Briefing.comconsensus 46.8%; prior 46.3%). This comes after China reported weaker than expected PMI data for April (actual 49.2; expected 51.4). 

Other U.S. economic data today includes the final IHS Markit Manufacturing PMI (prior 50.4) for April at 9:45 a.m. ETand the Construction Spending report (Briefing.comconsensus +0.1%; prior -0.1%) for March at 10:00 a.m. ET

Treasuries are little changed from Friday'ssettlement levels. The 2-yr note yield is unchanged at 4.06% and the 10-yr note yield is up one basis point to 3.46%. The U.S. Dollar Index is up 0.2% to 101.83.

Energy complex futures are moving lower. WTI crude oil futures are down 2.1% to $75.14/bbl and natural gas futures are down 0.9% to $2.56/mmbtu.

Note: markets in Europe, China, and Brazil are closed today for holidays.

In corporate news:

  • First Republic Bank (FRC 1.9000, -1.61, -45.9%): JPMorgan Chase (JPM) acquires substantial majority of assets and assumes certain liabilities of First Republic Bank

  • Carvana (CVNA 7.26, +0.32, +4.6%): creditors are offering to swap debt for equity, according to Bloomberg

  • General Motors (GM 33.91, +0.87, +2.6%): upgraded to Overweight from Equal Weight at Morgan Stanley

  • Exxon (XOM 116.31, -2.03, -1.7%): downgraded to Buy from Neutral at Goldman Sachs

  • SoFi Technologies (SOFI 6.61, +0.38, +6.4%): beats by $0.04, beats on revs; guides Q2 revs above consensus; guides FY23 revs above consensus

  • Ascendis Pharma (ASND 82.10, +12.14, +17.4%): FDA issues complete response letter for TransCon PTH in hypoparathyroidism; no new preclinical studies, or Phase 3 clinical trials to evaluate safety or efficacy, were requested in the letter

  • Comcast (CMCSA 41.88, +0.51, +1.2%): upgraded to Buy from Neutral at BofA Securities 

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region began the week on a quiet note with markets in China, Hong Kong, Singapore, South Korea, and India closed for holidays. Japan's Nikkei: +0.9%, Hong Kong's Hang Seng: CLOSED, China's Shanghai Composite: CLOSED, India's Sensex: CLOSED, South Korea's Kospi: CLOSED, Australia's ASX All Ordinaries: +0.3%.

    • In economic data:

      • China's April Manufacturing PMI 49.2 (expected 51.4; last 51.9) and April Non-Manufacturing PMI 56.4 (expected 57.0; last 58.2)

      • Japan's April Manufacturing PMI 49.5, as expected (last 49.2)

      • South Korea's April trade deficit $2.62 bln (expected deficit of $2.89 bln; last deficit of $4.63 bln)

      • India's April Manufacturing PMI 57.2 (expected 55.8; last 56.4)

      • Australia's April Manufacturing PMI 48.0 (expected 48.1; last 49.1) and April Inflation Gauge 0.2% m/m (last 0.3%)

    • In news:

      • China's Manufacturing PMI returned into contraction in the April reading while Japan's Manufacturing PMI remained in contraction for the sixth month in a row.

      • The Reserve Bank of Australia will hold a policy meeting tomorrow, but it is not expected to change its cash rate.

  • Major European markets are closed for Labor Day. STOXX Europe 600: CLOSED, Germany's DAX: CLOSED, U.K.'s FTSE 100: CLOSED, France's CAC 40: CLOSED, Italy's FTSE MIB: CLOSED, Spain's IBEX 35: CLOSED.

    • There was no data of note

    • In news:

      • Fitch lowered France's rating to AA- from AA, noting that ongoing social unrest is complicating policy making.

      • French Finance Minister Le Maire said that implementation of structural reforms will continue.

      • The European Central Bank is expected to announce a 25-bps rate hike on Thursday.

 

U.S. equity futures:

  • S&P 500 Futures: -4 @ 4,166

  • DJIA Futures: -15 @ 34,083

  • Nasdaq 100 Futures: -15 @ 13,231

Overseas:

  • Europe: DAX CLOSED, FTSE CLOSED, CAC CLOSED

  • Asia: Nikkei +0.9%, Hang Seng CLOSED, Shanghai Composite CLOSED

Commodities:

  • Crude Oil +1.61 @ 75.17

  • Nat Gas -0.019 @ 2.391

  • Gold -1.55 @ 1997.55

  • Silver +0.304 @ 25.530

  • Copper +0.0077 @ 3.8982


 

Earnings/Guidance:

  • Affiliated Managers (AMG) beats by $0.21, misses on revs

  • Check Point Software (CHKP) beats by $0.07, reports revs in-line

  • CNA Financial (CNA) misses by $0.03

  • eHealth (EHTH) reaffirms FY23 revenue and EBITDA guidance; comments on the final MA and Part D rule

  • Global Payments (GPN) beats by $0.09, beats on revs; guides FY23 EPS above consensus, revs above consensus

  • KBR (KBR) beats by $0.09, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Li Auto (LI) reports April deliveries increased 516.3 yr/yr

  • Loews Corp (L) reports Q1 results

  • NIO (NIO) reports April deliveries increased 31.2% yr/yr

  • Norwegian Cruise Line (NCL) beats by $0.13, beats on revs; guides Q2 EPS below consensus; guides FY23 EPS above consensus

  • Ozon Holdings (OZON) expects growth in GMV incl. services of no less than 60% for the full-year 2023, with enhanced focus on efficiency gains

  • Park Hotels & Resorts (PK) beats by $0.09, beats on revs

  • RCM Tech (RCMT) guides Q1 revs above consensus

  • SJW (SJW) reports Q1 (Mar) results; reaffirms FY23 guidance

  • SoFi Technologies (SOFI) beats by $0.04, beats on revs; guides Q2 revs above consensus; guides FY23 revs above consensus

  • TG Therapeutics (TGTX) beats by $0.07, beats on revs

  • XPeng (XPEV) reports April deliveries

  • WEC Energy Group (WEC) beats by $0.03, reports revs in-line; reaffirms FY23 EPS guidance

News:

  • Fed is on track to increase rates by 25 basis points and then debate a pause, according to the Wall Street Journal

  • Charlie Munger says US banks are "full" of bad commercial real estate loans, according to Financial Times

  • Treasury received a surge in tax revenue which could push out debt ceiling deadline to later in the summer, according to CNN

  • CDC will stop tracking community levels of COVID-19 when emergency officially ends on May 11, according to CNN

  • Federal judge blocks assault weapons ban in Illinois, according to CBS News

  • California approves world's first regulation to phase out combustion trucks

  • Macau Gaming Inspection and Coordination Bureau reported April gross revs +450% yr/yr to HKD 14.7 bln versus -68.1% in April of 2022

  • Adidas (ADDYY) will focus on US business, according to the Wall Street Journal

  • Alibaba (BABA) founder Jack Ma will take a teaching position in Tokyo, according to Financial Times

  • Arcutis (ARQT) Announces Canadian Approval of ZORYVE (roflumilast) Cream 0.3% for Treatment of Plaque Psoriasis in Individuals 12 Years and Older

  • Ascendis Pharma (ASND): FDA issues complete response letter for TransCon PTH in hypoparathyroidism

  • AstraZeneca (AZN): FDA committee recognizes favorable benefit risk profile for Lynparza

  • Bitfarms (BITF) provides a Bitcoin production and mining operations update for April 2023

  • Bristol-Myers (BMY): TRANSCEND FL and TRANSCEND NHL 001 studies of Breyanzi in relapsed or refractory follicular lymphoma and mantle cell lymphoma meet primary endpoint of overall response rate

  • Bristol-Myers (BMY): U.S. FDA accepts for priority review supplemental Biologics License Application and EMA validates application for Reblozyl (luspatercept-aamt) as first-line treatment of anemia in adults with lower-risk myelodysplastic syndromes

  • Cabaletta Bio (CABA) announces that the U.S. FDA has granted Fast Track Designation for CABA-201

  • Carvana (CVNA) creditors are offering to swap debt for equity, according to Bloomberg

  • Eli Lilly (LLY) announces up to 73% of atopic dermatitis patients taking LLY's lebrikizumab had improved or cleared skin on face or hands in new analysis

  • enCore Energy Corp. (EU)  has made its first delivery into one of the Company's four previously announced contracted uranium sales agreements

  • Equity Bancshares (EQBK) announces COO Gregory Kossover plans to resign and retire from banking

  • fuboTV (FUBO) names Alberto Horihuela as COO, effective immediately

  • Galera (GRTX) appoints leading sales, market access and operations executives; New Drug Application (NDA) for avasopasem is currently under priority review by the FDA with PDUFA target date of August 9, 2023

  • Gilat Satellite (GILT) received a multimillion-dollar order for VSATs to be used to expand the rollout of an advanced disaster response network in Asia

  • Global Payments (GPN) announced that Jeffrey Sloan is stepping down as Chief Executive Officer and a member of the Board, effective June 1, 2023

  • Immatics N.V. (IMTX) announced that Bristol Myers Squibb (BMY) has exercised its option and entered into an exclusive worldwide license for the first T cell receptor engineered T cell therapy candidate from their ongoing collaboration

  • Johnson & Johnson (JNJ) unit Janssen reports first results from Phase 2 SunRISe-1 study of TAR-200 and Anti- PD-1 antibody Cetrelimab

  • KKR (KKR) aiming to invest $250 mln in Serentica Renewables, according to Reuters

  • Lockheed Martin (LMT) awarded a $7.8 bln modification to a previously awarded US Navy contract

  • MagnaChip Semi (MX) announced that Shin Young Park, the Company's Chief Financial Officer and the principal financial and accounting officer, went on maternity leave

  • MediciNova (MNOV) receives a notice of allowance for a new patent covering MN-001 for the treatment of advanced NASH in Canada

  • Minerva Neurosciences (NERV) announces the NDA filing for roluperidone for the treatment of negative symptoms in schizophrenia

  • Natural Gas Services (NGS) announces cooperation agreement with Mill Road Capital

  • NexGen Energy (NXE) received significant initial interest from prospective institutions for providing project financing for the Rook I Project

  • Noble Corporation (NE) announces changes to its share capital

  • Parker-Hannifin (PH) awarded a $221.5 mln US Army contract for maintenance and overhaul of helicopter servos

  • Pfizer (PFE) and Astellas (ALPMY) report XTANDI (enzalutamide) plus Leuprolide reduced the risk of metastasis by 58% in non-metastatic hormone-sensitive prostate cancer versus placebo plus Leuprolide

  • Pfizer (PFE): EU deal with Pfizer for coronavirus vaccines could push others out of market, according toFinancial Times

  • Pliant Therapeutics (PLRX) announces positive long-term data from the INTEGRIS-IPF Phase 2a Trial Demonstrating Bexotegrast was well tolerated at 320 mg with durable improvement shown in FVC and across multiple measures

  • RadNet (RDNT) received FDA clearance for the third-generation release of its Quantib Prostate 3.0 MRI artificial intelligence software

  • Sanofi (SNY): Maze Therapeutics announces exclusive worldwide license agreement with Sanofi for MZE001, an oral substrate reduction therapy for the treatment of pompe disease

  • Teck Resources (TECK) announces receipt of final order approving plan of arrangement and further details in respect of Sunset for dual class share structure

  • Teva Pharma (TEVA) and MedinCell receive FDA approval of UZEDY extended-release injectable suspension

  • Turtle Beach (HEAR) provides CEO transition plan

  • UBS (UBS) considering spin off of Swiss bank, according to Reuters

  • UroGen Pharma (URGN) reports new retrospective study presented at AUA 2023 provides evidence of similar outcomes utilizing JELMYTO in the treatment of UTUC of the ureter and renal pelvis

  • Virtu Financial (VIRT) has been responding to requests for information from SEC re its information access barriers; may receive a Wells Notice if no settlement reached

M&A:

  • American Water Works (AWK) rejects unauthorized purchase offer

  • Cardlytics (CDLX) announces a determination of the First Anniversary Payment Amount in relation to the acquisition of Bridg

  • First Republic Bank (FRC): JPMorgan Chase (JPM) acquires substantial majority of assets and assumes certain liabilities of First Republic Bank

  • Fortis (FTS) announces sales of Aitken Creek Natural Gas Storage Facilities in British Columbia ownership to Enbridge (ENB) for approx. C$400 mln

  • IVERIC bio (ISEE) to be acquired by Astellas for $40 per share in cash

  • Manchester United (MANU): Sheikh Jassim bin Hamad Al Thani submitted final GBP 5 bln bid for Manchester United, according to Bloomberg

  • Reliance Steel (RS) has acquired all the outstanding equity interests of Southern Steel Supply

  • SPX Corp (SPXC) agrees to purchase ASPEQ Heating Group

Syndicate:

  • Alpine Immune Sciences (ALPN) files for $400 mln mixed securities shelf offering

  • CMS Energy (CMS) to offer $650 million aggregate principal amount of its convertible senior notes due 2028

  • FirstEnergy (FE) to offer $1.0 billion aggregate principal amount of convertible senior notes due 2026

  • Jasper Therapeutics (JSPR) files $250 mln mixed shelf securities offering

  • Ship Finance Intl (SFL) files mixed securities shelf offering

  • Southside Banc (SBSI) files mixed securities shelf offering

  • Unum Group (UNM) files mixed securities shelf offering

IPOs:

  • SoftBank's (SFTBY) Arm will soon file for US IPO, according to Reuters

  • Expected to Price:

    • Kenvue (KVUE): The consumer health unit being spun off by Johnson & Johnson (JNJ) is expected to price its 151.2 mln share IPO between $20-$23.

Gapping Up/Down

  • Gapping up:

    • ISEE +17.8%, EHTH +11.7%, GATO +10.6%, JPM+3.1%, ARQT +3%, LI +3%, SNY +3%, MLCO +2.6%, L +2.2%, RCMT +2%, XPEV +1.1%, LVS +1.1%, KBR+1%, WYNN +0.6%, PH +0.5%, NIO +0.5%

  • Gapping down:

    • FRC -45.9%, MANU -9.3%, ALPN -3.2%, VIRT -2.7%, NE -2.1%, HEAR -2%, PLRX -1.8%, FE -1.2%, PK-0.9%

 

Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • Alignment Healthcare (ALHC) upgraded to Outperform from Mkt Perform at Raymond James; tgt $9

    • Allbirds (BIRD) upgraded to Outperform from Market Perform at Telsey Advisory Group; tgt $1.50

    • AvalonBay (AVB) upgraded to Neutral from Underweight at Piper Sandler; tgt raised to $193

    • Banco Bilbao Vizcaya Argentaria (BBVA) upgraded to Buy from Hold at HSBC Securities

    • Biogen (BIIB) upgraded to Buy from Neutral at Guggenheim; tgt raised to $350

    • Carter Bank & Trust (CARE) upgraded to Outperform from Mkt Perform at Raymond James; tgt $17

    • Comcast (CMCSA) upgraded to Buy from Neutral at BofA Securities; tgt raised to $49

    • Essex Property (ESS) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $271

    • General Motors (GM) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $38

    • IAMGOLD (IAG) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $3.25

    • Logitech Int'l SA (LOGI) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $56

    • Manitowoc (MTW) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $17

    • Otis Worldwide (OTIS) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $88

    • Scotts Miracle-Gro (SMG) upgraded to Buy from Hold at Stifel; tgt raised to $80

    • Teradata (TDC) upgraded to Buy from Neutral at Guggenheim; tgt $62

    • Zillow (ZG) upgraded to Mkt Perform from Underperform at Bernstein; tgt raised to $45

  • Downgrades:

    • ArcBest (ARCB) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $91

    • Banco Santander (SAN) downgraded to Hold from Buy at HSBC Securities

    • Doximity (DCOS) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $37

    • Exxon Mobil (XOM) downgraded to Neutral from Buy at Goldman; tgt $125

    • IVERIC bio (ISEE) downgraded to Neutral from Buy at Guggenheim

    • Principal Fincl (PFG) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $78

    • South Atlantic Bancshares (SABK) downgraded to Neutral from Buy at Janney; tgt lowered to $14

    • Valley National (VLY) downgraded to Mkt Perform from Strong Buy at Raymond James

  • Others:

    • Danaher (DHR) initiated with an Outperform at SVB Securities; tgt $300

    • Edgewise Therapeutics (EWTX) initiated with a Buy at Truist

    • Endeavor Group (EDR) initiated with a Buy at Guggenheim; tgt $33

    • Immunovant Sciences (IMVT) initiated with a Buy at BofA Securities; tgt $26

    • MoonLake Immunotherapeutics (MLTX) initiated with a Buy at Guggenheim; tgt $51

    • TD Synnex (SNX) initiated with a Buy at Goldman; tgt $101

    • Treace Medical Concepts (TMCI) initiated with a Buy at Truist; tgt $33

Econ Data:

  • 09:45 ET: IHS Markit Manufacturing PMI - Final for Apr (Briefing.comConsensus NA; Prior 50.4)

  • 10:00 ET: Construction Spending for Mar (Briefing.comConsensus 0.1%; Prior -0.1%)

  • 10:00 ET: ISM Manufacturing Index for Apr (Briefing.comConsensus 46.8%; Prior 46.3%)

Earnings:

  • Monday (May 1)

    • Morning:  AMG CHKP CAN BEN GPN KBR NCLH ON PK SOFI WEC

    • Afternoon: ADUS AL AMRC AMKR ANET CAR AXNX BRX CRC CF CHGG CNO CYH CACC FANG PLOW RE FLS FMC FWRD FCPT HOLX INST INVH JJSF KMT LSCC LEG LOGI MED MGM MSTR MSA NSA NXPI OGS OTTR PDM RMBS SBAC SCI SON SFM SYK TEX TMDX RIG TWO VRNS VRTX VICI VNOM VNO WWD ZI

  • Tuesday (May 2)

    • Morning: ADT AER AGCO ABC AME BP BR LNG CQP CIGI CVLT CMI DORM DTM DD DEA ETN ECL NPO EPD ETRN AQUA EXPD FSS FELE IT GPK HRMY HWM IDXX ITW INCY INMD NSIT IPGP LDOS TREE LGIH MPC MAR MDC TAP MPLX NNN MD PRFT PFE PIPR PINC PEG RGEN QSR RYTM SAGE STNG SEE SUN SYY TROW TRI TRN TRTN UBER ZBRA ZBH

  • Tuesday (May 2)

    • Afternoon:  ATGE AMD AFG ANDE ARWR APAM ASH AIZ ATRC AXTA BAND BFAM CZR CWH CCCS CHK CLX CRK DENN DEI EIX ET EEFT EXPI EXR F FNV FRSH LOPE THG HLF HMN HURN INSP JKHY JRVR KAI KAR LMAT LSI LFUS LTHM LUMN MTW MTCH MRCY MLNK MCW MUSA NRDS NMIH OHI OMCL OKE PACB PAYC PEN PECO PRO PRU LUNG RNR SRPT SPG SPT SBUX SMCI UFPI UIS UNM VREX VIAV VOYA WELL WU WK XHR YUMC

  • Wednesday (May 3)

    • Morning:  ADNT ALE ASTE AVNS AVDX AVNT AVA GOLD BDC BRY TECH BCRX BLKB EAT BIP BLDR BG CDW CHEF CLH CNDT CRTO CVS DCPH XRAY DBRG DIN DFIN DRVN EMR EL EXC FTS FDP GRMN GNRC ROCK GOGO GFF HBI HSC HZNP INGR IONS JHG KHC LIVN LPX LXP MBUU MTRN MIR MUR NBIX NI PCRX PSN PERI PSX PUMP RDWR RXO SPNS SMG SBGI SITE SHC SR SPR SMP SPWR COCO TKR TT TRMB TPB UTHR VRSK WING WWE YUM

  • Wednesday (May 3)

    • Afternoon:  TXG ADPT AEIS ALB ALKT ALLO ALL ATUS AMED AMWL ANSS HOUS APA AMK ATO AVT ACLS BHE BKH CPE CDAY CIVI CTSH CODI CFLT CORT CXW CTVA CCRN CW DEN DHT ESTE ECPG NVST EQIX EQH EQC ETSY ES EVH FPI FARO FSLY FATE FNF FLT FORM ULCC GNK GIL GKOS GL HST HUBS NARI INFN IR NGVT IOSP FROG KW KTOS KLIC LMND LESL MGY MRO VAC MMS MELI MET MTG MKSI MOS MYGN NSTG NFG NE NUS OPK OUT PLMR PGRE PDCE PCOR PSA QGEN QRVO QCOM QDEL QNST RDN RYN O RGNX RELY REZI RVLV RPT RSI RHP SIGI SITM SEDG SRC STAA SRI RGR SUM RUN SYNA TNDM TPIC TRIP TTEC TTMI USPH UDMY UGI OLED UPWK VMEO VSTO HCC WTS WERN WES WMB YELL ZG ZIMV

  • Thursday (May 4)

    • Morning: ACIW GOLF AGIO ATI ALNY AEP BUD APG APTV MT ARNC ARW AUPH BALL BHC BCE BDX BGNE BERY BKI BPMC BWA BV BRKR CAH CG CARS CIM IMOS CCOI CGNX COMM COP CEG DDOG DLX DGII DNB ECVT ESMT ENOV XPRO RACE FOCS FTDR GTES GEL GPRE HAYW DINO HII H IDA INSM IBP NTLA ICE IDCC IMXI ITCI IRM IRWD ITRI ITT JLL KRTX K KTB KYMR LAMR LANC LNTH MAC MTSI MMP MLM MDU MFA MGPI MRNA MODV NTCT NFE NJR NWN NVCR DNOW OCSL OGE OPCH OGN PZZA PARA PH PTON PENN PCG DOC PNW PBI PLNT PLTK PTLO PPL PBH PRMW PWR RCM REGN RITM RCL SABR SBH SRE SHAK FOUR SWK STWD STVN TFX TU TIXT THRY BLD UNIT UPBD VNT VMC WD W WCC WLK WRK WOW XPO XYL ZTS

  • Thursday (May 4)

    • Afternoon:  AAON ABCL ACCO ATSG LNT AOSL ALTR AEE AMH AIG COLD AMN APLS AAPL TEAM AVID AZEK BGS BBDC BIGC BILL BIO BL SQ BCC BKNG BMBL CABO CDLX CVNA CHUY CRUS CLFD CWAN CDXS COHU COIN COLL ED CTRA CYRX CWK CYTK DH DRH BOOM DLB DASH DKNG DBX LOCO ENV EOG EXPE FRT FIGS FIVN FND FTNT FOXF FNKO GMED GDDY GT GDOT GDYN HTGC INGN PODD IRTC JAMF LGND LYFT MTZ MATX MGRC MERC MTD MCHP MNTV MPWR MNST MSI MP NCR LASR NOG OSPN ONTO OTEX OPEN OEC PCTY PBA PRDO PLYA POST POWI PRTA KWR QLYS RMAX RRR RDFN RRX REG RGA RLAY RLJ RKT RYAN SEM SHOP SIMO SPXC STEM SG TDC TXRH TMST TVTX TRUP TPC RARE UPLD VCYT VRRM WPM WW XPOF YELP ZETA

  • Friday (May 5) 

    • Morning:  ACMR AMC AXL AMRX BEP CBOE CNK CNHI ROAD D ENB EPAM ESNT EVRG FLR FYBR FSK FUBO FLGT GTN HUN TILE INSW JCI KOP MGA NMRK OMI PBF PAA PNM PRLB QRTEA SSP SHO CI TAC TWST WBD


Asia & Europe detail:

Asia: Nikkei +0.9%, Hang Seng CLOSED, Shanghai Composite CLOSED

Equity indices in the Asia-Pacific region began the week on a quiet note with markets in China, Hong Kong, Singapore, South Korea, and India closed for holidays. China's Manufacturing PMI returned into contraction in the April reading while Japan's Manufacturing PMI remained in contraction for the sixth month in a row. The Reserve Bank of Australia will hold a policy meeting tomorrow, but it is not expected to change its cash rate.

  • In economic data:

    • China's April Manufacturing PMI 49.2 (expected 51.4; last 51.9) and April Non-Manufacturing PMI 56.4 (expected 57.0; last 58.2)

    • Japan's April Manufacturing PMI 49.5, as expected (last 49.2)

    • South Korea's April trade deficit $2.62 bln (expected deficit of $2.89 bln; last deficit of $4.63 bln)

    • India's April Manufacturing PMI 57.2 (expected 55.8; last 56.4)

    • Australia's April Manufacturing PMI 48.0 (expected 48.1; last 49.1) and April Inflation Gauge 0.2% m/m (last 0.3%)

---Equity Markets---

  • Japan's Nikkei: +0.9%

  • Hong Kong's Hang Seng: CLOSED

  • China's Shanghai Composite: CLOSED

  • India's Sensex: CLOSED

  • South Korea's Kospi: CLOSED

  • Australia's ASX All Ordinaries: +0.3%

---FX---

  • USD/JPY: +0.3% to 136.65

  • USD/CNH: +0.3% to 6.9472

  • USD/INR: +0.1% to 81.76

 

Europe: DAX CLOSED, FTSE CLOSED, CAC CLOSED

Major European markets are closed for Labor Day. Fitch lowered France's rating to AA- from AA, noting that ongoing social unrest is complicating policy making. Meanwhile, French Finance Minister Le Maire said that implementation of structural reforms will continue. The European Central Bank is expected to announce a 25-bps rate hike on Thursday.

  • There was no data of note

---Equity Markets---

  • STOXX Europe 600: CLOSED

  • Germany's DAX: CLOSED

  • U.K.'s FTSE 100: CLOSED

  • France's CAC 40: CLOSED

  • Italy's FTSE MIB: CLOSED

  • Spain's IBEX 35: CLOSED

---FX---

  • EUR/USD: UNCH at 1.1009

  • GBP/USD: -0.2% to 1.2535

  • USD/CHF: -0.1% to 0.8929

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