Cabrera Capital – 12/27/2019

Dec 27, 2019

Global    In a bull market be bullish!!   If there is a rebal T +2 it should show up in Europe on the close… for those that are T+2.

 

U.S. index futures ratcheted higher along with stocks worldwide on Friday, propelling global benchmarks to fresh records, as robust gains in retail and technology shares helped turn 2019 into a year to remember for risk assets. The dollar slipped for a second day.

Contracts rose on the tech-heavy Nasdaq 100 and broader S&P 500 indexes, indicating the gauges may push to new records after being buoyed on Thursday by computer and retail stocks, with Amazon.com Inc.’s “record-breaking” holiday season.

Asia
Equities are finishing the holiday-shortened week on a firm note, encouraged by strong holiday internet sales in the US. Most markets in the Asia-Pacific region advanced except China and Thailand, while Japanese markets were mixed after weak industrial output and retail sales. The MSCI Asia Pacific Index rose for the fourth consecutive week.

Europe

 

European stocks climbed, following gains in Asia, as markets reopened after a two-day holiday.

The Stoxx Europe 600 Index added 0.3% at 8:10 a.m. in London. Asian shares climbed after Chinese industrial profits rebounded. Qiagen slumped as much as 21% after ending discussions with potential acquirers and saying it plans to pursue a standalone strategy.

Europe’s equity benchmark is poised to post the biggest annual rally in a decade, with all 19 industry groups rising. The Stoxx 600 has climbed about 65% in the past decade, with technology shares leading gains and banks lagging.

 

Currencies 

– The dollar hovered near a six-month high versus the Japanese yen while the Australian dollar climbed to its strongest since July on Friday, buoyed by easing Sino-U.S. trade tensions.

  • The Bloomberg Dollar Spot Index sank 0.3%.
  • The British pound climbed 0.6%.
  • The euro climbed 0.4% to $1.1147.
  • The Japanese yen strengthened 0.1% to 109.50 per dollar.
  • The onshore yuan was little changed at 6.995 per dollar.

 

Gold/Silver

  

Gold is heading for its biggest weekly advance in more than four months, setting the metal up for its best year since 2010.

Bullion held near the highest in seven weeks on Friday even as stocks climbed worldwide and U.S.-China trade concerns eased, which typically reduces investor appetite for haven assets like gold.

 


 

OIL/Nat Gas  

–  

Oil held gains near the highest level in more than three months on indications of shrinking U.S. crude stockpiles and optimism in the global economic outlook.

Futures rose as much as 0.3% in New York after adding 0.9% on Thursday, set for the biggest monthly increase since January. American crude stockpiles fell by 1.5 million barrels last week, according to a Bloomberg survey before government data on Friday. Jobless claims in the U.S. fell to a three-week low, reflecting a solid labor market in the world’s no. 1 economy.

 

 

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Treasuries

  Treasuries are slightly higher led by the front end as U.S. trading gets underway Friday, trailing bigger gains for most European bond markets as they reopened after a two-day holiday. Futures volumes are below normal as no major U.S. economic releases, Fed speakers or auctions are slated on the last Friday of the year.

  • Yields lower by ~1bp at the front end, less further out the curve; 10-year yield down by 0.5bp at ~1.89%, lower on the week by nearly 3bp
    • Most European 10-year yields are lower by at least as much as the U.S. 10-year, led by peripherals amid gains for most regional equity benchmarks
  • Treasuries are coming off an auction cycle in which Tuesday’s 5-year stopped through by 1.6bp, Thursday’s 7-year by nearly 1bp, reinforcing expectations that year-end flows may support the market; Bloomberg Barclays has estimated a 0.06yr Treasuries extension for Jan. 1

Economic Numbers/ Fed Speakers 

FRIDAY, DEC. 27

 

None scheduled

       
             
               
               
               
                 
                 

 

Domestic

 It’s looking like full steam ahead for stocks on Friday as year-end buying momentum among investors, fondly known on Wall Street as a Santa rally, is showing up with some gusto. 

On the heels of a record session for all three main stock market indexes, and the first close above 9,000 ever for the Nasdaq Composite, futures are pointing to a 0.3% gain across the board at the open for the Dow, S&P 500 and the tech-heavy index. 

 

 Equity movers in early trading, as of 7:35am in New York: Advancers

  • FLXN +16.8% (+$3.22); Flexion’s New Drug Label Should Spur Sales Growth, Analysts Say
  • RAD +13.8% (+$2.65); Rite Aid Implied Volatility Surges as Shares Rise
  • ASRT +8.9% (+$0.12)
  • SAVA +7.2% (+$0.29)
  • SPPI +5.7% (+$0.2)
  • NLNK +5.1% (+$0.16)
  • OBSV +3.6% (+$0.14)
  • MBOT +3.6% (+$0.50)
  • OAS +2.6% (+$0.09)
  • MDR +2.4% (+$0.03)
  • QGEN +2.4% (+$0.78); Qiagen Falls; Potential Acquisition Still Possible, Analysts Say
  • PT +48.4% (+$0.62)
  • VRNA +25.4% (+$1.67)
  • GNFT +11.2% (+$2.12)
  • DBVT +6.8% (+$0.71)
  • SSL +2.1% (+$0.45)
  • TEVA +2.1% (+$0.21)

Decliners

  • SDRL -5.6% (-$0.14)
  • ACOR -3.6% (-$0.1)
  • VBIV -2.2% (-$0.03)