Equity Trading = Cabrera Capital Markets

Dec 23 2019

US equity futures rally to all-time highs premarket on light volume.  Mkts still bid ahead of next week’s rebal. We will be talking about that as we get more information on expected flows.

Global    U.S. equity-index futures and stocks make new all-time highs premarket. with volumes subdued as investors count down to the holiday break. Ten-year Treasury yields edged lower.

• Five sentenced to death for Khashoggi killing.
• China to cut some tariffs on Jan. 1.
• Star Wars takes in $175.5 million in the opening weekend.

 

Asia 
China cut import tariffs on a wide range of goods including food, consumer items and parts for manufacturing smart-phones, continuing Beijing’s drive to lower trade barriers and spur domestic demand.
The Ministry of Finance on Monday published a list of 859 types of products that will enjoy tariffs lower than the standard rates for this year. 

 

 

Europe:  Investors added money to exchange-traded funds that buy emerging market stocks and bonds last week. This was the 11th straight week of inflows.
European shares started the week lower ahead of the holiday season, after reaching a record high on Friday.

The Stoxx 600 Index is down 0.1%, with banks and autos dropping the most. With just three full days of trading left this year, European equities are poised to post annual gains across every industry group for the first time in a decade.

 

 

Currencies 

The euro held its ground after Friday’s falls in subdued trading ahead of the December holiday, while the pound bounced higher after four days of declines.

  • The shared currency was steady even as trade tensions eased ahead of the end of year, with China cutting import tariffs on a wide range of goods in a move that isn’t directly related to the trade war but that does show the government is making efforts to further open its economy

 

 

Gold/Silver

  Gold prices inched higher on Monday even as the dollar stood near two-week highs after the release of encouraging U.S. economic data released on Friday. Both spot gold and U.S. gold futures were up around half a percent at $1,484.79 per ounce and $1,488.45 per ounce, respectively. Trading volumes remain thin ahead of the Christmas and New Year holidays.

 

OIL/Nat Gas  


Oil steadied after the biggest decline in three weeks on Friday as Kuwait aimed to reach a deal with Saudi Arabia that will restore crude output along their border, and U.S. shale explorers boosted drilling.

February futures held above $60 a barrel in New York after falling 1.2% on Friday, the steepest pullback since Nov. 29. The Kuwait-Saudi shared neutral zone, which has been shut for at least four years due to disputes between the two countries, can produce as much as 500,000 barrels a day. U.S. explorers last week increased drilling by the most in almost two years, according to data from Baker Hughes Co., boosting the supply outlook.

 

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Treasuries

Treasury futures pare early European session gains as S&P500 e-minis edge higher, breaking through Friday’s high print and pushing yields back to within a basis point of Friday close. Curve flatter, with front and belly lagging ahead of 2-year auction Monday and looming 5- and 7-year supply.

  • Yields higher by up to 0.8bp across 2-year sector, slightly richer towards back-end of the curve; 10-year at 1.917% and unchanged vs. Friday close.

    • Gilts outperform, richer by 2.2bp vs. Treasuries while bunds trade broadly inline

    • Low futures volumes overnight with TY Mar20 contract running at just 50% of 10-day average levels up to 7am ET

  • Treasury auctions resume with $40 billion 2-year note sale at 1pm ET, followed by $41 billion 5- year on Tuesday and $32 billion 7-year on Thursday

    • WI 2-year at 1.635%, around 3.5bp cheaper than November stop-out, which traded 0.4bp through the WI level

  • Latest CFTC positioning data showed speculators aggressively cut Eurodollar net longs, while both asset managers and speculators were bearish ultra-long and 10-year note futures

 

 

Economic Numbers/ Fed Speakers 

 

 

 

US

 

Durable Goods Orders MoM NOV 

 

0.6% 

1.5% 

1.1% 

 

 

 

 

07:30 AM 

 

 

 

US

 

Durable Goods Orders Ex Transp MoM NOV 

 

0.6% 

0.2% 

0.3% 

 

 

 

 

07:30 AM 

 

 

 

US

 

Chicago Fed National Activity Index NOV 

 

-0.71 

-0.09 

-0.3 

 

 

 

 

07:30 AM 

 

 

 

US

 

Durable Goods Orders ex Defense MoM NOV 

 

0.1% 

0% 

0.1% 

 

 

 

 

09:00 AM 

 

 

 

US

 

New Home Sales MoM NOV 

 

-0.7% 

-0.3% 

0.5% 

 

 

09:00 AM 

 

 

 

US

 

New Home Sales NOV 

 

0.733M 

0.734M 

0.737M

 

 

 

Domestic 

– Stocks in Europe edged higher on Monday along with U.S. equity-index futures, with volumes subdued as investors count down to the holiday break. Ten-year Treasuries and the dollar were steady. Futures at all time Highs premarket.
Healthcare stocks led the modest advance on the Stoxx Europe 600 index after Friday’s record-high close. Contracts on the S&P 500 climbed after the underlying index …

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

  • ITCI +87.5% (+$10.9); Intra-Cellular Jumps as Schizophrenia Drug Wins FDA Approval

  • SDRL +27.2% (+$0.46); Seadrill Jumps After Rig Contract Hints at Improving Market

  • PGNX +15.9% (+$0.82); Progenics Phase 3 Condor Trial of PyL Met Primary Endpoint

  • SRPT +9.3% (+$11.7); Sarepta Jumps as Roche Deal Provides ‘Validation,’ Barclays Says

  • APA +7.5% (+$1.70); Apache, Total to Set Up Exploration JV in Offshore Suriname

  • TK +5.1% (+$0.28)

  • NLNK +4.8% (+$0.09)

  • CBIO +4.6% (+$0.34)

  • CRTX +4.4% (+$2.92)

  • VBIV +4.3% (+$0.04)

  • SGMO +4% (+$0.34); Sangamo Has Early Completion of Transfer to Pfizer of SB-525

  • AGRX +2% (+$0.05)

  • QIWI +3.7% (+$0.70)

  • MITO +3.2% (+$0.15); Stealth BioTherapeutics ADRs Cut to Neutral at HC Wainwright

  • MFGP +3% (+$0.41)

  • GDS +2.6% (+$1.33)

  • NIO +2.2% (+$0.06)

  • SBGL +2.1% (+$0.19)

Decliners

  • TGTX -6% (-$0.61)

  • DTIL -3.5% (-$0.50)

  • RAD -2.8% (-$0.39)

  • LAIX -10.3% (-$0.79); Laix Rises: Chinese U.S. Listings