Heads-up News 

Frankfurt Trading Session Heads Up Tuesday, November 14, 2017

Frankfurt opening news digest

Venezuela just defaulted, moving deeper into crisis

Venezuela, a nation spiraling into a humanitarian crisis, has missed a debt payment. It could soon face grim consequences.

 

EU Regulator Follows U.S. SEC With Stark ‘ICO Risk’ Warnings

After a U.S. SEC statement this month on celebrity endorsements to encourage the public to invest in Initial Coin Offerings (ICOs) that may be unlawful, EU financial regulator ESMA has issued a strong warning over ICO risks for investors and highlighted the rules applicable to firms in the space.

 

USD/CAD: H&S Bottom; Scope For A Recovery Against 1.2460 – BofAML

Bank of America Merrill Lynch FX Strategy Research discusses USD/CAD outlook from a wave-analysis perspective, arguing the if an A-B-C correction is complete, the pair should see a rally  towards 1.31-1.33 into Q1 2018 against wave (A) low around 1.2460.”We think the wave structure of 5 waves up (12345) and 3 waves down (ABC) since t

 

Preview: UK: Consumer Price Index

 

EUR/USD: Targets On Modelling Rate Spreads & Positioning; What’s The Trade? – Nordea

Nordea FX Strategy Research discusses EUR/USD outlook in light of modelling it based on rate spreads and positioning.On rate spreads modelling: “If the 2y xCcy basis swap widens by 10bp further – clearly possible given the turn & liquidity effects seen in 2015 and 2016, the above approach suggests EUR/USD will trade be

 

GBP/USD to Eye Monthly High on Above-Forecast U.K. CPI

A pickup in the headline and core U.K. CPI may push GBP/USD towards the monthly-high (1.3321) as it encourages the BoE to further normalize monetary

 

GBP/USD Hanging Over the Edge of a Cliff

GBP/USD is on the edge of a ledge and may fall off a cliff. See what levels we are forecasting for GBP/USD.

 

S&P/ASX 200 Technical Analysis: Rally to Resume After Pullback?

The ASX 200 has enjoyed a stellar run higher but has been badly in need of consolidation for some time. Now it looks as though

 

Aussie Dollar Struggles with Follow Through on Chinese Data Miss

The Australian Dollar initially did not take kindly to weaker-than-expected Chinese retail sales and industrial production data before retracing most of its losses.

 

Markets Open to Caution as Heads of Fed, ECB, BoE and BoJ On Tap

Conviction was notably tepid across the financial markets to start the new trading week. That is not to mean bulls were throwing in the towel

 

Fundamental Trading: Will Yellen, Draghi, Carney and Kuroda Turn the Boat?

We are in the midst of a possible transition in speculative conviction. On the one hand, global benchmarks for speculative value – such as the

 




Asia AM Digest: Aussie Dollar May See Volatility on Chinese Data

The Australian Dollar may see continued volatility inspired by Chinese retail sales and industrial production data following yesterday’s decline.

 

US Dollar and British Pound manage to cut short their previous losses, show some signs of consolidation

Sentiment was mildly positive in the US as the major US equity inidces closed slightly higher. Tax reform has remained largely at the top of the agenda and doubts over it happening at all this year persist, markets are also eyeing to see if corporate tax cuts will effectively have to wait till 2019.

 

COLOMBIA: Country And UAE Sign Agreement On Double Taxation And Investments

Colombia and the United Arab Emirates signed on Sunday two agreements on double taxation and investment promotion in the framework of the visit of the Colombian President Juan Manuel Santos to the Arab country.

 

Australian Market Extends Losses

The Australian stock market is extending losses from the previous session despite the modest gains overnight on Wall Street, with stocks lower across the board. Investors are cautious as they await economic data from China.

 

Continued Support Called For Hong Kong Shares

The Hong Kong stock market has alternated between positive and negative finishes through the last nine trading days since the end of the two-day losing streak in which it had fallen almost 200 points or 0.

 

Win Streak May Continue For China Stock Market

The China stock market has finished higher in six straight sessions, gathering more than 70 points or 2.2 percent along the way. The Shanghai Composite Index now rests just above the 3,445-point plateau and it’s looking at another green light again on Tuesday.

 

Bargain Hunting May Lift Taiwan Stock Market

The Taiwan stock market has finished lower in four straight sessions, retreating almost 160 points or 1.5 percent along the way. The Taiwan Stock Exchange now rests just above the 10,680-point plateau although the misery may end on Tuesday.

 

Singapore Stocks May Stop The Bleeding On Tuesday

The Singapore stock market has finished lower in two straight sessions, although it has given up less than 5 points or 0.2 percent in that span. The Straits Times Index now rests just beneath the 3,420-point plateau although it may end its slide on Tuesday.

 

PAMPA ENERGIA: Company Reverses Losses And Posts A Profitable Third Quarter

Argentina’s Pampa Energía reported a consolidated profit of 1.624 billion pesos (US$ 92.9 million) in the third quarter of 2017, reversing the losses posted one year earlier.

 

Malaysia Shares May Find Traction On Tuesday

The Malaysia stock market has tracked lower in back-to-back sessions, sliding almost 10 points or 0.6 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,735-point plateau although it may stop the bleeding on Tuesday.

 

VENEZUELA: Country Launches External Debt Renegotiation Meeting

The Venezuelan government opened the first round of talks on renegotiation and refinancing of its foreign debt. Debts from the state-owned oil company PDVSA would also be discussed.

 

ARGENTINA: Labor Reform Enjoys Consensus Among Businesspeople – Minister

Argentina’s Minister of Labor, Jorge Triaca, said that in spite of ongoing negotiations between the government and unions, Mauricio Macri’s project for a labor reform enjoys broad consensus among businesspeople and also among workers.

 




MERCOSUR: Bloc And EU Focus On Final Arrangements For Trade Agreement

The Mercosur and the European Union (EU) will focus on the final stage of a trade agreement negotiation, according to the conclusion of a meeting in Brasília between the foreign ministers of the South American bloc and the vice-president of the European Commission, Jyrki Katainen.

 

South Korea Market May Halt Losing Streak

The South Korea stock market has moved lower in three consecutive trading days, sliding more than 20 points or 0.8 percent along the way. The KOSPI now rests just above the 2,530-point plateau although it may find traction on Tuesday.

 

BBVA FRANCÉS: Profit Rises 21.6% In The 3rd Quarter As Revenue Increases

Argentinean bank BBVA Francés net profit rose 21.6% in the third quarter from a year before, to 1.13 billion pesos (US$ 64.9 million), boosted by a 40% increase in interest income and a 20% rise in fee revenues.

 

China Data On Tap For Tuesday

China will on Tuesday release October figures for industrial production, retail sales and fixed asset investment, highlighting a light day for Asia-Pacific economic activity.

 

JBS: U.S. Unit Should Boost Q3 Results, But Company May Post Loss

Brazilian meatpacker JBS is set to post stronger third-quarter results driven by the good performance of its United States operation, lower grain costs, and increasing domestic and external sales.

 

BRAZIL: Interest Rate Forecast For 2017 Kept Unchanged At 7%

Economists polled by the Brazilian central bank kept their estimates for the country’s benchmark interest rate (Selic) unchanged for the ninth consecutive week at 7% by year-end.

 

BRAZIL: Center-south Sugarcane Crush Is Down 1.97% From Last Year

Brazil’s center-south sugarcane crush for the 2017-18 harvest was down 1.97% from April to November 1 compared to the same period a year ago, totaling 540.249 million tons, said the Union of Sugarcane Industry (Unica).

 

BRAZIL: Economists Keep 2017 GDP Growth Estimate Unchanged At 0.73%

Economists surveyed by the Brazilian central bank kept their forecasts for economic growth in 2017 unchanged at 0.73% for the third week in a row, from 0.72% four weeks ago.

 

BRAZIL: Economists Increase 2017 Inflation Forecast To 3.09% From 3.08%

The median forecast for Brazil’s consumer price inflation in 2017 rose to 3.09% from 3.08% last week, according to economists surveyed by the central bank. For 2018, the median forecast increased to 4.

 

Major Averages Posting Modest Gains In Mid-Day Trading – U.S. Commentary

Stocks have rebounded over the course of the trading session on Monday after showing an initial move to the downside. The major averages have bounced well off their early lows and into positive territory.

 

Major Averages Nearly Flat After Recovering From Initial Drop – U.S. Commentary

After initially moving to the downside, stocks have rebounded over the course of morning trading on Monday. The major averages have climbed well off their worst levels of the day and are currently lingering near the unchanged line.

 

Zymeworks Inc. (ZYME) Is Suring On License Agreement

Zymeworks Inc. (ZYME) announced Monday morning that it has entered into a licensing agreement with Janssen Biotech Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ).

 




Asure Software Inc. (ASUR) Is Climbing After Q3 Report

Asure Software Inc. (ASUR) reported third quarter non-GAAP EPS of $0.02 Monday morning, down from $0.10 a year ago. Analysts expected EPS of $0.15. The company expects to report full year non-GAAP EPS of $0.

 

Chipotle Mexican Grill (CMG) Is Under Pressure On Food Poisoning Concerns

Chipotle Mexican Grill (CMG) gapped open lower Monday morning and has continued to fall in early trade. Shares are now down 9.13 at $269.32. The stock is testing the lower end of a 2-week trading range at the lows of the year.

 

Toy Companies Surging On Reports Of Potential Combination

The Wall Street Journal reported Monday that Hasbro Inc. (HAS) has made an offer to acquire rival toy company Mattel Inc. (MAT). Hasbro has gapped open sharply higher this morning and is now up 5.

 

Nektar Therapeutics (NKTR) Has Jumped To A New High On Study Results

Nektar Therapeutics (NKTR) and Bristol-Myers Squibb (BMY) announced positive results from their Phase 1/2 study of the combination of Opdivo with Nektar’s NKTR-214 on Saturday.

 

Cryptocurrency trading volumes reached a record high over the weekend that beats some US stock exchanges

Bitcoin had a wild weekend and that translated into record-breaking volumes.

 

A key Senate Republican admitted the current tax reform bill can’t pass without significant changes

Senator Orrin Hatch admitted that the Tax Cuts and Jobs Act doesn’t qualify for budget reconciliation under the Senate’s Byrd Rule.

 

North Korean soldier braves gunfire, defects across DMZ to South

A North Korean soldier escaped a hail of gunfire from his own troops Tuesday during a daring defection across the Korean Demilitarized Zone. The soldi

 

Webinar: Fundamental Trading: Will Yellen, Draghi, Carney and Kuroda Turn the Boat?

Talking Points: • Monetary policy remains one of the most active relative FX drivers, but it also carries significant collective influence in markets • Amid …

 

Markets Open to Caution as Fed, ECB, BoE, BoJ Heads Prepare to Speak

Talking Points: • Risk trends opened to a measureable sense of caution this week with varying degree of retreat from the SPX, DAX and Nikkei 225 • A week of …

 

Cheer Up

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Insanity is repeating the same behaviour and expecting different results.

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Have a nice trading!




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