US Stocks

• Global stocks are drifting higher this morning, on rumors that China is set to cut the tariff rates it charges on imports from the majority of its trading partners
• US stocks index futures are edging higher, pointing to a neutral open in NY with the Dow Jones minis +0.17% S&P500 minis +0.09% and Nasdaq 100 minis +0.13%
• The VIX is currently little changed at 11.75 from yesterday's close of 11.75
• Bank of America (BAC) September 21 OTM Calls, EEM September 21 OTM Calls, FXI September 28 OTM Calls and XLF September 21 OTM Calls are the most heavily traded options contracts in the US pre-market
• US 10-Year Treasury Bonds are lower with yields up 0.93 basis points to 3.0719%
• The US Treasury 2s-10s Spread has widened 0.07 basis points to 0.27%
• WTI Crude is currently up 1.82% to USD$71.12/bbl with the Brent-WTI spread down USD$-1.49 to USD$8.35/bbl
• Gold is currently little changed -0.07% to USD$1203.15/oz

Stocks Trending in the News

• Casino (CO FP) had its price target cut to 25 euros from 34 euros while reaffirming its sell rating. “Casino France is unlikely to generate cash to cover dividend payment” according to the report. Casino is rated ‘Unattractive’ in our European Large-Cap Global Top Picks
• Danske (DANSKE DC) may face a USD$630mn fine if the bank is found guilty of allegations of money laundering in Denmark. This would be in addition to any fines leveled in the EU or US. Danske is trading 3.5% higher at 174.90 kronos. Danske is rated ‘Top Short’ in our European Large-Cap Global Top Picks
• Diageo (DGE LN) said the currency moves in emerging markets will cost it 175 million pounds in “lost” sales. The company is joining others that sell in emerging market countries in announcing a hit to earnings from currency swings. Diageo is rated ‘Attractive’ in our United Kingdom Global Top Picks
• Eli Lilly (LLY) raised USD$1.5bn in its IPO of Elanco Animal Health (ELAN – not active yet). Eli Lilly sold 62.9 million shares for USD$24/share. Eli Lilly is not trading in pre-market and iis rated “Attractive” in our US Large-Cap Global Top Picks.
• Kier (KIE LN) increased guidance for 2020 today while reporting full year results that came in line. The company increased EPS guidance by 10% for 2020 and promised to move to a net cash position, both cited by Goldman as supportive going forward. Kier is rated ‘Unattractive’ in our United Kingdom Global Top Picks
• Meituan Dianping (3690 HK) closed at HKD$72.35, 5.3% above its debut price. The closing price gives the unprofitable company a market value of USD$50.9bn. USD$4.2bn was raised in the IPO. Meituan is not rated in our Global Top Picks
• New World Development (17 HK) said it will consider a number of ways to enhance shareholder value. It will consider a share buyback it stated together will full year results that came 2% above expectation. It does not expect to need to raise equity. The stock closed flat at HKD$10.6 and is rated ‘Neutral’ in our Chin All-Cap Global Top Picks
• Nintendo (7974 JP) launched its online gaming service, roughly 10 years after competitors. Reviews of those testing the service have generally been negative as it lacks a number of key features found on other online gaming services. Nintendo closed 4.8% higher at 41,920 yen. Nintendo is not rated in our Global Top Picks
• Rocket Internet (RKET GR) is up +1.42% to €27.22 after 1H2018 results which were ahead of Consensus expectations. Management announced a share buyback plan which represents ~8.7% of the Rocket’s total float. Rocket Internet is rated “Unattractive” in our European SMID-Cap Global Top Picks.
• Tata Motors (TTMT IN) is struggling to boost the proportion of parts made for its Jaguar Land Rover in Britian as part of its “onshoring” program. The expansion of British auto sales has made that possible, but Brexit is complicating that, with suppliers loath to add capacity in the face of Brexit uncertainties. Tata Motors is not rated in our Global Top Picks
• Tencent (700 HK) and Novartis (NOVN SW) signed a partnership agreement that will give Novartis access to Tencent's health services. The pact will focus on heart diseases and getting patients access to Tencent’s health services, including medicine tracking systems and health monitoring hardware. Novartis is looking to double sales in China over the next five years. Tencent closed up 0.81% at HKD$324.40 while Novartis is trading flat at 81.80 Swiss francs. Tencent is rated ‘Top Buy’ in our Chin All-Cap Global Top Picks, Novartis is rated ‘Top Buy’ in our European Large-Cap Global Top Picks

European Stocks

• European stocks are advancing this AM, rallying from a flat open as the pan-regional Euro Stoxx 50 is on pace for its ninth straight session of gains
• The Euro Stoxx 600 is currently up +0.48%, the FTSE 100 is higher by +0.19%, the DAX has advanced +0.49%, and the CAC 40 has risen +0.68%
• Investor sentiment for European stocks is positive with the advance/decline ratio for the Euro Stoxx 600 currently at 1.9x
• Banks (+1.36%), Automobiles & Parts (+1.32%), and Construction & Materials (+1.18%) stocks are the top performers in the Euro Stoxx 600 today
• Health Care (-0.16%), Media (-0.15%), and Travel & Leisure (-0.08%) stocks are the worst performers in the Euro Stoxx 600 today
• The move in Auto stocks is especially notable since they are currently trading at historically low levels according to several European strategists
• 91 stocks in the Euro Stoxx 600 are at 4-week highs while 71 stocks are at 4-week lows
• 23 stocks in the Euro Stoxx 600 are overbought while 39 stocks are oversold according to the 16-day RSI Measure
• VSTOXX, the European stocks equivalent of the VIX, is little changed this morning and is currently at 13.09 after closing at 13.53 yesterday
• EUR€ is currently up +0.36% against the USD$ to 1.1715
• GBP£ is currently up +0.609% against the USD$ to 1.3224
• CHF is currently up +0.184% against the USD$ to 1.0358
• German 10-Year Bunds are higher with yields down -0.3 basis points to 0.484%
• UK 10-Year GILTs are higher with yields down -0.7 basis points to 1.601%

Asian Stocks

• Asian stocks generally finished in the green overnight again, a third straight day of gains as limited news flow about Sino-US trade tensions helped support investor sentiment across the region
• The Nikkei 225 finished up +0.01%, the Hang Seng ended up +0.26%, the Hang Seng China Enterprise up +0.47%, and the CSI 300 was -0.07%
• Samsung Electronics (A005930 JP), was a notable mover across all regional indices as traders turn positive towards its upcoming earnings announcement in mid-October
• Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.39x
• 143 stocks in the Nikkei 225 hit 4-week highs while 0 stocks reached 4-week lows
• 50 stocks in the Nikkei 225 closed overbought while 1 stocks closed oversold according to the 16-day RSI Measure
• Investor sentiment for Hong Kong stocks finished neutral with the advance/decline ratio for the Hang Seng closing at 1.17x
• 9 stocks in the Hang Seng hit 4-week highs while 0 stocks reached 4-week lows
• 1 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure
• Japan 10-Year Government Bonds are higher with yields down -0.1 basis points to 0.123%
• JGBs 2s-10s Spread has widened 0.1 basis points to 0.23%
• JPY¥ is currently little changed against the USD$ at 112.22