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Stocks

UK Sparks: Smiths Group Warns Of Lower Revenues At Medical Division


Smiths Group has revealed that full-year revenues at its medical division will slip by 2% due to the suspension of sales of some of its products in Europe and the ending of two contracts in the US.

The group says the temporary suspension has come about because some of Smiths Medical’s European service providers have been decertified for some products in advance of the European Union’s Medical Device Regulation coming into force in 2020.

It says it remains in negotiations about a combination of the medical unit with US group ICU Medical.

Overall, Smiths Group says it has “successfully returned to growth” with a 3% increase in underlying revenues in the 11 months to the end of June.

EasyJet has warned that its operations at Berlin’s Tegel Airport will make a “headline loss” of £125m - £30m higher than the £95m it originally expected.

The airline says this is due to revenue per seat at the Berlin operation being weaker than expected, due to recent additional capacity in the Berlin market.

EasyJet will offset this with a £10m reduction to £50m in “non-headline” integration costs at the Tegel operations, acquired from the collapse of Air Berlin last year.

It says this will result in its total loss for the Tegel operations this year rising to £175m from an expected £160m.

Overall, EasyJet says third quarter group revenues increased by 14% to £1.6bn.

Passenger numbers increased by 9.3% to 24.4m in the quarter, with revenue per seat rising by 4.8% cent.

The company is increasing its guidance for full-year pre-tax profits, excluding the Tegel operations, from between £530m-£580m to between £550m-£590m.

Mining group BHP Billiton has issued an operational review detailing an 8% increase in full-year production.

Fourth-quarter production was also ahead of expectations with rises in production of petroleum, copper, iron ore and coal.

GVC Holdings, the betting and gaming group that owns Ladbrokes Coral, has announced in a trading update that net gaming revenues rose 8% on a constant currency basis during the first half of its financial year.

It says its online business grew by 20% over the period, while the World Cup and warm weather have both boosted performance.

And, ahead of its annual general meeting today, Premier Foods has announced in a trading update that first-quarter sales increased by 1.7%.

There was an “excellent”  performance at the Mr Kipling cakes business where UK sales were 14% higher following a recent brand relaunch, while sales of Batchelors Super Noodles pots and Pasta 'n' Sauce pots grew by more than 50%.

The future of chief executive Gavin Darby will come under scrutiny at the meeting, with an attempt to oust him by some major shareholders.

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Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.  Visit www.edisoninvestmentresearch.com for more information.

Edison is authorised and regulated by the Financial Conduct Authority. Our research is a marketing communication as defined by the FCA, this communication only contains information that is an acceptable minor non-monetary benefit as defined under COBS2.3A19(5).

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Edison and is being posted with Edison’s permission. The views expressed in this material are solely those of the author and/or Edison and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


19147




Macro

GUOSEN Closing Bell (July 18)


MARKET

Chinese stocks dropped 0.39% as more and more Chinese companies are pledging to buy back their shares. Utilities and Leisure sectors led the gains, while Telecom and Construction Material sectors led the falls. Combined turnover for both markets was CNY 337.2bn, up 9.3% dod.

 

 

Close

% Change

Vol (bn CNY)

%YTD

Shanghai

2787.26

-0.39

138.56

-15.72

Shenzhen

9195.24

-0.97

198.84

-16.71

CSI 300

3431.32

-0.52

88.56

-14.87

ChiNext

1607.88

-0.85

76.79

-8.26

 

Sector

Top 1

Led by

Top 2

Led by

Upward-leading

Utilities

000820

Leisure

600138

Downward-leading

Telecom

300578

Construction Material

600753

 

NEWS

*Google faces record €4.3bn EU fine over Android. Brussels will hit Google with a €4.3bn fine on Wednesday, imposing a record-breaking penalty on the US group for abusing its dominant position in the Android operating system for mobile phones. (Financial Times)

 

FUND FLOW

 

Click here for more information about Guosen.

This article is from Guosen Securities Co., Ltd. and is being posted with Guosen Securities Co., Ltd.’s permission. The views expressed in this article are solely those of the author and/or Guosen Securities Co., Ltd. and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

 

 


19146




Macro

Brexit Plan Passes Through The Commons, UK CPI Due


Morning Briefing July 18th 2018


Its a slow start on Wednesday, with the UK first up at 0830GMT, with the CPI data. A rise in utilities and fuel prices is expected to drive June's CPI figure to 2.7% y/y from a previous figure of 2.4%. Also at the same time is the ONS House Price Index and Producer Prices. The house price index for April rose 3.9% on a y/y basis which represented a slowing from the 4.2% seen in March. PPI input y/y is expected to rise from the 9.2% seen in May to 10.0% in June. PPI output y/y is expected to rise from 2.9% in May to 3.2% in June.

Next up is the Euro Area 'final' HICP figures at 0900GMT. A flash y/y rate of 2.0% is expected to be realised in the final reading.

Construction output in the Euro Area is also due at 0900GMT. Previously, the y/y growth rate stood at 1.8%.

Moving to the US, the seasonally adjusted pace of housing starts (1230GMT) is expected to slow modestly to a 1.320 million annualised rate in June after accelerating in May.

At 1400GMT, Federal Reserve Chair Jerome Powell will continue to deliver his semi-annual monetary policy testimony before the House Financial Services Committee in Washington.

The Federal Reserve will release its Beige Book at 1800GMT.

Global Economic Trading Calendar


Markets


SNAPSHOT: Below gives key levels of markets in the second half of the Asia-Pac session: - Nikkei 225 up 153.49 points at 22851.73 - ASX 200 up 42.661 points at 6246.3 - Shanghai Comp. up 14.212 points at 2812.338 - JGB 10-Yr future down 1 tick at 150.88, unchanged at 0.043% - Aussie 10-Yr future up 1 tick at 97.35, yield down 1.6bp at 2.641% - U.S. 10-Yr future down 1+ ticks at 120.02+, yield up 0.55bp at 2.8655% - WTI crude down $0.35 at $67.73, Gold up $0.09 at $1227.64 - USDJPY up 9 pips at 112.97

US TSYS: It has been a news-light session, with U.S. Tsys edging lower and T-Note futures sticking to a 3 tick range. - Fed's George spoke in Asia-Pacific hours, noting that further gradual rate hikes are needed, although she is unsure how far & how fast the Fed should go. George is a hawk and a non-voter this year, she will vote in 2019. - Fed Chair Powell will appear in front of the House Panel on Wednesday, with Fed's Quarles due to speak on Thursday & Bullard due up on Friday ahead of the blackout period which goes into force over the weekend.

JGBS: JGB futures have stuck to a 2-tick range in early dealing, with traders having little to go off. - Cash bonds have also struggled for direction, with cash JGBs hovering around unchanged levels.

JGBS AUCTION: The Japanese Ministry of Finance (MOF) sells Y597.7bn of 5-15.5 Year JGBS in a liquidity enhancement auction. - Average Spread: -0.003% (prev. -0.003%) - High Yield: -0.001 % (prev. -0.002%) - % Allotted At High Yield: 69.8440% (prev. 94.5027%) - Bid/Cover: 3.95 (prev. 3.03)

AUSSIE BONDS: Aussie Bonds have eased a touch on the day, and are approaching yesterday's lows, unwinding the gains that were observed in SYCOM dealing, with U.S. Tsys also moving lower. - The AU/U.S. 10-Year yield spread last traded at -22.0bp, after touching -23.7bp earlier on, while the domestic 3-/10-Year yield differential has narrowed to ~55bp after the gyrations in both the long & short end of the curve that were observed on Tuesday. - 3-Month BBSW fixed around 1bp lower today, at 2.00%, with the white and red bill contracts last trading unchanged to 1 tick lower, in sympathy with Bonds, unwinding the early bid.

STOCKS: Asia-Pacific stocks moved higher, latching on to the positive lead from Wall St. - The Nikkei 225 also benefitted from the softer JPY, adding 1.0%, as all of the major sectors moved higher, with the consumer discretionary & real estate sectors leading the way. - The Hang Seng was more hesitant, adding 0.3%, capped by losses for industrials and the energy sector. We also learnt that Chinese investors will eventually be able to buy stocks with weighted-voting rights via the south-bond stock link with Hong Kong, only days after China's exchanges barred such transactions, following a visit from the HKEX chief to the mainland. - China's CSI 300 added 0.9%, but is still struggling to advance in the wake of last week's false break higher. - Australia's ASX 200 added 0.7%, with the heavyweight materials sector leading the way, while energy was the only sector to trade lower.

OIL: The major crude benchmarks operated in mixed fashion overnight, with Brent recording marginal losses and WTI printing marginal gains. - This came after some modest weakness inspired by reports pointing to a surprise headline build in crude stocks in the latest weekly API inventory estimate.

FOREX: The major USD crosses stuck to ~20 pip ranges overnight, with little headline flow/economic data to go off of. Fed's George (non-voter/hawk) noted that further gradual rate hikes are needed, although she is unsure how far & how fast the Fed should go. - JPY crosses edged higher early on, with sources noting a German buyer as USD/JPY moved > 113.00, although follow-through was lacking & the cross trades just below the figure last. - GBP fell sharply on Tuesday, with cable printing a low of $1.3070 in the build up to the the Commons vote, as markets speculated that the UK gov't would lose & be forced to pursue Customs Union membership in a 'no deal' Brexit scenario. However, PM May avoided defeat, helping GBP edge off lows, cable last $1.3110. - AUD/NZD continues to track the differential between AU & NZ 2-Year swaps, with the pair holding a touch lower on the back of yesterday's 7-Year high in the RBNZ Sectoral CPI Model.

Technical Analysis


BUND: (U18) 162.26 Support Remains Key

*RES 4: 164.19 2018 High May 29
*RES 3: 163.22 High July 13
*RES 2: 163.19 Bollinger band top
*RES 1: 163.00 Hourly resistance July 13

*PREVIOUS CLOSE: 162.77

*SUP 1: 162.43 21-DMA
*SUP 2: 162.40 Low July 11
*SUP 3: 162.26 Low July 10
*SUP 4: 162.06 Low July 5    

*COMMENTARY: Bulls failed to capitalise on Friday's 6wk highs with the contract dipping back towards the 21-DMA. Bears look for a close below 162.26 to confirm a break of the 21-DMA and shift initial focus to 161.26-75. While 162.26 supports bulls remain focused on tests of the 164.19-36 region where 2018 highs and the weekly bear channel top off 2016 highs are located but continue to look for a close above 163.22 to add support to their case.

EUROSTOXX50: 3418.06 Support Key This Week

*RES 4: 3502.03 55-WMA
*RES 3: 3480.44 High July 10
*RES 2: 3479.23 55-DMA
*RES 1: 3466.26 High July 13

*PREVIOUS CLOSE: 3457.50

*SUP 1: 3421.85 21-DMA
*SUP 2: 3418.06 Low July 12
*SUP 3: 3389.44 Alternating daily support/resistance
*SUP 4: 3355.75 Bollinger band base

*COMMENTARY: The recovery from June lows stalled ahead of the 55-DMA last week with correcting O/B studies increasing the risk of a correction back to the 200-WMA (3324.01). Bears still need a close below 3418.06 to shift initial focus back to 3340.50 June lows. Bulls now look for a close above 3480.44 to gain breathing room and above the 200-DMA (3510.92) to hint at a move back to 2018 highs (3687.22).

Eurex Futures Market Close



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This article is from Eurex Exchange and is being posted with Eurex Exchange’s permission. The views expressed in this article are solely those of the author and/or Eurex Exchange and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 


19144




Technical Analysis

Soybean (ZS) Daily Chart Descending Wedge Completing


Soybean (ZS) is breaking the 4hr chart descending wedge resistance in today's Asia morning.  ZS is also arguably nearing completion of the daily and weekly chart descending wedge.  Among the agris on my Watchlist, ZS has been hit the hardest in the past 2 months due to the US-China trade war, but also stands to rebound the strongest following the bottoming efforts underway.  The steep downsloping weekly MACD will keep most bulls away, but aggressive traders will begin anticipating a flattening of the weekly MACD green line which could quickly occur within a few strong up days.  Aside from the weekly MACD, the weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.  I am long as of last Monday at 874, and am targeting the red zone for Friday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I set my stops tighter).
 
Soybean (CME ZS Nov18) Weekly/Daily/4hr
 
 
Click here for today's technical analysis on Wheat, Raw Sugar
 

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures and spot FX markets can be analyzed to enhance trading performance. Tradable Patterns’ daily newsletter provides technical analysis on a subset of three CME/ICE/Eurex futures (commodities, equity indices, and interest rates), spot FX and cryptocurrency markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

 

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 


19143




Futures

FX Rundown


Euro (September)

Session close: Settled at 1.1716, down 51 ticks

Fundamentals: The Euro finished notably lower on the session. Italian CPI got the ball rolling and top ticked the market at 4:00 am CT, the technicals took it from here. U.S Industrial and Manufacturing Production beat expectations but last month’s reads were revised much lower. Still, this could not offset what became a strong day for the U.S Dollar. Fed Chair Powell’s first day of testimony went smoothly, equity markets ripped higher and his overall upbeat but unaggressive tone on the economy continued to encourage a path of least resistance higher for the Dollar on the session. He said there are years of strong job growth and low inflation ahead. His testimony continues when he moves from the Senate to the House of Representatives. Tomorrow morning, the final read on June Eurozone CPI is due at 4:00 am CT. Building Permits and Housing Starts are due at 7:30 am CT.

Technicals: Today played out just as we cautioned last night, a failure at first key resistance at 1.1781-1.17945 will place the bears back into the driver’s seat; the high was 1.17975 and the Euro finished half a penny lower. First key support at ... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

 

Yen (September)

Session close: Settled at .8898, down 44.5 ticks

Fundamentals: The NQ settled at a new all-time high and along with Nikkei futures gained more than 1%. The S&P settled at the highest level since February 1st. On today’s Morning Express, we were bullish on today’s equity market session (we hope you were able to capitalize) and this was a strong signal to not fight Yen weakness. Essentially, the Dollar began strengthening at 4:00 am CT after U.K jobs data was soft and Italian CPI missed. Even against the Yen. There once was a time when the Yen would capitalize off poor data around the world, it now seems the U.S Dollar benefits more often than not. There is no data out of Japan tonight and tomorrow evening we look to Trade Balance data.

Technicals: The Yen is firmly below what was long-term major three-star support which aligned with a trend line from December 2015. This will now act as resistance and the bears are in the driver’s seat until a close above here. We do have major three-star support at ...  Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

 

 

Aussie (September)

Session close: Settled at .7389, down 26 ticks

Fundamentals: The Aussie initially gained last night after the release of the RBA Minutes. Officials said the downside risks to the economy have increased due to developing trade uncertainties but overall this was to be expected by traders which was to explain the adverse move higher. Still, the hour-long spike was short lived and began to dissipate. The sellers stepped up as the morning developed and as the U.S Dollar firmed, and commodities lost ground. There is no major data out of Australia tonight.

Technicals: Price action for the second day in a row failed at .7444-.7454 and this again leaves the bears in the driver’s seat. Don’t get too excited yet, the downside is...  Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

 

Canadian (September)

Session close: Settled at .75885, down 27 ticks

Fundamentals: The Canadian incurred a very short-lived spike on much better than expected Manufacturing Sales. However, it became the same casualty as every other currency versus the strengthening U.S Dollar today. Price action edged the lowest level since June 29th but did stabilize. Crude Oil is lower after the bell on API inventory data, the official read from EIA is tomorrow.

Technicals: Price action tested and briefly breached first key support. The overall setup does not beg buyers to step in here and signals further weakness could come in the next 24 hours. However, the range is defined and a move outside of resistance at ...  Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Visit our website at www.bluelinefutures.com to open an account and stay up to date with our research.

Bill Baruch is President and founder of Blue Line Futures. Bill has more than a decade of trading experience. Working with clients he focuses on developing trading strategies that present a clear objective for both long and short-term trading approaches. He believes that in order to properly execute a trading strategy, there must be a well-balanced approach to risk and reward.

Prior to Blue Line, Bill was the Chief Market Strategist at iiTRADER which followed running a trade desk at Lind Waldock and MF Global.

Bill is a featured expert on CNBC, Bloomberg and the Wall Street Journal as well as other top tier publications. 

Blue Line Futures is a leading futures and commodities brokerage firm located at the Chicago Board of Trade. We work with clients that range from institutional to professional to novice and from self-directed to broker-assisted. No matter what type of trader you are, our mission is simple; to put the client first. This means bringing YOU strong customer service, consistent and reliable research and state of the art technology. 

This article is from Blue Line Futures and is being posted with iBlue Line Futures’ permission. The views expressed in this article are solely those of the author and/or Blue Line Futures and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 


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1 2 3 4 5 2 1309

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