Jan 25 Asian Macro Initial Thoughts Asia to see a muted open, US futures slightly higher


25 Jan

Asian Futures  No pre market data to guide markets.  Nikkei Futures opened +22pts but have eased,  HK ADR’s +105pts but after the lockdown in Jordon over the weekend upside I think will be muted. Australia trading higher in early trades.  

US Futures opened higher Dow +56pts, S&P +0.2% and NDX +0.3%

A big week ahead for earnings with over 100 companies reporting and for the US we also get Q4 GDP and a Fed meeting (no change expected  but watch for comments on the new administration). We also get Durable goods and personal income and spending and the PCE deflator which the Fed watches closely. Biden’s administration to release more policies on climate change and is urging China to toughen one of its targets on greenhouse gas emissions. Trump’s impeachment to start Monday likely a small distraction for most.

On Friday UK announced a new and more virulent mutant known as B.1.1.7 which has an unusually high number of mutations and was already associated with a more efficient and rapid transmission.  It has also been discovered in 44 countries, including the US.  It has been known about since Sept.  UK now considering closing all UK borders.

Worth also noting that The White House's new national security chief on Thursday held introductory calls with officials from France, Germany, the United Kingdom and Japan, according to a National Security Council spokeswoman's statement released on Friday.  China not on the list that is likely to cause China some concern.

JAPAN 
Nikkei futures opened +22pts but have eased indicting a higher open but  I expect the market open flat and trade sideways. Yen closed 103.77 on Friday
No Data due but concerns about Friday’s CPI data which slumped in December at the fastest annual pace in a decade, a sign of intensifying deflationary pressures that sharpen the case for the central bank to come up with better ways to combat the deepening impact of the COVID-19 pandemic. Friday's weak data underscores the challenges policymakers face in preventing the spread of the virus without adding to the strain on an economy already suffering from a renewed state of emergency rolled out this month.
Bank of Japan is dropping hints it will consider allowing long-term interest rates to deviate further from its 0% target, a move that could undermine the purpose of its policy aimed at controlling the shape of the yield curve. BOJ Governor Kuroda told reporters the idea could be among options discussed in March, when the bank will review its tools to make them "sustainable and effective.”  +VE
Tokyo confirmed 989 new covid cases Sunday (vs 1,070 new case Saturday), dropping below 1,000 new cases in a single day for the first time in 12 days.  But the death toll in Japan topped 5,000.
Japan’s vaccine programme chief on Friday walked back on a goal to secure enough targeted supplies of COVID-19 vaccines by June, one month before the planned start of the Tokyo Olympics.  Comes as a domestic tourism campaign promoted by PM Suga may have contributed to a sharp increase in coronavirus infection cases in the country, a prominent adviser to the government’s pandemic response said.
Govt also announced a girl in Tokyo was found positive for the coronavirus variant first detected in Britain, and the case could be a community-acquired infection, the Japanese Health Ministry said on Friday.  The girl, who is under 10 years old, has not travelled to the United Kingdom, and no contact with people from Britain has been confirmed, the ministry said.
Japan has no intention of joining a UN treaty banning nuclear weapons, PM Suga reiterated Friday, voicing doubts about the effectiveness of an agreement that is not supported by nuclear weapons states.
New US Defence Chief confirms Senkakus fall under the security treaty and appears to embrace Japan’s ‘Free and Open Indo-Pacific Strategy’.  +VE for sentiment
Toshiba will return to the top section of the Tokyo Stock Exchange after more than three years in its second tier and under near constant pressure from activist shareholders. But it is still facing activist shareholders investigations into governance issues and its investment strategy.
Kawasaki Heavy Industries Ltd. plans to construct the first large-scale tanker in the world to carry and be fueled by liquefied hydrogen, which is seeing growing demand as a fuel for power generation. The government is also on board the project, with plans to support development through subsidies. +VE
Toyota Auto Body Co., a member of the Toyota Motor Group, is taking on hundreds of seconded workers from aircraft industry firms including Kawasaki Heavy Industries Ltd. and Mitsubishi Heavy Industries Ltd.,  Slight -VE
Mizuno Corp. has received an order from Kubota Corp., a giant in the Japanese agricultural machinery business, for polo shirts, pants and hats for about 9,700 workers at its plants. The fabric will be made more elastic to make it easier to stand and squat in and will also be treated to reduce the smell of sweat.  Descente Ltd. has also entered the work clothing business in earnest. The company has developed uniforms that use Sunscreen, an original material that reflects sunlight to reduce heat, and they have been adopted by Zenrin Co., a major map publishing company. The uniforms are said to have been well received by staff members who conduct surveys in residential areas during the summer. Asics Corp. is also increasing its sales of work shoes, which it has been selling for about 20 years, gaining support from those in charge at work sites who place importance on safety and ease of movement. In addition to work shoes for the construction and transportation industries and shoes for nurses, the company is now also selling shoes for kitchen use.+VE as diversifying out of its established good field.
All Nippon Airways Co says it will further reduce domestic operational costs in the next business year starting April by reviewing its fleet management, drastically cutting its use of large jets and relying more on smaller ones. +VE
Shiseido Co Ltd said on Friday it was in talks to sell its lower-priced skincare and shampoo brands to private equity firm CVC Capital Partners in a deal reported to be valued at more than $1.45 billion.
Nissan will source more batteries from Britain to avoid tariffs on electric cars after the UK's trade deal with the EU, which a senior executive told Reuters turned Brexit from a risk into an opportunity for its factory in northeast England.  COO Ashwani Gupta also said Brexit-related problems at ports since Jan 1 were "peanuts" for Nissan, which has had to handle COVID-19 and natural disasters.
Japan and the IOC stood firm on Friday on their commitment to host the Tokyo Olympics this year and denied a report of a possible cancellation, although the pledge looks unlikely to ease public concern about holding the event during a pandemic.  As over 70% of people in Japan think that this summer’s Tokyo Olympics and Paralympics should be canceled or postponed again, a think tank survey showed Saturday. The survey by the Japan Press Research Institute showed that 37.9% of respondents said the Tokyo Games should be canceled while 34% said the events should be postponed again.
FT Big Read is on Sony’s Music Ent business 'Japan’s anime goes global: Sony’s new weapon to take on Netflix'

SOUTH KOREA 
Expect markets to flat following the US markets with Tech still in focus to support the markets.  Markets closed Friday just off their recent highs, talk of valuation pressure as The Won fell vs the USD. 
No data due
KDCP reported 369 new cases Sunday (23 imported from overseas) and says on downward slope. But the Govt warns against complacency as risk factors remain high and so the Govt will keep social distancing in place in the run up to the Lunar New Year.
Samsung Electronics is pondering on spending over US$10 billion in the most-advanced logic chipmaking factory in the U.S., hoping to lure more American clients and catch up with sector leader TSMC, reported Bloomberg. Samsung is in talks to build a factory in Austin, Texas for fabricating 3-nanometer chips, according to sources. +VE
LG Electronics, a household name in home appliances, is preparing for the future of homes by investing in robotics and artificial intelligence technology.  The company, which has so far launched more than 10 kinds of robots, is seeking more innovation opportunities with global partners and experts to raise competitiveness in the field. +VE
SK Holdings, an investment-focused holdings firm within SK Group, said Sunday that it will focus its investment on four business areas: advanced materials, green, bio and digital. +VE
LG Innotek said Sunday that it has succeeded in developing a digital car key module that would enable smartphones to replace car keys. The module is equipped with high-precision location detection ability and has reliable security functions, +VE
Hyundai Motor and Kia Corp. slumped in their three major markets last year amid the coronavirus pandemic, company data showed Sunday. They saw their sales slump in the United States, Europe and China in 2020 as the COVID-19 pandemic affected vehicle production and sales. -VE
The future of LG Electronics’ next generation smartphone model with a rollable OLED display hangs in the air as the tech giant seeks to sell its money-losing mobile business unit.  The company said Friday that it was still developing the Rollable, but added that detailed plans for its launch had not been decided, and that the company was “open to every possibility.” -VE
Hyundai Engineering & Construction, said Friday it shifted to a net loss in the fourth quarter from a year earlier due to currency-related losses. For the three months that ended in December, Hyundai E&C swung to a net loss of 122 billion won ($110.6 million) from a net profit of 6.9 billion won in the same period of last year, the company said in a regulatory filing. The company said the US dollar's strength against the won mainly contributed to the loss.  Slight -VE
Posco, is expected to have logged double-digit operating profit growth in the fourth quarter on increased demand despite the coronavirus pandemic. Strong demand for steel products in China and a hike in steel prices likely buoyed the company's bottom line in the October-December period, analysts said. +VE
Korean Air Lines said Friday it will raise a higher than previously planned amount by selling stocks for its planned acquisition of smaller rival Asiana Airlines Inc.  It now plans to sell 3.3 trillion won ($3 billion) worth of new stocks,(vs 2.5 trillion won originally)  to finance the acquisition of debt-laden Asiana, due to its soaring stock price, the company said in a regulatory filing. +VE
Lotte and Shilla will close their Duty Free stores at Incheon Airport’s Terminal 1 at the end of next month after their contracts come to an end, leaving more empty space at the airport. -VE. Comes as Govt data Sunday showed Air traffic volume in South Korea halved year-on-year in 2020 due to the coronavirus pandemic.
LG Chem Foreign investors have continued to scoop up vast amounts of shares in the first month of this year, after raking in some 2.38 trillion-won ($2.16 billion) worth its stock last year, data showed Sunday. Offshore investors purchased a net 605.4 billion-won worth of LG Chem stocks in the Jan. 4-Friday period +VE
Doosan Infracore and Hyundai Construction Equipment are expected to see a steady rise in their shipments to China this year thanks to a boom in the neighbor's construction market, according to industry watchers Sunday.  Sales of excavators in China reached 292,864 units in 2020, +40% YoY according to the data provided by the China Construction Machinery Association. +VE
South Korea's antitrust regulator said Friday it will seek to take punitive actions against unfair business activity by online platform operators in a bid to protect contractors and consumers.  It will submit a bill to the National Assembly next week.
South Korea said Friday it plans to deploy at least five vessels by the end of February to support exporters facing troubles from a hike in freight costs amid soaring demand. Under the plan, HMM Co., the country's leading shipper, will operate a ship with a capacity of 4,600 twenty-foot equivalent units (TEU) on the American route in January, according to the Ministry of Trade, Industry and Energy. +VE
Property +VE as the total volume of office investments in major districts of the Greater Seoul area hit yet another record in 2020 despite the pandemic, as high demand for offices in prime locations led the bullish market, data showed Friday.

TAIWAN 
Expect market to open flat  with Tech still protecting the downside. Unemployment number after market Friday was positive but we could see caution ahead of todays data which comes out after market.
Data due After Market Industrial Production, Retail Sales, M2 Money Supply
After Market Friday Unemployment Dec 3.76% vs 3.77% Nov (F/cast was 3.8%)Falling for the fifth straight month, as fewer people quit or lost their jobs due to business downsizing or closures +VE
Officials remain hopeful, realistic on US trade deal saying it is a high priority.  While US lawmakers support a deal, officials said they are also looking to join the CPTPP and forging a trade agreement with the UK.
China on Saturday and yesterday sent a record number of military aircraft into the nation’s air defense identification zone (ADIZ), in what analysts said was an attempt to flex its military might for US President Joe Biden. But got a rebuke from the US.
GlobalWafers, the world’s No. 3 silicon wafer supplier, Saturday said that it has sweetened its takeover offer for Siltronic AG by a further 5 Euros to 145 euros per share, a cash-only deal for all of the outstanding ordinary shares of the Germany-based company. Increasing the offer for a second day have increased it by 12% on Friday to Euro 145. +VE
Pan Jit International Inc’s board of directors approved a tender offer for up to 20 percent of the common shares of connector supplier Alltop Technology Co Ltd, Pan Jit said on Friday last week. The company said it would offer NT$105 per share on the open market from tomorrow to Feb. 25, to expand its product portfolio and create business synergy.  The offer represented a premium of 11.1 percent compared with Alltop’s closing price of NT$94.5 in Taipei trading on Friday, when Pan Jit shares rose 1.18 percent to NT$51.6. +VE
Qisda Corp is extending its tender offer for Sysage Technology  by 50 days through March 18 as it awaits approval from the Fair Trade Commission (FTC) to proceed with the acquisition.  Qisda, which already owns 35% of Sysage Technology, on Dec. 9 last year announced that it would purchase up to 38 million additional shares, or a 20 percent stake, at NT$45 per share.
Huang Hsiang Construction Corp has acquired the building that houses the Sogo Department store’s Dunnan branch for NT$13 billion (US$458.05 million) through a share swap, government data showed.  The developer beat the other bidder, Urban Development Concept Holdings Ltd, after the seller, Jen Ai Co, reportedly demanded an all-cash payment, scaring away other prospective buyers.
Hon Hai Precision Industry Co developed an artificial intelligence (AI) program that has cut defect inspection labor by 50% on some production lines, the company said on Thursday.  The company has named the program Foxconn NxVAE, which stands for Foxconn Next Variational Autoencoder.  Variational autoencoders are artificial neural networks that can learn without supervision. +VE
Hon Hai also said that it is stepping up cooperation with Chinese start-up Byton Ltd  in the development of electric vehicles (EVs), with reports that Hon Hai would station experts at Byton’s factory.  Chinese media on Saturday reported that Hon Hai would send about 100 engineers to Byton’s headquarters in Nanjing next year to help them move up mass production of its electric vehicles. +VE
Brokers +VE as their net profit last year rose more than 40% YoY on the back of a boom in the domestic equity market due to investments from overseas, the Taiwan Stock Exchange (TWSE) said on Saturday.  
Foreign media over the weekend reported that German Minister of Economic Affairs Peter Altmaier had sent a request to Taipei to ask TSMC to cooperate more closely with German automakers to provide microchips and sensors, to bridge a shortage that has emerged over the past few months.  Illustrates the level of shortage for the cheaper chips used in the auto sector.
Property +VE as New mortgages granted by five state-run banks last month reached the highest level since 2016, on the back of robust demand in the property market throughout the second half of last year, central bank data released on Friday showed. +VE
CPC Corp and Formosa Petrochemical  yesterday announced that they would increase gasoline prices for the ninth consecutive week, while leaving diesel prices unchanged this week.

CHINA 
Expect market to open lower with caution over the rising covid cases and the potential impact on the recovery along with concerns over the US/China relations after the US rebukes Chinese incursions into Taiwan’s airspace.No data dueChina on Saturday reported 107 new covid cases (vs 103 Friday) with 90 local infections; as it marks the anniversary of the world’s first coronavirus lockdown, in the city of Wuhan where the disease emerged in late 2019. Heilongjiang recorded 56 new cases and neighbouring Jilin province had 13. Both Beijing and Shanghai recorded three new cases each (including the strain found in the UK), and the province of Hebei, which surrounds Beijing, recorded 15 new cases. Beijing launched mass testing Friday and Shanghai was testing all hospital taff -VE for sentiment and already been seen in downward pressure on oil prices.
China reported its first cluster of COVID-19 cases among workers in a meat processing plant, raising fears among local consumers who have until now mainly worried about the safety of imported foods. Ten confirmed cases were found in a factory which slaughters 50 million chickens a year in the northeastern city of Harbin and is owned by Thai conglomerate Charoen Pokphand (-VE for the stock)  one of the world’s top poultry producers.
China’s provinces set confident economic growth targets for 2021;  Beijing, Shanghai, Guangdong all forecast at least 6 per cent rise for year ahead. Hainan said its would be no less that 10% up from 6.5% for 2020.  Henan and Shanxi said more than 7%, Fujian set it at 7.5%.  But as in 2020, central government is unlikely to set a nominal goal for GDP growth, policy advisers because the low base could skew the numbers. Chinese Premier Li Keqiang told at a symposium on Friday that the government must “ensure the economy is running within an appropriate range”. “Employment is the biggest issue of livelihood and the foundation of economic development, we must stick to an employment priority policy,” he said.
China passed a law on Friday that for the first time explicitly allows its coast guard to fire on foreign vessels, a move that could make the contested waters around China more fraught. The National People’s Congress standing committee, passed the Coast Guard Law on Friday, according to state media reports. -VE
US urges China to stop intimidating Taiwan for a second time since President Biden took over.  “We urge Beijing to cease its military, diplomatic and economic pressure against Taiwan and instead engage in meaningful dialogue with Taiwan's democratically elected representatives,” the US state department said.  Underlines that Biden is likely to keep up a tough approach to China.  Some think the recent increase in activity is Beijing demonstrating its displeasure at Taiwan’s de-facto Ambassador to America was formally invited to Biden’s inauguration.  Comes as U.S. aircraft carrier group led by the USS Theodore Roosevelt has entered the South China Sea to promote “freedom of the seas”, the U.S. military said on Sunday, at a time when tensions between China and Taiwan have raised concern in Washington.
China grants Canada’s Michael Kovrig online consular access a sign of a change in attitude from China with the change of administration in the US
A new form of African swine fever identified in Chinese pig farms is most likely caused by illicit vaccines, industry insiders say, a fresh blow to the world’s largest pork producer, still recovering from a devastating epidemic of the virus. -VE for sentiment and WH Group which has seen recent shorting.  Could also impact Chinese food inflation in the run up to Chinese New Year.
China to boost PLA forces pay another sign of changes taking place in armed forces.
Heavy Machinery: Sales of excavators in China reached 292,864 units in 2020, +40% YoY according to the data provided by the China Construction Machinery Association. +VE for Sany, Zoomlion, Lonking, Weichai Power and others but the strength of the RMB makes foreign brands attractive too
Indian/China conflict A village built in conflict zone is part of Beijing’s poverty alleviation scheme, source says; development of about 100 houses was built within China’s territory as part of a nationwide poverty alleviation scheme.  But an Indian academic says Beijing’s house building schemes in disputed areas are just another example of its “aggressive expansionism” Slight -VE

HONG KONG  
ADR’s +105pts at 29,552 with Ecommerce names +VE and a rebound in CNOOC.  HK Govt says imposed lockdown on Jordon will end Monday morning.  The mainland type of arrangement likely to raise wider concerns about Govt control.
No data due but Hong Kong reported 81 new covid cases Sunday (vs 61 Saturday) with 21 from the lockdown area.
SHORT SELLING Friday 16.3% vs 18.1% Thursday
Top Shorts: Wharf REIC (1997) 52%,  Hang Seng Bank (11) 41%, Country Garden (2007) 40%, Henderson Land (12) 38%, Ping An (2318) 37%, Bud Apac (1876) 36%,  CLP (2) 34%, Hengan (1044) 31%, CITIC (267) 31%, Galaxy Ent (27) 29%, MTRC (66) 27%,  Link REIT (823) 27%, Sands China (1928) 26%, SHKP (16) 24%.
POLITICS/VACCINE FT reports that  'A group of more than 200 pro-Beijing politicians in Hong Kong is set to be vaccinated against Covid-19 in mainland China, ahead of the rest of the city’s population, in order to attend the Chinese Communist party’s premier political event this March.’  Likely to spark resentment against Beijing.
WATCH
AUSTAR (06118.HK) Positive Profit Alert  expecting to record a profit in the range of RMB30 million to RMB40 million for the year ended 31 December 2020, as compared to the profit of RMB8.1 million for the year ended 31 December 2019, up approximately 270%-394%.
KOOLEARN (01797.HK)  announced interim result ended November 2020. The revenue rose 19.2% year on year to RMB677 million. The loss widened to RMB674 million from RMB71.282 million in the corresponding period of the previous year. LPS was RMB0.72. No dividend was declared.
SINO LAND (00083.HK) has just uploaded the first price list for SILVERSANDS, a property in Ma On Shan, involving 50 flats. Based on the maximum discount of 18.5%, the selling prices range $5.8631-10.3994 million.
CITIC BANK (00998.HK)released the preliminary annual results. For 2020, operating income added 3.81% yearly to RMB194.731 billion. Net profit rose 2.01% yearly to RMB48.98 billion. Basic EPS equaled RMB0.94.
Baidu (BIDU.US) has officially filed a secondary listing application at HKEX (00388.HK), with Goldman Sachs and CITIC in the sponsor team, according to Chinese media.
HKEX (00388.HK) announced the inclusion of eligible A-shares listed on the Shanghai Stock Exchange’s (SSE) Sci-Tech Innovation Board (STAR Market) into Stock Connect, effective from 1 February 2021. As previously agreed by HKEX, SSE and Shenzhen Stock Exchange (SZSE), STAR Market-listed shares that are constituent stocks of the SSE 180 Index and SSE 380 Index, or have corresponding H-shares listed in Hong Kong for A+H companies, will be eligible for Northbound trading under. Shanghai-Hong Kong Stock Connect. following the existing inclusion arrangements. Their corresponding H-shares will be included in Southbound trading of Stock Connect when the Northbound arrangements take effect.
FTSE Russell announced deletion of CNOOC (00883.HK) from global and China A50 indexes, effective 27 January, due to U.S. investment ban.
SINOPEC SSC (01033.HK)  Profit Warning expecting the net profit attributable to equity shareholders to approximate RMB80 million for the year ended 31 December 2020, representing a decrease of 91.2% over the corresponding period of the previous year.
CHINA RES BEER (00291.HK) Positive Profit Alert expecting the Group’s net profit for the year ended 31 December 2020 to significantly increase by not less than 50% as compared with that of the year ended 31 December 2019. The increase was mainly attributable to the decrease in compensation and settlement expenses related to capacity optimisation and organisational restructuring; and the increase in bottles usage income and profit on disposal of fixed assets in other income.
CSC (06066.HK) Positive Profit Alert expects net profit to increase by 72.85% yearly to around RMB9.509 billion for the year ended December 31, 2020. The estimated EPS
equaled RMB1.2.
The PBoC has issued a deposit reservation management guidance on non-banking payment service providers, effective 1 March, and annulled the prior deposit reservation management guidance thereon. Under the new guidance, payment institutes shall cooperate only in compliance with relevant rules from the Chinese central bank. Meanwhile, the guidance stipulated that no inter-institute direct payment access shall be allowed and that such institutes shall not open payment accounts for each other or transfer deposit reservation for clients thereby.
CROCODILE (00122.HK)  announced that with effect from 22 January 2021, Deputy Chief Executive Officer Lam Wai Shan, Vanessa has been appointed as the Chairman and Chief Executive Officer.
Secretary for Food and Health Sophia Chan said cabin crews, originally entitled to exemption, will be subject to 14-day quarantine at designated hotels upon arrival in Hong Kong. CATHAY PAC AIR (00293.HK) replied that it is aware of the Government's intention to tighten isolation rules for aircrews. The carrier is asking the authority for details to make plans in advance.
CGN POWER (01816.HK) announced that from March 26, 2020 to January 22, 2021, its controlling shareholder CGN had increased shareholding by acquiring over 194 million H shares through the Shenzhen-Hong Kong Stock Connect system of the Shenzhen Stock Exchange, representing approximately 1.74% of the total number of issued H shares and approximately 0.38% of the total number of the issued shares.
China Banking and Insurance Regulatory Commission (CBIRC)'s financial management unit has met with Ant Group and some other internet platform firms over anti-monopoly issues, as Chinese media cited CBIRC vice chairman Liang Tao. The meeting would not affect the normal business development of these companies, he underscored.
CANSINOBIO-B (06185.HK) will supply 20 million doses of coronavirus vaccines to Pakistan, where phase III clinical trials have been completed locally, Bloomberg reported. The FT reported that the doses will be supplied free.
CCL last printed at 176.16, down 0.21% weekly. CCL Mass dipped 0.22% weekly to 178.61, CCL (small-to-medium flats) sagged 0.16% weekly to 176.19. The three key indices declined on a notably smaller magnitude for two weeks.  Under a livelier home market and rising second-hand deals, the research department of Centaline Property, foresaw a more significant  CCL rally in the February data.

From Friday 
DOW -0.57%, NDX +0.09%, S&P -0.3%, Russel 2K +1.28% Having opened lower markets worked their way back to around flat at lunchtime on good PMI data and Existing home sales beat too. and then traded sideways before  seeing a small dip into the close.  NDX closed at a new week.  Investors concerned by Republican opposition to Biden’s stimulus package -VE for sentiment on cyclicals like Energy, Financials and Materials.
IBM -9.9% as Q4 sales missed again.
Intel -9.3% having opened higher after better than expected earnings but early due to a hack. Concerns that Pat Gelsinger its new CEO was not keen on outsourcing some of the chipmakers business.
GameStop +51% as retail traders decide to squeeze Andrew Lyft of Citron Research who said he had placed a bet against the stock; saying it was in terminal decline. Raising questions about the use of websites like RedditJanet Yellen got Senate support for appointment as Treasury Secretary Banks JPMorgan Chase -0.8%, Citigroup -0.9% and Wells Fargo -0.3%, Amex -1.1%
Work from home names: 
Facebook +0.6%, Apple +1.6% ahead of results next week, Amazon -0.5%, Netflix -2.5%,  Disney +0.9%,  Zoom Video +0.2%, Alphabet +0.5% and Microsoft +0.4%,
Tech 
NXP -0.8%, Nvidia -1.1%, Micron -3.2%, AMD +1.4%, Skyworks -1.4%
Re-opening stocks  
Boeing -0.8%, Caterpillar -0.1%, Simon Property +1%, Kohl’s +0.9%, Nordstrom +3.1%, Gap -0.1%, United Airlines -1.1%, Carnival -2.5%, Wynn Resorts -1.6%, Chevron -0.3%, Exxon Mobil -1.4%,  
Lock down names 
Campbell Soup -0.1% General Mills +1.2%, JM Smucker +0.7%
DATA
PMI FlashManufacturing Jan 59.1 vs 57.1 Dec (F/cast was 56)
Services Jan 57.5 vs 54.8 Dec (F/cast was 54.3)
Composite Jan 58 vs 55.3Dec (F/cast was 55.9)
Existing Home Sales Dec +0.7% MoM vs -2.2% Nov revised (F/cast was -1%)
EIA Natural Gas Stocks Change -187Bcf vs -134Bcf prior (Consensus was -174Bcf)
EIA Crude Oil Stocks Change +4.351m vs -3.247m (Consensus was -1.167m)
EIA Gasoline Stocks Change -0.26m vs +4.395m (Consensus was +2.771m) Baker Hughes Oil Rig count 289 vs 287 prior
Baker Hughes Total Rig count 378 vs 373 prior
USD was slightly stronger vs Yen & Euro. Bitcoin +0.2% @ 32,752.50, VIX +2.8% @ 21.9, US T10 @ 1.086% slipped on stimulus and covid concerns
OIL Brent -1.1%, WTI -1.6%
Gold -0.56%, Silver -1.12%, Copper -0.77%
AHEAD Chicago Fed National Activity Index, Dallas Manufacturing Index
Earnings: Kimberly-Clark, Yamana Gold, Steel Dynamics

DAX -0.24%, CAC -0.56%, FTSE -0.3%  Opened lower following the trend from Asia, PMI data mixed but mainly weak and UK Retail Sales weaker than forecast (-VE Retail names). Concerns about the new covid wave in China and more lockdowns in Europe as AstraZeneca warns of delays to covid vaccine deliveries.  Markets trending lower/sideways through the morning but then worked higher in the PM.  All sectors ended in the red with Travel and Leisure leading the declines as further travel restrictions are proposed in Europe; to identify covid hotspots -VE Airlines.
Hellofresh +3.2% on new travel restrictions
Siemens +7.2% and ProSiebenSat.1 +4.7% who both posted better-than-expected earnings before the opening bell.
Volkswagen +1.8% despite FY profit halving in 202o but beat forecasts
Tui -16% on covid concernsAt the weekend
FT reports Deutsche Bank is investigating whether its staff mis-sold sophisticated investment banking products to clients in breach of EU rules and then colluded with individuals within these companies to share the profits.
Data 
EUROZONE 
PMI Flash Manufacturing Jan 54.7 vs 55.2 Dec (F/cast was 54.5)
Services Jan 45 vs 46.4 Dec (F/cast was 44.3)
Composite Jan 47.5 vs 49.1 Dec (F/cast was 47.2)
GERMANY 

PMI Flash 
Manufacturing Jan 57 vs 58.3 Dec (F/cast was 57.5)
Services Jan 46.8 vs 47 Dec (F/cast was 45.1)
Composite Jan 50.8 vs 52 Dec (F/cast was 50.2)
FRANCE 
PMI Flash
Manufacturing Jan 51.5 vs 51.1 Dec (F/cast was 50.9)
Services Jan 46.5 vs 49.1 Dec (F/cast was 47.9)
Composite Jan 47 vs 49.5 Dec (F/cast was 48.4)
UK 
Consumer Confidence Jan -28 vs -26 Dec (F/cast was -29)
Retail Sales Dec +0.3% MoM vs -4.1% Nov revised (F/cast was +1.1%)
Retail Sales Dec +2.9% YoY vs +2.1% Nov revised (F/cast was +3.8%)
Retail Sales Ex Fuel Dec +0.4% MoM vs -3% Nov revised (F/cast was +0.5%)
Retail Sales Ex Fuel Dec +6.4% YoY vs +5.3% Nov revised (F/cast was +6.2%)
Public Sector Net Borrowing Dec GBP -34.1b vs -26.1b Nov (F/cast was -30b)
PMI Flash
Manufacturing Jan 52.9 vs 57.5 Dec (F/cast was 52.8)
Services Jan 38.8 vs 49.4 Dec (F/cast was 45.1)
Composite Jan 40.6 vs 50.4 Dec (F/cast was 45.2)
AHEAD
EUROZONE No data Due
GERMANY Ifo Business Climate, Current Conditions and Expectations
FRANCE No data due
UK No data due

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