>>> Europe Pre-Market

BofAML EMEA Indications

INMARSAT - AirAsia signs MoU to upgrade to GX Aviation inflight Wi-Fi (857).+2%
PREMIER OIL - Sold Pakistan biz for US$66m. Long expected transaction (62)..+2%
ITALIAN BANKS - Vicenza & Veneto eligible for state aid. Midcaps up more..+1-3%
AZIMUT - Preannounced Q1 guidance ahead of ests on net profit; +ve (16.6).+1-2%
MINERS - Copper +1.15%, Iron Ore fut +2% with BHP OZ +3.2%, RIO OZ +2.65%...+1%
W.DEMANT - CEO tells Jyllands-Posten is interested in M&A. U/G'd away (148).+1%
SYNGENTA - ChemChina wins US approval. We now wait for Mofcom (China) (452).+1%
ROCHE - Gets FDA approval for Histology Pre-Cancer Test. Not material (257).u/c
GALLIFORD - Co says is no longer considering a combination with Bovis (1462)u/c
ROCKET - Global fashion group revs slightly better but EBITDA worse (15.5)..-1%
BOVIS - Galliford Try no longer considering a combination with Bovis (821)..-3%

RBC INDICATIONS
EURO STOXX +18bps FTSE FUTURE +31bps
*ACCOR: +1% signs partnership deal with UNIONPAY.
*BOVIS: -5% GALLIFORD reject merger, sales & revenue in line.
*CBK: 0% 7,500 job cuts, part of cost plan announced earlier this year.
*GSK: -2% recalling more than 593,000 VENTOLIN asthma inhalers due to defect.
*PREMIER OIL: +1% sale of Pakistan business for cash consideration $65.6M.
*ROCHE: 0% received FDA approval for CINTEC Histology test.
*SYNGENTA: +2% CHEMCHINA wins US approval for $43B takeover.
*WOOD GROUP: +2% increased estimated cost synergies for AMFW deal to $183M.

MainFirst Pre Mkt Indications

*SYNGENTA-Chemchina approved by US Competition Authority.............+1.5%
*ABB-Mulled buying Rockwell Automation($20b MC) says Streetinsider...+0.25%
*ABENGOA-To sell stake in US Unit,Sees '17 Rev €2.5-3b(1.5b '16).....+0.5%
*ROCHE-Gets FDA clearance for Cintec-Histology-Test,pre-cervical.....+0.25%
*POPS-Hires BOA to consider sale of Wizink worth €2,5bln.............+0.5%
*EVOTEC-Achieves 1st milestone in diabetes alliance with Sanofi......+3%
*AURUBIS-Sees strong scrap supply after China regeneration...........+0.25%
*AZIMUT-Expects Q1 Net €57-€67m,Rev €198-€215m(No Cons,up QoQ).......+0.5%
*EDAG-FY Rev 715m(722),Adj Ebit 43.8m(44),Div 75c(65),o/lk ok........+1.5%
*ROCKET INTERNET-Global Fashion FY Net Rev tops €1b..................+0.25%
*ACCOR-Hotels & UnionPay team up to offer payment solutions..........+0.5%

WSJ : Europe’s New Safe Haven: German Real Estate

Europe’s New Safe Haven: German Real Estate
Last year, Germany led Europe in commercial property sales volume for the first time, displacing the U.K.

Last fall, when a planned €3.3 billion initial public offering of a German office-building company was pulled due to weak demand, market observers expected private-equity giant Blackstone Group LP to move in for the kill.

Blackstone had previously expressed interest in OfficeFirst Immobilien AG, which owns about 100 properties in Frankfurt, Berlin and other German cities. When the IPO was shelved, “I was expecting Blackstone to look them deep into their eyes and say, ‘What is the discount?’” said Peter Papadakos, an analyst with real-estate research firm Green Street Advisors, who tracked the deal closely.

Instead, Blackstone last week closed on its purchase of OfficeFirst in a deal valuing the company at roughly the same €3.3 billion ($3.5 billion) price tag that caused IPO investors to balk. The firm felt the price was fair given rent and occupancy trends in Germany, according to people familiar with the matter.

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Blackstone and some other investors also increasingly see Germany as a haven in a turbulent Europe, where risks include a disintegration of the euro.

“If the euro remains, [Germany] will remain in the same strong position it is now,” said Lars Huber, chief executive of property giant Hines’ European operation. “If the euro breaks up, when the dust settles Germany will probably be even stronger.”

Last year, Germany led Europe in commercial-property sales volume for the first time, displacing the U.K., which has topped charts since 2007, according to data firm Real Capital Analytics. The values of office buildings, shopping centers and warehouses are continuing to rise in many markets, experts say.

Foreign investors new to European property markets typically have looked at London and Paris before Germany, which has had a reputation for plodding growth. But these days Germany appears more attractive to many investors given uncertainty in the U.K. due to its coming divorce from the European Union, and in France ahead of national elections.

“Boring is sexy in a world where you have more volatility and political risk,” said Marcus Lemli, head of European investment for Savills PLC.

Germany’s relative strength comes as investors around the world grapple with the challenges of investing in commercial property after years of steady price increases in most markets. Overall, investment volume is down in Europe and the U.S. mostly because the values of top properties in many cities are at or near record levels.

German sales volume has slumped, but far less than the rest of Europe. In the last six months of 2016, transaction volume was roughly €38.3 billion, down 4.8% from the same period in 2015, according to Real Capital Analytics. By comparison, volume in all of Europe was down 13.1% during the same time frame, RCA said.


Prices are rising in Germany, as evidenced by the willingness of investors to accept lower yields—or “capitalization rates” as they are known in the industry—when they buy buildings. In the past three years, yields of prime high street retail have declined an average of 70 basis points in the top seven cities, according to Savills.

Berlin office buildings are especially hot thanks to the city’s growing population, limited supply and booming tech scene. Prime office capitalization rates there are at 3.25%, a record low, according to CBRE Group Inc.

U.K.-based Rockspring Property Investment Managers has made three acquisitions in Berlin in the last six months, including a €59 million deal last week for Coca-Cola Co.’s German headquarters. “The standout location for tenant demand is Berlin,” said Stuart Reid, a Rockspring partner.

Investments in other German cities also have been doing well. In 2013, a venture of Hines and an Asian investor purchased Siemens AG’s former headquarters in Munich as a redevelopment project. Today, it is 40% pre-leased to media company Condé Nast and about a year ahead of schedule, according to Mr. Huber.

The growing foreign demand has made it tougher for German investors to compete, especially for trophy properties.

“I don’t expect that…investors will accept much lower yields than where we are now,” said Jochen Schenk, a board member at German property firm Real I.S. AG.

Patrizia Immobilien AG , an Augsburg, Germany-based real-estate investor with €12 billion of assets under management in Germany, has been looking more for fixer-up properties outside the prime markets attracting many foreign investors. Pricing in those markets has become “a bit irrational” lately, said Konrad Finkenzeller, Patrizia’s head of international capital markets. “If this continues for the next two or three years, then I’m really worried,” he said.

WSJ : U.S. Companies Expected to Post Strongest Quarter Since 2011

U.S. Companies Expected to Post Strongest Quarter Since 2011
‘Now is when we really start to be dependent on what the hard numbers show,’ portfolio manager says

U.S. companies are poised to report their strongest quarterly earnings in years, another sign that the stock-market rally could have further to run.

Analysts expected earnings for S&P 500 companies to grow by 9.1% overall in the first quarter from a year earlier, as of March 31, which would mark the highest growth since the fourth quarter of 2011, according to FactSet. Still, analysts have trimmed their profit expectations since the start of the year, and disappointing results could stoke concerns that stock-price gains have outpaced earnings growth.

Reporting season heats up over the next few weeks, with banks including J.P. Morgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. expected to report results next week and giants like Johnson & Johnson , Verizon Communications Inc. and General Electric Co. scheduled the week after.

Investors have been betting that U.S. corporate profits will soar this year, supercharged by a Trump agenda that includes tax cuts and looser regulations. Last month’s collapse of the Republican health-care bill cast doubt on such policies, but a strong earnings season could give investors a reason to keep investing in stocks.

Technology companies, among the best performers in the stock market this year, are expected to post some of the biggest earnings gains. Meanwhile, profits at industrial companies are projected to contract, potentially weighing on a sector that has lagged behind the broader S&P 500 this year after outperforming in the postelection rally.

“The buying and closing your eyes bit—that part’s gone,” said Bret Chesney, senior portfolio manager at Alpine Global Management LLC. “I think now is when we really start to be dependent on what the hard numbers show.”

Apple Inc., whose stock is up 25% this year, was expected to report per-share earnings of $2.02 for its latest quarter as of March 31, up from $1.90 a share in the year-earlier period. Shares of the world’s most valuable company hit a record this year partly on bets that its 10th-anniversary iPhone, expected later this year, will keep momentum building at the firm. The company posted a profit in January after three consecutive quarters of declines. Apple declined to comment.

Oil prices also have rebounded from their 2016 lows, a factor that should help energy companies—the biggest laggards in previous earnings seasons—improve results. Energy companies are expected to be the biggest contributors to earnings growth for the first quarter—accounting for more than a third of the broader index’s projected gains, according to FactSet.


Revenue also is expected to pick up for S&P 500 companies overall, after many had relied on cost-cutting to improve profits during the recovery from the financial crisis—an encouraging sign for some investors who were looking for more sustainable growth. For the first quarter, S&P 500 firms are projected to report revenue growth of 7.1%, the biggest jump in more than five years, according to FactSet.

Improving corporate health and U.S. economic data have supported stocks since the second half of last year, helping the rally weather shifts in fiscal-policy expectations. Over the past year, S&P 500 companies have rebounded from a five-quarter earnings slump, wage growth has firmed and consumer confidence has risen to a more than 16-year-high.

A dollar rally, which some worried would cut into exporters’ profits, has stalled this year after a postelection surge.

Analysts have pared back their expectations for first-quarter earnings since the start of the year, but the cuts have been smaller than the average over the past five years, according to FactSet. As of year-end, analysts estimated first-quarter earnings growth would be 12.5%.

But disappointing earnings could dent stocks’ recent gains. Shares of industrial and materials companies, which helped lead the rally between Election Day and the end of 2016, posted the largest declines since then in expected earnings.

As of March 31, analysts expected General Electric to post first-quarter per-share earnings of 17 cents, down from the 21 cents it reported a year earlier, according to FactSet. Analysts had expected first-quarter earnings of 29 cents per share at the end of 2016. The company—whose stock is down 5% this year after a 7.4% advance between Election Day and year-end—has faced pressure from activist investors to slash expenses after missing profit targets last year, The Wall Street Journal has reported.

Mining firm Freeport-McMoRan Inc. was expected March 31 to post earnings of 18 cents a share for the first quarter, compared with a loss of 16 cents a year earlier but down from analysts’ year-end estimate of 41 cents a share, according to FactSet. The company said in March that, because of a standoff with regulators, it had to scale back output and lay off workers in Indonesia, where it derives roughly a third of its copper output. Its stock is up 2.7% this year after rising 9.1% between Election Day and the end of 2016.

GE and Freeport declined to comment.

Still, company management has been upbeat. S&P 500 firms used the word “optimistic” in 52% of earnings calls for the fourth-quarter earnings season, the most ever in Bank of America Merrill Lynch data going back to 2003. At the same time, company-issued guidance was “nothing to write home about,” the firm noted.

The gap between firms’ confidence and their future earnings estimates reflects a concern among some investors and analysts: That stocks have run up at a pace beyond what is warranted by earnings results. It also parallels what Morgan Stanley economists in March called a “stunning” divergence between soft and hard economic data. While poll-driven reports, like consumer confidence and business sentiment, have surged since the election, hard data like retail sales, housing sales and business spending have lagged.

Major indexes’ gains since November have made them even more expensive relative to their historical valuations, raising some concerns that they could be vulnerable to a pullback.

Stocks are trading near their records, even with some recent declines. The S&P 500 is up 10% since Election Day, while the Dow Jones Industrial Average has climbed 13% over the same period. As of Monday, companies in the S&P 500 traded at an average of 21.7 times their past 12 months of earnings, above their 10-year average of 16.5 times trailing earnings, according to FactSet.

“The fundamentals just don’t support valuations where we’re at,” said Art Hogan, chief market strategist at Wunderlich Securities. “Some of what was baked in there was that we’d get corporate tax cuts and deregulation boosting earnings.”

Many investors are skeptical President Donald Trump is close to pushing through a corporate-tax-cut package. While Treasury Secretary Steven Mnuchin has said he hopes to secure a U.S. tax-code overhaul by August, some say disagreement within the Republican Party over how to pay for the plan could set back the scale and timing of any package that passes.

“The minute you begin to worry about policies going through, you have to start worrying about the basics again,” said Nicholas Colas, chief market strategist at brokerage Convergex.

FT : Race for a deal to secure next tranche of Greek aid

Race for a deal to secure next tranche of Greek aid
Eurozone ministers hail progress in reform talks as debt payments loom for Athens

Greece and its bailout monitors are set to hold further talks on Wednesday in an effort to seal a deal on pension cuts and labour market reforms needed to unlock the next chunk of aid from Athens’ €86bn bailout programme.

Jeroen Dijsselbloem, president of the eurogroup of eurozone finance ministers, said on Twitter that Tuesday night’s negotiations in Brussels, which finished in the early hours of Wednesday, had “made good progress”. Officials said the ministers planned to continue the talks later on Wednesday by teleconference.

Athens and its creditors are racing to secure a deal ahead of a series of large debt repayments, totalling more than €6bn, that Greece must make in July.

An agreement would be a key stepping stone towards getting the International Monetary Fund on board as a financial partner in the bailout, something Germany says is essential if Athens is to receive further tranches of aid.

Pierre Moscovici, the EU’s economy commissioner, told the European Parliament on Tuesday that a rapid agreement was “imperative,” as delay risked fiscal damage to Greece.

“The Greek people have suffered a lot and need to see the light at the end of this long tunnel of austerity,” he said.

According to one EU official, reaching the July deadline without a further tranche of bailout loans would leave Greece’s economy “in such a state that all parameters of decision-making would have to be revisited”.

Officials are aware that even after a deal has been reached on a reform package, further difficult terrain will have to be crossed before the IMF will consider joining the bailout, including politically thorny discussions on debt relief.

Deposits have continued to be pulled out of Greek banks this year amid uncertainty over the bailout, with more than €2bn withdrawn in January and February as fears grew of tighter capital controls.

The broader economy has also felt the pain from a stalled injection of bailout cash.

Unemployment has remained stuck at 23 per cent, the highest in the eurozone and defying a broader recovery across the bloc, while the country’s manufacturing sector has shrunk for seven consecutive months.

The Greek economy contracted 1.2 per cent in the fourth quarter of last year, the worst performance since the country was brought to the brink of default in the summer of 2015.

>>> What to look at today - 5th of April 2017

Dow +0.19% S&P +0.06% Nasdaq +0.07% Russell -0.11%
US Market closed slightly higher on mixed news. Upcoming meeting between Pres. Trump & chinese president Xi Jinping, Fed officials shifting the focus from rate hikes to the central bank's balance sheet, the resurgence of health care reform (and what it will mean for tax reform), discrepancy between 'hard' and 'soft' economic data, the French presidential election, and heightened tensions with North Korea, among others. energy sector (+0.7%) ventured a little ways from its unchanged mark, lured into green territory by crude oil's positive performance. The energy component increased 1.5% to finish pit trade at $50.99/bbl. the industrials (+0.2%), consumer staples (+0.3%), and technology (+0.2%) sectors finished ahead of the broader market. the financials (-0.2%) and consumer discretionary (-0.1%) spaces settled below their flat lines with the latter suffering amid weakness in retailers after it was reported that the White House is considering a value-added tax. US After Hours SHLM / LNDC +5%, GOL +4% on earnings/guidance, PNRA +12% on M&A speculation... UNIS -65% at all time lows on financing concerns. Asian equity markets are mixed in the wake of a modest gain on Wall St, as US stocks shook off two days of losses. Shanghai Composite is the best performing index in Asia, returning after two days of holidays on strong footing. Reports of a new special economic zone in at Xiongan New area in Hebei Province helped lift local property and industrials names. The rally comes even as PBoC continued to pull liquidity with no reverse repo ops for 8th straight day, draining estimated CNY90B. High-profile meeting between Pres Trump and China counterpart Xi has been layered with added significance. Japan has convened a NSC meeting to discuss North Korean threat, while US State Sec Tillerson remarked that US has spoken enough about North Korea, declining to comment further. Economic data were centered around Services PMI figures that saw Japan hit mid-2015 highs, Singapore late-2016 highs, and Australia return from contraction into expansion.

Nikkei +0.34% Hang Seng -0.15% CSI +1.22% Shanghai +1.21%

Eur$ 1.0673 CNH 6.8787 CNY 6.8880 JPY 110.72 GBP 1.2442 CHF 1.0023 RUB 56.0331 WTI$ 51.42 +0.76%

S&P -0.06% +0.23% FTSE +0.23% DAX +0.05% SMI +0.12%

Macro :
- CVC Capital, Other Funds Increase Investment in Japan: Nikkei
- Sweden to Tax Some Private Health Insurance: SVT
- Atlanta Fed’s GDP Nowcast Model Sees U.S. 1Q GDP at 1.2%
- Trump Admin. Working on Infrastructure Legislation, Chao Says
- U.K. Said to Seek End for Clean Energy Goal That May Sour Brexit

Keep an eye on :
- ABBN VX : Rockwell Automation Gains on Report ABB Had Targeted the Company
- ABG SM : Abengoa Said to See 2017 Revenue EU2.5b-EU3b: El Economista
- AIR FP : Dutch Government Buys Boeing 737 Business Jet
- ASRNL NA : Dutch Govt Sells 20m ASR Shares, Sees Proceeds of About EU515m
- NDA GY : Aurubis Sees Strong Scrap Supply After Rally, China Regeneration
- BAYN GY : Monsanto/Bayer Needs China Agriculture Dept. Approval: CTFN
- CASS IM : Pop. Vicenza Sells ~6% in Cattolica Assicurazioni at EU7.25/Shr
- DTE GY / TMUS US : Sprint Said to End 50% Off Discount as Soon as This Week: WSJ
- DSM NA : will not become a target for takeover attempts as a result of its choice to focus more on green and sustainable businesses, CEO Feike Sijbesma said in remarks to De Telegraaf.
- EDF FP : EDF Studying Ways to Prevent Fessenheim Closure: Le Parisien
- XOM US : Petrobras Says No Ongoing Talks W/Exxon for Partnerships
- FER SM : Ferrovial Said to Bid for Brazil Grid Projects: Economista
- GAM SW : GAM Holding Board Recommends Rejecting RBR Board Proposals
- HES US : Hess Midstream Prices Upsized IPO at $23 Per Unit: IPO Boutique
- ILD FP : Iliad Founder Niel to Sell 1.72% Stake in Private Placement
- JBH LN : JAB Holding Said in Advanced Talks to Acquire Panera Bread
- JPM US : JPM Sees 1Q IB Rev. in Line Q/q, Markets Rev. Up Modestly Y/y
- DPB GY : Deutsche Post’s Appel Says GBP Devaluation Is U.K. Stimulus: HB
- PLT IM : Lactalis Fails to Reach 90% Threshold Needed to Delist Parmalat
- PNRA US : JAB Holding Said in Advanced Talks to Acquire Panera Bread
- ROG VX : Roche Gets FDA Approval for CINtec Histology Pre-Cancer Test
- RWE GY : RWE Power, EnBW May Sell Matrai Power Plant in Hungary, VG Says
- SDRL NO : Fredriksen Says Not Certain Seadrill Will Chapt. 11, DN Reports
- SYNN VX : Chemchina Wins U.S. Approval for $43 Billion Syngenta Takeover
- TSLA US : Solar Sector Up; White House Said to Be Exploring Carbon Tax --> +1.70%
- FP FP : Total to Issue 19.8m New Shares for Interim Dividend Payment
- UCG IM : UniCredit Balance Sheet Credibly Repaired, Goldman Says

>>> Europe : Brokers Upgrades & Downgrades - 5th of April 2017

>>> Up
*PBF Energy Raised to Neutral at Goldman
*Unilever Raised to Buy at Banco Sabadell, PT EU52
*Zurich Ins. Raised to Buy at Berenberg

>>> Down
*Aeroports de Paris Cut to Underweight at Barclays, PT EU95
*Draegerwerk Cut to Reduce at HSBC, PT EU75
*EDP RENOVAVEIS CUT TO NEUTRAL FROM BUY AT BPI
*Eni Cut to Underweight at Morgan Stanley
*Imperial Oil Cut to Sell at Goldman
*JCDecaux Cut to Neutral at JPMorgan, PT EU31.20
*Leifheit Cut to Hold at Bankhaus Lampe
*Petrofac Cut to Underperform at Bernstein, PT 900p
*SHW Cut to Hold at Bankhaus Lampe, PT EU35

>>> Initiation
*Amec New Market Perform at Bernstein, PT 550p
*BowLeven Reinstated Underweight at Barclays, PT 34p
*CaixaBank Reinstated Buy at Deutsche Bank, PT EU4.75
*Deutsche Boerse New Sell at Nord/LB, PT EU75
*Disney New Neutral at Rosenblatt, PT $120
*Fondia New Sell at Inderes, PT EU9
*Gabriel Holding New Buy at ABG Sundal, PT DKK680
*Generali New Underperform at Macquarie, PT EU12.30
*Hunting New Outperform at Bernstein, PT 750p
*MJ Gleeson New Buy at Berenberg, PT 740p
*Motif Bio New Buy at Finncap, PT 125p
*Nanogate New Buy at Berenberg, PT EU58
*Safran New Buy at Banco Sabadell, PT EU80
*Simcorp New Neutral at Goldman, PT DKK450
*Stolt-Nielsen New Buy at ABG Sundal, PT NOK165
*Wood Group New Outperform at Bernstein, PT 1,000p

>>> Call
>> Country
*CONTINENTAL EUROPE EQUITIES RAISED TO OVERWEIGHT AT CITI
*UK EQUITIES CUT TO NEUTRAL AT CITI
>> Sector
*CONSUMER DISCRETIONARY CUT TO UNDERWEIGHT AT CITI
*INDUSTRIALS RAISED TO NEUTRAL AT CITI

>>> Asian Update

Asia Mid-Session Market Update: Another North Korea missile test raises the stakes for Trump-Xi meeting; Mainland China returns from holiday with a rally

***US Session Highlights***
- (US) FEB TRADE BALANCE: -$43.6B V -$44.6BE: China: -$23.0B v -$31.3B prior
- (US) Mar ISM New York: 56.5 v 51.3 prior
- (US) FEB FINAL DURABLE GOODS ORDERS: 1.8% V 1.7%E; DURABLES EX-TRANSPORTATION : 0.5% V 0.4% PRELIM
- (US) President Trump: going to do a “very major haircut” on Dodd-Frank regulations
- Equities spent the day mostly flat, managing to close slightly higher on the day with little change from yesterday's close. Investors remained on the sidelines as they wait to see how the Supreme Court nomination and healthcare revival play out. With Easter break around the corner and reduced hope of Congress moving forward on economic policy, risk attractiveness has been decreasing.

***US markets on close: Dow +0.2%, S&P500 +0.1%, Nasdaq +0.1%***
- Best Sector in S&P500: Energy
- Worst Sector in S&P500: Real Estate
- Biggest gainers: SPLS +9.8%; SWN +8.9%; CHK +6.8%; VRTX +4.5%; RRC +4.2%
- Biggest losers: AYI -14.8%; NVDA -7.0%; JWN -5.5%; RL -4.5%; LB -4.4%
- At the close: VIX 11.8 (-0.6pts); Treasuries: 2-yr 1.25% (flat), 10-yr 2.35% (flat), 30-yr 2.99% (flat)

***US movers afterhours***
- INNL: Gurnet Point Capital said to be near agreement to acquire Innocoll - press; +62.1% afterhours
- PNRA: JAB Holding reportedly in advanced talks to acquire Panera - press; +12.3% afterhours
- LNDC: Reports Q3 $0.13 v $0.18e, R$136.6M v $136Me; +6.0% afterhours
- SHLM: Reports Q2 $0.31 v $0.30e, R$568.7M v $574Me; Affirms FY17 EPS $2.08-2.18 v $2.11e, sales $2.5-2.6B v $2.44Be; +5.7% afterhours
- TASR: CEO to hold a live broadcast at 12pmET on Apr 5th to "announce biggest news in company history" - press; +3.5% afterhours

***Key economic data***
- (AU) AUSTRALIA MAR AIG PERF OF SERVICES INDEX: 51.7 V 49.0 PRIOR
- (JP) JAPAN FEB SERVICES PMI: 52.9 (Highest reading since Aug 2015) V 51.3 PRIOR; COMPOSITE PMI: 52.9 V 52.2 PRIOR
- (SG) SINGAPORE MAR PMI COMPOSITE: 52.2 V 51.4 PRIOR; Highest reading since Nov 2016
- (KR) SOUTH KOREA MAR CURRENT ACCOUNT BALANCE: $8.4B V $5.3B PRIOR; GOODS BALANCE: $10.5B V $7.8B PRIOR
- (NZ) NEW ZEALAND MAR ANZ JOB ADVERTISEMENTS M/M: 1.6% V 0.4% PRIOR
- (NZ) New Zealand Mar QV House Prices Y/Y: 12.9% v 13.5% prior
- (NZ) Fonterra Global Dairy Trade Auction: Dairy Trade price index: +1.6% v +1.7% prior; 2nd straight increase

***Asia Session Notable Observations, Speakers and Press***
- Asian equity markets are mixed in the wake of a modest gain on Wall St, as US stocks shook off two days of losses. The Energy sector was the best performer as oil rallied thanks in part to reports of a North Sea oil-field shutdown, adding to gain in electronic trade after API inventories data showed a surprise draw in crude. Real Estate and Financials lagged, even though US interest rates were little changed across the curve. High-end retail names were also sold after downgrades and a Ralph Lauren announcement it was shutting its flagship Fifth Avenue store.
- Shanghai Composite is the best performing index in Asia, returning after two days of holidays on strong footing. Reports of a new special economic zone in at Xiongan New area in Hebei Province helped lift local property and industrials names. The rally comes even as PBoC continued to pull liquidity with no reverse repo ops for 8th straight day, draining estimated CNY90B.
- High-profile meeting between Pres Trump and China counterpart Xi has been layered with added significance. North Korea continued to defy US warnings to suspend its nuclear program with another missile test as projectile flew 60km and fell into the East Sea.. Recall Trump said US would be prepared to take unilateral action if he cannot get China to apply more pressure on Pyongyang. Japan has also convened a NSC meeting to discuss North Korean threat, while US State Sec Tillerson remarked that US has spoken enough about North Korea, declining to comment further.
- Economic data were centered around Services PMI figures that saw Japan hit mid-2015 highs, Singapore late-2016 highs, and Australia return from contraction into expansion.

China
- (CN) China govt announced new special economic zone at Xiongan New area in Hebei Province - financial press
- (CN) BoCom Chief economist Lian Ping: China Q1 CPI may come below expectations - China Daily

Korea
- (KR) North Korea said to have fired a projectile missile - Korean press citing military officials
- (KR) US Sec of State Tillerson: North Korea launched yet another intermediate range ballistic missile; the US has spoken enough about North Korea, no further comment
- (KR) Estimates by global investment banks expect South Korea Q1 GDP to accelerate from Q4 levels - Korean press
- (KR) South Korea Fin Min Yoo: Economy showing signs of recovery - press
- (KR) Bank of Korea (BOK) Gov Lee: Seeing signs of a recovery in sentiment; Policy efforts needed to boost domestic consumer sentiment

***Asian Equity Indices/Futures (00:30ET)***
- Nikkei -0.1%, Hang Seng -0.2%, Shanghai Composite +1.1%, ASX200 flat, Kospi -0.6%
- Equity Futures: S&P500 -0.1%; Nasdaq -0.1%, Dax -0.2%, FTSE100 -0.3%

***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.0670-1.0685; JPY 110.55-90; AUD 0.7560-0.7575; NZD 0.6970-0.6985
- June Gold -0.1% at 1,257/oz; May Crude Oil +0.6% at $51.32/brl; May Copper +1.0% at $2.65/lb
- (US) Weekly API Oil Inventories: Crude: -1.8M v +1.9M prior; first draw in 3 weeks
- iShares Silver Trust ETF daily holdings fall to 10,242 tonnes from 10,274 tonnes prior; 4th straight decline
- (CN) PBoC skips open market operations for 8th straight session; Drains CNY90B
- (CN) PBOC SETS YUAN MID POINT AT 6.8906 V 6.8993 PRIOR
- (CN) China MoF sells 1-yr bonds at 2.9463%; bid-to-cover 1.5x; Sells 10-yr bonds at 3.2733%; bid-to-cover 1.64x
- (JP) Japan MoF sells ¥2.66T in 6-month bills; avg yield -0.149%; bid-to-cover ratio 4.49x
- (KR) Bank of Korea (BOK) sells KRW2.7T v KRW2.7T indicated in 2-yr 1.6% monetary stabilization bonds
- (AU) Australia MoF sells A$800M in 2.75% 2028 bonds; avg yield 2.7480%; bid-to-cover 3.03x

***Asia equities notable movers***
Australia
- SBM.AU St. Barbara +3.2% (Q3 result)
- BPT.AU Beach Energy +3.9%, WPL.AU Woodside Petroleum +1.5% (oil gains)
- WES.AU Wesfarmers -1.8% (JPMorgan downgrades)
- IAG.AU Insurance Australia -1.8% (adjusts outlook)

Japan
- 6502.JP Toshiba Corporation +1.9% (possible buyer for Westinghouse)
- 2670.JP ABC-MART +0.3% (earnings speculation)

Hong Kong
- 322.HK Tingyi Cayman Islands Holding +3.2%
- 2038.HK FIH Mobile -12.8% (Credit Suisse downgrades)

China
- 600340.CN China Fortune Land Development +10.0%, 000401.CN Tangshan Jidong Cement Co +10.0%, 601992.CN BBMG +10.0%, 600717.CN Tianjin Port Development Holdings +10.0% (China new special economic zone)

>>> US After Hours Summary: SHLM / LNDC +5%, GOL +4% on earnings/guida


After Hours Summary: SHLM / LNDC +5%, GOL +4% on earnings/guidance, PNRA +12% on M&A speculation... UNIS -65% at all time lows on financing concerns

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SHLM +5.3%, LNDC +5.1%, GOL +4.3%, NEWR +1.7% (light volume)

Companies trading higher in after hours in reaction to news: INNL +50.5% (after ~60% move higher over the past two trading days -  Reuters reporting now that the company is in M&A talks with Gurnet Point), VICL +21.1% (enters into research collaboration agreement with AnGes), PNRA +11.7% (Panera Bread surging higher in after hours on reports of JAB Holding M&A talks), CRVS +5.8% (modestly rebounding), TASR +4% (still trying to confirm catalyst behind this move ), CALI +2.5% (after surging 60% higher on Tuesday), SYT +1% (continuing move higher after spiking in late trade on FTC merger update -- requires China National Chemical and Syngenta AG to divest U.S. assets as a condition of merger), MTCH +0.8% (Point72 Asset Management discloses 5% passive stake)

After Hours Losers:

Companies trading lower in after hours in reaction to news: UNIS -64.8% (Unilife Corporation is exploring bridge financing alternatives; issued notice to employees it may permanently close two facilities if not successful in obtaining financing), OHRP -18.2% (to offer shares of its common stock and warrants to purchase shares of its common stock in a public offering), QTNT -5.5% (to commence underwritten public offering of ordinary shares), SCM -2.1% (plans to make a public offering of its common stock)