Equity markets evolve in a mixed way
Asian Market Update: Stock markets move mixed, Nasdaq FUTs drop after Apple and Amazon earnings; The 3-year AU yield continued to move above the RBA target in the absence of unscheduled bond purchases; Evergrande said to pay off the debt.
– KDDI, Japan Tobacco, Murata Manufacturing.
– Hang Seng remained modestly in decline.
– The Shanghai Composite ended the morning slightly up (+ 0.2%).
– The S&P ASX 200 fell amid rising Australian bond yields [REITs drop].
– Chinese bonds and WGBI [bond index] on point [FTSE Russell previously stated that China bonds to be included in the WGBI over a period of 36 months, effective from Oct 29th 2021 (Fri)].
– Companies that need to report during the morning in New York include AbbVie, Booz Allen Hamilton, CBOE, Cameco, Charter Communications, Colgate, Carter’s, Chevron, WW Grainger, Huntsman, Lazard, L3Harris, LyondellBasell, Newell, Phillips 66 , Royal Caribbean, Weyerhaeuser, Exxon.
Titles / Economic data
Australia / New Zealand
-ASX opened + 0.2%.
-RIO.AU Valued $ 1.25 billion in 2.75% 30-year bonds.
– (AU) Bank ANZ expects the RBA to eliminate the YCC target of April 2024 at the monetary policy meeting next week.
– (AU) NAB expects RBA to start raising rates in mid 2023; Expect RBA to shut down target YCC next week.
– (AU) The Australian bond yield for April 2024 reached 76bp, above the YCC target of 10bp.
– (AU) Australia Q3 Retail sales M / M: 1.3% v 0.4% e.
– (AU) Australia Seven Loans to the private sector M / M: 0.6% against 0.6% previously; Y / Y: 5.3% vs. 5.0% e.
– (AU) Australia Q3 PPI Q / Q: 1.1% against 0.7% previously; Y / Y: 2.9% against 2.2% previously.
– (NZ) New Zealand Oct Consumer Confidence ANZ: 98.0 v 104.5 previously; M / M: -6.2% against -4.7% previously.
-Nikkei 225 open flat.
– (JP) Japan Oct Tokyo CPI Y / Y: 0.1% V 0.4% E; CPI (Ex Fresh Food) Y / Y: 0.1% V 0.3% E.
– (JP) Japan Oct Unemployment rate: 2.8% V 2.8% E.
– (JP) Japon Sept Preliminary Industrial Production M / M: -5.4% V + 0.2% E; Y / Y: -2.3% V + 8.8% BEFORE.
– (JP) The ruling PLD party in Japan is said to be on the “defensive” to maintain the majority in the lower house, the ruling coalition (including the Komeito) is on track to maintain the majority [comes ahead of the Oct 31st general elections] – Nikkei.
-4503.JP [Astellas Pharmaceutical] H1 reports Net ¥ 71.6B vs. ¥ 72.8B y / y, Op ¥ 90.2B vs. ¥ 86.9B y / y, Rev ¥ 651.7B vs. ¥ 615.5B y / y.
-Kospi opened + 0.5%.
– (KR) South Korea Seven Industrial production M / M: -0.8% v -0.3% e; Y / Y: -1.8% vs. 1.4% e.
– (KR) Change in South Korea’s cyclical leading index in September: -0.3 vs. -0.3 previously.
-SK Innovation Reports Q3 (KRW) Net +511 billion against -16.1 billion year-on-year; Op + 619B versus -53.6B y / y; Rev 12.3T v 8.31T y / y.
China / Hong Kong
-Shanghai Apartment open; Hang Seng opened -0.4%.
– (CN) The Chinese PBOC fixes the benchmark rate for the yuan: 6.3907 against 6.3957 previously.
-3333.HK [Evergrande] The house of founder Hui has pledged to repay $ 260 million in bonds.
– (CN) Chinese Ministry of Finance (MOF) Sell 4.0 billion euros of bonds in Hong Kong on November 10.
– (CN) China PBOC made CNY 5.0 billion in a 3-month central bank note (CBS) swap transaction in today’s session for CNY 5.0 billion CNY before.
– (CN) China PBOC Open Market Operation (OMO): CNY 200 billion injected into 7-day reverse repurchase agreements against CNY 200 billion previously; Net inject CNY100B v Net inject CNY100B before.
– (CN) Chinese gas stations reportedly ration diesel due to shortages – Press.
-Sinopec Official: Chinese gasoline consumption is expected to peak in 2025/26.
– (CN) China State Planner (NDRC): Prices for coal production are significantly lower than current spot prices.
– (US) Q3 Advance annualized GDP Q / Q: 2.0% V 2.6% E; Personal consumption: 1.6% V 0.9% E.
– (United States) Initial jobless claims: 281K V 288KE; Continuing complaints: 2,243MV 2,42ME.
– (United States) Home sales pending for September M / M: -2.3% V 0.5% E; Y / Y: -7.2% V -3.1% E.
– KO reportedly close to deal to buy controlling stake in sports drink maker BodyArmor, valuing the company at $ 8 billion – press.
– AAPL Q4 reports $ 1.24 vs. $ 1.24, Rev $ 83.4 billion vs. $ 85.5; Supply chain constraints affected sales by $ 6 billion in the fourth quarter; Expects continued supply constraints in the first quarter resulting in stronger headwinds.
– AMZN reports third quarter of $ 6.12 vs. $ 8.71, Rev $ 110.8 billion vs. $ 111.8 billion; CFO: Seeing inconsistent staffing levels due to labor shortage and has become the main capacity constraint.
– (UK) UK government reportedly convened committee to study potential fallout from triggering Article 16 and suspension of cooperation with Northern Ireland – Sky News.
– (EU) ECB policymakers are said to be divided on the second-round effect of inflation, some doubt the CPI will drop below 2% in 2023.
– (TW) Taiwan announces an agreement with the United States on cybersecurity.
– (SG) Singapore Seven M2 Money supply Y / Y: 4.0% against 3.1% previously; M1 Y / Y money supply: 13.4% against 12.9% previously.
– (IN) Reserve Bank of India (RBI) Gov Das re-appointed for an additional 3-year term (second term).
Levels at 1:20 ET
– Nikkei 225, flat, ASX 200 -1.2%, Hang Seng -0.5%; Shanghai Composite + 0.3%; Kospi -0.9%.
– S & P500 Equity Futures: -0.5%; Nasdaq100 -0.8%, Dax -0.4%; FTSE100 -0.3%.
– 1.1673-1.1690 euros; 113.39 to 113.71 JPY; AUD 0.7524-0.7556; NZD 0.7171-0.7206.
– Gold -0.4% at $ 1,796 / oz; Crude oil stable at $ 82.82 / brl; Copper -0.1% at $ 4.4295 / lb.