NZD Pares Gain Seen After CPI

Oct 16 19, 07:22 GMT

General Trend:

Shanghai Composite pares gain; Property shares and financials pare gains after PBOC again left MLF rate unchanged
Chinese liquor giant Kweichow Moutai declines on earnings
Hang Seng pares gain as policy speech by Chief Executive Lam delayed amid protests
Hong Kong Chief executive Lam’s policy address was adjourned several times as pro-democracy lawmakers heckled her
HK property index rises on comments by HK leader
Banks lead gains in Japan after rise in US Treasury yields
Rio Tinto pares gain after release of quarterly production update; BHP expected to issue quarterly production on Thursday (Oct 17th)
US firm Tech Data rises over 13% in afterhours trading on M&A speculation
China says it will retaliate against the US as the US House of Representatives passed the bill supporting the HK protesters
Kiwi pares gain seen after CPI data amid RBNZ speak
Bank of Korea cut interest rates (as expected) and indicated it would be cutting GDP and CPI outlooks after Q3 data
Taiwan Semi expected to report results on Thursday (Oct 17th)
Companies expected to report results during the NY morning include Bank of America, Bank of New York and PNC.
Aussie monthly jobs data due for release on Thursday (Oct 17th), RBA Gov Lowe due to speak at IMF event on Oct 18th (7:00 am AEDT)

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
RIO.AU Reports Q3 Pilbara iron ore production 87.3Mt v 85.5Mte v 82.5Mt y/y (100% basis); Shipments 86.1Mt v 85.8Mte v 81.9Mt y/y (100% basis); Affirms FY20 Pilbara shipments
(NZ) NEW ZEALAND Q3 CPI Q/Q: 0.7% V 0.6%E; Y/Y: 1.5% V 1.4%E
OZL.AU Reports Q3 gold production 30.3K oz, -17% y/y at AISC $128/lb v $120 q/q; Copper 24.7K oz v 28.5K oz q/q
(NZ) Reserve Bank of New Zealand (RBNZ) Dep Gov Bascand: We remain vulnerable to external shocks; lower rates may still be needed to achieve objectives
(AU) Australia sells A$800M v A$800M indicated in 2030 bonds; avg yield 1.0742% v 0.9438%; bid to cover 2.17x v 2.53x prior
(NZ) New Zealand Q3 RBNZ Sectoral Factor Model Inflation Index y/y: 1.7% v 1.7% prior; Sectoral Factor Model Non-Tradeable (core) Y/Y: 3.2% v 2.8% prior

Japan

Nikkei 225 opened +1.2%
(JP) Japan PM Abe: Will use ¥710M from reserves for typhoon response
3258.JP Appoints Committee to Evaluate Blackstone Proposal: have not been contacted by Blackstone, have asked special committee to consider the proposal
(JP) Japan Economy Min Nishimura: Reiterates recent sales tax hike not expected to have as big of an impact as last time, paying close attention to impact of typhoon

Korea

Kospi opened +0.6%
(KR) BANK OF KOREA (BOK) CUTS 7-DAY REPO RATE BY 25BPS TO 1.25%; AS EXPECTED; cuts outlook on CPI and GDP
(KR) South Korea Sept Export Price Index M/M: -0.8% v 1.4% prior; Y/Y: -5.0% v -4.0% prior

China/Hong Kong

Hang Seng opened +0.2%; Shanghai Composite opened +0.1%
(CN) China Foreign Ministry urges US to stop pushing forward Hong Kong bill and resolutely opposes it and plans to retaliate
(HK) Hong Kong Chief Exec Lam: Will not tolerate calls for Hong Kong independence or anything that hurts national security and sovereignty; makes housing pledges as expected – policy address
(CN) China PBOC sets Yuan Reference Rate: 7.0746 v 7.0708 prior
(CN) China PBoC Open Market Operation (OMO): Skips for the 8th consecutive session
(CN) CHINA PBOC CONDUCTS CNY200B V CNY200B PRIOR IN 1-YEAR MEDIUM TERM LENDING FACILITY (MLF) OPERATIONS AT 3.3% V 3.3% PRIOR; NET DRAINS CNY200B VIA MONETARY POLICY TOOLS
(HK) Hong Kong Chief Exec Lam has now left the legislative building after policy speech was interrupted twice by opposition lawmakers shouting protests
(HK) Hong Kong Monetary Authority (HKMA) has reduced banks’ cash reserves requirement; cut the countercyclical capital buffer (CCyB) ratio for banks by 50bps to 2.0% (first cut since the ratio was introduced in 2015), effective immediately – financial press (yesterday)

Other

(TR) Turkey President Erdogan: Rejected US request for ceasefire; not worried about sanctions

North America

(US) House Speaker Pelosi: Confirms will hold off on full house vote authorizing an impeachment inquiry into President Trump; there is no requirement that the full house have a vote on impeachment inquiry
JNJ Said to propose $4.0B global opioid settlement – US financial press

Europe

(UK) Democratic Unionist Party (DUP) said to have asked for billions of cash payment for Northern Ireland to help secure support for Brexit proposal – FT
(IT) Italy Cabinet approves draft 2020 budget plan for EU – press

Levels as of 1:20 ET

Nikkei 225, +1.3%, ASX 200 +1.3%, Hang Seng +0.4%; Shanghai Composite -0.2%; Kospi +0.6%
Equity Futures: S&P500 -0.3%; Nasdaq100 -0.2%, Dax -0.2%; FTSE100 -0.4%
EUR 1.1036-1.1023; JPY 108.87-108.59 ; AUD 0.6756-0.6726 ;NZD 0.6320-0.6270
Gold +0.3% at $1,487/oz; Crude Oil +0.3% at $52.95/brl; Copper -0.3% at $2.605/lb