General Trend:
- Chile President announced cancellation of planned Nov APEC Summit, US Treasury Sec Mnuchin still reiterated that China trade deal will likely be signed in Nov
- Samsung rises over 1% after issuing final Q3 results and outlook; Raised guidance for NAND bit growth, specified FY19 CAPEX forecast
- Apple rose over 2% in afterhours trading following earnings/outlook
- Hang Seng outperforms on strength in Apple suppliers; AAC Technologies rises over 3%
- Nikkei rises amid gains in heavily weighted Fast Retailing and Softbank; Banks pared losses as BoJ left rates unchanged
- TOPIX Marine/Transportation index underperforms in the face of earnings reports
- Japanese companies expected to report earnings include Panasonic, Nintendo, Tokyo Electron, Yamato Holdings, Start Today, Takeda, Japan Tobacco, Keyence, Kyocera and Japan Airlines
- Shanghai Composite trades flat during morning session, property shares and banks decline; Telecom Services index outperforms as top Chinese carriers are expected to launch commercial 5G on Nov 1st
- HSBC announced first cut in its Hong Kong prime rate in 11 years, followed rate cuts by the Fed and HKMA; The bank said the cut to take pressure off HK companies
- Weaker than expected earnings from ANZ weigh on Australian market
- China Finance Ministry to re-issue euro-denominated sovereign bonds after 15 year break
- China Commerce Ministry (MOFCOM) sometimes holds weekly press conference on Thursdays
- BoJ Gov Kuroda to hold post rate decision press conference at 6:30 GMT
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.2%
- ANZ.AU Reports FY19 (A$) Adj Cash Profit 6.47B v 6.5Be
- (AU) AUSTRALIA Q3 IMPORT PRICE INDEX Q/Q: 0.4% V 0.5%E; EXPORT PRICE INDEX Q/Q: +1.3% V -0.5%E
- (AU) AUSTRALIA SEPT BUILDING APPROVALS M/M: 7.6% V 0.0%E; Y/Y: -19.0% V -25.7%E
- (NZ) Westpac now expects Reserve Bank of New Zealand (RBNZ) to leave OCR unchanged in Nov 2019; now expects RBNZ to cut rates in Feb 2020
Japan
- Nikkei 225 opened +0.3%
- (JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; (as expected); STRENGTHENS FORWARD GUIDANCE
- (JP) Bank of Japan (BOJ) Quarterly Outlook for Economic Activity and Prices: cuts all GDP and CPI forecasts
- (JP) Japan Sept Preliminary Industrial Production M/M: 1.4% v +0.4%e; Y/Y: 1.1% v -0.1%e
- (JP) Japan Justice Min Kawai plans to resign (2nd min to resign in a week) – Japan Press
- 6758.JP Reports H1 Net ¥340.1B v ¥399.5B y/y; Op ¥509.9B v ¥343.5B y/y; Rev ¥4.1T v ¥4.1T y/y
Korea
- Kospi opened +0.4%
- (KR) Bank of Korea (BOK) Deputy Gov Yoon: Fed rate cut meets market expectation; reiterates US policy does not impact BOK policy much
- (KR) South Korea Sept Industrial Production M/M: 2.0% v +0.5%e ; Y/Y: 0.4% v -1.9%e
- 005930.KR Reports Final Q3 (KRW) Net 6.29T v 13.15T y/y; Op 7.78T v 7.70T prelim; Rev 62.0T v 62.0T prelim
China/Hong Kong
- Hang Seng opened +0.2%; Shanghai Composite opened +0.2%
- (CN) CHINA OCT MANUFACTURING PMI (OFFICIAL): 49.3 V 49.8E; Non-Manufacturing: PMI: 52.8 v 53.6e; Composite: 52.0 v 53.1 prior
- (CN) China and US top trade negotiators to hold phone conversation Friday, Nov 1st – Xinhua
- (CN) China Commerce Ministry: Trade negotiations with US are going well
- (HK) Hong Kong Monetary Authority (HKMA) cuts base rate by 25bps to 2.00%; following Fed rate cut; as expected
- (CN) China government to make plan for robotics industry through 2035 – China Press
- (CN) Bank Of China Will assist China Finance Ministry on the re-issuance of euro-denominated sovereign bonds (after 15 year break)
- 600500.CN China said to be planning to drop plans for a merger between ChemChina and SinoChem – FT
- (CN) China People’s Daily: China will prioritize stabilizing economic growth
- (HK) Hong Kong Monetary Authority (HKMA) Yue: Economy is especially putting pressure on smaller companies; monetary system is stable, HIBOR may not follow Fed
- (CN) China PBOC sets Yuan Reference Rate: 7.0533 v 7.0582 prior
- (CN) China PBoC Open Market Operation (OMO): Skips for fourth consecutive session; Net drains CNY60B v drains CNY200B prior
- (CN) China PBoC: Has not conducted targeted MLF operations in Oct
- (CN) China top 3 mobile carriers will launch commercial 5G starting Nov 1 – China media
- 5.HK Cuts best lending rate to 5% from 5.125% in Hong Kong (1st cut in 11-years); Cyts USD savings rate to 0.001% from 0.1% in Hong Kong
North America
- (US) FOMC CUTS TARGET RANGE BY 25BPS TO 1.50-1.75%; AS EXPECTED
- (US) Fed Chair Powell: Current stance of monetary policy is ‘likely to remain appropriate’ as long as model of economy continues to remain accurate; would respond accordingly if events materially affect outlook – FOMC press conf
- AAPL Reports Q4 $3.03 v $2.84e, Rev $64B v $62.7Be; CEO: Optimistic that in the end there will be a US/China trade deal, that would put us in a better position, and this is factored into our guidance – media call comments
- FB Reports Q3 $2.12 v $1.91e, Rev $17.7B v $17.3Be
- SBUX Reports Q4 $0.70 v $0.70e, Rev $6.7B v $6.67Be; Raises Quarterly dividend 13.9% to $0.41 from $0.36 (indicated yield 1.95%)
- TWTR CEO: Twitter will ban All political ads Globally; final policy to be published on 11/15
Europe
- (UK) Brexit Party is said to be considering pulling out of hundreds of MP races, in potential boost to PM Johnson’s Tory Party – Financial Times
- (EU) EU chief Bexit negotiator Barnier: risk of a ‘no deal’ Brexit still exists
Levels as of 1:20 ET
- Nikkei 225, +0.3%, ASX 200 -0.4%, Hang Seng +1.1%; Shanghai Composite -0.2%; Kospi +0.9%
- Equity Futures: S&P500 flat; Nasdaq100 +0.1%, Dax -0.1%; FTSE100 -0.1%
- EUR 1.1171-1.1148; JPY 108.90-108.58 ; AUD 0.6930-0.6896 ;NZD 0.6433-0.6384
- Gold +0.2% at $1,499/oz; Crude Oil -0.1% at $55.02/brl; Copper +0.3% at $2.686/lb
