General Trend:
- Toyota Motors affirms outlook for profits and revenues, announces buyback
- Softbank declines following earnings report, weighs on Nikkei; Japanese financials drop after decline in Treasury yields, trade-sensitive Marine/Transportation index also drops
- Shanghai Composite drops in early trading, declining sectors include trade-sensitive Telecom Services and IT indices
- Galaxy Entertainment drops in Hong Kong after Q3 Revs declined
- Geely rises after Oct sales data, China said to be drafting 2021-2035 NEV development plan
- NAB rises after earnings report, supports financial sector in Australia
- Aussie building materials firm James Hardie rises over 5% after raising outlook
- AUD/JPY declines amid focus on trade headlines, drop in equity futures; RBA due to release quarterly statement on monetary policy (SOMP) on Friday (Nov 8th)
- China Oct Trade Balance data expected to be released Nov 7-8th (Thurs-Friday)
- China Commerce Ministry (MOFCOM) sometimes holds its weekly press conference on Thursday (generally during European morning)
- MSCI November Semi-Annual Index Review Announcement Scheduled for November 07, 2019 (today)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.2%
- (AU) Australia Sept Trade Balance (A$): 7.1B v 5.1Be
- (AU) Australia Oct AIG Performance of Construction Index: 43.9 v 42.6 prior
China/Hong Kong
- Shanghai Composite opened flat, Hang Seng flat
- (US) Senior Trump administration official: Trump-Xi meeting could be delayed until Dec as talks continue over terms and venue; still possible that a US-China trade agreement will not be reached, but deal is more likely than not – press
- (CN) Fox’s Lawrence: “A trade source tells me that the US has asked for Chinese President Xi Jinping’s travel schedule to see where and when a possible phase one trade deal could be signed”
- (CN) CNBC’s Tausche: Trump-Xi meeting in Europe could bookend the NATO Summit in London, scheduled for Dec 3-4, which Pres. Trump is expected to attend
- (CN) China Pres Xi to attend BRICS meeting in Brazil [Nov 13-14]- China Press
- (CN) China PBOC sets Yuan Reference Rate: 7.0008 v 7.0080 prior (strongest since Aug 7)
- (CN) China PBoC Open Market Operation (OMO): Skips for 9th consecutive session
- (CN) China PBoC: Blockchain technology solves information asymmetry in trade finance and provides proof of trade authenticity; reduces risk for financial institutions and lowers financing costs for importers and exporters
- (CN) China govt discusses financial reform plans, including reforms for SOES and small and medium lenders: Will support capital replenishment of small and medium banks
- (CN) Top chipmaker in China said it has not defaulted – US financial press
- (CN) China Central Government said to be drafting 2021-2035 plan for New Energy Vehicle (NEV) Development – China Press
- (CN) China gives death penalty and life sentences to fentanyl smugglers following a US probe – China Press
- (CN) China PBoC sells CNY30B v CNY30B indicated in 3-month and 1-year bills in Hong Kong
Japan
- Nikkei opened -0.1%
- (JP) Japan Fin Min Aso: Could announce disaster response package this afternoon related to typhoon Hagibis
Korea
- Kospi opened -0.1%
Other Asia
- (PH) Philippines Q3 GDP Q/Q: 1.6% v 1.8%e; Y/Y: 6.2% v 6.0%e
North America
- (US) Q3 NONFARM PRODUCTIVITY: -0.3% V +0.9%E; UNIT LABOR COSTS: 3.6% V 2.3%E (released on Nov 6th)
Europe
- Largest OPEC+ producers reportedly are not pushing for increased cuts at December meeting – press
Levels as of 00:20 ET
- Nikkei 225, -0.2%, ASX 200 +1%, Hang Seng -0.3%; Shanghai Composite -0.3%; Kospi -0.2%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 +0.1%
- EUR 1.1074-1.1054 ; JPY 109.01-108.64 ; AUD 0.6886-0.6861 ;NZD 0.6372-0.6346
- Gold flat at $1,492/oz; Crude Oil -0.1% at $56.30/brl; Copper -0.2% at $2.666/lb
