HomeContributorsFundamental AnalysisUSD Index FUTs Extend Decline

USD Index FUTs Extend Decline

General Trend

  • Shanghai Composite declined by ~1% during the morning session, the various sectors moved broadly lower; IT, Financial, Property and Bank indices dropped over 1%
  • TOPIX Marine Transportation, Real Estate and Information/Communication indices are among the decliners in Japan; Toyota Motor outperforms
  • Decliners in Australia include Consumer and Financial firms; Energy and Resources sectors outperform; CSL declines by over 3% on vaccine update
  • Large-cap tech firms traded generally higher during the morning session in HK; Standard Chartered rose amid dividend speculation
  • AUD/USD extends gain

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened -0.2%
  • CSL[CSL.AU]: Reportedly Australia cancels deal to purchase CSL vaccine – press
  • (AU) Queensland (Australia) to open borders to New Zealand, effective from Saturday (Dec 12th) – financial press
  • (NZ) Reserve Bank of New Zealand (RBNZ): adding housing to monetary policy remit is not the preferred option – responding to letter from Fin Min [in line]
  • (NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$800M v NZ$800M prior in government bonds next week
  • (NZ) New Zealand Nov Manufacturing PMI: 55.3 v 51.7 prior (6th month of expansion)

China/Hong Kong

  • Hang Seng opened +0.9%, Shanghai Composite +0.2%
  • ZTE [763.HK]: US FCC orders suspect equipment removed from carriers’ networks in effort targeted at Huawei and ZTE – press
  • China Telecom [728.HK]: US FCC adopts order instituting proceeding on China Telecom to revoke authorization to operate in US.
  • CanSino Biologics [6185.HK]: Holders to offer 8M shares at HK$170/share
  • Standard Chartered [2888.HK]: Said to consider resuming shareholder returns alongside FY20 results after PRA allows UK banks to restart dividends
  • (CN) China Auto Industry CAAM: Guides China Auto Sales at 25.0M units in 2020, down ~2% y/y; sees ‘modest’ growth for auto sales in 2021
  • (CN) China NDRC: Expects new energy vehicle sales to reach 1.3M sales in 2020
  • (CN) China Finance Min Liu: Will strengthen Financial and tax policy for national economic security; Will establish local govt debt financing mechanism to strengthen prevention of hidden debt
  • (CN) China NDRC Researcher: GDP growth for 2020 may be ~2.0%
  • (CN) China PBOC sets Yuan reference rate: 6.5405 v 6.5476 prior
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v Injects CNY10B in 7-day reverse repos prior; Net injection CNY0B v Net injection CNY0B prior
  • (CN) China Finance Ministry sells 3-month bills and 30-year bonds:

Japan

  • Nikkei225 opened -0.1%
  • (JP) Japan December Nikkei Futures and Options seen to settle at 26,713
  • (JP) Japan may halt the subsidies related to the ‘Go To’ Travel’ campaign, cites concerns about the spread of coronavirus – local media
  • (JP) Japan Chief Cabinet Sec Kato: Not considering pausing Go To Travel program [refutes press report]

Korea

  • Kospi opened +0.3%
  • (KR) South Korea Dec 1-10th exports Y/Y: +26.9% v 20.1% prior; Imports Y/Y +7.9% V 7.8% prior; Chip exports +52.1% y/y
  • (KR) South Korea sells 50-year bonds: avg yield 1.750% v 1.670% prior

North America

  • (US) US Senate vote on Stopgap spending bill said to not occur tonight (Thursday), notes certain disagreements regarding amendments related to the bill; The report also notes disagreement related to the defense policy measure [Note: Senate was expected to vote on the bill today (Dec 10th); The Senate must still pass the continuing resolution and President Trump must sign it by Friday (Dec 11th) to avoid a government shutdown]
  • Pfizer [PFE]: FDA advisory committee votes in favor that Pfizer-BioNTech COVID vaccine outweighs its risks for use in individuals 16 and older (17 yes, 4 no, 1 abstain)
  • (US) Sen Maj Leader McConnell reportedly has said bipartisan COVID deal talks will not be able to win over Senate GOP members – Politico
  • (US) Bipartisan COVID relief negotiators reportedly reach deal on ‘needs-based formula’ for state and local aid; still hammering out details on COVID liability issues – press
  • (US) CDC reports daily new COVID cases at 231.4K v 217.0K d/d (new record)
  • Oracle [ORCL]: Reports Q2 $1.06 v $1.00e, Rev $9.80B v $9.79Be; Guides Q3 EPS $1.09-1.13 v $1.04e, Rev (cc) +2-4% v +1.4%e
  • Disney [DIS]: Targets >100 new titles per year on Disney+, Projects 230-260M subscribers by end of FY24** – Investor day [Reminder: Disney CEO said: Disney+ to have 60-90M subscribers by the end of FY2024.(from April 11, 2019)] ; To raise Disney+ prices in US to $8 beginning March 2021

Europe

  • (UK) PM Johnson: Cabinet has agreed the EU deal on table is not right for the UK; more likely now there will no deal than a deal; We must prepare for an ‘Australian option’ of no deal after Brexit
  • (EU) ECB LEAVES MAIN REFINANCING RATE UNCHANGED AT 0.00%; AS EXPECTED; PEPP program increased by €500B, extended by at least 9 months

Levels as of 00:20 ET

  • Nikkei 225, -0.4%, ASX 200 -0.6% , Hang Seng +0.4%; Shanghai Composite -0.9% ; Kospi +1%
  • Equity S&P500 Futures: -0.1%; Nasdaq100 -0.2%, Dax -0.1%; FTSE100 -0.1%
  • EUR 1.2160-1.2135 ; JPY 104.28-103.92 ; AUD 0.7572-0.7521 ;NZD 0.7114-0.7089
  • Gold +0.2% at $1,841/oz; Crude Oil +0.3% at $46.92/brl; Copper -0.9% at $3.5492/lb
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