General trend
- Financials trade generally higher after rise in 10-yr UST yields [banks lag in Shanghai].
- South Korea’s Kospi lags [Hynix declines after issuing results/guidance; Samsung is due to issue final results on Thursday (April 29th); LG Display and LG Chemical may report later today].
- S&P ASX 200 has risen after the flat open [Consumer Staples index lags after update from Coles; Mirvac Group rises after quarterly update; Ansell raised guidance on PPE demand; JB Hi-Fi declines amid sales update and CEO change].
- Nikkei is in positive territory after the modestly lower open.
- Japan companies continue to report earnings [Nomura, Fanuc, Fuji Electric and Denso rise; Kyocera declines; Renesas, Daiwa, Sony, Murata Manufacturing and TEPCO to report later today].
- Shanghai Composite ended the morning session flat [Consumer Staples index lags after earnings from Kweichow Moutai; Consumer Discretionary index rises amid comments from the China Premier].
- Hang Seng is trading near the opening level; HK earnings remain in focus [WH Group and Yum China rose; HK Exchange and China Telecom also reported; Sinopec, China Construction Bank and BYD are due to report later today; Standard Chartered to report on Thurs. ].
- UMC is due to report later today.
- Australian dollar and yields decline after CPI data, underlying inflation had the lowest annual movement on record.
- BoJ is expected to release May bond buying plan after the market close.
- Japan markets to be closed for holiday on April 29th (Thurs.) and May 3-5th (Mon-Wed).
- Companies due to report during the NY morning include ADP, AerCap, Amphenol, Avery Dennison, Boeing, Boston Scientific, CME, Extreme Networks, General Dynamics, Garmin, Hess Corp, Humana, Interpublic, Moody’s, Norfolk Southern, Owens Corning, Oshkosh, Penske Auto, Ryder, Steven Madden , Shopify, Sirius XM, Silicon Labs, Spotify, Stanley Black & Decker, Teva, Wingstop , YUM! Brands.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened 0.0%.
- (AU) AUSTRALIA Q1 CPI Q/Q: 0.6% V 0.9%E; Y/Y: 1.1% V 1.4%E; CPI Trimmed Mean (core) Q/Q: 0.3% v 0.5%e; Y/Y: 1.1% v 1.2%e (Lowest annual movement in underlying inflation on record).
- (AU) Australia total weekly payroll jobs change for Mar 27th to Apr 10th: -1.8% v +0.1% prior; Wages -3.1% v -0.4% prior.
- (AU) Australia Stats Office (ABS) Mar Preliminary Trade Balance (A$): 8.5B v 7.5B prior final; Exports M/M: +15% v -1% prior final; Imports M/M: 15% v 5% prior final.
- LNK.AU Consortium of Carlyle and Pacific Equity Partners has withdraws offer; PEXA received non-binding LOI implied EV of A$1.95B.
- JBH.AU Reports Q3 Australia SSS 11.5%, NZ SSS +16.0%.
- COL.AU Reports Q3 (A$) Rev 8.8B v 9.2B y/y.
- (AU) Westpac Evans: Reiterates expects RBA to shift YCC to Nov 2024 bonds, extend QE.
Japan
- Nikkei 225 opened -0.2%.
- (JP) JAPAN MAR RETAIL SALES M/M: 1.2% V 0.6%E; Y/Y: 5.2% V 4.6%E (fastest rise in 5 months).
- (JP) Japan Govt said to consider increasing subsidies for stores required to close due to coronavirus state of emergency – Press.
Korea
- Kospi opened +0.1%.
- (KR) South Korea Apr Consumer Confidence: 102.2 v 100.5 prior (4th consecutive improvement, highest since pandemic started).
- 000660.KR Reports Q1 (KRW) Net 990.4B v 990Be; op 1.32T v 1.3Te; Rev 8.49T v 8.3Te.
China/Hong Kong
- Hang Seng opened +0.2%; Shanghai Composite opened -0.3%.
- (CN) China census which was completed in Dec 2020 (but not released yet) is expected to report its first population decline since the late 1950s at 1.4B – press.
- (CN) China PBOC sets Yuan reference rate: 6.4853 v 6.4924 prior.
- (CN) China Steelmakers to increase iron ore exploration to slow price increases – Press.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.
- (CN) Asia Development Bank (ADB): Raises China 2021 GDP growth forecast from 7.7% to 8.1%.
- (HK) Hong Kong Chief Exec Chan: Q1 GDP to have y/y growth, will stop decline.
Other
- (RU) Russia Dep PM Novak: OPEC+ reconfirmed plans to raise output in May-July, situation on oil market is positive, demand is recovering.
- (SG) Monetary Authority of Singapore (MAS): Reiterates accommodative monetary policy stance remains appropriate; 2021 GDP growth projected to ‘exceed’ upper end of 4-6% range – Biannual Macroeconomic Review.
North America
- MSFT Guides Q4 Rev $43.6-44.5B (implied) v $42.7Be – earnings call comm.
- YUMC Reports Q1 $0.54 v $0.16 y/y, Rev $2.56B v $1.75B y/y.
- SBUX Reports Q2 $0.62 v $0.52e, Rev $6.67B v $6.80Be.
- GOOGL Reports Q1 $26.29 v $15.46e, Rev $45.6B (ex TAC) v $42.5Be; Authorizes $50B share buyback.
Europe
- CSGN.CH US Senate Finance Committee starts investigation if a violation took place related to 2014 plea agreement with the Justice Department.
- ROG.CH FDA panel votes to support full approval of TECENTRIQ in PD-L1-positive, metastatic TNBC – voted 7 Yes 2 No.
- (UK) Apr BRC Shop Price Index Y/Y: -1.3% v -2.4% prior.
- DBK.DE Reports Q1 Net +€908M v -€43M y/y, Rev €7.23B v €6.58Be.
Levels as of 01:15ET
- Hang Seng +0.3%; Shanghai Composite -0.0%; Kospi -0.9%; Nikkei225 +0.5%; ASX 200 %.
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax -0.0%; FTSE100 +0.4%.
- EUR 1.2093-1.2073; JPY 108.94-108.66; AUD 0.7772-0.7725; NZD 0.7212-0.7188.
- Commodity Futures: Gold -0.4% at $1,771/oz; Crude Oil -0.1% at $62.90/brl; Copper -1.2% at $4.43/lb.
