US Payrolls Report Due Later On Friday

Jul 06 18, 07:36 GMT

General Trend:

Asian equities trade higher as first round of US tariffs take effect
Shanghai reverses losses
Samsung Electronics declines as Q2 prelim results missed ests
Singapore equities underperform on property curbs
On Thursday, US President Trump confirmed that the China tariffs would go ahead after midnight tonight (July 6th) and another $16B in tariffs are coming in two weeks (press)
China PBOC Adviser plays down impact of first round of US sanctions on domestic growth
Japan Household Spending declines for 4th straight month, raises concerns about whether Q1 slowdown was temporary
Japan Real Wages rise at fastest pace since July 2016
US June labor data due for release later today

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
ASX 200 Resources index +1.2%, Energy +1%, Financials +0.8%, Telecom +0.8%
(AU) Australia JUN AIG Performance of Construction Index: 50.6 v 54.0 prior (17-month low)
(AU) Australia to sell May 2041 bonds through syndication in week of July 16th
(NZ) Reserve Bank of New Zealand (RBNZ) publishes preferences on bank capital requirements

China/Hong Kong

Shanghai Composite opened -0.1%, Hang Seng +0.3%
Hang Seng Consumer Goods index +1.2%, Services +1.2%, Energy +1%, Industrials +0.9%, Telecom +0.9%, Info Tech +0.6% Property/Construction +0.7%, Financials +0.5%
HNA Group elects co-founder Chen Feng as Chairman, to replace Wang Jian (co-founder) who passed away earlier this week
(CN) China Commerce Ministry (MOFCOM): Reiterates has to fight back, forced to retaliate on tariffs; will continue evaluating impact of US tariffs
(CN) China Central Bank (PBOC) Adviser Ma Jun: Reiterates impact of trade war with US on China’s economy is ‘limited’; US’ planned tariffs on $50B worth of goods to slow domestic GDP growth by 0.2 pct points – Xinhua
(US) On Thursday, US President Trump said tariffs could ultimately be applied to $500B worth of goods from China – financial press
(CN) China head of the National Bureau of Statistics (NBS) Ning Jizhe said the country is capable of maintaining steady growth – Xinhua
(CN) China PBoC set yuan reference rate at 6.6336 v 6.6180 prior
(CN For the week, the PBoC drained a net of CNY500B in OMOs v CNY370B net drain w/w
(CN) China said to weigh further cuts in electric car subsidies – press

Japan

Nikkei 225 opened +0.5%
TOPIX Iron & Steel index +1.7%, Electric Appliances +1.2%, Marine Transportation +1.1%, Securities +0.9%
Eisai [4523.JP]: Rises over 19% after presenting Phase II data from Alzheimer’s study
Taiyo Nippon [4091.JP]: Advances over 13% on acquisition of assets from Praxair
(JP) Japan May Household Spending Y/Y: -3.9% v -1.5%e (largest drop since Aug 2016, 2nd straight decline)
(JP) Japan May Labor Cash Earnings Y/Y: 2.1% v 0.9%e (fastest pace since June 2003); Real Cash Earnings Y/Y: 1.3% v 0.0%e (largest gain since July 2016)
(JP) US and Japan officials may discuss auto tariffs in meetings in late July – Nikkei
(JP) Japan confirms to forecast FY2019 real GDP growth of 1.5%
(JP) Japan JUN Official Reserve Assets: $1.26T v $1.25T prior

Korea

Kospi opened +0.2%
(KR) South Korea Ministry proposes to raise taxes on higher priced homes
(KR) South Korea Trade Ministry: Sees ‘limited’ impact on exports form US and China tariffs; sees risk to exports if global trade conflict worsens

Other

North America

US equity markets ended higher: Dow +0.8%, S&P500 +0.9%, Nasdaq +1.1%, Russell 2000 +1.2%
S&P500 Telecom +1.5%, Technology +1.4%
(US) US-based equity funds had outflows of ~$8.3B in the week ended July 4th – Lipper
(US) FOMC MINUTES FROM JUN 13TH MEETING: BROAD SUPPORT FOR GRADUAL RATE HIKES AMID ‘VERY STRONG’ ECONOMY; MANY SAW DOWNSIDE RISKS TO US GROWTH AND INFLATION ASSOCIATED WITH EVENTS IN EUROPE AND EMERGING MARKETS
(US) Weekly Fed Balance Sheet Total Assets for week ending July 4th: $4.35T, -$12.6B w/w, -$165.9B y/y; Reserve Bank Credit: $4.26T, -$12.6B w/w, -$167.0B y/y
(US) DOE CRUDE: +1.3M V -4ME

Europe

Thyssenkrupp [TKA.DE]: CEO Hiesinger submits resignation request, asks that the supervisory board end his CEO mandate – press

Levels as of 01:30ET

Nikkei 225, +1.3%, ASX 200 +0.8%, Hang Seng +0.8%; Shanghai Composite +0.7%; Kospi +0.3%
Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.4%; FTSE100 +0.2%
EUR 1.1680-1.1698 ; JPY 110.52-110.79; AUD 0.7376-0.7402 ;NZD 0.6781-0.6805
Aug Gold -0.2% at $1,256/oz; Aug Crude Oil +0.1% at $73.04/brl; Jul Copper -1.2% at $2.798 /lb