China NDRC Expects Macroeconomic Policies To Be More Flexible In H2

Jul 17 18, 06:32 GMT

General Trend:

Asian equity markets trade mostly lower after mixed US session, Nikkei outperforms after being closed on Monday
Netflix declines over 14% in afterhours trading, Q2 subscriber adds and Q3 guidance below ests
Shanghai Composite trades lower for 3rd straight session
Rio Tinto Q2 iron ore production rises y/y, targets FY production at upper end of prior range
Japanese automakers higher on a weaker yen
Tokyo Steel leaves prices unchanged for the 6th straight month
RBA plays down impact of higher funding costs on banks, noted higher downside risks to global growth (minutes)
A$ falls to session lows 0.7402 after RBA meeting minutes
NZ Q2 CPI remains below the mid-point of the RBNZ’s targeted range (1-3%)
Kiwi (NZD) later rises on acceleration in the RBNZ’s own inflation measure; NZ bond yields rise
China new home prices accelerate in June
Analysts begin to update China GDP forecasts amid trade concerns
Fed’s Powell to hold first day of Congressional testimony (July 17th-18th)
BHP due to report its Q4 production update tomorrow (July 18th)
US companies expected to report earnings on Tuesday include: CSX. JNJ, UnitedHealth, UAL, Goldman Sachs

Headlines/Economic Data

Japan

Nikkei 225 opened flat
TOPIX Securities index +2.1%, Marine Transportation +2%, Retail Trade +1.5%, Iron & Steel +1.5%, Real Estate +1.3%, Info & Communications +1%
Automakers and megabanks trade generally higher
Line, 3938.JP Cryptocurrency exchange BitBox starts operation
(JP) Japan Fin Min Aso: High chance of US and China trade tensions impacting others

Korea

Kospi opened flat
(KR) South Korea govt considering increased cash subsidies for smaller businesses in order to help ease the burden of higher payroll costs following 11% minimum wage increase for 2019 – Korean press
(US) President Trump: Relationship with North Korea is “very good”

China/Hong Kong

Hang Seng opened -0.3%, Shanghai Composite -0.3%
Hang Seng Consumer Goods index -1.5%,Energy -1.5%, Info Tech -1.4%, Services -1.3%, Financials -0.8%, Property/Construction -0.6%
(CN) China yuan currency is unlikely to further fall ‘significantly’ – China Securities Journal
(CN) China outbound foreign direct investment (OFDI) has shifted towards Europe from North America in H1 – Xinhua
(CN) China PBoC Open Market Operation (OMO): Injects CNY100B in 7-day and 14-day reverse repos v CNY300B prior; Net: CNY90B injects v CNY300B injection prior
(CN) China PBoC set yuan reference rate at 6.6821 v 6.6758 prior (weakest setting since Aug 2017)
(CN) China Jun New Home Prices m/m: +1.0% v 0.8% prior; y/y: 5.0% v 4.7% prior
(CN) China Q2 Industrial Capacity Utilization q/q: 76.8% v 76.5% prior
(CN) UBS sees China 2018 GDP growth forecast at 6.5% v 6.6% prior, revises 2019 GDP growth forecast to 6.2% v 6.4% prior – US financial press
(CN) China NDRC: Expects prices and economy to remain stable in H2; In H1 approved 102 fixed asset investment projects worth CNY260.3B

Australia/New Zealand

ASX 200 opened -0.1%
ASX 200 Energy index -2.2%, Resources -1.4%, Utilities -1.4%, Consumer Discretionary -0.7%, Telecom -0.5%; Financials flat
RIO.AU Reports Q2 Pilbara Iron ore production 85.5Mt v 79.8Mt y/y; Shipments 88.5Mt v 88.4Me v 77.7Mt y/y; Guides FY18 Pilbara iron ore shipments higher end of prior 330-340Mt
(NZ) New Zealand Jun Performance Service Index: 52.8 v 57.3 prior
(NZ) NEW ZEALAND Q2 CPI Q/Q: 0.4% V 0.5%E; Y/Y: 1.5% V 1.6%E
(NZ) New Zealand RBNZ Q2 Sectoral Factor Model Inflation y/y: 1.7% v 1.6% prior
(AU) RESERVE BANK OF AUSTRALIA (RBA) JULY MEETING MINUTES: REITERATES NO STRONG CASE FOR NEAR-TERM ADJUSTMENT IN MONETARY POLICY, NEXT MOVE LIKELY TO BE UP RATHER THAN DOWN

Other Asia

(SG) Singapore Jun Non-Oil Domestic Exports M/M: -10.8% v -8.7%e; Y/Y: +1.1% v +7.8%e; Electronic Exports Y/Y: -7.9% v -7.8% prior

North America

NFLX Reports Q2 $0.85 v $0.79e, Rev $3.91B v $3.94Be; Guides Q3 $0.68 v $0.71e, total Rev $3.99B v $4.14Be, total streaming Rev $3.90B, domestic streaming Rev $1.93B, international streaming Rev $1.97B; net operating margin 10.5% (-14% afterhours)
ACET Subsidiary Acetris Health receives favorable ruling regarding certain government contracts (+12% afterhours)
AMZN Reports 1st 3-hrs of Prime Day sales +54% y/y even with tech issues

Europe

(UK) PM May wins Brexit amendment vote in House of Commons; vote 305 to 302; passes VAT amendment proposed by Brexiteer Conservatives and supported by PM May; vote was 303 to 300
(RU) Russia President Putin: Told Trump that Russia is ready to extend the start of nuclear treaty but we have to agree on specifics – Fox News

Levels as of 01:30ET

Hang Seng -1.1%; Shanghai Composite -1.0%; Kospi 0.0%; Nikkei225 +0.8%; ASX 200 -0.6%
Equity Futures: S&P500 +0.0%; Nasdaq100 -0.1%, Dax 0.0%; FTSE100 0.0%
EUR 1.1613-1.1726; JPY 112.23-112.57; AUD 0.7402-0.7438;NZD 0.6757-0.6841
Aug Gold +0.1% at $1,241/oz; Sept Crude Oil 0.0% at $67.08/brl; Sept Copper +1.0% at $2.79/lb