China PBoC Continues To Not Drain Liquidity

Aug 15 18, 06:09 GMT

General Trend:

Asian equity markets trade mostly lower
Shanghai and Hang Seng decline in early trade
Tencent drops ahead of expected earnings report
Metals and commodity currencies trade generally weaker
US dollar trades generally firmer
Chinese Yuan (CNY) fixed at the weakest level since May 2017
China PBoC offers medium-term lending facility (MLF), skips daily OMO for the 19th straight session
Australia July jobs data due for release on Thursday

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
ASX 200 Resources index -1.7%, Energy -1.3%, Financials -0.5%; Utilities +1.1%
(AU) Australia Q2 Wage Price Index Q/Q: 0.6% v 0.6%e; Y/Y: 2.1% v 2.1%e
(AU) Australia Aug Westpac Consumer Confidence Index: 103.6 v 106.1 prior; M/M: -2.3% v 3.9% prior
(AU) Australia sells A$1.0B in 2030 bonds, avg yield 2.6348%, bid to cover 3.2x
(NZ) New Zealand to offer NZ$150M in April 2037 bonds on Aug 16th

China/Hong Kong

Shanghai Composite opens -0.1%, Hang Seng -0.1%
Hang Seng Materials index -3.9%, Services -3.3%, Info Tech -3.7%, Consumer Goods -2.7%, Utilities -2.4%, Industrial Goods -2.2%, Energy -2%, Property/Construction -1.9%, Financials -1.4%
(CN) CHINA PBOC SETS YUAN REFERENCE RATE AT: 6.8856 V 6.8695 PRIOR (weakest CNY fix since May 12 2017)
(CN) CHINA PBOC CONDUCTS CNY383B IN 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) V CNY502B PRIOR AT 3.30% V 3.30% PRIOR
(CN) China Jul New Home Prices M/M: +1.1% v 1.1% prior; Y/Y: 5.8% v 5.0% prior (fastest rise since Sept 2017)
(CN) China State Planner (NDRC) Spokesman: Reiterates there is no winner from trade war; Jan-July data showed limited impact on China’s economy from trade frictions; Trade frictions will have negative impact on domestic economy
(CN) China PBoC Open Market Operation (OMO): Skips OMO (19th straight skip)
(CN) China sells ~127.3K tons of soybean at auction of state reserves – financial press
Hong Kong Dollar currency (HKD) again hits the 7.8500 level, the weakest level of trading band vs US dollar

Japan

Nikkei 225 opened flat
TOPIX Iron & Steel index -1.7%, Information & Communications -1.1%, Electric Appliances -1.2% Marine Transportation +1%
Japanese automakers trade generally lower
(JP) Japan Fin Min Aso: Financial markets regaining calm, closely watching effects of the ‘Turkey financial crisis’; Yen currency (JPY) did not move ‘much’ from Turkey Lira currency (TRY) turbulence
(JP) Regional banks in Japan have taken losses on their sales of foreign bonds – Nikkei
(JP) Japan barbershop chain QB House plans to raise prices amid labor shortage – Japanese Press
(JP) Market players have varying views on the impact of the Bank of Japan’s (BoJ) forward guidance, notes limited reaction in JGB prices to the recent situation in Turkey – Nikkei

Korea

Kospi was closed for holiday
(KR) South Korea President Moon: Heading to peace and prosperity on the Korean peninsula

Other

(ID) Indonesia July Trade Balance: -$2.0B v -$0.6Be (widest deficit since 2013); Exports Y/Y: 19.3% v 14.2%e
(PH) Philippines Trade Chief: Examining foreign shipping fees

North America

US equity markets ended higher: Dow +0.5%, S&P500 +0.6%, Nasdaq +0.7%, Russell 2000 +1%
S&P500 Consumer Discretionary +1%, Financials +0.9%
(US) Weekly API Oil Inventories: Crude: +3.7M v -6.0M prior

Europe

Levels as of 01:30ET

Nikkei 225,-0.9 %, ASX 200 +0.1%, Hang Seng -1.5%; Shanghai Composite -1.5%; Kospi closed
Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.4%; FTSE100 -0.2%
EUR 1.1351-1.1319 ; JPY 111.45-111.12 ; AUD 0.7245-0.7201 ;NZD 0.6578-0.6549
Aug Gold -0.6% at $1,194/oz; Sept Crude Oil -0.4% at $66.77/brl; Sept Copper -1.4% a $2.647t /lb