General Trend:
- Asian equity markets trade generally higher, Shanghai lags
- Bank of China declines in Hong Kong post earnings
- BoJ board member Suzuki plays down impact of slight yield rise, talks policy side-effects
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- ASX 200 Financials index +0.8%, REIT +0.7%, Utilities +0.4%; Telecom -1.2%, Energy -0.3%
- (AU) Australia sells A$1.0B v A$1.0B indicated in 2.75% Nov 2029 bonds, avg yield 2.6052%, bid to cover 2.69x
- Westpac [WBC.AU]: Raises standard variable home loan rate by 14bps to 5.38%; Cites increase in wholesale funding costs.
China/Hong Kong
- Shanghai Composite opened -0.1%, Hang Seng flat
- Hang Seng Telecom index +0.6%, Property/Construction +0.5%, Materials +0.4%, Energy +0.4%, Services +0.3%, Consumer Discretionary +0.1%; Info Tech -0.5%, Financials -0.2%, Utilities -0.2%
- (US) Commerce Sec Ross: there was no breakthrough in last week’s US-China trade talks; Pres Trump is interested to see how new duties will impact the China talks
- (CN) NDRC: China faces more difficulties in achieving stable and healthy economic development; needs more efforts to achieve growth targets related to consumption, outstanding social financing and disposable income; reiterates to ensure economic growth in ‘reasonable’ range
- (CN) China PBoC set yuan reference rate: 6.8072 v 6.8052 prior
- (CN) China PBoC Open Market Operation (OMO): Skips OMO v skipped prior (6th straight skip)
- (CN) China Vice Premier Liu reiterates to safeguard the multilateral trade system – Chinese Press
- (CN) Power exchanges in China are planning to introduce private investors – Chinese Press
Japan
- Nikkei 225 opened +0.7%
- TOPIX Marine Transportation index +2.8%, Iron & Steel +0.9%, Electric Appliances +0.9%, Securities +0.5%; Retail Trade -0.5%
- Megabanks outperform amid comments from BoJ’s Suzuki
- (JP) Bank of Japan (BOJ) Board Member Suzuki: Need to continue to monitor impact of low rates on banks
- (JP) Japan Chief Cabinet Sec Suga: Declines comment on Washington Post article about secret meeting between Japan and North Korea
- (JP) Japan Aug Consumer Confidence: 43.3 v 43.3e
South Korea
- Kospi opened +0.1%
- (KR) North Korea letter to US Sec of State Pompeo said to warn that denuclearization talks could fall apart – financial press
- (KR) Follow Up: North Korea letter rejected US demand for nuclear removal – US financial press
Other
- (TH) Thailand Central Bank Chief Veerathai: Relative strength in the Thai Baht currency (THB) ‘a concern’; Not under pressure to raise interest rates like other EM countries
- (TW) Taiwan Central Bank Gov to hold capital-flow briefing at 4:20 PM (local time)
North America
- US equity markets ended mixed: Dow +0.1%, S&P500 flat, Nasdaq +0.2%, Russell 2000 flat
- S&P500 Real Estate +1.2%; Communication Services -0.4%, Energy -0.4%, Materials -0.4%
- (US) Weekly API Oil Inventories: Crude: 0M v -5.2M prior
- (US) Senate approves appointment of economist Richard Clarida as Vice Chairman of the Fed Reserve Board of Governors
- (CA) Canada Foreign Min Freeland: ‘Very constructive’ meeting with USTR Lighthizer; returning tomorrow to continue trade talks
- (CA) Canada said to be prepared to make concessions related to dairy for NAFTA – Canada Press
Europe
- (UK) UK and EU officials said to see mid-November as the new Brexit deal deadline, said to see deal by October as not likely – US financial press
- (UK) UK Aug BRC Shop Price Index Y/Y: +0.1% (first rise in over 5-years) v -0.3% prior
- Levels as of 01:30ET
- Nikkei 225, +0.2%, ASX 200 +0.7%, Hang Seng +0.1%; Shanghai Composite -0.3%; Kospi +0.2%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 +0.3%
- EUR 1.1698-1.1682; JPY 111.33-111.12 ; AUD 0.7351-0.7332 ;NZD 0.6720-0.6703
- Aug Gold -0.3% at $1,210/oz; Sept Crude Oil flat at $68.55/brl; Sept Copper +0.3% at $2.752 /lb
