Australian Banks Continue To Raise Mortgage Rates

Sep 06 18, 06:33 GMT

General Trend:

Asian equity markets trade mixed, following mostly lower session in the US
BHP declines over 2% amid ex-dividend
Various Japanese companies announce operational halts following earthquake in Hokkaido
Hokkaido Electric Power declines over 5%
China Securities Regulator proposes rule changes aimed at broadening the circumstances in which companies can repurchase shares
Tencent declines over 1%
BoJ dove Kataoka spells out his dissent to the central bank’s forward guidance
Reminder: The public comment period related to the US’ proposed tariffs on $200B in China goods is due to end on Sept 6th (Thursday).
RBNZ Gov Orr is due to speak on Friday on the topic of geopolitics

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.2%
ASX 200 Consumer Discretionary index -1.6%, Utilities -1.3%, Utilities -1.3%, Resources -1.2%, Energy -1.2%, Financials -0.8%; Telecom +2.9%
ANZ Bank: To increase variable home loan interest rates in Australia by 16bps (2nd large bank in Australia to raise rates); effective Sept 27
Commonwealth Bank: To raise variable mortgage rates by 15bps (3rd major bank in Australia to raise mortgage rates); effective Oct 4th
(AU) AUSTRALIA JULY TRADE BALANCE (A$): 1.6B V 1.5BE (7th straight surplus)
(NZ) New Zealand sells NZ$100M v NZ$100M indicated in Sept 2040 Indexed Bonds, avg yield: 1.8030%, bid to cover: 2.63x

China/Hong Kong

Shanghai Composite opens -0.3%, Hang Seng -0.6%
Hang Seng Info Tech index -1.9%, Services -1.8%, Industrial Goods -0.7%, Financials -0.6%, Property/Construction -0.3%; Telecom +0.9%, Energy +0.4%, Utilities +0.4%
(US) Pres Trump: Not prepared to make a trade deal that China wants to make
(CN) China Finance Ministry (MoF): Financial institutions’ interest income from loans to smaller firms to be exempt from the value-added-tax; effective from Sept 1 2018 to the end of 2020
(CN) China CSRC proposes rule revisions related to stock buybacks by listed companies: The purpose of the revisions is to broaden the circumstances in which companies can repurchase shares
(CN) China NDRC (state planner): Approves CNY93.3B urban rail plan for Suzhou City
(CN) China said to consider M&A fund for the steel sector – Chinese Press
(CN) China PBoC Open Market Operation (OMO): Skips OMO (12th straight skip)
(CN) China PBoC set yuan reference rate: 6.8217 v 6.8266 prior
(CN) China should improve the yuan currency (CNY) rate mechanism in gradual way – Chinese Pres
Exxon: Confirms signing of framework agreement for proposed chemical complex in China; the project is worth several billion dollars and is expected to be launched in 2023

Japan

Nikkei 225 opened -0.5%
TOPIX Retail Trade index -0.8%, Real Estate -0.8%, Securities -0.8%, Electric Appliances -0.7%, Info & Communications -0.6%, Iron & Steel -0.4%
(JP) Bank of Japan (BOJ) Board member Kataoka (dove): Sees chance low for Japan economy to see momentum to hit price target under the current framework
(JP) BoJ announcement related to daily bond buying operation: raises 5-10 yr JGB purchases by ¥50B to ¥450B
(JP) The push by Japan’s government for lower mobile phone service fees said to raise concerns within the Bank of Japan (BoJ) – Nikkei
(JP) 6.8 magnitude earthquake reported near Hokkaido in northern Japan

Korea

Kospi opened -0.1%
(KR) South Korea Official: North and South Korea to hold summit on Sept 18-20 in North Korea; said North Korea leader Kim said he wanted to realize denuclearization during US President Trump’s first term, noted he no longer intends to test long-range missile
(KR) South Korea Jul BoP Current Account Balance: $8.8B v $7.4B prior: Goods Balance: $11.4B v $10.0B prior

North America

US equity markets ended mostly lower: Dow +0.1%, S&P500 -0.3%, Nasdaq -1.2%, Russell 2000 -0.3%
S&P500 Technology -1.3%, Communication Services -1.3%
(US) Fed FOMC member Bostic: US economy is performing quite well; the economy is at full employment and inflation is at the 2% goal
(US) Weekly API Oil Inventories: Crude: -1.2M v 0M (flat) prior
(BR) Brazil Treasury expects gross public debt at 77% of GDP (prior outlook at 75.8%)

Europe

(UK) UK Naval Ship said to have conducted Freedom of Navigation Operation near the China patrolled Paracel Islands (South China Sea) – financial press
(TR) Turkey govt said to have replaced prosecutor in Pastor Andrew Brunson case – press

Levels as of 01:30ET

Nikkei 225, -0.5%, ASX 200 -1.1%, Hang Seng -1.3%; Shanghai Composite -0.2%; Kospi -0.2%
Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.2%; FTSE100 -0.4%
EUR 1.1660-1.1627 ; JPY 111.55-111.16 ; AUD 0.7213-0.7171 ;NZD 0.6617-0.6585
Aug Gold +0.1% at $1,202/oz; Sept Crude Oil -0.2% at $68.59/brl; Sept Copper +0.1% at $2.622 /lb