Equities Trade Lower, US Stocks Dropped Amid More Disappointing Data

Oct 03 19, 07:06 GMT

General Trend:

Heavily weighted companies (Softbank, Fast Retailing) decline on the Nikkei
Energy and Financial shares drive Australian index lower
Chinese markets remain on holiday, due to resume trading on Oct 8th (Tuesday)
Aussie Aug exports decline (first time since March), trade surplus misses ests
AUD/JPY rises after declines seen on Wed
Aussie Sept retail sales and RBA Financial Stability Review due on Friday
BoJ due to hold first daily bond buying operation for Oct on Friday (Oct 4th) [Reminder: On Sept 30th, BoJ said it would reduce bond buying ranges in multiple zones in Oct]
BoJ Funo: No comments on if further easing is needed at Oct meeting, Oct meeting will be a very important meeting [Oct 30-31st]
India’s Yes Bank opens higher by 10%, multiple executives made comments earlier today
India Central Bank due to hold rate decision on Friday (Oct 4th), expected by analysts to cut rates
US Sept ISM Services data due later today, expected to decline vs prior month

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.3%
(AU) Australia Sept Final PMI Services: 52.4 v 52.5 prelim; PMI Composite: 52.0 v 51.9 prelim
(AU) Australia Aug Trade Balance (A$): 5.9B v 6.1Be

Japan

Nikkei 225 opened -1.6%
(JP) Bank of Japan (BOJ) Funo: No comments if further easing is needed at Oct meeting, Oct meeting will be a very important meeting
(JP) Japan Investors Net Buying of Foreign Bonds: +¥869.2B v -¥164.8B prior week; Foreign Net Buying of Japan Stocks: -¥221.2B v -¥1.18T prior week
(JP) Japan Sept Final PMI Services: 52.8 v 52.8 prelim
9983.JP Reports Sept domestic SSS -4.2%
(JP) Bank of Japan (BOJ) Funo: Need to pay closer attention to risks for price momentum, attention needed more than ever to risk momentum to 2% target will be hurt; BOJ should keep easing persistently

Korea

Kospi closed for holiday
(KR) North Korea (KCNA) confirms test fired new type of submarine-launched ballistic missile (SLBM) and it was successful

China/Hong Kong

Hang Seng opened -0.8%; Shanghai Composite closed
(HK) Macau Oct 1-2 China visitor arrivals +9.6% y/y
(US) White House Trade Adviser Navarro: Hong Kong unrest ‘is context’ for trade talks
(HK) Hong Kong Monetary Authority (HKMA) new Chief Exec Eddie Yue: USD PEG is the most suitable system for Hong Kong; no intention to change it (overnight)
(HK) Hong Kong protesters stage overnight vandalism; digging up bricks, block roads, start fires, vandalize train stations and target mainland Chinese linked businesses
(HK) Hong Kong said to consider curfew to contain violence related to protests – Local press
(HK) Hong Kong homeowners cut prices by 20% after protest violence –SCMP
161.HK To purchase all H-shares at HK$9.00/shr for up to HK$3.0B; AVIC Intl and AVIC Shenzhen will be merged

Other

(IR) Reportedly over 20 grain cargo ships are stuck outside Iranian ports due to payment issues – press
(SG) Singapore Sept PMI: 48.3 v 48.7 prior (lowest level since Aug 2012, 2nd consecutive contraction)
(TW) Taiwan Central Bank Gov Yang Chin-Long: No plans to cut rates as of yet

North America

(US) SEPT ADP EMPLOYMENT CHANGE: 135K V 140KE
TSLA Reports Q3 total production 96.2K v 87.0K q/q; deliveries 97.0K v 95.2K q/q; we achieved record net orders in Q3 and are entering Q4 with an increase in our order backlog

Europe

(US) WTO grants US the right to target $7.5B in EU imports with trade sanctions as a result of Airbus subsidies
(UK) EU’s Juncker: acknowledges the ‘positive advances’ in PM Johnson’s Brexit proposal, notably with regards to full regulatory alignment for all goods and control of goods entering Northern Ireland from Britain
(UK) PM Johnson Brexit proposal released: plan would remove the backstop; “The plan would see Northern Ireland essentially stay in the European single market for goods through the creation of a ‘all-island regulatory zone'”
(US) USTR official: US will impose retaliatory tariffs of 10% on EU aircraft and 25% on EU agricultural and industrial goods; to take effect Oct 18th
(UK) UK Minister Gove says he believes PM Johnson’s Brexit plan has a ‘good’ chance of being approved by parliament; will leave the EU on Oct 31st if we do not get a Brexit deal – UK Media
(UK) EU prepared to bypass PM Johnson to extend Brexit – UK press

Levels as of 01:20ET

Hang Seng -0.6 ; Shanghai Composite closed; Kospi closed; Nikkei225 -2.1%; ASX 200 -2.2%
Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax flat; FTSE100 -0.3%
EUR 1.0967-1.0955 ; JPY 107.22-106.96 ; AUD 0.6718-0.6702; NZD 0.6275-0.6258
Commodity Futures: Gold -0.2% $1,504/oz; Crude Oil +0.4% at $52.84/brl; Copper +0.2% at $2.576/lb