US Steel Issued Profit Warning

Dec 20 19, 07:45 GMT

General Trend:

Nike declined over 2% in afterhours trading after Q2 results
Gainers in Shanghai include financials and property firms, IT companies decline
Telecoms and property firms are among the gainers in Hong Kong
Electric Appliance companies and banks are among the decliners in Japan
Australian equities decline amid losses in consumer and financial firms
Regis Healthcare (Australian provider of aged care services) declines over 17% on profit warning

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
(NZ) New Zealand Dec Consumer Confidence Index: 123.3 v 120.7 prior; M/M 2.2% v 1.9% prior
(NZ) New Zealand Credit Card Spending m/m: +1.6% v -1.5% prior; y/y: 4.5% v 2.5% prior

China/Hong Kong

Shanghai Composite opened +0.1%, Hang Seng +0.1%
(CN) China President Xi: Macau has become one of the safest cities in the world, integrates national sovereignty into its development; Macau should raise infrastructure construction – comments from Macau
(CN) China Premier Li: Downward pressure on China’s economy could be even bigger next year; could see more complications during the year; Reiterates stance to keep economic operations within a reasonable range
(CN) China President Xi said to not attend the upcoming January meeting in Davos, Switzerland; China still plans to send Vice Premier Liu He to Washington to sign the phase-one deal – financial press
(CN) CHINA PBOC SETS 1-YEAR LOAN PRIME RATE (LPR) AT 4.15% V 4.15% PRIOR (4.10%E); SETS 5-YEAR LPR AT 4.80% V 4.80% PRIOR (4.80%E)
(CN) China PBOC sets Yuan Reference Rate: 7.0020 v 7.0025 prior
(CN) China PBoC Open Market Operation (OMO): Injects CNY150B in 14-day reverse repos; net injection CNY150B
(CN) China Finance Ministry (MOF) sells 50-year bonds: avg yield 3.8418% v 3.88%e; bid to cover 2.1x v 1.9x prior
(CN) China PBoC sells CNY10B v CNY10B indicated in 6-month bills in HK; avg yield 2.90% v 2.89% prior

Japan

Nikkei 225 opened +0.1%
(JP) JAPAN NOV NATIONAL CPI Y/Y: 0.5% V 0.5%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.5% V 0.5%E
(JP) Japan Finance Ministry (MOF) comments on FY20/21 budget: Confirms issuance to be ¥128.8T in FY20/21 v ¥129.4T y/y; cabinet approves FY20/21 budget of ¥102.7T (record, as speculated)
(JP) Japan End Sept (Q3) Total Household Assets: ¥1,864T, -0.6% y/y; BoJ holdings of JGBs: 43.9% v ~43.5% prior – BoJ Quarterly Flow of Funds Report
Japan 10-year JGB yield turns positive for the first time since March 2019

Korea

Kospi opened +0.4%
(KR) South Korea Trade Ministry: Trade Ministers from South Korea, China and Japan to hold meeting in Beijing on Dec 22nd (Sunday)
(KR) Korea Exchange: South Korea ex-dividend date is Dec 27th; the last day of equity trading in 2019 will be Dec 30th, markets are closed on Dec 31st
(KR) South Korea Nov PPI Y/Y: -0.1% v -0.6% prior

Other Asia

North America

US Steel [X]: Guides Q4 adj -$1.15 v -$0.65e; Cuts FY20 CAPEX forecast to $875M (vs $950M prior); Cuts quarterly dividend by ~80% to $0.01 (vs $0.05 prior, the new implied yield is less than 1%), formally terminates stock buyback program
(US) SEMI Nov North America-based Manufacturers of semi equipment Billings: $2.1B, +1.9% m/m and +9.1% y/y

Europe

(UK) Financial Conduct Authority chief executive Andrew Bailey reportedly has been selected as next Bank of England governor – FT
(UK) Follow Up: BOE and US Fed said to examine certain traders’ access to audio feeds – FT
(UK) Dec GFK Consumer Confidence: -11 v -14e

Levels as of 00:20 ET

Nikkei 225, -0.1%, ASX 200 -0.3%, Hang Seng +0.4%; Shanghai Composite +0.1%; Kospi +0.2%
Equity Futures: S&P500 flat; Nasdaq100 flat, Dax -0.1%; FTSE100 flat
EUR 1.1126-1.1114 ; JPY 109.40-109.28 ; AUD 0.6901-0.6882;NZD 0.6615-0.6600
Gold -0.1% at $1,482/oz; Crude Oil -0.1% at $61.12/brl; Copper +0.1% at $2.827/lb