Currency Markets Generally Quiet Ahead Of Fed Decision

Jun 10 20, 06:57 GMT

General Trend:

Hang Seng is trying to have 8th straight gain
Cathay Pacific rises over 17% amid bailout announcement, but later pared gain
Shanghai Composite lags in early trading, Consumer Discretionary and Property companies decline amid weaker inflation data
Australian Consumer Discretionary companies rise after update from Harvey Norman, financials track recent declines in the US
Nikkei has moved between gains and losses after drop during prior session; Declining sectors in Japan include Iron/Steel and Financials; Electric Appliances sector moves higher
Nikkei 225 mini futures are due to expire on June 11th (Thursday)
China’s CPI continued to ease in May, PPI deflation accelerated
Fed’s policy decision due on Wed. Some focal points may include economic forecasts and whether the Fed may be open to a yield curve control policy (YCC) later in 2020 (press); USD index FUTs trade flat in Asia

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.2%
(NZ) New Zealand 10-month Budget (NZ$): -12.8B, 629M less than forecasted; Net debt 25.3% of GDP v 21.3% prior
(NZ) New Zealand Q1 Manufacturing Activity Q/Q: 0.0% v 2.4% prior; Activity Volume Q/Q: -1.7% v 2.7% prior
HVN.AU Reports H2 to date Australia Franchisees sales +17.5% y/y; FY20 to date +7.4% y/y; planning special dividend of ~A$0.06/shr
(AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 97.0 v 98.3 (1st decline in 10 weeks)
(AU) Australia sells A$2.0B v A$2.0B in 1.00% Dec 2030 bonds, avg yield 1.08%, bid to cover 3.17x
(AU) AUSTRALIA APR HOME LOANS VALUE M/M: -4.8% V -10.0%E; INVESTMENT LENDING M/M: -4.2% V -2.5% PRIOR; Owner Occupied Loan Value M/M: -5.0% v -7.5%e

Japan

Nikkei 225 opened -0.7%
(JP) JAPAN APR CORE MACHINE ORDERS M/M: -12.0% V -7.0%E; Y/Y: -17.7% V -13.2%E; Cuts assessment of machine orders
(JP) JAPAN MAY PPI (CGPI) M/M: -0.4% V -0.3%E; Y/Y: -2.7% V -2.4%E (y/y quickest decline since Oct 2016)
(JP) Japan PM Abe: Japan wants to take lead on a joint G7 statement on Hong Kong – speaking in parliament

Korea

Kospi opened -0.1%
(KR) SOUTH KOREA MAY UNEMPLOYMENT RATE: 4.5% V 4.0%E (10-year high)
(KR) Korea Fin Min Hong: Jobs situation hard to predict as the coronavirus pandemic continues
(KR) Bank of Korea (BOK) board member Cho Yoon-je warned the domestic economy could face a ‘Japan-like’ recession – Yonhap
(KR) South Korea Vice Fin Min: Warns of excessive optimism in financial markets
(KR) South Korea Defense Ministry: Will fully implement a military tension reduction agreement with North Korea despite threat to scrap it – Yonhap

China/Hong Kong

Hang Seng opened +0.5%; Shanghai Composite opened -0.2%
(CN) CHINA MAY CPI M/M: -0.8% V -0.9% PRIOR; Y/Y: 2.4% V 2.7%E (slowest annual pace since Apr 2019); PPI Y/Y: -3.7% v -3.3%e; Pork prices y/y: 81.7% v 96.9% prior
(CN) China National Health Commission Coronavirus Update for June 9th: 3 additional cases (3 imported v 3 prior) v 3 prior; Additional deaths: 0 v 0 prior; Additional Asymptomatic cases: 5 v 21 prior
(CN) China Securities Regulator (CSRC): Jan-Apr futures markets trading volume 1.69B lots, +53.2% y/y; turnover CNY106.9T, +34.8% y/y – Xinhua
(AU) China Education Ministry: tells students to ‘assess risks’ of studying in Australia due to reported ‘many’ racial incidents targeting Asians due to coronavirus (yesterday after the close)
(CN) China PBoC Open Market Operation (OMO): Injects CNY60B in 7-day reverse repos v CNY60B prior; Net in injects CNY60B v Net inject CNY60B prior
(CN) China PBOC sets Yuan reference rate: 7.0703 v 7.0711 prior
(CN) China Aviation Regulator (CAAC): May Passengers Y/Y -52.6% v -68.5% prior; Cargo 549Kt, -12% y/y
(CN) China said to start work on Hong Kong Security bill June 18th – Nikkei

Other

(LY) Follow up: Libya national oil company confirms shutdown, declares force majure on Sharara oilfield

North America

TSLA After reopening, 4 employees test positive for coronavirus in California Plant – Press

Europe

(CN) EU and China agree to develop closer ties during their 10th round of high-level strategic dialogue

Levels as of 1:15ET

Hang Seng +0.3%; Shanghai Composite -0.5%; Kospi +0.2%; Nikkei225 +0.2%; ASX 200 +0.3%
Equity Futures: S&P500 +0.5%; Nasdaq100 +0.6%, Dax +0.8%; FTSE100 +0.2%
EUR 1.1347-1.1332; JPY 107.88-107.53; AUD 0.6977-0.6933; NZD 0.6532-0.6495
Commodity Futures: Gold +0.1% at $1,723/oz; Crude Oil -1.5% at $38.35/brl; Copper +0.5% at $2.61/lb