Trump Interview And Mnuchin/Pelosi Talks Are Expected On Thursday

Oct 08 20, 06:12 GMT

General Trend

Aussie equities have continued to rise after the Tuesday budget announcement; ASX Resources, Financial and Consumer Discretionary indices rise over 1%
Topix Marine/Transportation, Iron/Steel and Securities indices are among the gainers; Airlines lag amid gov’t support speculation
Aeon (Japanese retailer) declines by over 3% following H1 results
Japanese companies expected to report earnings after the market close include Lawson, Ryohin Keikaku and Seven & I.
HK markets decline ahead of Shanghai’s return; Property, Gaming and Tech firms are among the decliners
Samsung Electronics pares gain despite better than expected Q3 guidance, LG Electronics expected to issue prelim Q3 results later today
Taiwan Semi is expected to issue Sept sales later today
NZD declined amid RBNZ comments, later pared losses

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.2%
(AU) Australia PM Morrison: Announces Simon Birmingham to become Finance Minister, To replace Cormann
(NZ) Reserve Bank of New Zealand (RBNZ) Chief Economist Ha: Does not have a fixed number for a lower OCR bound; Looking at tiering regime for Negative OCR plan
(NZ) Reserve Bank of New Zealand (RBNZ) Assistant Gov Hawkesby: RBNZ is ‘actively’ working on Negative interest rates and funding for lending program; Additional information on Funding for Lending Program to be available at Nov policy meeting (Nov 11th); Inflation to be lower than 1-3% target for next 2-3 years
(NZ) New Zealand Oct Prelim ANZ Business Confidence: -14.5 v -29.8 prior; Activity Outlook: +3.6 v -6.8 prior

China/Hong Kong

Hang Seng opened +0.1%, Shanghai Composite closed
Alibaba [9988.HK]: Reportedly the US exploring blocking Ant Financial and Tencent payment systems [no specific measures were seen in the article], cites national security concerns; Trump administration officials are said to have held talks about whether to place restrictions on the Chinese payment systems, no final decision is expected in the near-term – press
(CN) China Finance Ministry (MOF) said to plan to sell $6.0B in US dollar denominated bonds, the multi-tranche bond sale is expected to occur next week – US financial press
(CN) CHINA SEPT FOREIGN RESERVES: $3.143T V $3.1657TE (first decline in 6 months) [from Oct 7th]

Japan

Nikkei225 opened +0.4%
(JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.10% 5-year JGBs; avg yield -0.0910% v -0.0910% prior, bid to cover 4.9x v 3.56x prior (highest BTC since May 2019)
(JP) Japan Chief Govt Spokesman: Still in talks with airlines on stimulus [was asked whether Japan’s gov’t is considering support for airlines]
(JP) Bank of Japan (BOJ) Gov Kuroda: Reiterates Domestic economy remains severe but has begun to pick up; Reiterates won’t hesitate to add easing if needed
(JP) Bank of Japan (BOJ) quarterly Regional Economic Report (Sakura): Raises assessment in 8 of 9 regions
(JP) Japan Aug Current Account (BoP basis): ¥2.10T v ¥2.03Te; Adj Current Account: ¥1.65T v ¥1.54T prior; Trade Balance (BoP): ¥413.2B v ¥137.3B prior
(JP) Japan Sept Tokyo Avg Office Vacancies: 3.4% v 3.1% prior
(JP) Japan Sept Eco Watchers Current Survey: 49.3 v 44.9e; Outlook Survey: 48.3 v 44.0e
(JP) Japan said to lower travel advisory for certain countries starting Nov 1st, the 12 countries include China – Press

Korea

Kospi opened +0.9%
Samsung Electronics [005930.KR]: Reports Q3 prelim (KRW) Op 12.3T v 10.5Te, Rev 66.0T v 64.1Te (62.0T y/y)
(KR) South Korea Aug Current Account: $6.6B v $7.5B prior; Balance of Goods (BOP): $7.0B v $7.0B prior
(KR) South Korea and China agree to extend currency swap agreement (as expected)
(KR) South Korea confirms 69 additional coronavirus cases v 114 prior; 2 additional deaths

North America

(US) White House Chief of Staff Meadows: Senate Majority Leader McConnell (R) willing to look at separate airline bill, there is wide support on certain parts of stimulus; Trump would be willing to look at counter proposal if Speaker Pelosi comes back with something closer to proposal by Trump Admin
(US) Speaker Pelosi and Treasury Sec Mnuchin spoke on Airline bailout bill at 18:00EST, will speak again tomorrow (Thursday, Oct 8th)
(US) President Trump to give an interview on Fox Business News on Thurs morning (Oct 8th)
(US) FOMC SEPT MINUTES: ECONOMIC ACTIVITY AND EMPLOYMENT HAD PICKED UP IN RECENT MONTHS BUT REMAINED WELL BELOW THEIR LEVELS AT THE BEGINNING OF THE YEAR
(US) Fed’s Evans (dove, non-voter): Comfortable with current bond buying plan; Fed will get to a point where it will need to give more explicit guidance on pace and type of asset purchases; Fed has capacity to do more asset purchases, but does not see need for it now; Too early to judge response amid lack of fiscal aid; Will have clearer view of economic outlook in the Spring [2021]
Regeneron [REGN]: Said to submit application to FDA for emergency use authorization (EUA) for Antibody treatment – Press
(US) BSEE: 49% of natural gas production cut due to closures in Gulf of Mexico due to Hurricane Delta

Europe

Levels as of 1:20 ET

Nikkei 225, +1%, ASX 200 +1.1% , Hang Seng -0.8%; Shanghai Composite closed ; Kospi +0.4%
Equity S&P500 Futures: +0.4%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 +0.1%
EUR 1.1771-1.1759 ; JPY 106.10-105.93 ; AUD 0.7149-0.7122 ;NZD 0.6584-0.6546
Gold -0.1% at $1,888/oz; Crude Oil flat at $39.94/brl; Copper -0.3% at $3.0208/lb