HomeContributorsFundamental AnalysisUS Politicians Said To Be Evaluating Trump's Latest Aid Proposal

US Politicians Said To Be Evaluating Trump’s Latest Aid Proposal

General Trend

  • Gainers in Shanghai include Consumer Staples, Financial and IT firms; Tech and Financial firms also rise in Hong Kong
  • Topix Marine Transportation, Banks and Electric Appliances indices are among the decliners; Gainers include Air Transportation and Real Estate firms
  • Australian Financial firms rise; Energy cos. move lower; Link Administration rises over 20% on takeover offer

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened flat
  • (AU) Australia Treasurer Frydenberg: Would like to see Australia states spend more, do additional reform
  • Australia Stock Exchange (ASX): ASX updates are not pushing on the new ASX website; announcements will still be available through brokers and news agencies
  • (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$380M v NZ$260M prior in government bonds as part of QE v NZ$380M sought

China/Hong Kong

  • Hang Seng opened +0.4%, Shanghai Composite opened +0.5%
  • (CN) China PBOC to cut the FX risk reserve ratio to 0% [from 20%], effective from Monday (Oct 12th); The move relates to certain FX forwards trading by financial firms – financial press [Reminder: In Sept 2017 PBoC removed the reserve conditions for yuan forwards trade from 20% to zero; Analysts then noted that the removal of reserve requirement showed China was getting uncomfortable with recent yuan strength]
  • (CN) China PBOC sets Yuan reference rate: 6.7126 v 6.7796 prior [Reminder: China PBOC expected to set the yuan mid-point at 6.7052]
  • (CN) China President Xi to visit Shenzhen this week [on Oct 14th], Shenzhen to ease foreign investment entry limit related to high technology; China to support digital yuan trial in Shenzhen – SCMP
  • (CN) China Central Bank (PBoC) Gov Fan: Deteriorating US-China relations are presenting huge risks to the tech supply chain security for Domestic Financial Network
  • (HK) Hong Kong Chief Exec Lam: To delay Annual policy Address on Wednesday (Oct 14th); Now aims to deliver policy address by end of Nov; Policy address will include supporting measures from China
  • (HK) Monday (Oct 12th) is the Trump administration’s deadline to issue a report to Congress related to HK and sanctioned individuals – SCMP
  • (CN) China PBOC Deputy Gov Chen Yulu said China to prevent inflation, debt rise and asset bubbles; to accelerate digital currency trial in ‘controllable’ manner – local press
  • (CN) China PBoC Open Market Operation (OMO): skips reverse repos v Skips reverse repos prior; Net drain CNY60B v Net drain CNY90B prior

Japan

  • Nikkei225 opened -0.1%
  • (JP) Japan Aug Core Machine Orders M/M: +0.2% v -1.0%e (2nd consecutive increase); Y/Y: -15.2% v -15.6%e
  • (JP) Japan Sept Bank Lending Ex-Trusts Y/Y: 6.2% v 6.6% prior; Incl Trusts Y/Y: 6.4% v 6.7% prior
  • (JP) BoJ: Demand for digital currency could rise rapidly, vital to be ready for change in digital currency situation – Central Bank Digital Currency (CBDC) report (from Oct 9th)

Korea

  • Kospi opened +0.5%
  • LG Chem [051910.KR]: Reports Q3 (KRW) Op 902.1B v 348.8B y/y (vs 746Be); Rev 7.51T v 6.90T y/y (vs 8.2Te)
  • (KR) South Korea has eased its social distancing alert to level 1 from 2 – press
  • (KR) South Korea Oct 1-10th Exports Y/Y: -28.8%; Imports Y/Y -19.5%; Semiconductor exports +11.2% y/y; Exports to China -20.9% y/y
  • (KR) On Saturday (Oct 10th), North Korea unveiled a new ICBM at its military parade (as speculated) – Press

Other Asia

  • (TH) Thailand Fin Min Termpittayapaisith [new Finance Min]: To closely monitor Baht currency (THB)

North America

  • (US) White House spokesperson Farah: wants to keep coronavirus aid number below $2T (from Oct 9th)
  • (US) US stimulus talks are at ‘impasse’; both Democrats and Republicans are said to have shown resistance to Trump’s latest stimulus offer; Some Republicans raised concerns about the cost of Trump’s stimulus offer of ~$1.9T. – US financial press (from Oct 11th)

Europe

  • (IE) ECB’s Lane (Ireland, chief economist): important not to put exchange rate at center of policymaking, as FX is just one issue affecting inflation – US press interview
  • (LY) Libya ends force majeure related to the Sharara oil field (capacity of up to 300K bpd, largest oil field in Libya)
  • (UK) UK Follow Up: PM Johnson and Cabinet to have call related to lockdown restrictions; PM Johnson is expected to ban overnight stays in COVID-19 hot spots located in the Northern part of the country (as speculated) – UK media
  • (UK) Liverpool CIty Regional Leaders: Confirms government has decided that further measures and closures will apply to Liverpool; pubs, bars, betting shops, adult gaming centers and gyms to close
  • (UK) Said that EU Leaders are going to insist on tough enforcement powers in a Brexit deal – FT

Levels as of 1:20 ET

  • Nikkei 225, -0.3%, ASX 200 +0.5% , Hang Seng +2.3%; Shanghai Composite 2.5% ; Kospi +0.4%
  • Equity S&P500 Futures: +0.3%; Nasdaq100 +0.5%, Dax +0.4%; FTSE100 +0.2%
  • EUR 1.1826-1.1808 ; JPY 105.80-105.46 ; AUD 0.7241-0.7212 ;NZD 0.6669-0.6651
  • Gold +0.4% at $1,934/oz; Crude Oil -1% at $40.20/brl; Copper -0.2% at $3.0772/lb

 

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading