Events For Next Week Include China GDP And RBA Speak

Oct 16 20, 06:20 GMT

General Trend

Shanghai Composite ended the morning session lower by ~0.3%; Consumer and IT firms declined, Financials have continued to rise after the recent PBOC MLF operation
Hang Seng TECH index opened higher by over 1.5%, chipmaker SMIC rose after increasing its Q3 guidance; Finance index rises over 1%
Topix Pharma and Real Estate indices are among the decliners in Japan, gainers include Securities and Marine Transportation firms
Fast Retailing (largest Nikkei component) rises over 3% after FY results and guidance
Energy and Resource firms are among the decliners in Australia; Rio Tinto drops after quarterly production update; Financials trade generally flat
AUD extends decline amid Thursday’s comments from RBA Gov Lowe, additional headlines related to China also seen; RBA Oct Minutes due on Oct 20th (Tues), RBA Assist Gov (Financial Markets) Kent is also due to speak on the same day; RBA Deputy Gov Debelle is due to speak on Oct 22nd (Thursday)
China Q3 GDP data is due to be released on Monday (Oct 19th) [Sunday night in the US]
NZ elections are due to be held on Oct 17th. (Saturday)
Companies expected to report earnings during the NY morning include Bank of NY, JB Hunt Transport, Schlumberger, State Street, VF Corp

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat
Rio Tinto [RIO.AU]: Reports Q3 Pilbara iron ore production 86.4Mt v 87.3Mt y/y; iron ore shipments 82.1Mt v 86.1Mt y/y; Affirms FY20 Pilbara Iron Ore shipments at 324-334Mt; Affirmed Capex forecasts
(AU) China said to launch ‘strike’ related to cotton from Australia; spinning mills in China said to have been told to stop buying cotton from Australia – Australian media
(AU) Australia sells A$1.0B v A$1.0B indicated in 0.25% Nov 2024 bonds, avg yield 0.1895%, bid to cover 7.0
(NZ) New Zealand Sept Manufacturing PMI: 54.0 v 51.0 prior (4th straight expansion)
(NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$230M v NZ$350M prior in government bonds as part of QE v NZ$230M sought
(NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$880M v NZ$960M prior in government bonds next week
(NZ) New Zealand Sept Non Resident Bond Holdings: 49.4% v 49.5% prior

China/Hong Kong

Hang Seng opened +0.2%, Shanghai Composite +0.1%
SMIC [981.HK]: Raises Q3 Rev +14-16% q/q (prior 1-3%), cites changes in product mix and increase in ‘other operating income’
Sinopharm [1099.HK]: Publishes phase 1 /2 Coronavirus vaccine study results in Lancet
China Merchant Securities [6099.HK]: Said to be closing its London Commodities brokerage after business review – Press
(CN) China Commerce Ministry (MOFCOM): will impose temporary anti-dumping deposits on US and Japan Polyphenylene Sulfide; The deposits for the US companies equal over 214%
(CN) China: Qingdao coronavirus outbreak ‘unlikely’ to expand; Outbreak originated from a hospital
(CN) China CSRC (securities regulator): China is seeking registration based system for all IPOs
(CN) China PBOC sets Yuan reference rate: 6.7332 v 6.7374 prior
(CN) China PBoC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repos v Injects CNY50B in 7-day reverse repos prior; Net inject CNY50B v Net inject CNY50B prior

Japan

Nikkei225 opened -0.1%
(JP) Japan Fin MIn Aso: Confirms use of ¥549B from budget reserves for jobs and supply chain support
(JP) Japan Transport Min: Japan will lower airport landing fees by 45% for domestic flights for fall [vs speculation of 50% cut]

Korea

Kospi opened +0.1%
(KR) Bank of Korea (BOK) Gov Lee: USD/KRW rate has been on steady downward trend since May; financial and FX markets are moving stably
(KR) SOUTH KOREA SEPT UNEMPLOYMENT RATE: 3.9% V 3.7%E
(KR) South Korea Sells KRW764B in 50-year bonds: Avg yield: 1.670% v 1.610% prior
SK Telecom [017670.KR]: Signs Mobility agreement with Uber (as speculated)

Other Asia

(SG) SINGAPORE SEPT NON-OIL DOMESTIC EXPORTS M/M: -11.3% V -4.4%E; Y/Y: 5.9% V 11.5%E; Pharmaceutical exports -27.3% y/y
(TW) Taiwan to allow Foreign Investors to use FX for collateral for stocks, effective immediately; the rule will not allow foreign investors to exchange the collateral for Taiwan dollars

North America

(US) Pres Trump: would raise stimulus bill offer to more than $1T, agrees he would go higher than $1.8T – Fox Business interview
(US) Treasury Sec Mnuchin: Pres Trump is determined to work on a ‘larger stimulus deal’; Trump and I are committed to keep working toward a deal
(US) Sen Maj Leader McConnell: rejects ‘higher amount’ for coronavirus stimulus package; planned $500B is appropriate
(US) Speaker Pelosi spokesperson: Mnuchin says Trump would ‘weigh in’ with Leader McConnell should an agreement be reached
(US) President Trump: Republicans will back a stimulus if there is an agreement – Town Hall
(US) Presidential Candidate Biden: Regeneron Drug is a useful tool but there is no distribution plan; Would stop tax breaks and subsidies for oil companies
Blackstone Group [BX]: Reaches agreement to sell BioMed Realty for $14.6B to group of existing BioMed Investors [BioMed is the largest private owner of life science office buildings in the United States]

Europe

Daimler [DAI.DE]: Reports prelim Q3 adj EBIT €3.48B v €2.50Be; Cited a faster than expected market recovery and a “particularly strong September performance”

Levels as of 1:20 ET

Nikkei 225, -0.4%, ASX 200 -0.5% , Hang Seng +0.8%; Shanghai Composite -0.1% ; Kospi -1.1%
Equity S&P500 Futures: flat; Nasdaq100 -0.1%, Dax +0.1%; FTSE100 +0.8%
EUR 1.1715-1.1700 ; JPY 105.46-105.19 ; AUD 0.7099-0.7069 ;NZD 0.6607-0.6587
Gold flat at $1,909/oz; Crude Oil -1% at $40.56/brl; Copper -0.1% at $3.0802/lb