USD Index FUTs Move Lower Into Year End

Dec 30 20, 10:16 GMT

General Trend

Hang Seng outperforms as TECH index extends gain
Hang Lung Properties’ transaction with US gov’t delayed by China/HK
Gainers in Shanghai include Consumer, Industrial and IT firms; Financial and property cos. lag
Kospi trades at record high in final trading session of the year, chipmakers rise ; KRW gains
Australian equities decline amid REIT ex-dividends
In last trading day of 2020, Nikkei has modest drop after rising over 2.6% during prior session; Topix Pharma, Iron/Steel, Electric Appliances and Real Estate indices are among the decliners ; Transport and Securities indices rise
USD/CNH declines toward 6.50
Dalian Iron Ore FUTs decline by over 5%, China plans to cut crude steel production in 2021
Note today is the last day of trade for the year for Japan and Korea markets

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.0%
IRI.AU Guides He Net to break even at A$2.0M v A$11.8M y/y, Rev A$34-37M v A$53.2M y/y; trading performance has been below expectations

Japan

Nikkei 225 opened -0.0%
4552.JP Signs agreement to produce Astrazenena coronavirus vaccine
(JP) Japan planning to issue Govt backed green bonds (1st time) – Nikkei
9984.JP To offer at home low cost COVID tests in Japan – Nikkei
9449.JP Receives license in New York to issue stablecoin pegged to the Yen (JPY) – US press

Korea

Kospi opened -0.0%
003550.KR Indonesia confirms MOU with LG Group for Electric Vehicle Batteries for $9.8B
(KR) South Korea Nov Industrial Production M/M: 0.3% v 0.8%e; Y/Y: +0.5% v -0.5%e
(KR) South Korea Nov Retail Sales M/M: -1.0% v -0.9% prior; Y/Y: -1.5% v -0.2% prior (2nd consecutive decline)
000270.KR Union votes to accept wage freeze amid pandemic (1st freeze since 2009)
(KR) South Korea reports 1,050 COVID cases v 1,046 prior (2nd consecutive day above 1,000)

China/Hong Kong

Hang Seng opened +0.5%; Shanghai Composite opened -0.1%
(CN) China Stats Bureau NBS: revises 2019 GDP lower from 6.1% to 6.0%
(CN) China PBOC statement after quarterly policy meeting: Reiterates to avoid a sudden shift in monetary policy while maintaining necessary support for the economy’s recovery
China PBOC Open Market Operation (OMO): Injects CNY40B in 7-day reverse repos v CNY20B in 7-day reverse repos prior; Net Injection: CNY30B v CNY10B prior
China PBOC sets Yuan reference rate: 6.5325 v 6.5451 prior
(CN) China State Post Bureau issues first standard for unmanned aircraft delivery (drones)
300433.CN Apple Supplier Lens Technology reportedly accused of using forced labor in China – press
1099.HK Coronavirus vaccine has 79.3% efficacy, meeting technical standard of WHO and Chinese regulator, submitted application for use of vaccine

North America

(US) Weekly API Crude Oil Inventories: -4.8M v +2.7M prior
(US) Trump campaign appeals to Supreme Court over Wisconsin challenge, seeking review before Jan 6th
INTC Third Point (Loeb) in letter reportedly urges Intel to explore strategic alternatives including ‘potential divestment of certain failed acquisitions’ – press (US session)
(US) Louisiana Congressman Elect Letlow (R-LA) dies of coronavirus at the age of 41

Europe

(EU) EU member states approve UK post-Brexit trade deal – press (as expected)
(UK) PM Johnson expected to be able to get Brexit deal approved by parliament within a day
(UK) PM Johnson approves extension of Tier 4 restrictions – UK’s Times

Levels as of 12:15ET

Hang Seng +1.7%; Shanghai Composite +0.9%; Kospi +1.8%; Nikkei225 -0.3%; ASX 200 -0.5%
Equity Futures: S&P500 +0.5%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 +0.1%
EUR 1.2295-1.2246; JPY 103.61-103.27; AUD 0.7663-0.7602; NZD 0.7189-0.7144
Commodity Futures: Gold +0.3% at $1,889/oz; Crude Oil +0.6% at $48.28/brl; Copper +0.7% at $3.57/lb