USD Index Flat After Prior Decline, Fed Minutes Due Later Today

General trend

• US equity FUTs extended declines during Asia; South Korea and HK are closed for holidays.
• S&P ASX 200 lags and drops over 2% [Resources index declines over 3% amid lower ore prices in China; Financials also decline; EML Payments weighs on Tech index].
• Nikkei has declined by over 1.9% after the lower open [Large components (Fast Retailing, Softbank) drop over 2%].
• Shanghai ended the morning session modestly lower [Banks drop after the recent Huarong news].
• Taiwan sees relatively calm session versus the recently seen volatility.
• Australia April jobs data due on Thurs (May 20th).
• NZ budget to be released on Thurs (May 20th).
• PBOC is expected to leave its 1 and 5-year loan prime rates unchanged on Thurs (May 20th).
• Companies due to report during the NY morning include Analog Devices, Eagle Materials, JD.com, Lowes, Target, TJX, VIPShop.

Headlines/Economic data

Australia/New Zealand

• ASX 200 opened 0.0%.
• (AU) AUSTRALIA Q1 WAGE PRICE INDEX Q/Q: 0.6% V 0.5%E; Y/Y: 1.5% V 1.4%E.
• APE.AU Guides April YTD Underlying Op for cont ops ~A$127M; statutory pretax ~A$170M.
• APX.AU Affirms FY21 Underlying EBITDA guidance of $83-90M; To restructure.

Japan

• Nikkei 225 opened -1.3%.
• (JP) Bank of Japan (BOJ) Gov Kuroda: BOJ won’t hesitate to add easing if needed, Uncertainty regarding Japan Economic outlook high.
• 9984.JP Adani Green Energy to acquire Softbank backed, India renewable power SB Energy, for $3.5B from Softbank and Bharti.
• (JP) Japan government plans to establish a new system for the allocation of mobile spectrum – Japan press.
• 6502.JP Bain’s Sugimoto denies considering purchase of Toshiba, targeting IPO of Kioxia by Fall or Winter – Press.
• (JP) Japan Chief Cabinet Sec Kato: WIll handle adding state of emergency areas flexibly based on the situation.
• (JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.0% (prior 0.10%) 5-year JGBs; avg yield -0.0970% v -0.0910% prior, bid to cover 3.30x v 4.55x prior.
• (JP) Japan Mar Final Industrial Production M/M: 1.7% v 2.2% prelim; Y/Y: 3.4% v 4.0% prelim.

Korea

• Kospi closed for holiday.
• (KR) US President Biden looking to build on the “Singapore deal” Trump made with North Korea – press.

China/Hong Kong

• Hang Seng closed for holiday; Shanghai Composite opened -0.2%.
• (CN) China PBOC sets Yuan reference rate: 6.4255 v 6.4357 prior.
• (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.
• 2799.HK Said to be planning to pay USD bond holders on time – Shanghai Securities News.
• (CN) China National Energy Administration (NEA) has shortened the approval process for coal production to 30 days (prior 60).
• (CN) China Vice Premier Liu He’s son has invested heavily in tech industry – FT Reminder earlier today press reported China was considering replacing Vice Premier Liu He as its top economic envoy with Washington.
• (CN) China sees herd immunity related to COVID by the end of 2021, daily vaccinations have the ability to exceed 20M if needed – Global Times.

Other

• TTMT.IN Reports Q4 (INR) Net -76.1B v -98.9B y/y, Rev 886.3B v 875.2Be; Deferred decision on fund raising to a subsequent board meeting (yesterday after the close).

North America

• (US) Weekly API Crude Oil Inventories: +0.6M v -2.5M prior.
• (CN) US Treasury says it will allow some transactions with Chinese military-backed companies – press.

Europe

• (UK) PM Johnson pushing to get free trade agreement signed with Australia, said to be planning to offer tariff-free access to Australia related to food, UK farmers are concerned over impact – press.
• (CN) European Parliament expected to pass motion Thursday that will formally freeze progress on EU, China investment deal ratification – press.

Levels as of 01:05ET

• Hang Seng closed for holiday; Shanghai Composite -0.5%; Kospi closed for holiday; Nikkei225 -1.7%; ASX 200 -2.0%.
• Equity Futures: S&P500 -0.5%; Nasdaq100 -0.5%, Dax -0.3%; FTSE100 -1.0%.
• EUR 1.2235-1.2217; JPY 109.08-108.83; AUD 0.7798-0.7779; NZD 0.7250-0.7226.
• Commodity Futures: Gold +0.0% at $1,868/oz; Crude Oil -1.2% at $64.69/brl; Copper -0.5% at $4.68/lb.