HomeContributorsFundamental Analysis10-Yr Yields Generally Track Earlier Decline In The US, Fed Minutes Due...

10-Yr Yields Generally Track Earlier Decline In The US, Fed Minutes Due Later On Wednesday

General trend

  • Oil cos. trade weaker after decline in oil prices.
  • Nikkei has pared some of the opening decline [Topix Banks, Air Transportation and Iron & Steel indices drop >1%].
  • Shanghai Composite traded modestly higher during the morning session [Consumer, IT and Industrial indices rose; Financial and Property firms lagged].
  • Hang Seng has remained lower, the index is currently off of the lows [TECH index drops over 1.5% amid continued regulatory concerns; Financials also trade generally weaker]; XPeng declines in HK debut.
  • S&P ASX 200 rebounds from loss seen during prior session [Consumer and Financial indices rise; Energy index declines].

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened flat.
  • (AU) Sydney confirms lockdown to be extended 1 additional week through July 16th.
  • (AU) Australia Jun AIG Services Index: 57.8 v 61.2 prior.
  • (AU) Australia sells A$1.0B v A$1.0B indicated in 1.50% Jun 2031 bonds, avg yield 1.332%, bid to cover 3.67x.
  • (AU) Reserve Bank of Australia (RBA) Deputy Gov Debelle and Board Member Harper to serve addition 5-years.
  • (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$321.9B v A$318.2B prior (Record high).
  • (NZ) Westpac expects RBNZ to start raising OCR rates in Nov 2021 [brings forward prior call].

China/Hong Kong

  • Hang Seng opened -1.1%, Shanghai Composite -0.6%.
  • (CN) China Cabinet said to step up oversight and amend rules on overseas listing of companies – financial press.
  • (CN) China said to begin Graft checks in Security issuance sector; anti-graft officials in China are examining corruption related to financial risk events – Press.
  • (CN) White House official: expect Biden and Xi to have some sort of engagement before too long.
  • (CN) China NDRC: Sees steel scrap utilization amount at 320Mts by 2025; Nonferrous recycled production to hit 20Mt by 2025.
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net drain CNY20B v Net drain CNY20B prior [5th consecutive net drain].
  • (CN) China PBOC sets Yuan reference rate: 6.4762 v 6.4613 prior.

Japan

  • Nikkei 225 opened -1.3%
  • (JP) BOJ said to consider raising its inflation forecast to due energy gains in its next quarterly economic outlook [due on Fri Jul 16th] – financial press.
  • (JP) JAPAN MAY PRELIMINARY LEADING INDEX CI: 102.6 V 102.7E; COINCIDENT INDEX: 92.7 V 92.7E.
  • (JP) Japan Jun FX Reserves $1.38T v $1.39T prior.
  • (JP) Japan again considering alcohol restrictions in Tokyo area – Nikkei.
  • (JP) Osaka Prefecture said to be seeking extension of its quasi emergency – Press.

Korea

  • Kospi opened slightly lower.
  • Samsung Electronics [005930.KR]: Reports Prelim Q2 (KRW) Op 12.5T v 11.3Te (vs 5.5T y/y); Rev 63.0T v 61.5Te (vs 52.97T y/y); Q2 earnings will reflect 1 off gain in Display.
  • LG Electronics [066570.KR]: Guides Q2 Op (KRW) 1.1T v 495.4B y/y (vs 1.14Te); Rev 17.1T v 12.8T y/y (vs 17.0Te).
  • (KR) South Korea confirms 1,212 additional coronavirus cases (in line with earlier reports).
  • (KR) South Korea PM: To maintain current social distancing measures; Could raise measures in 2-3 days.
  • (KR) South Korea May Current Account (BOP): $10.8B v $1.9B prior (13th consecutive surplus); Balance of Goods (BOP): $6.4B v $4.6B prior.
  • (KR) Bank of Korea (BOK) Sells KRW2.24T v KRW2.20T indicated in 2-year Monetary Stabilization Bonds (MSB): avg yield 1.275% v 1.190% prior.

Other Asia

  • (SG) Singapore to release Q2 advance GDP data on Jul 14th (Wed).

North America

  • (US) JUN ISM SERVICES INDEX: 60.1 V 63.5E.

Europe

  • (FR) France Finance Min Le Maire: Regret EU is not united over corporate tax deal, Ireland’s reaction to OECD tax deal was measured.

Levels as of 01:20 ET

  • Nikkei 225, -1.3%, ASX 200 +0.6% , Hang Seng -1.1%; Shanghai Composite +0.4% ; Kospi -0.8%.
  • Equity S&P500 Futures: flat; Nasdaq100 flat, Dax -0.1%; FTSE100 +0.1%.
  • EUR 1.1826-1.1815 ; JPY 110.66-110.39 ; AUD 0.7500-0.7482 ;NZD 0.7024-0.7003.
  • Gold +0.3% at $1,799/oz; Crude Oil +0.1% at $73.47/brl; Copper +0.7% at $4.2797/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