US CPI Due Later Today

General trend

• US financial earnings in focus (JPMorgan, Goldman).
• Nikkei 225 has remained higher [Topix Marine Transportation, Retail, Banks, Information & Communication and Electric Appliances indices rise].
• Hang Seng extends gain, TECH index rises over 2%.
• Shanghai Composite traded modestly higher during the morning session [Gainers include Property and Consumer Staples indices; IT and Financial indices lag].
• S&P ASX 200 pares gain [Resources and Financial indices pare gains].
• Companies due to report during the NY morning include ConAgra Brands, Fastenal, First Republic Bank, Goldman Sachs, JPMorgan, Pepsico.
• RBNZ meeting on July 14th will not be followed by a press conference.
• Singapore to release Q2 advance GDP data on Jul 14th (Wed).

Headlines/Economic data

Australia/New Zealand

• ASX 200 opened 0.0%.
• NEA.AU Raises FY21 Portfolio ACV A$133.8M (Prior A$128-132M), Annual Contract Value A$128.2M.
• (NZ) New Zealand Jun REINZ House Sales Y/Y: 6.2% v 81.4% prior (strongest sales in 5 years).
• (AU) Australia sells A$100M v A$100M indicated in 0.75% Nov 2027 indexed bonds, avg yield -1.0295%, bid to cover 4.7x.
• (AU) Australia Jun NAB Business Confidence: 11 v 20 prior; Business Conditions: 24 v 36 prior.

Japan

• Nikkei 225 opened +0.5%.
• (JP) Bank of Japan (BOJ) expected to offer interest on green loans and lower 2021 GDP outlook at this week’s meeting – press.
• (JP) Bank of Japan (BOJ) expected to offer interest on green loans and lower 2021 GDP outlook at this week’s meeting – press.
• 5423.JP Raises Aug H Beam Price to ¥106K/ton from ¥103K/ton; Maintains Hot Rolled Coil price ¥110k/ton.
• (JP) Japan MoF sells ¥1.2T v ¥1.2T indicated in 0.500% 20-year JGBs, avg yield: 0.4040% v 0.4330% prior, bid to cover 3.51x v 3.62x prior.

Korea

• Kospi opened +0.2%.
• (KR) South Korea Minimum Wage Commission agrees to raise 2022 minimum wage 5.1% to KRW9,160/hr.
• (KR) South Korea Vice Fin Min Lee Eog-weon: Volatility is increasing due to coronavirus; Govt to strengthen market monitoring and risk factors.

China/Hong Kong

• Hang Seng opened +0.7%; Shanghai Composite opened 0.0%.
• (CN) CHINA JUN TRADE BALANCE: $51.5B V $44.8BE; Exports Y/Y: 32.2% v 23.0%e; Imports Y/Y: 36.7% v 29.5%e; Jun Trade Balance with US: $32.6B v $31.8B prior.
• (CN) CHINA JUN TRADE BALANCE (CNY): 332.8B V 270.0BE; Exports Y/Y: 20.2% v 15.1%e; Imports Y/Y: 24.2% v 20.8%e.
• (CN) China Customers Spokesman Li: Imports and exports expected to slow in H2 due to higher base in 2020; Imported inflation risks manageable.
• (CN) Former PBOC Official Sheng: RRR cut affords China room to deal with shifts in US FED policy; Economic recovery remains insufficient and imbalanced.
• (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.
• (CN) China PBOC sets Yuan reference rate: 6.4757 v 6.4785 prior.
• 13.HK Has made 1st commercial sale of Orpathys in China, triggers $25M milestone payment from AstraZeneca.

North America

• SOGO China Market Regulator (SAMR) Grants unconditional approval to Tencent to acquire the company and take it private.
• (MX) Mexico Fin Min Herrera: do not expect a rate tightening cycle until 2022.
• (CN) US Biden Administration said to be considering a digital trade deal as a counter to China’s digital presence in Asia.
• (US) US Senate Budget meeting reported having stopped without a deal.
• BA US FAA: Aware of manufacturing quality issue near the nose of certain 787 Dreamliners in the co’s inventory of undelivered planes.

Europe

• (EU) Bank of Spain (BOS) Dep Gov Delgado: ECB may use tools to rein in excessive dividends, likely to lift dividend cap this year, companies should pursue a more average payout policy – press.

Levels as of 01:15ET

• Hang Seng +0.7%; Shanghai Composite +0.7%; Kospi +0.5%; Nikkei225 +0.5%; ASX 200 +0.2%.
• Equity Futures: S&P500 0.0%; Nasdaq100 +0.1%, Dax +0.8%; FTSE100 +0.1%.
• EUR 1.1866-1.1859; JPY 110.39-110.31; AUD 0.7487-0.7476; NZD 0.6990-0.6981.
• Commodity Futures: Gold +0.1% at $1,807/oz; Crude Oil +0.2% at $74.21/brl; Copper +0.0% at $4.33/lb.