HomeContributorsFundamental AnalysisNZ CPI And BoJ Decision Due On Friday

NZ CPI And BoJ Decision Due On Friday

General Trend

  • Commodity currencies decline; NZD drops ahead of CPI data, China data mixed, Oil prices extend decline.
  • AUD drops amid lower yields; Little initial impact is seen from AU jobs data; Sydney Airport rejects ~A$22.3B takeover offer.
  • South Korea bond yields rise as one BOK member voted for a rate hike.
  • Nikkei has extended decline amid the recent strength in the Yen [Automakers trade generally lower; Topix Electric Appliances and Information & Communication indices also drop].
  • Fast Retailing [largest Nikkei component] is due to report after the Tokyo close.
  • Hang Seng has continued to rise after the higher open [Property and Financial firms rise; Alibaba and Tencent rise amid press report related to ecosystems].
  • During the morning session, Shanghai Composite rebounded from the opening decline [Financial and Property indices outperform amid easing speculation, PBOC also conducted MLF. operation; Consumer Staples index rises after retail sales; IT index lags].
  • S&P ASX 200 has traded modestly lower [Financial and Energy indices decline; Resources index rises ahead of Rio Tinto production update; CSR upgrade supports Materials index].
  • Taiwan Semi is due to report Q2 results today.
  • China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
  • Rio Tinto is due to issue Q2 production update on Fri.
  • Fed Chair Powell due to testify on Wed-Thurs (14-15th).
  • Companies due to report during the NY morning include Bank of NY, Cintas, Morgan Stanley, Progressive Corp, UnitedHealth, US Bancorp, Wipro.

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened 0.0%.
  • (AU) AUSTRALIA JUN EMPLOYMENT CHANGE: 29.1K V +20.0KE; UNEMPLOYMENT RATE: 4.9% V 5.1%E.
  • SYD.AU Rejects A$8.25/shr cash offer from consortium, offer not in interests of shareholders; undervalues company (in line with speculation).
  • WPL.AU Reports Q2 Production 22.7 MMBOE v 17.3 y/y; Rev A$1.29B v A$738M y/y; starts formal process to sell up to 49% stake in Pluto Train 2.
  • SKI.AU Receives raised conditional and non-binding indicative proposal A$2.80/share in cash (prior A$2.70) from Ontario Teachers’ Pension Plan Board and KKR; still thinks new offer undervalues the company.
  • (AU) Australia Jul Consumer Inflation Expectations: 3.7% v 4.4% prior.
  • (AU) Analysts note that the extended Sydney lockdown could take GDP negative, which is estimated to cost the economy A$1.0B/week – AFR.

Japan

  • Nikkei 225 opened -0.2%.
  • (JP) Japan Investors Net Buying of Foreign Bonds: -ÂĄ1.22T v -ÂĄ191.4B prior; Foreign Net Buying of Japan Stocks: -ÂĄ10.5B v -ÂĄ310.0B prior.
  • (JP) Japan May Tertiary Industry Index M/M: -2.7% v -0.9%e.

Korea

  • Kospi opened +0.1%.
  • (KR) BANK OF KOREA (BOK) LEAVES THE 7-DAY REPO RATE UNCHANGED AT 0.50%; AS EXPECTED.

China/Hong Kong

  • Hang Seng opened +0.1%; Shanghai Composite opened -0.3%.
  • (CN) CHINA Q2 GDP Q/Q: 1.3% V 1.0%E; Y/Y: 7.9% V 8.0%E; GDP YTD Y/Y: 12.7% v 18.3%e.
  • (CN) CHINA PBOC CONDUCTS CNY100B V CNY400B MATURING IN A 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) AT 2.95% V 2.95% PRIOR.
  • (CN) CHINA JUN INDUSTRIAL PRODUCTION Y/Y: 8.3% V 7.9%E; Crude Oil throughput 60.8Mt, +5.1% y/y (record high).
  • (CN) China PBOC: Financial institutions still have mid to long-term cash demand.
  • (CN) CHINA JUN NEW HOMES PRICES M/M: 0.4% V 0.5% PRIOR; Y/Y: 4.7% V 4.9% PRIOR.
  • (CN) CHINA JUN RETAIL SALES Y/Y: 12.1% V 10.8%E.
  • (CN) CHINA JUN YTD FIXED URBAN ASSETS Y/Y: 12.6% V 12.0%E.
  • (CN) CHINA JUN YTD PROPERTY INVESTMENT: 15.0% V 16.0%E.
  • (CN) China Jun Surveyed Jobless Rate: 5.0% v 5.0%e.
  • (CN) China National Bureau of Stats (NBS) Spokesperson Liu Aihua: Income, GDP growth are basically in line in H1; See income to keep rising and support consumption; Expect China CPI to be modest this year.
  • (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 Sec Journal: China may lower the Loan Prime Rate (LPR) but not cut policy rate.
  • (CN) China PBOC sets Yuan reference rate: 6.4640 v 6.4806 prior.
  • 2196.HK CEO: China vaccine panel approves Fosun-BioNTech mRNA vaccine shot – Chinese press.
  • 1958.HK Advisory report is not an A Share listing plan; only provides an option on potential A-share listing.

Other

  • (IR) Iran said to be not prepared to resume nuclear talks until new President Raisi takes over, the nuclear talks probably will not resume before mid-Aug – financial press.

North America

  • AMZN Consumer Product Safety Commission files administrative complaint against Amazon to force the recall of hazardous products that are sold on the Amazon website.

Europe

  • (IE) Ireland reportedly could abandon its 12.5% corporate tax rate; Irish govt sources say it is not worthwhile to become a pariah state by refusal to move to 15% – Irish Examiner.
  • DAI.DE Reports prelim Q2 adj EBIT €5.42B v €4.28Be; despite semiconductor shortage.
  • (UK) BOE Gov Bailey: Won’t be rushed into raising rates, despite news of rising inflation.

Levels as of 01:15ET

  • Hang Seng +1.5%; Shanghai Composite +0.4%; Kospi +0.5%; Nikkei225 -1.2%; ASX 200 -0.3%.
  • Equity Futures: S&P500 -0.1%; Nasdaq100 +0.2%, Dax -0.0%; FTSE100 -0.2%.
  • EUR 1.1839-1.1821; JPY 110.03-109.82; AUD 0.7488-0.7453; NZD 0.7045-0.6998.
  • Commodity Futures: Gold +0.1% at $1,827/oz; Crude Oil -0.7% at $72.60/brl; Copper +0.7% at $4.29/lb.

 

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