Headlines/Economic data
Australia/New Zealand
- ASX 200 opened -0.1%.
- (AU) Reserve Bank of Australia (RBA) Gov Lowe: At the Board’s meeting earlier this week we considered the case for delaying this tapering to $4 billion a week.
- (AU) RESERVE BANK OF AUSTRALIA (RBA) STATEMENT ON MONETARY POLICY (SOMP): Will act if worsening health outcomes hit economic outlook; Wage price index to gradually increase to around 2.75% by 2023.
- (AU) Australia July AIG Services Index: 51.7 v 57.8 prior.
- (AU) Australia sells A$700M v A$700M indicated in 0.25% Nov 2025 bonds, avg yield 0.4965%, bid to cover 5.97x.
China/Hong Kong
- Hang Seng opened +0.2%, Shanghai Composite flat.
- (CN) Growth in China aggregate financing might rebound in Q4, rebound could be supported by adjustments in future monetary policy – China Securities Journal front-page.
- (CN) Said that Local govt bond issuance may increase notably in Aug and Sept – Press.
- (CN) China State Planner (NDRC) Vice Chair: Economy growing steady but the recovery is unbalanced – People’s Daily.
- (CN) China State Planner (NDRC): Will release reserves of commodities essential for livelihoods in timely and targeted manner; will ensure supplies of essential produce after flooding and coronavirus.
- (CN) Beijing said to halt enclosed community spaces for entertainment and limit traffic at parks to control virus spread – press.
- (CN) Said that business groups have been calling on US President Biden to restart trade talks with China – Press.
- (CN) China Former Education Ministry Spokesman Wang Xuming: Crackdown on Education has ‘only scratched the surface’ of what is to come – SCMP.
- (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.
- (CN) China PBOC sets Yuan reference rate: 6.4625 v 6.4691 prior.
Japan
- Nikkei opened -0.1%.
- (JP) Japan Jun Household Spending M/M: -3.2% v +2.0% prior; Y/Y: -5.1% v 0.2%e.
- (JP) Japan Jun Labor Cash Earnings Y/Y: -0.1% v +1.1%e; Real Cash Earnings Y/Y: -0.4% v +1.2%e.
- (JP) Japan July FX Reserves $1.39T v $1.38T prior.
- (JP) Japan Jun Preliminary Leading Index CI: 104.1 v 104.2e; Coincident Index: 94.0 v 94.0e.
Korea
- Kospi opened flat.
- (KR) South Korea Jun Current Account (BOP): $8.8B v $10.8B prior (14th consecutive surplus); Balance of Goods (BOP): $7.6B v $6.4B prior.
- (KR) Said that South Korea will extend social distancing measures for 2 weeks – Yonhap.
Other Asia
- (IN) INDIA CENTRAL BANK (RBI) LEAVES REPURCHASE RATE UNCHANGED AT 4.00%; AS EXPECTED; Votes 5-1 On accommodative stance.
- (TW) Taiwan to extend its coronavirus level 2 alert through Aug 23rd – Press.
North America
- (US) Fed’s Kashkari (dove, non-voter): We could meet the goal of ‘substantial further progress’ this fall if the jobs market is strong.
- (US) Said that Democrats in Congress will not seek extension of Unemployment insurance benefits – Press.
- (US) Senator Schumer (D-NY): Confirms Senate to reconvene Saturday for the Infrastructure bill.
- Duolingo [DUOL]: Says aware that app is no longer available in certain China app stores.
- Li Auto [LI]: Said to guide HK IPO pricing at HK$118/shr.
Europe
- (TR) Turkey President Erdogan appoints 3 Vice Presidents to Statistical Institute Turkstat.
Levels as of 01:20 ET
- Nikkei 225, +0.2%, ASX 200 +0.1% , Hang Seng +0.1%; Shanghai Composite -0.5% ; Kospi -0.3%.
- Equity S&P500 Futures: flat; Nasdaq100 flat, Dax flat; FTSE100 flat.
- EUR 1.1835-1.1818 ; JPY 109.88-109.74 ; AUD 0.7408-0.7378 ;NZD 0.7060-0.7041.
- Gold -0.4% at $1,802/oz; Crude Oil +0.1% at $69.17/brl; Copper +0.3% at $4.3617/lb.
