HomeContributorsFundamental AnalysisEquities Mostly Drop After US Declines

Equities Mostly Drop After US Declines

General trend

  • US equity FUTS extend declines.
  • Nikkei has remained lower [Topix Securities, Air Transportation and Information & Communication indices decline; Utilities rise amid the focus on the LDP elections].
  • Hang Seng has extended decline [TECH index drops over 2% amid continued regulatory concerns; Ping An Insurance also declines]; Property developers’ bonds remain in focus [Evergrande, Central China Real Estate].
  • Shanghai Composite ended morning trading fractionally higher [IT and Financial indices lag; Property index rises].
  • S&P ASX 200 has extended declines [Resources and Financial indices weigh].
  • Taiwan Semi may release Aug sales later today.
  • China may release Aug banking statistics later today.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened 0.0%.
  • (NZ) New Zealand Aug ANZ Truckometer Heavy M/M: -18.1% v -1.0% prior.
  • (NZ) New Zealand Q2 Manufacturing Activity Q/Q: 3.9% v 2.7% prior; Volume Y/Y: -0.1% v +0.6% prior.
  • OBL.AU Updates on Brisbane Floods class action: Court finds Seqwater is not liable to class action, will consider appeal.
  • (AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$2.0B prior.
  • (AU) Australia total weekly payroll jobs change from July 31 to Aug 14th: -0.7% v -2.0% prior; Wages -1.0% v -2.7% prior.

Japan

  • Nikkei 225 opened -0.7%.
  • (JP) Japan Auto Lobby Chair Toyoda: Coronavirus pandemic could further squeeze production for carmakers in Oct.
  • (JP) Japan Vaccine Min Kono said to be announcing run for LDP Leadership on Friday (Sept 10th).
  • (JP) Japan Econ Min Nishimura: Confirms seeking to extend state of emergency restrictions in Tokyo and certain other areas through Sept 30th.
  • (JP) LDP leadership contender Takaichi: Will seek to achieve the 2% inflation target (yesterday after the close).
  • (JP) Japan Investors Net Buying of Foreign Bonds: +ÂĄ1.04T v -ÂĄ545.5B prior; Foreign Net Buying of Japan Stocks: ÂĄ421.6B v ÂĄ25.3B prior.
  • (JP) Japan Aug M2 Money Supply Y/Y: 4.7% v 4.1%e; M3 Money Supply Y/Y: 4.2% v 4.1%e.
  • (JP) Japan govt said to consider easing virus restrictions around Nov period – press.
  • (JP) Japan Health Official Omi: Calls on Govt to consider third coronavirus booster shots.
  • (JP) Japan MoF sells ÂĄ2.5T v ÂĄ2.5T indicated in 0.005% 5-year JGBs; avg yield -0.1030% v -0.1200% prior, bid to cover 4.42x v 3.76x prior.

Korea

  • Kospi opened -0.5%.
  • 005380.KR Halted Asan Plant due to chip shortages, To resume ops on Sept 13th (Monday).
  • (KR) North Korea confirms held military parade to mark anniversary of country’s founding, unclear if it displayed new weapons or Leader Kim made a speech – Yonhap.
  • (KR) Bank of Korea (BOK): Raising policy interest rates will help trim household debt; Will gradually adjust monetary policy amid inflationary pressures – Quarterly Monetary Policy Report.
  • (KR) Bank of Korea (BOK) to expand special lending program to small businesses impacted by pandemic to KRW6.0T to March 2022.
  • (KR) South Korea sells 50-year bonds: avg yield 1.990% v 1.960% prior.

China/Hong Kong

  • Hang Seng opened -0.9%; Shanghai Composite opened -0.2%.
  • (CN) CHINA AUG CPI M/M: 0.1% V 0.5%E; Y/Y: 0.8% V 1.0%E; PPI Y/Y: 9.5% v 9.0%e.
  • (CN) Smaller cities in China including eastern city of Jiangyin’s housing bureau issued notice to ban developers from resorting to price war and selling properties below costs – China press.
  • (CN) China Vice Premier Hu Chunhua: China is seeking foreign investments in more areas; China Govt to continue opening up at a wider range and deeper level – Xinhua.
  • (CN) China Government regulators summon gaming firms including Tencent and Netease; Meeting will include including China cyberspace regulator.
  • (Cn)China NDRC Official Liu Xiaonan: An updated negative list will be published by year-end, which will include cuts to the number of items and will provide greater clarity on restrictions.
  • (CN) China Tinyan Capital Quantitative Hedge Fund halts fundraising after China CSRC Chairman says quant trading can cause problems.
  • (CN) China PBOC sets Yuan reference rate: 6.4615 v 6.4674 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 drain CNY0B prior.

North America

  • (US) Weekly API Crude Oil Inventories: -2.9M v -4.0M prior.
  • LULU Reports Q2 $1.65 v $1.21e, Rev $1.45B v $1.33Be; raises FY guidance.
  • (US) Fed’s Kaplan (non-voter; hawkish): Sees 2021 GDP 6.0% (prior 6.5%), will be revising Q3 GDP downward due to COVID; expect slower job growth moving forward; is no major change to outlook would support starting taper in Oct.
  • (US) US Treasury rejects debt prioritization on its borrowing limits.
  • TSN To increase beef prices; Rejects conclusions drawn by Whitehouse.

Europe

  • (UK) Aug RICS House Price Balance: 73% v 75%e.

Levels as of 01:20 ET

  • Nikkei 225, -0.8%, ASX 200 -1.9% , Hang Seng -1.8%; Shanghai Composite +0.1%; Kospi -1.3%.
  • Equity S&P500 Futures: -0.4%; Nasdaq100 -0.3%, Dax -0.4%; FTSE100 -0.7%.
  • EUR 1.1825-1.1811 ; JPY 110.28-110.09 ; AUD 0.7370-0.7347 ;NZD 0.7108-0.7083.
  • Gold -0.2% at $1,789/oz; Crude Oil flat at $69.28/brl; Copper +0.2% at $4.243/lb.

 

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