Copper And Commodity Currencies Also Rise

Sep 22 21, 05:58 GMT

General trend

Shanghai Composite has pared the opening loss [CSI 300 Real Estate Index rises over 5%; Banks index declines over 2%, Ping An Insurance and China Merchants Bank decline].
Evergrade unit confirms it will make onshore bond payment Thursday.
Various Chinese cos. comment on the power limits in Jiangsu Province.
Japan markets to close on Thurs for holiday [Auto and Steel companies decline; Big component Softbank Group rises after prior drop].
S&P ASX 200 has moved higher after the flat open [Energy and Resources indices have outperformed].
HK markets to return on Thurs.
FedEx declined after reporting earnings.
China Ministry of Finance (MOF) to sell CNY5.0B in 2-year bonds and CNY2.0B in 5-year bonds in Hong Kong on Sept 23rd.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%.
TWR.NZ Cuts FY21 (NZ$) Net 19-21M (prior 22-24M); Large house claims in FY21 above long term average esp prior quarter; Challenges raised at interim results may continue to impact H2 performance.
(AU) Australia sells A$1.0B v A$1.0B indicated in 4.25% Apr 2026 bonds, avg yield 0.525%, bid to cover 6.15x.
(AU) Reserve Bank of Australia (RBA) Assistant Gov Bullock: Banks have maintained lending standards on mortgages, house prices are outside fundamentals; macro prudential rules should be targeted at risks arising from highly indebted borrowers – The Housing Market and Financial Stability.
(AU) Australia, Melbourne and regional Victoria experienced a 5.8 magnitude earthquake this morning, no tsunami threat (largest in history.
(AU) Reserve Bank of Australia (RBA) Deputy Gov Debelle: RBA is keeping a watchful eye on the Evergrande Group crisis – press).

Japan

Nikkei 225 opened -0.3%.
(JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED, introduces details on green lending program.
(JP) Japan Ag Ministry: US FDA lifted restriction on Japan Food Imports that was imposed after Fukushima meltdown.
8306.JP Confirms MUFG Union Bank to be acquired by US Bancorp for ~$8.0B in cash and stock; UBS adds 280 California branches (yesterday after the close).

Korea

Kospi closed for holiday.
005380.KR Hyundai Kia Aug US environment friendly vehicle sales 8.3K units, +124.4% y/y.

China/Hong Kong

Hang Seng closed for holiday; Shanghai Composite opened -1.4%.
3333.HK Unit Hengda Real Estate to make interest payment for onshore bond due on Sept 23; To make the coupon payment on Shenzhen traded 5.8% September 2025 bond.
3333.HK Negotiated interest payment with creditholders.
(CN) CHINA PBOC MONTHLY LOAN PRIME RATE (LPR) SETTING: LEAVES BOTH 1-YEAR AND 5-YEAR RATES UNCHANGED (17th consecutive hold).
(CN) China has encouraged banks to use the Yuan (CNY) in loans to cos. overseas, cites FX regulator SAFE – press.
(CN) China Pres Xi: To target reaching carbon neutrality by 2060; China will not build new coal-fired power projects abroad.
(CN) Asia Development Bank (ADB) maintains China 2021 GDP outlook at 8.1%, 2022 5.5%; Evergrande debt problem, warrants careful monitoring.
(CN) China PBOC Open Market Operation (OMO): Injects CNY60B in 7-day reverse repos v CNY50B in 7-day reverse repos prior; injects CNY60B in 14-day reverse repos v CNY50B prior; Net inject CNY90B v Net CNY100B prior.
(CN) China PBOC sets Yuan reference rate: 6.4693 v 6.4527 prior.
(CN) China PBOC Gov Yi: Vowed to increase Fintech supervision and risk prevention – Statement from Sept 18th.
3333.HK IMF Chief Economist: Following company very closely; China has tools and policy space to prevent situation from becoming system crisis.

North America

(US) Weekly API Crude Oil Inventories: -6.1M v -5.4M prior.
ADBE Reports Q3 $3.18 v $3.00e, Rev $3.94B v $3.88Be.
SFIX Reports Q4 +$0.19 v -$0.14e, Rev $571M v $548Me.
(US) White House: Strongly support suspending debt limit to Dec 2022. stopgap bill will avoid a catastrophic default.
(US) Record 65 container ships waiting outside ports of Los Angeles and Long Beach.

Europe

(UK) Reported that UK PM Johnson and US President Biden discussed both China and Russia during meeting, US and UK to continue trade deal talks.
(UK) UK could join US, Mexico, Canada trade pact if its is unable to secure a direct FTA – UK press.

Levels as of 01:00ET

Hang Seng closed for holiday; Shanghai Composite -0.3%; Kospi closed for holiday; Nikkei225 -0.6%; ASX 200 +0.5%.
Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.4%; FTSE100 +0.3%.
EUR 1.1731-1.1717; JPY 109.50-109.12; AUD 0.7268-0.7224; NZD 0.7032-0.6994.
Commodity Futures: Gold -0.1% at $1,776/oz; Crude Oil +1.2% at $71.31/brl; Copper +2.4% at $4.21/lb.