HomeContributorsFundamental AnalysisCopper And Commodity Currencies Also Rise

Copper And Commodity Currencies Also Rise

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.

 

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