General trend
- Hang Seng index has lagged amid the decline in the TECH index.
- Shanghai Composite has also dropped [Energy index declines, Property index continues to drop].
- Nikkei 225 has remained modestly lower; Canon’s guidance cut weighs on Topix Electric Appliances index.
- Japanese companies due to report earnings include Fanuc, Hitachi, Daiwa Securities, TEPCO, Fujitsu.
- S&P ASX 200 has moved between slight gains and losses [Woolworths weighs on the Consumer Staples index].
- Kia Motors is expected to report results later today.
- BOJ rate decision and economic forecasts are due tomorrow (Oct 28th).
- Companies due to report during the NY morning include ADP, Amphenol, Avery Dennison, Boeing, Brink’s , Bunge, Bristol-Myers, Boston Scientific, CME, GM, Garmin, Hess Corp, Hilton Worldwide, Harley Davidson, International Paper, Kraft Heinz, Coca-Cola, McDonald’s, Norfolk Southern, Old Dominion Freight Line, Penske Auto, Ryder System, Silicon Labs, Silgan Holdings, Spotify, TE Connectivity, Teva, Thermo Fisher.
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened 0.0%.
- (AU) AUSTRALIA Q3 CPI Q/Q: 0.8% V 0.8%E; Y/Y: 3.0% V 3.1%E, Trimmed mean inflation moves into RBA Target range; CPI Trimmed Mean (core) Q/Q: 0.7% v 0.5%e; Y/Y: 2.1% v 1.8%e (highest annual reading since 2015).
- WOW.AU Reports Q1 (A$) Rev 16.1B v 17.9B y/y.
- (AU) WTO to investigate China tariffs on Australia wine (TWE.AU, AVG.AU).
- (NZ) New Zealand Sept Trade Balance (NZ$): -2.2B v -2.1B prior (record deficit).
Japan
- Nikkei 225 opened -0.2%.
- (JP) Japan Industry Ministry (METI) said to be committing ¥151B for car battery R&D – Nikkei.
- (JP) Kyodo Poll: Japan LDP Party is seen as winning a stable majority.
- (JP) Japan MOF sells ¥3.0T v ¥3.0T indicated in 0.00% 2-year JGBs: avg yield: -0.0970%% v -0.115% prior; bid to cover: 4.0x v 4.24x prior.
Korea
- Kospi opened -0.1%.
- (KR) South Korea Oct Consumer Confidence: 106.8 v 103.8 prior (2nd consecutive increase, 4 month high).
- 010140.KR Confirmed plans for KRW1.3T capital raise (KRW782.5B for operating capital and KRW500B on debt).
China/Hong Kong
- Hang Seng opened -0.9%; Shanghai Composite opened -0.2%.
- (CN) China Securities Journal: Recent rally of yuan (CNY), is underpinned by the country’s strong trade surplus, is unlikely to change the two way movement of its exchange rate.
- (CN) China State Planner (NDRC) has called on companies to make active preparations to meet payments of their offshore bonds, companies also need to optimize their foreign debt structure in order to raise funds.
- (CN) China State Planner (NDRC): Will crack down on hoarding coal, asked provinces to step up oversight on coal storage.
- (CN) China State Planner (NDRC): Have recently held meeting with State Banks to hear credit policy and advice on how to move forward industrial structure adjustments.
- (CN) China State Media: The US Has upgraded its attempt to separate Taiwan from China.
- 2600.HK Reports Q3 (CNY) Net 2.23B (largest since Q4 2013) v 416.8M y/y, Rev 74.2B v 49.05B y/y.
- 486.HK Reports Q3 Alumina production 943Kt v 939Kt y/y; Sales 915Kt v 1.01Mt y/y.
- (CN) China PBOC sets Yuan reference rate: 6.3856 v 6.3890 prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY200B in 7-day reverse repos v CNY200B prior; Net inject CNY100B v Net inject CNY190B prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY200B in 7-day reverse repos v CNY200B prior; Net inject CNY100B v Net inject CNY190B prior.
- (CN) China Taiwan Affairs Office: US Should stop sending wrong signals on Taiwan.
- (CN) China Global Times: China President Xi will not step back an inch on Taiwan, US is opening a “new offensive” on Taiwan.
- HKEX, 388.HK Reports Q3 (HK$) Net 3.25B v 3.35B y/y, EBITDA 4.2B v 4.2B y/y, Rev 5.31B v 5.31B y/y.
Other
- (MX) Mexico Central Bank (BANXICO) Deputy Gov Heath: Most concerned with core CPI, Next rate decision will be data dependent.
- (TW) Taiwan Spokesperson Ma: Taiwan shouldn’t rely on US to achieve independence.
North America
- (US) Weekly API Crude Oil Inventories: +2.3M v +3.3M prior
- GOOGL Reports Q3 $27.99 v $23.13e, Rev $53.6B (ex TAC) v $51.8Be
- MSFT Reports Q1 $2.27 adj v $2.06e, Rev $45.3B v $43.9Be
- TWTR Reports Q3 -$0.54 adj v +$0.17e, Rev $1.28B v $1.29Be; Continues to expect Rev to grow faster than expenses in 2021
- PFE VRBPAC Panel Votes (17 Yes; 0 No; 1 Abstain) In Favor to amend EUA for PFE-BNTX COVID-19 Vaccine, BNT162b2 (Comirnaty), to allow for use in children 5 through 11 years of age – VRBPAC Meeting
Europe
- (UK) Oct BRC Shop Price Index Y/Y: -0.4% v -0.5% prior
- (UK) Business Tax Relief said to be aiming to aid in green property investment, including solar panels and heat pumps – UK press
- (UK) BRC chief exec Dickinson: It is now clear that the increased costs from labour shortages, supply chain issues and rising commodity prices have started filtering through to the consumer – press
Levels as of 01:15ET
- Hang Seng -1.6%; Shanghai Composite -1.0%; Kospi -0.8%; Nikkei225 -0.4%; ASX 200 +0.1%
- Equity Futures: S&P500 +0.1%; Nasdaq100 0.0%, Dax 0.0%; FTSE100 -0.0%
- EUR 1.1605-1.1590; JPY 114.22-113.93; AUD 0.7537-0.7498; NZD 0.7177-0.7154
- Commodity Futures: Gold -0.2% at $1,789/oz; Crude Oil -0.7% at $84.06/brl; Copper -0.3% at $4.48/lb
