General trend
- RBA official commented after recently released CPI data; Next week’s RBA meeting (Nov 2nd) in focus as 3-year yields remain above the target.
- Will the RBA conduct another unscheduled bond buying operation on Fri (Oct 29th)?
- 2-yr UST yield rose amid jump in AU yields.
- Australia Q3 export prices weighed down by drop in iron ore demand from China.
- China Coal prices extend drop on moves by the NDRC; Chinese base metals also trade generally lower.
- Shanghai Composite has extended decline [Energy and Coal cos. drop; Property index continues to drop].
- Hang Seng has reversed the opening gain; Property sector contagion moves to Kaisa Group.
- Nikkei 225 has remained lower; Fanuc and Hitachi drop after cutting forecasts.
- Japanese companies due to report earnings include Panasonic, Sony, Renesas, Komatsu, Takeda Pharmaceuticals.
- S&P ASX 200 has seen a modest drop [Resources index lags amid lower metals prices].
- Samsung Electronics rises after final Q3 results, outlook comments.
- ECB decision due later today.
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- China bonds and WGBI [bond index] in focus [FTSE Russell previously stated that China bonds to be included in the WGBI over a period of 36 months, effective from Oct 29th 2021 (Fri)].
- Companies due to report during the NY morning include AllianceBernstein, AGCO, American Tower, Allegheny Technologies, Baxter International, Bombardier, Peabody Energy, Carrier, Caterpillar, CBRE, Carlyle Group, Check Point Software, Comcast, Daqo New Energy, Hershey, HTZZ, Intercontinental Exchange, Imax, Illinois Tool Works, KBR, Keurig DR Pepper, Laboratory Corp, MasterCard, Moody’s, Altria, Merck, Newmont, Oshkosh, Overstock, Reliance Steel, Sonic Automotive, Shopify, Sirius Xm, SolarWinds, Stanley Black & Decker, Molson Coors, Tempur Sealy, Textron, Visteon, Willis Towers Watson, YUM! Brands.
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%.
- (AU) Reserve Bank of Australia (RBA) Deputy Gov Debelle: Monetary policy is looking to drive higher inflation; A little more inflation is welcome, but not a lot more.
- NCM.AU Reports Q1 gold production 396.2K oz v 503K y/y at AISC $1,270/oz v $980/oz y/y; Copper production 24.5Kt v 34.7Kt y/y.
- ANZ.AU Reports FY21 (A$) adj Cash profit 6.19B v 3.76B y/y; NII 14.16B v 14.05B y/y.
- COL.AU Reports Q1 (A$) Rev 9.76B v 9.61B y/y; early Q2 tracking in line with Q1.
- JBH.AU Gives Q1 update: In Oct seeing sales momentum continue and have benefited from re-opening of stores in NSW; JB HI-FI Australia total sales -7.5% v 27.3% y/y; SSS -7.9% v 27.6% y/y.
- (AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$1.60B prior; does not offer to buy April 2024 bonds.
- (AU) AUSTRALIA Q3 EXPORTS PRICE INDEX Q/Q: 6.2% V 6.5%E; IMPORTS PRICE INDEX Q/Q: 5.4% V 3.4%E.
- (AU) Nomura: Reserve Bank of Australia (RBA) Likely to weaken its YCC policy at next week’s policy meeting.
Japan
- Nikkei 225 opened -0.8%.
- (JP) Bank of Japan (BOJ) Quarterly Outlook for Economic Activity and Prices: Cuts GDP and CPI outlook for 2021.
- (JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED.
- 4507.JP Expected to start production of COVID vaccine early 2022 – Nikkei.
- (JP) JAPAN SEPT RETAIL SALES M/M: 2.7% V 1.5%E; Y/Y: -0.6% V -2.4%E.
- (JP) Japan PM Kishida: Will take oil price support measures – Japan press.
Korea
- Kospi opened -0.1%.
- 005930.KR Reports final Q3 (KRW) Net 12.3T v 9.36T y/y; Op 15.8T v 12.4T y/y, Rev 74.0T v 67.0T y/y.
- (KR) Bank of Korea (BOK) To cut size of Monetary Stabilization bond issuance in Nov to KRW6.6T down from 9.0T in Oct.
China/Hong Kong
- Hang Seng opened +0.1%; Shanghai Composite opened -0.4%.
- 3333.HK Reportedly takes steps to enter talks with bondholders’ advertisers over debt – press.
- (CN) China Securities Times: Vegetable price increase unlikely to increase overall CPI.
- 1876.HK Reports Q3 Net $358M v $326M y/y, Adj EBIT $450M v $443M y/y, Rev $1.88B v $1.82B y/y.
- (CN) China Premier Li: Countries need to follow basic principles in international cooperation to resolve maritime disputes.
- (CN) China State Planner (NDRC): Studying definition of coal companies’ definition of excessive profits.
- (CN) China PBOC sets Yuan reference rate: 6.3957 v 6.3856 prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY200B in 7-day reverse repos v CNY200B prior; Net inject CNY100B v Net inject CNY100B prior.
- (CN) China Foreign Ministry spokesman Zhao Lijian: Recent comments by Sec of State Blinken on Taiwan violates “one China “understanding between two sides; recent US actions could bring huge risks (yesterday late session).
- North America
- F Reports Q3 $0.51 v $0.29e, Rev $35.7B v $34.2Be; Raises FY21 outlook; Says Ford has momentum from and expects to build on its strong performance in 2021.
- (US) 21 house Democrats come out against IRS bank reporting measure.
- YUMC Reports Q3 $0.22 adj v $0.66 y/y, Rev $2.55B v $2.35B y/y.
Europe
- TIT.IT Reports Q3 organic EBITDA €1.67B v €1.72B y/y, Rev €3.84B v €3.9B y/y.
- (FR) French Govt: 2 UK fishing boats given warning Wednesday night by France maritime vessel off the coast of Le Havre.
- AIR.FR Reports Q3 adj Net €404M v -€767M y/y, Adj EBIT €666M v €820M y/y, Rev €10.5B v €11.2B y/y.
Levels as of 01:15ET
- Hang Seng -0.3%; Shanghai Composite -0.9%; Kospi +0.2%; Nikkei225 -0.9%; ASX 200 -0.4%.
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.1%; FTSE100 +0.1%.
- EUR 1.1610-1.1589; JPY 113.86-113.50; AUD 0.7523-0.7480; NZD 0.7179-0.7152.
- Commodity Futures: Gold +0.2% at $1,802/oz; Crude Oil -1.7% at $81.27/brl; Copper +0.4% at $4.41/lb
