China Trade Surplus Comes In At A Record In October

Nov 08 21, 06:11 GMT

General trend

US equity FUTs have remained lower.
Hang Seng has also remained modestly lower; TECH index declines [ecommerce names drop amid comments from Chinese regulator on Singles Day sales practices].
Evergrande said to have 2 USD coupon payments due on Monday (Nov 8th).
HK-listed COVID vaccine makers drop after Pfizer released data on COVID pill.
Macau casino names and CN tourism index rise amid news related to HK/CN travel.
Shanghai Composite ended morning trading slightly higher; Property index had modest gain.
Nikkei has pared the opening gain; Softbank Group trades modestly weaker, expected to report Q2 earnings after the Tokyo close.
S&P ASX 200 has moved slightly lower after opening flat [Financial and Consumer Indices lag].
Companies due to report during the NY morning include Coty, Lincoln Educational, TreeHouse Foods, TowerJazz, The Trade Desk, US Foods, Marriott Vacations.

Headlines/Economic Data.

Australia/New Zealand

ASX 200 opened 0.0%.
SXY.AU Confirms improved A$4.60/shr offer from Posco, board to unanimously recommend.
SYD.AU To be acquired for A$8.75/shr cash by Sydney Aviation Alliance for A$23.6B; Boards unanimously recommends.
BHP.AU To divest 80% stake in BHP Mitsui Coal (BMC) to Stanmore for $1.2B.

Japan

Nikkei 225 opened +0.4%.
(JP) No COVID deaths reported in Japan for 1st time in 15 months – Japan press.
(JP) Bank of Japan (BOJ) Summary of Opinions from Oct meeting: Japan economy likely to improve gradually as pent up demand materializes.
(JP) Japan Oct FX Reserves $1.40T v $1.41T prior.
(JP) Japan Sept Preliminary Leading Index CI: 99.7 v 99.8e; Coincident Index: 87.5 v 87.9e [3rd straight decline for the coincident index] Japan gov’t cuts view on coincident index (1st cut since 2019).

Korea

Kospi opened -0.1%.
(KR) South Korea has been dealing with shortage of urea water solution, known as diesel exhaust fluid, as China tightened exports of fertilizers and related materials, including urea, in October amid a power crisis caused by a coal supply shortage, to import from Australia to ease issues – Yonhap.
(KR) South Korea Oct instant noodle (ramyeon) prices +11% y/y (largest increase in 12 years).

China/Hong Kong

Hang Seng opened -0.5%; Shanghai Composite opened 0.0%.
(CN) CHINA OCT FOREIGN RESERVES: $3.218T V $3.200TE.
(CN) CHINA OCT TRADE BALANCE $84.5B V $64.0BE (record high); Exports Y/Y: 27.1% v 22.4%e; Imports Y/Y: 20.6% v 26.0%e, Sept Trade Balance with US: $40.7B v $42.0 prior; YTD +33.3% y/y.
(CN) CHINA OCT TRADE BALANCE (CNY-DENOMINATED): 546.0B V 387.0BE; Exports Y/Y: 20.3% v 14.9%e.
Imports Y/Y: 14.5% v 20.2%e, Coal imports 26.9Mt v 32.9Mt prior; Rare earth exports 4.3Kt v 3.92Kt prior (highest since March).
(CN) China said to be ready to make Regional Comprehensive Economic Partnership (RCEP) trade deal tariff cuts – press.
(HK) Hong Kong to China Quarantine free travel may have 1.0K visitor/day cap – Press.
(CN) China PBOC sets Yuan reference rate: 6.3959 v 6.3980 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY100B prior; Net inject CNY90B v Net drain CNY100B prior.
(CN) China State Planner (NDRC): Daily Coal Production has hit highest level in the recent years.
(CN) China National Petroleum Corp (CNPC) to halt oil exports through end of year.

Other

(PH) Philippines Q3 Agriculture Output Y/Y: -2.6% v -1.5% prior.
2330.TW Ensured no customer specific data was disclosed to US in the data request.
UAE Energy Min Mazrouei: OPEC+ is working to balance market and incentivize investments; Without OPEC+, energy prices would be higher than they are currently.

North America

PFE CEO Bourla: Targeting to submit data from investigational Covid-19 pill to FDA by Nov 25th – press.
(US) US National Security Council spokesman Lieberman: US and China are not considering reopening closed consulates in each country – denies press report.
AA Plans to Restart Curtailed Aluminum Smelting Capacity at Portland Aluminium in Australia.
TSLA Elon Musk asks Twitter if he should sell 10% of his stock in Tesla, saying he will follow results of poll; currently 57.9% say Yes, 42.1% No.
(US) House passes bipartisan $1.2T infrastructure bill, clearing the way for President Biden’s signature.

Levels as of 00:15ET

Hang Seng -0.3%; Shanghai Composite +0.4%; Kospi -0.6%; Nikkei225 -0.2%; ASX 200 -0.1%.
Equity Futures: S&P500 -0.2%; Nasdaq100 -0.4%, Dax +0.1%; FTSE100 -0.1%.
EUR 1.1570-1.1553; JPY 113.64-113.36; AUD 0.7414-0.7387; NZD 0.7127-0.7104.
Commodity Futures: Gold +0.2% at $1,820/oz; Crude Oil +1.3% at $82.33/brl; Copper +0.2% at $4.36/lb.