NZD Rises On Inflation Expectations Data

Nov 18 21, 06:43 GMT

General trend

Hang Seng has extended declines; TECH index drops amid focus on earnings; Alibaba and JD.com to report after the market close.
HK property firms continue to announce stock offerings [Country Garden Services].
Shanghai Composite ended morning trading slightly lower (-0.1%).
China commented on the management of the lithium battery sector.
Nikkei declined amid the recent Yen strength, the index pared drop on stimulus headline; Topix Shipping index weighed down by the drop in the Baltic index.
Japan PM Kishida: To compile economic stimulus package worth several tens of trillion of yen by end of Nov 15th week [comments from Nov 10th].
S&P ASX 200 rebounded, closed slightly higher.
China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
Companies due to report during the NY morning include Autohome, Berry Global, BJ’s Wholesale, Canadian Solar, Gambling.com, Kohl’s, Macy’s, Maximus, New Jersey Resources, Children’s Place, Vipshop, Petco.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened -0.1%.
(AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$1.60B prior.
(NZ) New Zealand sells NZ$500M v NZ$500M indicated in 2024, 2032 and 2041 nominal bonds.
(NZ) New Zealand Q4 Inflation Expectation Survey (2-year outlook): 3.0% v 2.3% prior [10-year high].
ASB Bank: Inflation expectation survey has ‘locked in’ 25bps rate hike during next week RBNZ meeting; leaves open possibility of 50bps hike.

Japan

Nikkei 225 opened -0.3%.
(JP) Said that Japan Economic Stimulus Spending requires ¥55.7T – Nikkei (prior speculated >¥40T).
(JP) Japan Investors Net Buying of Foreign Bonds: ¥465.3B v ¥1.29T prior; Foreign Net Buying of Japan Stocks: ¥164.9B v ¥147.0B prior.
(JP) Bank of Japan and FSA said to survey the Megabank USD Funding risk – Nikkei.
(JP) Japan MoF sells ¥1.2T v ¥1.2T indicated in 0.500% 20-year JGBs, Avg Yield: 0.4640% v 0.4710% prior, bid-to-cover 3.78x v 2.69x prior.
(JP) Japan LDP Official Motegi: Extra Budget to be >¥30T – Press (as expected).
(JP) Japan Chief Cabinet Sec Matsuno: Confirms received request from US on releasing strategic Oil reserves, to ease entry restrictions to 5K arrivals per day.
(JP) Japan PM Kishida: Will invest ¥400B in people over 3-year period.
(JP) Japan Tax Panel Chief Miyazawa: Confirms wants the tax system to incentivize raising wages; Will set approach to financial income tax during next Fiscal Year (begins March).

Korea

China/Hong Kong

Hang Seng opened -1.1%; Shanghai Composite opened -0.2%.
(CN) China National Food and Strategic Reserves Admin (SRB): Working on Release of crude reserves.
(CN) China said to be considering additional industrial policies aimed to support growth – Press.
(CN) China Oct Swift Global Payments (CNY): 1.85% 2.19% prior.
(CN) China said to plan to strengthen Lithium Battery Sector Management and limit capacity expansion.
(CN) China PBOC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repos v CNY50B prior; Net drain CNY50B v Net drain CNY50B prior.
(CN) China PBOC sets Yuan reference rate: 6.3803 v 6.3935 prior (strongest CNY fix since Jun 2nd).

North America

(US) DOE CRUDE: -2.1M V +0.5ME; GASOLINE: -0.7M V -0.5ME; DISTILLATE: -0.8M V -1.5ME.
(US) TREASURY $23B 20-YEAR BOND AUCTION DRAWS 2.065%, BID-TO-COVER 2.34 v 2.44 PRIOR AND 2.28 OVER LAST 4 AUCTIONS.
(US) Fed’s Evans (dove, voter): High fuel prices are hitting household budgets and will be a headwind; On the other hand the stock market is high and financial conditions are good.
(US) Democrat Congress Leaders Pelosi and Schumer: China Bill will receive a House-Senate Conference.
(US) Former US Treasury Sec Paulson: Partial split in US and China increases financial crisis risks, a wholesale decoupling is impossible.

Europe

(EU) EU lawmakers reportedly agree on rules to target Big Tech including Apple and Google in effort limit anti-competitive practices – FT.
(UK) UK and EU reportedly near an agreement on Northern Ireland medical supplies – UK’s Telegraph.

Other

Levels as of 00:20 ET

Nikkei 225, +0.1%, ASX 200 +0.1% , Hang Seng -1.2%; Shanghai Composite -0.1% ; Kospi %.
Equity S&P500 Futures: +0.1%; Nasdaq100 +0.2%, Dax flat; FTSE100 flat.
EUR 1.1338-1.1315 ; JPY 114.26-113.87 ; AUD 0.7278-0.7250 ;NZD 0.7031-0.6993.
Gold -0.2% at $1,867/oz; Crude Oil -0.6% at $77.09/brl; Copper +1.2% at $4.2525/lb.