US Employment Data, Powell Coming Up

Apr 06 18, 07:21 GMT

General Trend:

US President Trump threatens additional $100B in tariffs on China (Follows plans to already target $50B in Chinese goods)
China Commerce Min (MOFCOM) implies further countermeasures
Nasdaq Futures trade lower by over 1.5%
Samsung Electronics declines after reporting record Q1 Op profit, sales below ests: Shares had gained over 3% ahead of the earnings
US-based Japan stock funds continued to face outflows (weekly Lipper data)
Market participation limited by continuing holiday in China
Japan Feb Household Spending unexpectedly declines; Gov’t cites weather conditions, but adopts more cautious stance
Japan Feb wages hit highest since 2016, but inflation-adjusted figure continues to decline
Some analysts speculate BoJ may cut inflation forecasts
Australia sells Dec 2021 bonds at over 7x bid to cover
Traders to now look ahead to upcoming US employment data and comments from Fed Chair Powell

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.1%; closed flat
ASX 200 Financials index -0.2%; Energy +0.8%, REIT +0.5%
(AU) Australia sells A$400M v A$400M indicated in Dec 2021 bonds, avg yield 2.2152% v 2.2960% prior, bid to cover 7.69x v 5.03x prior
(AU) Morgan Stanley sees the end of ‘super-cycle’ for Australia banking industry – US financial press

China/Hong Kong

Hang Seng opened +0.8%, Shanghai closed for holiday
Hang Seng Energy index +1.3%, Telecom +1.1%, Info Tech +0.9%, Property/Construction +0.9%, Materials +0.7%, Financials +0.7%
(CN) US PRESIDENT TRUMP ORDERS USTR TO CONSIDER $100B IN ADDITIONAL CHINA TARIFFS
(US) President Trump: China’s retaliation is ‘unfair’
(CN) China Commerce Ministry (MOFCOM) comments after Trump’s $100B tariff call: To take ‘new comprehensive’ measures to safeguard interests
(CN) US $100B tariff proposal is violation of international trade rules, vows to defend its interests against US actions – Xinhua
(HK) Hong Kong Mar PMI: 50.6 v 51.7 prior (5-month low)

Japan

Nikkei 225 opened -0.1%; closed -0.4%
TOPIX Real Estate index -0.9%, Electric Appliances -0.4%; Retail Trade +1.1%, Securities +0.4%
Seven & I [3382.JP]: Shares gain over 3% after FY earnings and guidance
Familymart [8028.JP]: Rises over 2% amid earnings speculation
Monex [8698.JP] Rallies over 15% after agreeing to pay ¥3.6B for Japanese cryptocurrency exchange Coincheck
Softbank announces C$99.1M investment in lithium company
(JP) Japan Feb Household Spending Y/Y: -0.9% v +0.4%e (largest decline since April 2017)
(JP) Japan Feb Labor Cash Earnings Y/Y: 1.3% v 0.5%e (highest reading since 2016); Real Cash Earnings Y/Y: -0.5% v -1.2%e (3rd straight decline)
(JP) There is speculation among some analysts that the BoJ may have to cut its inflation forecasts at April 26-27 policy meeting – financial press
(JP) Japan Mar Official Reserve Assets: $1.27T v $1.26T prior
(JP) Japan Fin Min Aso: Share US thinking on intellectual property enforcement; to announce results of crypto probe at 3:30 PM local time (2:30 am EST)
(JP) Japan METI: Sees April-June quarter crude steel production: 26.3M tons, +0.9% y/y and -0.9% q/q; April-June steel product demand (including exports) may rise 1.8% y/y to 23.3M tons
(JP) Japan Foreign Min to create division focused on North Korea – Japanese Press
(JP) Japan Ruling LDP Official Ishiba: Have to be prepared as no administration lasts forever; bad for LDP if leadership election is again uncontested

Korea

Kospi opened -0.7%
(KR) North Korea leader Kim Jong Un reportedly told China Premier Xi of intent to rejoin 6 party talks – Nikkei

Other

(SG) Singapore Monetary Authority (MAS): To issue semiannual monetary policy statement and Q1 Advance GDP data on Friday, April 13th
(MY) Malaysia PM Najib confirms to dissolve parliament and begin election process; dissolution is effective on Saturday (as rumored)

North America

US stocks ended broadly higher: Dow +1%, S&P500 +0.7%, Nasdaq +0.5%, Russell 2000 +0.7%
S&P500 Materials +1.9%, Energy +1.8%
Wynn Resorts [WYNN]: MGM Resorts said to show interest in Wynn – NY Post
(US) Fed’s Bostic (FOMC voter, dove): dot plot does not lock Fed into policy path; not critical to signal whose dot belongs to whom; Should pause once neutral is reached; sees inflation hitting 2% in next quarter or two
(US) Fitch affirms US AAA rating; outlook stable

Europe

(EU) Reportedly EU and Japan to join US trade complaint against China regarding licensing rules – press
Mothercare [MTC.UK]: Reportedly Sainsbury considered making a takeover approach for Mothercare – press
Dufry [DUFN.CH]: Announces up to CHF400M buyback; proposes cash dividend of CHF3.75/share

Levels as of 02:00ET

Hang Seng +0.7%; Kospi -0.6%
Equity Futures: S&P500 -1%; Nasdaq100 -1.1%, Dax -0.6%; FTSE100 -0.7%
EUR 1.2234-1.2260 ; JPY 106.99-107.46 ; AUD 0.7657-0.7695 ;NZD 0.7255-0.7278
Jun Gold +0.1% at $1,331/oz; May Crude Oil -0.8% at $63.02/brl; May Copper -1.2% at $3.029 /lb