Currencies And Equities Higher After Comments

Apr 10 18, 07:01 GMT

General Trend:

Equity markets rise as China President Xi strikes conciliatory tone; makes no reference to possible countermeasures on trade
China President Xi pledges to open up auto sector and reduce auto-related import tariffs; follows reported request by Trump Administration officials.
Regional auto names higher after China President Xi noted he would open up auto sector to allow increased % of foreign ownership and lower auto import tariffs; Chinese auto makers lower
Nasdaq Futures rise over 1.5%
Aluminum producers rise as prices increase amid US sanctions on Russian elites
Aussie outperforms on comments from China’s Xi
Australia March NAB business confidence declines for 2nd straight month
Fed’s Kaplan sees ‘little bit’ flatter interest rate path likely in 2019; watching yield curve very carefully
China March CPI and PPI expected on Wednesday’s session

Headlines/Economic Data

Japan

Nikkei 225 opened -0.4%; closed +0.5%
TOPIX Iron & Steel index +1.8%, Electric Appliances +1.3%
Japanese automakers gain after comments by China President Xi; Honda up over 2%
(JP) BOJ Gov Kuroda: Will continue to implement powerful easing – inauguration press conference (overnight)
(JP) Japan Fin Min Aso: will work to restore trust in finance ministry, was a mistake to ask school officials to lie about Moritomo

Korea

Kospi opened -0.2%
(KR) Concerns are growing over the negative impact of the strengthening won on Korea’s exports – Korean press
(KR) South Korea Fin Min Kim Dong-Yeon: Seeking cooperation from smaller firms to create quality jobs to reduce the country’s high youth unemployment rate

China/Hong Kong

Hang Seng opened -0.1%, Shanghai Composite +0.2%
Hang Seng Materials index +2.8%, Info Tech +1.6%, Property/Construction +1.5%, Energy +1.1%, Financials +1.1%, Services +1.1%
Shanghai Composite Property sub-index rises over 1%
(CN) China President Xi: China GDP has grown on avg 9.5% over last 40-yrs; China reform and opening will definitely succeed; Cold war mentality is out of place, its a zero sum game, isolationism will hit walls; China to lower auto import tariff later this year – remarks at Boao conference
(CN) Unigroup plans to invest $100B on chip making in 10 years – Chinese Press
(CN) China PBoC Open Market Operation (OMO): Skips v injects CNY10B in 7-day reserve repos prior; Net: CNY30B drain v CNY30B drain prior
(CN) China PBoC sets yuan reference rate at 6.3071 v 6.3114 prior
(CN) China Agricultural Ministry: Expects imports of soybeans to be ‘basically normal’ in the short-term
(CN) China Vice Commerce Min Qian Keming: Still hopes to negotiate with US on trade issues; won’t back down should a trade war break out

Australia/New Zealand

ASX 200 opened -0.2%
ASX 200 Resources index +1.4%, Telecom +1.3%, Financials +1.1%, Energy +0.8%
(NZ) NEW ZEALAND Q1 NZIER BUSINESS CONFIDENCE: -11 V -12 PRIOR; ADJ BUSINESS CONFIDENCE: -9 V -11 PRIOR
ResApp, [-6%], RAP.AU Reports positive preliminary results from clinical proof-of-concept studies in obstructive sleep apnea
(AU) Australia sells A$150M v A$150M indicated in Nov 21 2027 index bonds, avg yield 0.7075%, bid to cover 2.73x
(AU) Australia Mar NAB Business Confidence: 7 v 9 prior; Conditions: 14 v 20 prior
Godfreys, [+43%], GFY.AU Co-founder launches takeover bid at A$0.32/shr
(AU) Banks in Australia said to be noting the need to raise mortgage rates to offset rise in wholesale funding costs – Australian Press

Other Asia

North America

US equity markets ended higher: Dow +0.2%, S&P500 +0.3%, Nasdaq +0.5%, Russell 2000 +0.1%
S&P500 Health Care +1%, Technology +0.8%
(US) FBI raids office of Trump’s longtime personal lawyer Michael Cohen; search doesn’t appear to be directly related to Mr. Mueller’s investigation – New York Times
(MX) Mexico to review all forms of cooperation with the United States, including efforts to combat powerful drug cartels – financial press
(US) Fed’s Kaplan: China and US might be well served ‘to lower heat on trade rhetoric’
Monsanto [MON]: Dept of Justice reportedly will approve Bayer/Monsanto deal in exchange for additional concessions – press

Europe

(EU) ECB’s Coeure: growth outlook doesn’t warrant change in monetary policy stance – radio interview
(EU) ECB’s Praet: inflation developments have stayed subdued
(UK) Mar BRC Sales LFL y/y: +1.4% v -0.3%e; Retail Spending y/y: 2.0% v 3.8% prior (smallest increase since April 2016); Total Retail Sales y/y: 2.3% v 1.6% prior (highest since April 2017)
LVMH [MC.FR]: Reports Q1 Rev €10.9B v €10.6Be
De La Rue [DLAR.UK]: Reportedly activist investor Crystal Amber Fund is building a stake – Sky News

Levels as of 02:00ET

Hang Seng +1.5%; Shanghai Composite +0.6%; Kospi +0.3%; ASX +0.8%
Equity Futures: S&P500 +1.2%; Nasdaq100 +1.6%, Dax +1.0%; FTSE100 +0.6%
EUR 1.2328-1.2307; JPY 107.24-106.62; AUD 0.7738-0.7693;NZD 0.7332-0.7304
Jun Gold -0.3% at $1,335/oz; May Crude Oil +0.6% at $63.81/brl; May Copper +0.9% at $3.10/lb