HomeContributorsFundamental AnalysisChina's Trade Balance May Be Released Over The Weekend

China’s Trade Balance May Be Released Over The Weekend

General Trend:

  • Japan’s largest bank (MUFJ) said to consider placing fees on certain accounts amid the negative interest rate environment (Nikkei)
  • Japanese steelmakers supported by analyst comments; Eisai rises over 7% on Alzheimer’s data
  • South Korea Kospi outperforms after declines on Thursday, chipmakers rise
  • Gainers in Hong Kong include tech and gaming companies
  • Shanghai Composite lags in early trading, decliners include IT and financial companies

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened flat
  • (AU) Australia Nov AIG Performance of Construction Index: 40.0 v 43.9 prior
  • (NZ) Reserve Bank of New Zealand (RBNZ) Deputy Gov Bascand: Reiterates economy looks close to turning point; downside risks persist but are more balanced; strong commodity prices are supporting economy; fiscal stimulus could boost growth next year

China/Hong Kong

  • Shanghai Composite opened +0.1%, Hang Seng +0.5%
  • (US) Pres Trump: Something could happen with regard to tariffs on Dec 15th but we’re not discussing that yet; talks are going well; US is having meetings and discussions with China now that are going well
  • (US) Treasury Sec Mnuchin: US-China talks are ‘on track’ but not bound to any specific deadline; US and China deputy officials held a call Thurs night and are ‘actively working’ towards a deal
  • (US) National Security Advisor O’Brien: Close on phase 1 deal with China; spoke with Treas Sec Mnuchin and USTR Lighthizer earlier today; monitoring Hong Kong situation very closely – Fox News Interview
  • (US) US and China officials reportedly are still at odds over the value of farm purchases – press
  • (CN) CHINA PBOC CONDUCTS CNY300B V CNY200B PRIOR IN 1-YEAR MEDIUM TERM LENDING FACILITY (MLF) OPERATIONS AT 3.25% V 3.25% PRIOR (as speculated)
  • (CN) China analysts see possible MLF rate cut after Fri, expected to leave rate on MLF unchanged today – China Sec Journal
  • (CN) China PBOC sets Yuan Reference Rate: 7.0383 v 7.0521 prior
  • (CN) China PBoC Open Market Operation (OMO): Skips for 13th consecutive session; Net drains CNYB v CNY0B prior
  • (CN) China may set 2020 GDP growth target at ‘around 6.0%’ at Central Economic Work Conference due to take place later during Dec; officials are expected to allow ‘modest’ expansion of fiscal and monetary policies and continue to resist ‘massive’ stimulus – SCMP
  • (CN) Private companies in China to support the slowed economy, officials to undertake additional targeted measures to lower taxes and financing costs – People’s Daily
  • (CN) China Agri Min issues 3-year plan to accelerate pig production recovery, reiterates prior target for pig stocks to stop declining and begin to rebound by the end of 2019
  • (CN) China National Bureau of Statistics (NBS): 2019 Soybean output +13.3% y/y; Sees 2019 grain output at ~664M tons, +0.9% y/y
  • (HK) Hong Kong Financial Sec Chan: Estimates show over 2 pct points of the Q3 GDP contraction was due to social unrest [commenting on data released on Nov 15th]; Doesn’t see large short positions on HK$ or stocks

Japan

  • Nikkei 225 opened +0.2%
  • (JP) Japan Oct Household Spending Y/Y: -5.1% v -3.2%e (fastest fall sine Mar 2016) [Reminder: Japan’s sales tax was raised from 8% to 10% on Oct 1st]
  • (JP) JAPAN OCT LABOR CASH EARNINGS Y/Y: +0.5% V 0.2%E; REAL CASH EARNINGS Y/Y: +0.1% V -0.2%E
  • (JP) Japan Oct Preliminary Leading Index CI: 91.8 v 91.9e; Coincident Index: 91.8 v 97.3e
  • (JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Unchanged
  • (JP) Japan Trade Min Kajiyama: Schedule for further US-Japan trade talks hasn’t been set yet; Japan gov’t plans to phase out inefficient coal power facilities
  • (JP) Japan MoF sells ÂĄ3.527T in 3-month bills; avg yield -0.1187% v -0.1783% prior; bid to cover: 2.85x
  • (JP) Japan PM Abe will meet with China Pres Xi during his visit to China Dec 23-25 – Japan Press

Korea

  • Kospi opened +0.6%
  • (KR) Satellite imagery shows activity at missile site in North Korea – CNN
  • (KR) South Korea sells KRW320B v KRW300B indicated in 50-year bonds: avg yield 1.54% v 1.50% prior

Other Asia

  • Malaysia’s RHB Bank announced it would close operations in Hong Kong, cited the challenging brokerage environment

North America

  • (CA) Canada Deputy PM Freeland: Signatories to the USMCA trade deal face ‘tough challenge’ to get treaty ratified by the US
  • (US) House Speaker Pelosi: USMCA issues relate to worker’s rights and pharmaceuticals; doesn’t think we’re headed for a shutdown

Europe

  • OPEC delegate repeats that there is agreement for a 500K bpd cut with OPEC+; still need to discuss final details with OPEC+ on Friday – press

Levels as of 00:20 ET

  • Nikkei 225, +0.3%, ASX 200 +0.4%, Hang Seng +0.6%; Shanghai Composite +0.1%; Kospi +0.9%
  • Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax +0.2%; FTSE100 +0.2%
  • EUR 1.1110-1.1101 ; JPY 108.79-108.66 ; AUD 0.6843-0.6830 ;NZD 0.6560-0.6540
  • Gold -0.2% at $1,480/oz; Crude Oil -0.3% at $58.23/brl; Copper flat at $2.668/lb
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