General Trend:

  • Shanghai Composite trades at over 1-year low
  • South Korean equities and Won (KRW) decline
  • Australia ASX 200 outperforms on gains in the telecom, energy, utilities and financial sectors
  • BoJ affirms moderate expansion for the economy, despite Q1 GDP contraction; cuts inflation assessment (as speculated)
  • China PBoC’s reluctance to raise OMO rates after recent Fed hike has led to concerns about the domestic economy (Chinese press)
  • China makes changes to composition of PBoC
  • Argentina shakes up central bank following recent IMF agreement
  • BoJ Gov Kuroda’s post-rate decision press conference expected at 0630 GMT

Headlines/Economic Data

Australia/New Zealand

- advertisement -
  • ASX 200 opened +0.3%
  • ASX 200 Telecom index +1.9%, Utilities +1.6%, Financials +1.5%, Energy +1.5%, Resources +1.1%
  • (AU) Reserve Bank of Australia (RBA) Assist Gov Ellis: Infrastructure can have significant spillover benefits
  • (NZ) New Zealand May Business NZ PMI: 54.5 v 58.9 prior
  • (NZ) New Zealand May Non Resident Bond Holdings: 58.9% v 59.8% prior

China/Hong Kong

  • Shanghai Composite opened -0.2%, Hang Seng -0.1%
  • Hang Seng Materials index -1.2%, Telecom -0.9%, Energy -0.6%, Utilities -0.5%,Consumer Goods -0.4% Financials -0.2%
  • Shanghai Composite property sub-index rises by over 1%
  • Brokers in Hong Kong said to offer HK$155B in margin loans related to IPO for Xiaomi – HK Press
  • (US) Trump administration official: Trump will direct ‘pretty significant action’ on tariffs against China; expected to affect $50B in Chinese products
  • (CN) White House said to put tariffs on a smaller list of 800 to 900 products from China tomorrow (trimmed from original list of 1,300 products) – CNBC
  • (CN) CHINA MAY NEW HOME PRICE M/M: 0.7% V 0.6% PRIOR: Y/Y: 4.7% V 4.7% PRIOR
  • (CN) PBoC conducts CNY60.5B Pledged Supplemental Lending (PSL) operation
  • (CN) PBoC names Vice Finance Minister Liu Wei as member of Monetary Policy Committee; PBoC Chief Economist Ma Jun named as PBoC Adviser; Names PBoC Gov Yi Gang as Committee Chief.
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY100B in 7, 14 and 28-day reverse repos v CNY150B injected in 7, 14 and 28-day reverse repos prior: Net: CNY90B injection v CNY70B injected prior
  • (CN) For the week, PBoC injected net of CNY240B in open market operations v CNY300B net drain w/w
  • (CN) China Finance Ministry (MOF): Cut subsidies for certain renewable energy project including waste-to-energy and biomass
  • (CN) China NDRC said to consider investment management rules for the auto industry – Chinese Press
  • (CN) China Finance Ministry sells 30-year bonds: yield 4.1082% v 4.10%e, bid to cover 1.75x v 1.91x prior


  • Nikkei 225 opened +0.6%
  • TOPIX Electric Appliances index +0.5%, Information & Communication +0.5%, Real Estate +0.3%
  • Megabanks lag the overall market
  • (JP) BoJ leaves policy unchanged (as expected); Sees CPI in range of 0.5% to 1.0%


  • Kospi opened +0.4%
  • (KR) South Korea May Unemployment Rate: 4.0% v 3.8% prior
  • (KR) South Korea Finance Min: May job market report was ‘shocking’ in that job growth remained weak; Labor difficulties in certain industries are worsening
  • (KR) South Korea Finance Min Kim: Impact of ECB is ‘limited”


  • (PH) Water rates in the Philippines are expected to rise due to FX impact – Local Press

North America

  • US equity markets ended mixed: Dow -0.1%, S&P500 +0.3%, Nasdaq +0.9%, Russell 2000 +0.5%
  • S&P500 Utilities +1.2%, Consumer Discretionary +1%; Financials -0.9%
  • NXP Semiconductors [NXPI]: China said to approve sale to Qualcomm, says HK report; The transaction is still awaiting Chinese approval, according to separate financial press report
  • (CA) Bank of Canada (BOC) Wilkins: To evaluate effect of US tariffs on consumer prices


  • (EU) ECB policymakers reportedly at odds over policy statement wording on end of QE and rate hike; some wanted to signal possible rate hike in mid 2019 and others want to keep option open for extension of bond buys – press

Levels as of 01:30ET

  • Nikkei 225 +0.5%, ASX 200 +1.3%, Hang Seng -0.1%; Shanghai Composite -0.8%; Kospi -0.5%
  • Equity Futures: S&P500 flat; Nasdaq100 flat, Dax flat; FTSE100 +0.1%
  • EUR 1.1555-1.1585 ; JPY 110.45-110.81 ; AUD 0.7452-0.7480 ;NZD 0.6946-0.6977
  • Aug Gold -0.3% at $1,304/oz; Jul Crude Oil +0.1% at $66.97/brl; Jul Copper +0.3% at $3.212 /lb
Previous articleECB Stepped Up Its Forward Guidance On Rates
Next articleEurozone, US Data In The Spotlight On Friday
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.