Sun, May 22, 2022 @ 22:32 GMT
HomeContributorsFundamental AnalysisMarket Update - Asian Session: Treasury Prices Dropped Along With Gold, And...

Market Update – Asian Session: Treasury Prices Dropped Along With Gold, And The USD/JPY has rebounded

US Session Highlights

(US) DOE CRUDE: -1.0M V -1ME; GASOLINE: +1.5M V -2ME; DISTILLATE: -2.0M V -1ME

(BR) Brazil Apr IGP-M Inflation (2nd Preview): -1.0% v -0.7%e

(US) MBA MORTGAGE APPLICATIONS W/E APR 14TH: -1.8% V 1.5% PRIOR

US equities opened the morning higher, though trading remained somewhat muted ahead of the weekend French election and a continued dearth of news out of DC. Risk-on flows largely returned to global markets, as Treasury prices dropped along with gold, and the USD/JPY has rebounded. As the session wore on, stocks weakened modestly and crude sold off after a smaller-than-expected inventory draw, but healthcare and industrials held onto tepid gains, while energy, consumer staples, and utilities declined.

US markets on close: Dow -0.6%, S&P500 -0.2%, Nasdaq +0.2%

Best Sector in S&P500: Healthcare

Worst Sector in S&P500: Energy

Biggest gainers: LRCX +6.9%; ISRG +6.4%; WRK +4.5%

Biggest losers: IBM -4.9%; MRO -4.3%; NFX -3.5%

At the close: VIX 14.9 (+0.5pts); Treasuries: 2-yr 1.18% (+1bps), 10-yr 2.22% (flat), 30-yr 2.87% (+3bps)

US movers afterhours

SCSS Reports Q1 $0.56 v $0.46e, R$393.3M v $370Me; Raises FY17 Rev $1.25-1.50 v $1.31e; +13.2% afterhours

QCOM Reports Q2 $1.34 v $1.20e, R$6.0B v $5.88Be; Guides Q3 $0.90-1.15 v $1.09e; +2.4% afterhours

CSX Reports Q1 $0.51 v $0.43e, R$2.87B v $2.73Be; +2.7% afterhours

EBAY Reports Q1 $0.49 v $0.48e, R$2.22B v $2.21Be; Guides Q2 $0.43-0.45 v $0.48e; R$2.28-2.32B v $2.32Be; Non-GAAP op margin 30.0% v 33.4% y/y; -1.9% afterhours

URI Reports Q1 $1.63 v $1.57e, R$1.36B v $1.34Be; Adj EBITDA margin 43.6% v 44.6% y/y; -6.3% afterhours

Key economic data

(NZ) NEW ZEALAND Q1 CPI Q/Q: 1.0% (1-year high) V 0.8%E; Y/Y: 2.2% (highest since Q3 of 2011) V 2.0%E

(AU) AUSTRALIA Q1 NAB BUSINESS CONFIDENCE: 6 V 5 PRIOR

(JP) JAPAN MAR TRADE BALANCE: ¥614.7B V ¥608BE; ADJ TRADE BALANCE: ¥172.2B V ¥172BE

(CN) China Mar FX Net Client Settlements (CNY): -48.3B v -69.2B prior

Asia Session Notable Observations, Speakers and Press

Asia indices trading mixed tracking heavy tone on Wall St, where slumping oil prices weighed on the Energy sector while low-beta Utilities/Staples also stumbled. Traders are starting to square positions going into the French elections this weekend, though there is little evidence of continued momentum behind the wild-card Melenchon in the first round after a recent surge. New Zealand Q1 CPI was the most notable datapoint of the session, rising to 5-year high annualized where Tradable prices increased 1.6%, while prices for non-tradables increased 2.5%, prompting some analysts to adjust their RBNZ tightening outlook forward. NZD/USD spiked some 40pips on the result and held its gains. Japan Trade numbers were also notable but less market moving, with surplus just above consensus, imports growth at a 3-year high, and exports at a 2-year high.

China

(CN) China State Administration of Foreign Exchange (SAFE) spokesperson: Pressure on capital outflows eased significantly in Q1 – press

(CN) China state planner NDRC said to release a 2nd batch of public-private projects – Chinese press

(CN) Former China State Administration of Foreign Exchange (SAFE) Official Guan Tao: Non-financial institutions and other participants should be allowed into the bank-dominated onshore yuan market to boost liquidity and price discovery

Australia

(AU) According to the latest property industry survey by ANZ and the Property Council of Australia, property firms and investors are most optimistic about outlook for property prices since 2014 – AFR

(AU) CBA: Australia inflation is skewed much lower because land prices are not included in the CPI basket – AFR

Asian Equity Indices/Futures (00:00ET)

Nikkei +0.2%, Hang Seng +0.4%, Shanghai Composite -0.1%, ASX200 +0.2%, Kospi +0.4%

Equity Futures: S&P500 +0.1%; Nasdaq +0.1%, Dax +0.2%, FTSE100 +0.2%

FX ranges/Commodities/Fixed Income (00:00ET)

EUR 1.0707-1.0721; JPY 108.80-109.10; AUD 0.7490-0.7510; NZD 0.7000-0.7045

June Gold -0.2% at 1,281/oz; June Crude Oil +0.6% at $51.14/brl; May Copper -0.6% at $2.51/lb

SPDR Gold Trust ETF daily holdings rise 11.8 tonnes to 860.8 tonnes; 4th straight increase; highest since Dec 7th

iShares Silver Trust ETF daily holdings fall to 10,149 tonnes from 10,178 tonnes prior

(JP) Japan’s MoF sells ¥0.9T in 0.7% (0.7% prior) 20-year JGBs; Avg yield: 0.562% v 0.673% prior; bid-to-cover: 4.06x (highest since 2014) v 3.78x prior

(CN) PBOC to inject combined CNY100B v CNY80B prior in 7-day, 14-day and 28-day reverse repos

(CN) PBOC SETS YUAN MID POINT AT 6.8792 V 6.8664 PRIOR; biggest margin of weakness in 3 weeks

(NZ) New Zealand sells NZ$150M in 2.75% 2025 bonds; avg yield 2.889%

Asia equities/Notables /movers by sector

Australia:

Rio Tinto (RIO) +0.3%; Q1 production

Iluka (ILU) +11.0%; Q1 results

Santos (STO) -2.9%: Q1 results

Woodside Petroleum (WPL) -1.5%; Q1 results

Hong Kong:

Ajisen (538) +0.3%; Q1 SSS

Qingdao Port International (6198) +0.7%; FY16 results

Yanzhou Coal Mining -0.2%; Guides Q1

CNOOC and PetroChina -1.0% on lower oil prices

Japan:

Toshiba (6502) +4.7%; Hon Hai/Amazon or Dell joint bid for chip unit speculation

Canon (7751) +3.1%; Q1 results speculation

Sumitomo Heavy (6302) +1.0%; FY17 results speculation

Trade The Newshttp://www.tradethenews.com/
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.

Featured Analysis

Learn Forex Trading