HomeContributorsFundamental AnalysisMarket Update - Asian Session: Oil Decline Accelerates In Asia Amid Ongoing...

Market Update – Asian Session: Oil Decline Accelerates In Asia Amid Ongoing Supply Worries

Asia Mid-Session Market Update: Oil decline accelerates in Asia amid ongoing supply worries; Hong Kong PMI rises to 3-year high

US Session Highlights

(US) APR CHALLENGER JOB CUTS: 36.6K V 45.9K PRIOR; Y/Y: -42.9% V -2.0% PRIOR

(US) INITIAL JOBLESS CLAIMS: 238K V 248KE; CONTINUING CLAIMS: 1.96M V 1.99ME

(US) MAR TRADE BALANCE: -$43.7B V -$44.5BE

(US) Q1 PRELIMINARY NONFARM PRODUCTIVITY: -0.6% V -0.1%E; LABOR COSTS: +3.0% V 2.7%E

(US) April same store sales for US retailers at +2.3% v +2.9% forecast – Retail Metrics

(US) MAR FACTORY ORDERS: 0.2% V 0.4%E

(US) MAR FINAL DURABLE GOODS ORDERS: 0.9% V 0.7%E; DURABLES EX TRANSPORTATION: 0.0% V -0.2% PRELIM

US markets on close: Dow flat, S&P500 +0.1%, Nasdaq +0.1%

Best Sector in S&P500: Financials

Worst Sector in S&P500: Real Estate

Biggest gainers: REGN +6.7%; WLTW +6.2%; GPN +6.2%

Biggest losers: FTR -11.2%; CHK -7.4%; VIAB -7.1%

At the close: VIX 10.5 (-0.2pts); Treasuries: 2-yr 1.31% (+1bps), 10-yr 2.36% (+5bps), 30-yr 3.00% (+4bps)

US movers afterhours

ELY Reports Q1 $0.27 v $0.22e, R$308.9M v $284Me; Guides Q2 $ v $0.16e, R$M v $266Me; +11.4% afterhours

ZNGA Reports Q1 -$0.01 v $0.01e, R$194.3M v $196Me; Guides Q1 (GAAP) $ v $0.02e, R$M v $195Me; EBITDA $M; +7.8% afterhours

HLF Reports Q1 $1.24 v $0.87e, R$1.10 v $1.04Be (1 est); +7.1% afterhours

LYV Reports Q1 -$0.22 v -$0.33e, R$1.41B v $1.27Be; +6.5% afterhours

SHAK Reports Q1 $0.10 v $0.08e, R$76.7M v $75.4Me; Guides FY17 R$351-355M v $358Me ($349-354M) – Cuts FY17 SSS 0% (prior 2-3%); -2.1% afterhours

FLR Reports Q1 $0.43 v $0.67e, R$4.84B v $4.79Be; -6.8% afterhours

Key economic data

(HK) HONG KONG APR COMPOSITE PMI: 51.1 V 49.9 PRIOR; 1st expansion in 4 months, 3-year high

(NZ) NEW ZEALAND Q2 INFLATION EXPECTATION SURVEY: 2-YEAR INFLATION EXPECTATION 2.17% (highest since Q3 of 2014) V 1.92% PRIOR

(TW) TAIWAN APR CPI Y/Y: 0.1% V 0.5%E; WPI Y/Y: 1.1% V 1.6%E

Asia Session Notable Observations, Speakers and Press

Risk aversion picked up in Asian hours as the selloff in the energy space accelerated. WTI crude oil abruptly fell over 3% below $44/brl without any specific catalyst, though analysts continue to attribute the recent dry spell for oil prices to worries about supply (OPEC not changing the size of its cuts) and demand (more pronounced slowdown in China). Japan and Korea remain closed for holiday, while Australia was down for the 4th straight session. Ahead of Friday’s non-farm payrolls, risk-off flows weighed on USD/JPY, as it fell some 50pips below 112.20. AUD/USD was down about 40pips as well below 0.7370, while NZD/USD was briefly lifted by RBNZ inflation outlook.

In economic data, RBNZ’s Q2 inflation expectation survey forecast 2-year CPI at 2.17% – the highest since Q3 of 2014 – and 1-yr expectation rising to 1.92% from 1.56%. Hong Kong composite PMI hit a 3-year high, emerging out of contraction for the first time in 4 months. Economicsts noted increased pre-production inventories and busier suppliers along with intensifying inflation pressure. RBA’s quarterly monetary policy statement largely reiterated its forecasts for growth and inflation 2-years out, but also noted the recent run of constructive economic data provides assurance about domestic outlook.

China

(CN) China should be able to avoid a cash crunch due to stronger regulation – Chinese press

Japan

(JP) Japan Fin Min Aso: JPY is a stable currency; Free trade should be maintained

Australia

(AU) Australia budget said to show a -A$28B deficit in FY17/18 – press

Asian Equity Indices/Futures (01:30ET)

Nikkei closed, Hang Seng -1.1%, Shanghai Composite -0.7%, ASX200 -0.7%, Kospi closed

Equity Futures: S&P500 -0.2%; Nasdaq -0.2%, Dax -0.2%, FTSE100 -0.3%

FX ranges/Commodities/Fixed Income (01:30ET)

EUR 1.0970-1.0990; JPY 112.15-112.65; AUD 0.7365-0.7415; NZD 0.6860-0.6890

June Gold +0.6% at 1,235/oz; June Crude Oil -2.7% at $44.40/brl; July Copper +0.2% at $2.52/lb

(CN) PBOC SETS YUAN MID POINT AT 6.8884 V 6.8957 PRIOR; Strongest fix since Apr 26th

(CN) PBOC skips open market operations v CNY50B prior injected

(AU) Australia sells A$800M in 2.00% Dec 2021 bonds, bid to cover 4.03X, avg yield 2.1368%

Asia equities notable movers

Sands China (1928.HK) -2.3%; Q1 results

NAB (Nab.au) -1.6% Cut at CItiGroup

Qantas (Qan.au) +2.2%; Investor Day comments

Macquarie (MQG.AU) +3.4%; FY17 results

Trade The News
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