New Zealand Q2 GDP Beats Estimates, Has Fastest Growth In 2 Years

Sep 20 18, 06:22 GMT

General Trend:

Asian equity markets trade mixed
Meituan Dianping rises in first day of trading in Hong Kong
China said to plan to cut tariff rates on imports from majority of its trading partners
Japan PM Abe wins the LDP leadership election (as expected)
Abe is seeking a 3rd straight term, which would make him Japan’s longest serving PM
The winner of the LDP party’s leadership election is expected to comment to the press at 6pm (local time)
HSBC again raises deposit rates in Hong Kong
North Korea/South Korea summit is due to conclude today
Norway Central Bank (Norges) expected to raise rates at meeting later today
US Treasury Futures trade flat in Asia after recent declines

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.1%
Rio Tinto [RIO.AU]: Announced details of A$3.2B buyback
(AU) Australia sells A$500M v A$500M indicated in Dec 2018 notes, avg yield 1.91%, bid to cover 4.5x
(NZ) NEW ZEALAND Q2 GDP Q/Q: 1.0% V 0.8%E (fastest growth in 2 years); Y/Y: 2.8% V 2.5%E
(NZ) New Zealand sells NZ$150M v NZ$150M indicated in April 2037 bonds, avg yield 3.000%, bid to cover 2.87x

China/Hong Kong

Shanghai Composite opened +0.1%, Hang Seng +0.7%
Leshi Internet [300104.CN]: Said some shares pledged by Founder Jia Yueting have triggered a margin call, holder will be forced to sell shares
Haier [1169.HK]: Said to suspend plan to sell US-made and GE-branded products in China (FT)
Maoye International [848.HK]: Issued $150M in 13.25% senior guaranteed notes due 2020
(CN) China said to plan a ‘broad’ import tax cut as soon as October – press
(CN) China Premier Li Keqiang: Bilateral and multilateral trade talks supplement each other; reiterates multilateral trade regime should be upheld; Multilateral trade regime could be improved via talks
(CN) China PBOC: Banks should increase financing support to private companies
(CN) Former PBoC Gov Zhou: Chinese exporters may rapidly quit the US market over a trade war
(CN) China PBoC Open Market Operation (OMO): Injects CNY70B in 7 and 14-day reverse repos v CNY60B injected in 7 and 14-day reverse repos prior: Net: CNY30B drain v nil prior
(CN) China PBoC set yuan reference rate :6.8530 v 6.8569 prior

Japan

Nikkei 225 opened +0.3%
(JP) Japan’s Financial Regulator reportedly to check banks’ readiness for sharp movements in emerging markets – press
(JP) Japan auto group (JAMA) said to seek large reduction in the car tax as part of the FY2019 reforms – Japanese press
Japan PM Abe said to consider cabinet reshuffle on Oct 1st – Japanese Press
(JP) Japan End-June Household Assets: ¥1,848T, +2.2% y/y – BoJ Q2 Flow of Funds Report
(JP) Tech Bureau: Says ¥6.7B (~$60M) in cryptocurrency was lost in hack
(JP) Japan FSA says it is conducting emergency inspections on cryptocurrency exchange operators’ management of customer assets
(JP) Japan Finance Ministry (MOF) sells ¥1.0T v ¥1.0T indicated in 0.50% 20-year bonds, avg yield 0.6180% v 0.6070% prior, bid to cover 4.03x v 4.66x prior

Korea

Kospi opened +0.3%
(KR) South Korea Envoy Lee comments on Sept 18-20 summit in North Korea: Says the summit paved the way for further denuclearization talks between the US and North Korea
(KR) Bank of Korea (BOK): Q2 household debt/disposable income ratio: 161.1% v 159.8% at the end of 2017

North America

US equity markets ended mixed: Dow +0.6%, S&P500 +0.1%, Nasdaq -0.1%, Russell 2000 -0.5%
(US) US said to seek alternatives to Iran oil for allies – FT
(US) DOE CRUDE: -2.1M V -2ME;
(US) Pres Trump to nominate former Fed economist Nellie Liang for Board of Governors seat

Europe

British American Tobacco [BATS.UK]: Confirms CEO Durante to retire, effective April 1 2019; Board to make further announcement regarding successor in due course
(UK) Prime Min May reportedly told EU leaders that extending Brexit talks is not an option; there will not be a second referendum; Northern Ireland cannot have a separate customs regime
(UK) Brexit Minister Raab: need to see EU move in our direction in Brexit talks, if we don’t get that it will be a lose-lose situation
(UK) MP Mike Penning (ally of PM May) reportedly says the Chequers Brexit plan is dead – UK press

Levels as of 01:30ET

Nikkei 225, +0.3%, ASX 200 -0.3%, Hang Seng -0.2%; Shanghai Composite -0.1%; Kospi +0.9%
Equity Futures: S&P500 flat; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 -0.1%
EUR 1.1687-1.1669 ; JPY 112.35-112.08 ; AUD 0.7272-0.7253 ;NZD 0.6654-0.6601
Dec Gold +0.1% at $1,210/oz; Oct Crude Oil +0.6% at $71.19/brl; Dec Copper +0.4% at $2.738/lb