General Trend:
- Hang Seng declines after returning from holiday
- Financials index weighs on the Australian market
- Fast Retailing expected to report SSS after the market close
- Q3 business confidence data weighs on the NZD
- Few surprises seen in the Reserve Bank of Australia (RBA) policy decision, notes tighter credit conditions
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- (AU) Australia ACCC commences inquiry into foreign exchange (FX); expected to provide the final report to the Treasurer in May 2019
- (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES RATES UNCHANGED AT 1.50% (AS EXPECTED)
- (AU) Australia Dept of Industry expects 2018/19 resource exports to rise to A$252B (record) v A$227B y/y
- (AU) Australia Sept CBA Manufacturing PMI: 54.0 v 53.2 prior
- (NZ) New Zealand Q3 NZIER Adjusted business confidence: -28 v -21 prior (lowest level since March 2009)
China/Hong Kong
- Shanghai Composite closed, Hang Seng opened -0.3%
- (CN) China’s narrowing interest rate spread with the US and declining current account surplus have led to some concerns about capital outflows – FT
- (CN) White House Econ Adviser Kudlow: A trade deal with China is not imminent; Pres Trump and China Pres Xi may meet at the G20 summit – TV interview
- (US) US Treasury Sec Mnuchin: China needs to have ‘real action’ – Fox
Japan
- Nikkei 225 opened +0.5%
- (JP) Japan Sept Monetary Base End of Period: ¥505T v ¥502T prior; Y/Y: 5.9% v 6.9% prior
- (JP) Japan PM Abe said to plan to replace Japan’s Defense Minister Onodera as part of cabinet reshuffle – Japanese Press
Korea
- Kospi opened flat
- (KR) South Korea Aug Industrial Production M/M: 1.4% v 0.4%e; Y/Y: 2.5% v 1.3%e
- (KR) South Korea Oct Business Survey: Manufacturing: 78 v 77 prior
- (KR) South Korea Finance Min: Negative job growth on a y/y basis cannot be ruled out in Sept
North America
- US equity markets ended mixed: Dow +0.7%, S&P500 +0.4%, Nasdaq -0.1%, Russell 2000 -1.4%
Europe
- (IT) Italy Fin Min Tria: 2.4% deficit to GDP target is not in line with EU rules but it has precedents; Many other countries have not respected EU fiscal rules in the past
- (IT) Eurogroup Chief Centeno: need more detail to evaluate Italy’s 2019 draft budget; draft needs to be finalized
- (UK) UK PM May said to be preparing to limit the UK’s ability to strike free trade agreements after Brexit in a concession to the EU – UK Press
- (UK) Former Foreign Min Johnson said to have told senior conservatives that he’d postpone Brexit by at least six months if he became PM
- (FR) Customs Minister Darmanin: French customs ready for worst-case Brexit – French press
- ThyssenKrupp [TKA.DE]: Said to be preparing to exit the DAX index – German Press
Levels as of 01:30ET
- Nikkei 225, flat, ASX 200 -0.8%, Hang Seng -2.1%; Shanghai Composite closed; Kospi -1.1%
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.3%; FTSE100 -0.2%
- EUR 1.1581-1.1560 ; JPY 114.03-113.81 ; AUD 0.7240-0.7218 ;NZD 0.6618-0.6592
- Dec Gold +0.3% at $1,195/oz; Oct Crude Oil +0.3% at $75.53/brl; Dec Copper -0.4% at $2.775/lb
