General Trend:
- US President Trump said to have asked cabinet to draft possible China trade deal
- Apple declines post earnings, weighs on Nasdaq Futures in Asian trading
- Australia ASX 200 underperforms, energy sector lags
- CSR declines over 8%, H1 profits declined
- Macquarie Group rises over 3% after H1 results
- KDDI gains after refraining from announcing price cuts
- Australian retail sales miss estimates in Sept and Q3
- Japanese companies expected to report earnings include Nippon Steel and Isuzu Motors
- Fast Retailing is due to report monthly SSS
- Alibaba due to report on Friday
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.4%
- (AU) AUSTRALIA SEPT RETAIL SALES M/M: 0.2% V 0.3%E
- (AU) AUSTRALIA Q3 RETAIL SALES EX INFLATION Q/Q: 0.2% V %0.4%E
- (AU) AUSTRALIA Q3 PPI Q/Q: 0.8% V 0.3% PRIOR; Y/Y: 2.1% V 1.5% PRIOR (multi-year high)
- (AU) Australia sells A$1.0B v A$1.0B indicated in April 2029 bonds, avg yield 2.6631%, bid to cover: 3.00x
- (AU) Treasurer Frydenberg announces changes to Petroleum Resource Rent Tax – Local Press
- (NZ) Reserve Bank of New Zealand (RBNZ): Names new assistant governors, effective from Dec
- (NZ) New Zealand Oct ANZ Consumer Confidence: 115.4 v 117.6 prior
China/Hong Kong
- Shanghai Composite opened +1.7%, Hang Seng +2.2%
- (CN) China Pres Xi: Pres Trump and I want to expand China-US trade cooperation; US-China economic teams should strength their contacts – Chinese press
- (CN) US President Trump: China President Xi wants to make ‘fair’ trade deal; will make the ‘right’ deal with China
- (CN) China PBoC sets Yuan reference rate at: 6.9371 v 6.9670 prior
- (CN) China PBoC Open Market Operations (OMO): Skips OMO v skipped prior
- (CN) China Orient Asset said to consider creating funds to support listed companies – Chinese Press
- (CN) China to increase financial support to private and small firms – Chinese Press
- (CN) China Securities Regulator CSRC said to study listing of yuan (CNY) forex futures – US financial press
Japan
- Nikkei 225 opened +0.3%
- (JP) Japan PM Abe: Conditions for postponing 2019 sales tax increase include global economic crisis and ‘huge’ natural disaster; Wrong to persist in raising sales tax in 2019 if economy hit by ‘big shock on scale of Lehman crisis’
- (JP) Japan Finance Min Aso: The last time the sales tax was raised there was consumption volatility, reiterates this time we would like to level economic activity
- (JP) BoJ announcement related to daily bond buying operation: Raises daily purchases of 1-3 and 3-5 yr JGBs after announcing earlier this week that monthly bond purchases would be tweaked for the 3rd straight month in Nov
- (JP) Japan Oct Monetary Base End of Period: ¥506.9T v ¥505.2Te; Y/Y: 5.9% v 5.9% prior
- (JP) Japan Trade Union Confederation (Rengo) said to seek 2% base pay increase in 2019 – Japanese Press
Korea
- Kospi opened +1.1%
- (KR) Bank of Korea (BOK) Gov Lee Ju-Yeol: Market interest rates stabilized despite equity sell-off, FX volatility was also limited during stock sell-off
- (KR) South Korea President Moon approval rating declines to 55% v 58% prior – Gallup Poll
North America
- US equity markets ended higher: Dow +1.1%, S&P500 +1.1%, Nasdaq +1.8%, Russell 2000 +2.2%
- GM: Oct US sales said to decline ~4% v -6.7%e – US financial press
Europe
- (UK) EU Brexit negotiators reportedly mulling a Northern Ireland compromise plan to give UK stronger guarantees that customs border won’t be necessary along Irish Sea – FT
- (UK) Former UK PM Cameron said to consider return to politics – UK Press
- (US) JPMorgan’s Dimon: warns of a sovereign debt crisis in Europe – Handelsblatt
Levels as of 01:30ET
- Nikkei 225, +2.8%, ASX 200 +0.1%, Hang Seng +3.6%; Shanghai Composite +2%; Kospi +3.1%
- Equity Futures: S&P500 +0.5%; Nasdaq100 flat, Dax +1%; FTSE100 +1.1%
- EUR 1.1418-1.1390 ; JPY 113.03-112.55 ; AUD 0.7252-0.7192 ;NZD 0.6690-0.6639
- Dec Gold -0.3% at $1,234/oz; Oct Crude Oil flat at $63.67/brl; Dec Copper +1.1% at $2.752/lb
