General Trend:
- Markets pare losses amid reports of more upcoming talks between the US and China
- Asian automakers trade generally lower, Toyota down over 2.5%
- US Commerce Dept. said to have circulated draft report on auto tariffs (press)
- Apple suppliers decline amid outlook concerns, Hon Hai drops over 2%
- Japan Display declines over 7% after cutting outlook
- Yuan pares loss amid intervention speculation
- Japan mega-banks Mitsubishi UFJ and Sumitomo Mitsui may report results after the market close (unconfirmed report)
- Australia Q3 wage price index due on Wednesday
- Japan Q3 prelim GDP due tomorrow
- China Oct Industrial Production, Retail Sales and Fixed Asset Investment due for release on Wed
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -1.5%
- (AU) AUSTRALIA OCT NAB BUSINESS CONFIDENCE: 4 V 6 PRIOR; CONDITIONS: 12 V 15 PRIOR
- (AU) Australia sells A$150M v A$150M indicated in 2022 Linkers, avg yield 0.4792%, bid to cover 4.53x
- (NZ) RBNZ Deputy Gov Bascand: financial sector is sound and well regulated
- (NZ) New Zealand Oct Food Prices m/m: -0.6% v -0.1% prior
China/Hong Kong
- Shanghai Composite opened -1.1%, Hang Seng -2.1%
- (CN) China Vice Premier Liu He to visit the US to pave the way for the Xi-Trump meeting – Hong Kong Press
- (CN) On Friday (Nov 9th), US Treasury Sec Mnuchin and China Vice Premier Liu He resumed talks and spoke by phone; the conversation did not lead to any ‘breakthrough’ – US financial press
- (CN) China Premier Li: Reiterates willing to improve free trade through discussion; Reiterates global economy and politics are complicated, global uncertainties are rising; China and US will find solution that meets common interest
- (CN) ‘Major’ China state-owned banks said to have been seen selling US dollars (USD) in the onshore spot FX market at around the 6.97 level
- (CN) CHINA PBOC SETS YUAN REFERENCE RATE: 6.9629 V 6.9476 PRIOR
- (CN) China PBoC Open Market Operation (OMO):Skips OMO v skipped prior (13th straight skip)
- (CN) Brokerage firm in China has launched ~$1.4B relief fund aimed at supporting private companies – Chinese Press
Japan
- Nikkei 225 opened -1.7%
- (JP) Japan Finance Min Aso: Does not expect auto tariffs to come up in talks with US Vice President Pence, will meet Pence but not as part of economic dialogue talks
- (US) US Vice President Pence: US has had trade imbalance with Japan for too long; US President Trump is looking forward to meeting with China President Xi, Trump believes progress can be made with China
- (JP) Japan PM Abe: US/Japan alliance stronger than ever; Agreed with US Vice President Pence to expand bilateral investment and trade
- (JP) Bank of Japan (BoJ) asset holdings reach ¥553.6T, which is larger than Japan’s GDP
- (JP) Japan MoF sells ¥700B v ¥700B indicated in 0.90% 30-yr JGBs, avg yield: 0.8740% v 0.8980% prior, bid to cover 3.99x v 3.92x prior
Korea
- Kospi opened -1.6%
- (KR) Bank of Korea (BOK) held meeting to discuss impact from US equity market decline; reiterates to closely monitor financial markets and economic conditions
- (KR) South Korea’s Ruling Party seeks North Korea visit in Dec – Local Press
- (KR) South Korea Oct Import Price Index M/M: 1.5% v 1.5% prior; Y/Y: 10.7% v 9.7% prior
- (KR) South Korea Sept L Money Supply M/M: 0.1% v 0.2% prior; M2 M/M:-0.1 % v +0.6% prior
Other
- (ID) Indonesia Central Bank Official: To maintain liquidity in onshore NDF market, to hold auction in onshore NDF market if needed
North America
- US equity markets ended lower: Dow -2.3%, S&P500 -2.0%, Nasdaq -2.8%, Russell 2000 -2%
- Amazon: Announcement related to two new headquarters may come by as early as Tuesday – US financial press
- (US) Commerce Dept reportedly circulating a draft report on auto tariffs; Pres Trump to hold meeting Tues with trade advisers to discuss the report – press
- (US) San Francisco Fed Pres Mary Daly (voter): ‘Neutral’ rate is uncertain so shouldn’t view it as a stopping point; won’t be surprised by a Dec rate hike and at least a couple more in 2019 – press interview
- (US) Former Fed Chair Yellen: Sees Fed increasing interest rates by 3-4 times over next year
Europe
- (UK) Prime Min May: both sides are working hard to reach Brexit deal but significant issues remain; talks are now reaching their ‘end game’
- (DE) Germany Bundesbank official Wuermeling not concerned by the low stress test scores of German banks – financial press
Levels as of 01:30ET
- Nikkei 225, -2.3%, ASX 200 -1.8%, Hang Seng flat; Shanghai Composite +0.8%; Kospi -0.9%
- Equity Futures: S&P500 +0.5%; Nasdaq100 +0.5%, Dax +0.3%; FTSE100 +0.2%
- EUR 1.1252-1.1215 ; JPY 114.06-113.58 ; AUD 0.7218-0.7163 ;NZD 0.6751-0.6707
- Dec Gold +0.1% at $1,204/oz; Oct Crude Oil -1.4% at $59.09/brl; Dec Copper +0.8% at $2.689/lb
