Fed’s Powell Does Not Comment On Monetary Policy Amid Pause Speculation

Dec 07 18, 07:33 GMT

General Trend:

Japan said to be the latest government to place restriction on Huawei (Japanese press)
Softbank declines over 3%, IPO for mobile unit in focus amid service disruption
Hang Seng weighed down by declines in financials, oil and materials firms; Tech shares rise after declines on Thursday
Chinese pharmaceutical shares decline for 2nd straight session, government procurement tender cited
Australia cement firm Adelaide Brighton declined over 8%, cut guidance
Fed’s Williams noted the need to be ‘nimble’ about responses to unexpected circumstances
China PBoC said liquidity is at ‘plentiful’ level, skipped open market operation for 31st straight session
Major currencies generally quiet ahead of US payrolls report
China Jan-Nov trade data is scheduled to be released on Dec 8th (Saturday)

Headlines/Economic Data

Australia/New Zealand

China/Hong Kong

Shanghai Composite opened +0.2%, Hang Seng +0.4%
(CN) White House official: Pres Trump was unaware of Huawei extradition request before dinner with Pres Xi in Argentina – press
(CN) China Commerce Ministry (MOFCOM): Reiterates to appropriately deal with trade frictions; will implement trade remedy measures agreed with other relevant government parties
Huawei: Forced to meet UK 5G security demands – FT

Japan

Nikkei 225 opened +0.7%
Nissan [7201.JP]: Former Chairman Ghosn said to be expected to be indicted and re-arrested on Monday by prosecutors in Tokyo; Prosecutors are also expected to file charges against Nissan Motor itself – US financial press
(JP) Bank of Japan Gov Kuroda: Overall global economy will continue to grow, reiterates overseas economies facing ‘heightening’ risks; So far impact of US/China trade friction ‘limited’
(JP) BoJ Maeda: BoJ holds 77.5% of Japan’s total ETF market as of Sept of this year
(JP) Japan Sept Household Spending y/y: -0.3% v 1.0%e
(JP) Japan Oct Labor Cash Earnings Y/Y: 1.5% v 1.0%e; Real Cash Earnings Y/Y: -0.1% v -0.3%e
(JP) Japan Nov Official Reserve Assets: $1.26T v $1.25T prior
(JP) Japan Oct Preliminary Leading Index: 100.5 v 104.9e; Coincident: 104.5 v 117.1e
(JP) Japan government said to plan to exclude Huawei and ZTE from government use – Japanese Press

Korea

Kospi opened -0.3%
(KR) South Korea Finance Ministry: To seek regular issuance of 50-year bonds in 2019 after study
(KR) South Korea sells KRW600B v KRW600B indicated in 50-year bonds: avg yield 1.950% v 2.09% prior
(KR) South Korea President Moon approval rating declines to 49% from 52% – Gallup Poll

Other

Kotak Mahindra Bank [KMB.IN]: Reportedly Berkshire Hathaway may look to invest $4-6B – CNBC

North America

(US) Fed still expected to raise rates in Dec, but now considering if it should signal a ‘wait and see’ stance in 2019 – WSJ
(US) Fed Chair Powell: Reiterates economy currently performing very well overall; US Labor market is very strong by many measures; does not comment on monetary policy
(US) Fed’s Williams (moderate, voter): Need to be ‘nimble’ about responding to unexpected economic circumstances; So far US tariffs do not have ‘big’ effect on overall growth and inflation, direct impact of tariffs so far is relatively ‘small’, ‘full-blown’ trade war would be real worry
(US) Fed’s Bostic (dove, voter): Fed policy ought to be taking more neutral position; Fed is within shouting distance of neutral policy
Tesla [TSLA]: General Counsel Todd Maron to step down, expected to be replaced by Dane Butswinkas, effective in Jan 2019 – US financial press

Levels as of 01:00ET

Nikkei 225, +0.7%, ASX 200 +0.4%, Hang Seng flat; Shanghai Composite flat; Kospi +0.5%
Equity Futures: S&P500 -0.2%; Nasdaq100 flat, Dax -0.2%; FTSE100 +0.1%
EUR 1.1387-1.1369 ; JPY 112.87-112.64 ; AUD 0.7242-0.7218 ;NZD 0.6891-0.6870
Feb Gold +0.1% at $1,245/oz; Jan Crude Oil -0.5% at $51.26/brl; Feb Copper +0.3% at $2.756/lb