General Trend:
- Equity futures trade mixed
- Shanghai equities supported by property and banking shares; Energy and IT shares lag
- Chinese brokerage firms trade broadly higher; China said to plan to speed up review of foreign brokerages (US financial press)
- Tech and financials weigh on Nikkei in final trading session of 2018
- Financials outperform in Australia
- Sinopec extends declines, commented on energy-related losses
- Oil prices rise after Thursday’s declines
- China PBoC steps up cash injection into year end, pledges to ‘comprehensively’ use multiple policy tools
- US government shutdown continues, Senate has adjourned until Dec 31st
- Partial US government shutdown likely to extend into Jan (US financial press)
- China Dec Official Manufacturing and Non-Manufacturing PMI data expected to be released on Dec 30-31st
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.1%
- China/Hong Kong
- Shanghai Composite opened flat, Hang Seng +0.1%
- (CN) China PBoC: To maintain its prudent policy stance; to comprehensively use multiple policy tools – Q4 quarterly meeting statement
- (CN) China Ministry said to see 2018 industrial production growth slowing to +6.3% y/y – Chinese Press
- (CN) China said to plan to expedite reviews related to foreign-controlled brokerages – US financial press
- (CN) China PBoC Open Market Operation (OMO): Injects CNY250B in 7 and 14-day reverse repos v CNY150B injected in 7 and 14-day reverse repos prior; Net: CNY220B injection v CNY30B injection prior
- (CN) China PBoC sets yuan reference rate: 6.8632 v 6.8894 prior (strongest yuan fix since Dec 6th)
Japan
- Nikkei 225 opened -0.6%
- (JP) JAPAN NOV PRELIMINARY INDUSTRIAL PRODUCTION M/M: -1.1% V -1.5%E; Y/Y: 1.4% V 0.6%E
- (JP) JAPAN NOV JOBLESS RATE: 2.5% V 2.4%E (2nd straight rise)
- (JP) BOJ Summary of Opinions from Dec 20th meeting: Risks to global economic outlook heightening, risks tilted to the downside
- (JP) Bank of Japan (BOJ) announces Bond purchases for month of Jan (Note amounts and frequency unchanged m/m)
- (JP) JAPAN NOV RETAIL SALES M/M: -1.0% V -0.4%E; RETAIL TRADE Y/Y: 1.4% V 2.1%E
- (JP) JAPAN DEC TOKYO CPI Y/Y: 0.3% V 0.5%E; CPI EX-FRESH FOOD Y/Y: 0.9% V 0.9%E
- (JP) Japan and US confirm trade talks to start with goods – Nikkei
Korea
- Kospi opened +0.4%
- (KR) SOUTH KOREA NOV INDUSTRIAL PRODUCTION M/M: -1.7% V -0.2%E; Y/Y: 0.1% V 1.4%E
- (KR) South Korea Jan Manufacturing Business Survey: 71 v 71 prior
- (KR) South Korea: 2018 exports exceeded $600B (record high) v $573.9B y/y
- (KR) Talks between the US and South Korea regarding sharing of defense costs said to be in a ‘stalemate’ – Local Press
North America
- US equity markets rebounded to end higher: Dow +1.1%, S&P500 +0.9%, Nasdaq +0.4%, Russell 2000 +0.2%
- (US) Spokesman For US Senate Democrat Leader Schumer: Republicans and Democrats are still very far apart in efforts to resolve gov’t shutdown
- (US) Pres Trump says border fight is about Democrats denying him ‘a win’; believes border security will be the winning electoral issue in 2020
- (US) White House Econ Adviser Hassett: Trump meeting with Fed Chair Powell would be a very favorable thing – Fox Business interview
- (US) Weekly API Oil Inventories: Crude: +6.9M v +3.5M prior
Europe
- (EU) According to poll of economists, Finland’s Liikanen is seen as most likely to become the head of the ECB – FT
Levels as of 01:00ET
- Nikkei 225, +0.4%, ASX 200 1%, Hang Seng +0.1%; Shanghai Composite +0.4%; Kospi +0.6%
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.3%, Dax -0.2%; FTSE100 flat
- EUR 1.1468-1.1425; JPY 111.07-110.52 ; AUD 0.7054-0.7019 ;NZD 0.6715-0.6694
- Feb Gold flat at $1,280/oz; Jan Crude Oil +2.4% at $45.68/brl; Feb Copper +0.2% at $2.689/lb
