General Trend:
- Shanghai property index drops over 1.8%, China said to have asked trusts to limit financing to property sector (local press)
- Australian equities outperform, REITS and Energy companies gain
- Aussie iron ore miners underperform, China said to probe iron ore price increases
- USD/JPY trades in tight range ahead of US payrolls report
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat
- (AU) Australia APRA finalizes guidance on mortgage lending
- (AU) Australia Jun AiG Performance of Construction Index: 43.0 v 40.4 prior (10th consecutive month of contraction)
China/Hong Kong
- Shanghai Composite opened flat, Hang Seng flat
- China Commerce Ministry (MOFCOM): Tariffs must be removed for a trade deal with U.S.(comments from July 4th)
- (CN) China wants clarity on Huawei situation before making agricultural purchases from US – SCMP
- (CN) China Banking and Insurance Regulator (CBIRC) official Zhou Liang: H1 New Yuan Loans exceeded CNY9.0T (implies June new loans of over CNY990B v CNY1.18T m/m)
- (CN) China said to ask certain trusts to limit financing related to property sector – Chinese Press
- (CN) China state insurance fund expected to takeover Baoshang Bank’s NCDs from July 8th – financial press
- (CN) China regulators to examine drivers of rise in iron ore prices, plan to crack down on price increases that are ‘arbitrary’ – Chinese Press
- (CN) China reportedly considering to cut infrastructure project capital needs – China Press
- (CN) FT notes recent move by China money market rates to 10-year low following recent PBOC cash injections
- (CN) China police reportedly installing data-harvesting app MFSocket on smartphones during random street checks – US Press
Japan
- Nikkei 225 opened flat
- (JP) Japan FSA: Reportedly considering tougher rules for life insurance companies, notes low interest rate environment – Japan Press
- (JP) Japan May Household Spending Y/Y: +4.0% v 1.5%e (fastest increase since May 2015)
- (JP) Japan Jun Official Reserve Assets: $1.32T v $1.31T prior
- (JP) Japan PM Abe: To implement a macro policy approach should the global economic situation deteriorates (comments from July 4th)
- (JP) Bank of Japan (BOJ) Dep Gov Amamiya: For now, sticking to our baseline scenario on economy but we also recognize that downside risks are strong and high for main price scenario; Digital currencies would allow central bank to more effectively apply negative rates but no central bank is thinking of doing this
Korea
- Kospi opened +0.1%
- Samsung Electronics [005930.KR]: Reports Prelim Q2 (KRW) Op 6.5T v 6.0Te (-56.3% y/y), Rev 56.0T v 54.5Te (-4.2% y/y)
Other
- (PH) Philippines Jun CPI Y/Y: 2.7% v 2.8%e
- (SG) Singapore to release advance GDP on July 12 (Friday)
North America
- (US) Magnitude 6.5 earthquake reported earlier today in central/southern California (said to be the largest quake in over 20 years), followed by several smaller ones
Europe
- (DE) Bundesbank Spokesman said ECB member/Bundesbank President Weidman is not applying for job elsewhere; says Weidmann is ‘happy’ in current role as Bundesbank President – US financial press
- (IR) On Thursday, UK Royal Marines seized Iran oil tanker in Gibraltar – financial press
Levels as of 1:20 ET
- Nikkei 225,flat, ASX 200 +0.8%, Hang Seng +0.1%; Shanghai Composite -0.1%; Kospi flat
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.3%, Dax -0.1%%; FTSE100 flat
- EUR 1.1289-1.1277 ; JPY 107.88-107.78 ; AUD 0.7030-0.7020 ;NZD 0.6695-0.6681
- Gold -0.1% at $1,420/oz; Crude Oil -1.1% at $56.72/brl; Copper -0.3% at $2.670/lb
