General Trend:
- Shanghai Property index pares over 2% loss, gov’t said property market was stable in H1
- Samsung Electronics said to have secured emergencies supplies of certain materials amid export restrictions announced by Japan, it was not initially known how Samsung obtained the supplies (US financial press)
- US companies may receive approval for licenses to resume sales to Huawei within 2-4 weeks (financial press)
- Asia session participation limited by Japanese holiday
- Rio Tinto expected to report quarterly production update on Tuesday, BHP’s production update is expected on July 17th (Wed)
- China’s June industrial production rebounds from slowest growth pace since 2002, retail sales supported by auto and online sales
- China said recent data was supported by gov’t stimulus measures
- Kiwi rises after China data, New Zealand Q2 CPI data seen on Tuesday
- Aussie in focus amid China data and Tuesday’s expected release of RBA minutes, Australia monthly jobs data due on July 18th (Thursday)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.1%
- Uranium miners stronger after Trump decides to continue to allow uranium to be purchased overseas and imported without a quota
- (AU) Australia sells A$400M v A$400M indicated in 2.75% May 2041 bonds, avg yield 1.9944%, bid to cover 1.77x
Japan
- Nikkei 225 closed for holiday
- (JP) According to survey from Teikoku Data Bank ~50% of business in Japan do not see any front loading of sales ahead of sales tax hike in October
- (KR) UN report shows Japan illegally exported military and luxury items to North Korea – Korean Press
Korea
- Kospi opened -0.2%
- 005930.KR Said to have secured emergency supplies of 3 materials impact by Japan export curbs – US financial press
- (KR) Follow Up: South Korea to raise 2020 minimum wage 2.9% to KRW8,590 ($7.30) (3rd smallest increase since minimum wage was started in 1988) v +10.9% in 2019 and +16.4% in 2018
China/Hong Kong
- Hang Seng opened -0.6%; Shanghai Composite opened -0.3%
- (CN) CHINA Q2 GDP Q/Q: 1.6% V 1.5%E; Y/Y: 6.2% V 6.2%E; GDP YTD Y/Y: 6.3% v 6.3%e
- (CN) CHINA JUN INDUSTRIAL PRODUCTION Y/Y: 6.3% V 5.2%E; YTD Y/Y: 6.0% v 5.9%e
- (CN) China National Bureau of Statistics (NBS) Official: China faces more external uncertainties and ‘instabilities, domestic economy faces ‘new’ downward pressure’ – comments after June and Q2 data
- (CN) CHINA JUN RETAIL SALES Y/Y: 9.8% V 8.5%E; YTD Y/Y: 8.4% V 8.2%E
- (CN) China Jun Property Investment YTD Y/Y: +10.9% v 11.2% prior
- (CN) CHINA JUN FIXED URBAN ASSETS Y/Y: 5.8% V 5.6%E
- (CN) China Jun Surveyed Jobless Rate: 5.1% v 5.0% prior
- (CN) China former PBoC Gov Zhou: Beijing could model digital currencies based on the examples of Facebook and Hong Kong currency models; Libra shows the potential for a ‘strong international currency’
- (CN) Study from Harvard and German think tank Kiel estimates sovereign debt to China increased from $500B in 2000 to $5T in 2017; China now largest global creditor
- (CN) China PBOC sets yuan reference rate:6.8677 v 6.8662 prior
- (CN) China PBoC Open Market Operation (OMO): Skips for the 16th consecutive session
- (CN) CHINA JUN NEW HOME PRICES M/M: 0.7% V 0.7% PRIOR; Y/Y: 10.3% V 10.7% PRIOR
- (CN) China PBoC offers CNY200B 1-year medium term lending facility (MLF) v CNY240B prior at 3.3% v 3.3% prior
- (CN) China PBOC: Implements 3rd phase of cuts to Reserve Ratio Requirement (RRR) for county level rural commercial banks, effective today; releases long term capital worth ~CNY100B (previously announced)
Data released after the close Friday
- (CN) CHINA JUN TRADE BALANCE (CNY): 345.2T V 278.5TE; Exports Y/Y: 6.1% v 6.9%e; Imports Y/Y: -0.4% v +3.7%e; May Rare Earth exports 4.0Kt v 3.6Kt prior; Iron Ore imports 75.2M tons v 80.7M m/m (lowest level since Feb 2016)
- (CN) CHINA JUN TRADE BALANCE: $51.0B V $45.0BE; Exports Y/Y: -1.3% v -1.7%e; Imports Y/Y: -7.3% v -4.6%e; May Trade Surplus with the US: $29.9B v $26.9B prior
- (CN) CHINA H1 TRADE BALANCE (CNY): 1.23T, +3.9% y/y; H1 Exports to U.S. -2.6% y/y, Imports from U.S. -25.7% y/y
- (CN) China Jun New Yuan Loans (CNY): 1.66T v 1.70Te (highest level since March)
- (CN) China Jun M2 Money Supply Y/Y: 8.5% v 8.6%e
- (CN) China Jun Aggregate Financing (CNY): 2.26T v 1.90Te
Other
- (IR) Iran President Rouhani: Ready and willing to hold talks with the US if sanctions are lifted and US returns to the 2015 nuclear deal it left last year
North America
- (US) President Trump will not impose uranium quotas; against Commerce Department assessment that America’s use of foreign uranium raises national security concerns
- BA Sources saying that the grounding of the 737 Max could last until January 2020, as Boeing works out fixes and roll out of fixes – US financial press
- (US) Draft regulation put together that will prevent big technology companies from acting as financial institutions or issuing digital currencies, being circulated by Democratic majority that leads the House Financial Services Committee – US press
Europe
- (UK) PM Candidate Johnson will seek trade deal with US as one of his first actions if elected – UK Press
- (UK) Jul Rightmove House Prices M/M: -0.2% v 0.3% prior; y/y: -0.2% v 0.0% prior
Levels as of 01:20ET
- Hang Seng +0.1%; Shanghai Composite +0.3%; Kospi -0.2%; Nikkei225 closed for holiday; ASX 200 -0.5%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.0%, Dax +0.2%; FTSE100 +0.1%
- EUR 1.1264-1.1276; JPY 107.80-108.11; AUD 0.7012-0.7036; NZD 0.6684-0.6724
- Commodity Futures: Gold +0.1% at $1,412/oz; Crude Oil -0.4% at $59.98/brl; Copper +0.6% at $2.71/lb
