General Trend:
- Japanese equities rise on gains in Iron/Steel firms and financials
- China Life rises over 4% in HK on earnings guidance
- China Unicom expected to issue Q3 results after HK market close, China Mobile may also report
- Declines in Consumer Staples and Treasury Wine Estates weigh on Australian equity market
- Australian rare-earth miner Lynas rises over 2% post Q1 update, avg selling prices rose q/q
- Analysts continue to comment on the possibility of QE in Australia
- Japan exports decline for 10th straight month in Sept, exports to the US -7.9% y/y
- Japanese markets to be closed on Tuesday for holiday (Oct 22nd)
- Halliburton is due to report results during the NY morning
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.1%
- TWE.AU CEO Clarke to retire in Q1 FY21; COO Time Ford promoted to new CEO
- BHP.AU Signs 4 renewable power agreements related to Chile operations, to be value accretive even with provision; to recognize $780M in provisions related to cancellation of coal contracts
- (AU) Westpac analysts say it is possible that the RBA adopts asset purchase program in 2020, estimates the RBA will see 0.5% as the lower bound for cash rate – US financial press
Japan
- Nikkei 225 opened +0.2%
- (JP) JAPAN SEPT TRADE BALANCE: -¥123.0B V ¥54.0BE; ADJ TRADE BALANCE: -¥97.2B V -¥178.1BE; Exports to China -6.7% y/y; US -7.9% y/y; EU -0.4% y/y ; Asia -7.8% y/y
- (JP) Bank of Japan (BOJ) Gov Kuroda: If needed BOJ will “certainly” cut short and medium term rates as part of easing; we already have a flexible framework that allows us to accelerate purchases of ETFs if markets become too volatile – speaking after IMF
- (JP) 70% of Japanese polled said they have not lowered spending after Oct sales tax increase in Japan -Yomiuri Poll
Korea
- Kospi opened +0.4%
- (KR) South Korea Oct 1-20 Exports y/y: -19.5% v -21.8% prior; Chip Exports y/y: -28.8% v -39.8% prior
- (KR) Bank of Korea (BOK) Gov Lee said US/China trade war likely cut 0.4 ppts from South Korea 2019 GDP growth – US financial press
- 005930.KR Said to target sales of 6M foldable phones in 2020 – Korea Press
China/Hong Kong
- Hang Seng opened flat; Shanghai Composite opened -0.1%
- (CN) CHINA SEPT NEW HOME PRICES M/M: 0.5% V 0.6% PRIOR; Y/Y: 8.4% V +8.8% PRIOR
- (CN) China PBoC sets 1-year loan prime rate (LPR) at 4.20% v 4.20% prior (4.15%e); sets 5-year LPR at 4.85% v 4.85% prior (4.83%e)
- (CN) China PBOC Gov Yi Gang: The potential escalation of trade tensions and policy uncertainty were the major risk factors facing the world economy, and market forces were keeping China’s yuan at an appropriate level – speaking from IMF
- (CN) China Vice Premier Liu reiterates China will work with the US to address each other’s core concerns on the basis of equality and mutual respect
- (HK) Hong Kong Chief Executive Lam said to have hinted at executive council reshuffle ‘when chaos ends’ – HK press
- (CN) China PBOC sets Yuan Reference Rate: 7.0680 v 7.0690 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY50B v injects CNY30B prior in 7-day; Net injects CNY50B v injects CNY30B prior
- 1828.HK Citic Pacific makes HK$3.50/shr privatization offer totaling HK$3.02B
- (CN) China Def Min: Resolving the Taiwan question is China’s greatest national interest; no force can prevent China’s ‘reunification’
- (CN) China National Development and Reform Commission (NDRC): Questioning regarding whether China’s economy is sharply slowing are groundless; acceptable for China GDP to grow a bit slower or faster
Other
- IMF Steering Committee (IMFC): Global economic outlook highly uncertain and subject to elevated downside risks including trade tensions, policy uncertainty and geopolitical risks
North America
- (US) Fed’s Kaplan (dove, non-voter): bothers me that the Fed funds rate is above the entire Treasury yield curve
Europe
- (UK) Parliament votes in favor of Letwin amendment, which would withhold approval of Brexit deal until legislation to ratify it has passed, PM Johnson must respond to EU by midnight Saturday with UK’s plan
- (UK) PM Johnson sends an unsigned letter to EU asking for a delay to Brexit to Jan 31, 2020, as well as 2 additional letters explaining that he does not want a delay and a copy of the law that requests the legislation be passed before approving and Brexit deal
- (UK) Senior Minister Michael Grove (in charge of no deal Brexit prep): UK will still leave the EU on October 31st; letter was sent because parliament required it to be sent … but parliament can’t change the prime minister’s mind, parliament can’t change the government’s policy or determination
- (UK) EU leaders held short meeting Sunday on Brexit: Saying that they will play for time rather than rush to decided on PM Johnson’s not-request, request to delay Brexit
- (EU) Incoming ECB Chief Lagarde: Everyone will be a little bit less well off after Brexit – CBS Interview
Levels as of 01:20ET
- Hang Seng +0.2%; Shanghai Composite -0.1%; Kospi +0.2%; Nikkei225 +0.3%; ASX 200 +0.0%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.0%; FTSE100 +0.3%
- EUR 1.1148-1.1165; JPY 108.30-108.56; AUD 0.6841-0.6866; NZD 0.6371-0.6404
- Commodity Futures: Gold -0.1% at $1,493/oz; Crude Oil -0.2% at $53.79/brl; Copper -0.1% at $2.64/lbGeneral Trend:
- Japanese equities rise on gains in Iron/Steel firms and financials
- China Life rises over 4% in HK on earnings guidance
- China Unicom expected to issue Q3 results after HK market close, China Mobile may also report
- Declines in Consumer Staples and Treasury Wine Estates weigh on Australian equity market
- Australian rare-earth miner Lynas rises over 2% post Q1 update, avg selling prices rose q/q
- Analysts continue to comment on the possibility of QE in Australia
- Japan exports decline for 10th straight month in Sept, exports to the US -7.9% y/y
- Japanese markets to be closed on Tuesday for holiday (Oct 22nd)
- Halliburton is due to report results during the NY morning
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.1%
- TWE.AU CEO Clarke to retire in Q1 FY21; COO Time Ford promoted to new CEO
- BHP.AU Signs 4 renewable power agreements related to Chile operations, to be value accretive even with provision; to recognize $780M in provisions related to cancellation of coal contracts
- (AU) Westpac analysts say it is possible that the RBA adopts asset purchase program in 2020, estimates the RBA will see 0.5% as the lower bound for cash rate – US financial press
Japan
- Nikkei 225 opened +0.2%
- (JP) JAPAN SEPT TRADE BALANCE: -¥123.0B V ¥54.0BE; ADJ TRADE BALANCE: -¥97.2B V -¥178.1BE; Exports to China -6.7% y/y; US -7.9% y/y; EU -0.4% y/y ; Asia -7.8% y/y
- (JP) Bank of Japan (BOJ) Gov Kuroda: If needed BOJ will “certainly” cut short and medium term rates as part of easing; we already have a flexible framework that allows us to accelerate purchases of ETFs if markets become too volatile – speaking after IMF
- (JP) 70% of Japanese polled said they have not lowered spending after Oct sales tax increase in Japan -Yomiuri Poll
Korea
- Kospi opened +0.4%
- (KR) South Korea Oct 1-20 Exports y/y: -19.5% v -21.8% prior; Chip Exports y/y: -28.8% v -39.8% prior
- (KR) Bank of Korea (BOK) Gov Lee said US/China trade war likely cut 0.4 ppts from South Korea 2019 GDP growth – US financial press
- 005930.KR Said to target sales of 6M foldable phones in 2020 – Korea Press
China/Hong Kong
- Hang Seng opened flat; Shanghai Composite opened -0.1%
- (CN) CHINA SEPT NEW HOME PRICES M/M: 0.5% V 0.6% PRIOR; Y/Y: 8.4% V +8.8% PRIOR
- (CN) China PBoC sets 1-year loan prime rate (LPR) at 4.20% v 4.20% prior (4.15%e); sets 5-year LPR at 4.85% v 4.85% prior (4.83%e)
- (CN) China PBOC Gov Yi Gang: The potential escalation of trade tensions and policy uncertainty were the major risk factors facing the world economy, and market forces were keeping China’s yuan at an appropriate level – speaking from IMF
- (CN) China Vice Premier Liu reiterates China will work with the US to address each other’s core concerns on the basis of equality and mutual respect
- (HK) Hong Kong Chief Executive Lam said to have hinted at executive council reshuffle ‘when chaos ends’ – HK press
- (CN) China PBOC sets Yuan Reference Rate: 7.0680 v 7.0690 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY50B v injects CNY30B prior in 7-day; Net injects CNY50B v injects CNY30B prior
- 1828.HK Citic Pacific makes HK$3.50/shr privatization offer totaling HK$3.02B
- (CN) China Def Min: Resolving the Taiwan question is China’s greatest national interest; no force can prevent China’s ‘reunification’
- (CN) China National Development and Reform Commission (NDRC): Questioning regarding whether China’s economy is sharply slowing are groundless; acceptable for China GDP to grow a bit slower or faster
Other
- IMF Steering Committee (IMFC): Global economic outlook highly uncertain and subject to elevated downside risks including trade tensions, policy uncertainty and geopolitical risks
North America
- (US) Fed’s Kaplan (dove, non-voter): bothers me that the Fed funds rate is above the entire Treasury yield curve
Europe
- (UK) Parliament votes in favor of Letwin amendment, which would withhold approval of Brexit deal until legislation to ratify it has passed, PM Johnson must respond to EU by midnight Saturday with UK’s plan
- (UK) PM Johnson sends an unsigned letter to EU asking for a delay to Brexit to Jan 31, 2020, as well as 2 additional letters explaining that he does not want a delay and a copy of the law that requests the legislation be passed before approving and Brexit deal
- (UK) Senior Minister Michael Grove (in charge of no deal Brexit prep): UK will still leave the EU on October 31st; letter was sent because parliament required it to be sent … but parliament can’t change the prime minister’s mind, parliament can’t change the government’s policy or determination
- (UK) EU leaders held short meeting Sunday on Brexit: Saying that they will play for time rather than rush to decided on PM Johnson’s not-request, request to delay Brexit
- (EU) Incoming ECB Chief Lagarde: Everyone will be a little bit less well off after Brexit – CBS Interview
Levels as of 01:20ET
- Hang Seng +0.2%; Shanghai Composite -0.1%; Kospi +0.2%; Nikkei225 +0.3%; ASX 200 +0.0%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.0%; FTSE100 +0.3%
- EUR 1.1148-1.1165; JPY 108.30-108.56; AUD 0.6841-0.6866; NZD 0.6371-0.6404
- Commodity Futures: Gold -0.1% at $1,493/oz; Crude Oil -0.2% at $53.79/brl; Copper -0.1% at $2.64/lb
