General Trend:
- Gainers in Japan include Securities firms, along with Iron/Steel and Electric Appliances companies; Softbank also rises in the face of headline related to Wework
- Australian equities supported by gains in the Energy and Resources sectors, financials sector lags amid recent allegations related to Westpac
- Shanghai Composite reverses opening gain amid pullback in property index
- China upwardly revised 2018 GDP growth, said revision will not have ‘major’ impact on 2019 growth
- Australia’s Nov prelim Manufacturing PMI contracted for the first time in the survey’s history
- ECB President Lagarde is expected to speak during the European morning [this is seen as Lagarde’s first policy speech since becoming ECB President on Nov 1st]
- Hong Kong is expected to hold local elections on Nov 24th (Sunday)
- Alibaba’s HK IPO due to begin trading on Nov 26th (Tuesday)
- RBA Gov Lowe due to speak on ‘unconventional monetary policy: some lessons from overseas’ on Nov 26th (Tuesday)
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.4%
- Westpac [WBC.AU]: Australia bond fund manager Altius said it has lowered its bond exposure to Westpac, cited recent money laundering allegations – financial press
- (AU) Australia Nov Preliminary PMI Manufacturing: 49.9 v 50.0 prior (lowest reading since the survey started in May 2016, first ever reading below 50 or contraction)
China/Hong Kong
- Shanghai Composite opened +0.1%, Hang Seng +0.5%
- Microsoft: Announces it has been granted a license by Commerce Dept to export ‘mass market software’ to Huawei
- (CN) US said to consider delaying the planned Dec 15th tariffs if an agreement is not reached – SCMP
- (CN) Reportedly China has sent invitation to Lighthizer, and Mnuchin in phone call last week for more trade talks – press
- (HK) US White House won’t say if US Pres Trump will sign the Hong Kong Human Rights and Democracy Act of 2019 – NYT
- (CN) China Pres Xi: China’s economic development has huge resilience; has met with IMF MD Georgieva
- (CN) China National Bureau of Statistics (NBS): revises 2018 GDP upwards by 2.1% to CNY91.93T; revision will not have ‘major’ impact on 2019 GDP growth [China’s 2019 official GDP target range is between 6.0-6.5%]
- (CN) China said to ask large banks to raise loans to manufacturing sector – US financial press
- (CN) PBOC Adviser Ma Jun reiterates China still has policy space – US financial press
- (CN) China Agricultural Min: Oct Inventory of breeding sows +0.6% m/m (first rise since Aprl 2018); decline in pig heard is slowing; to inspect pork slaughterhouses nationwide to take inventory of frozen pork stocks
- (CN) China PBOC sets Yuan Reference Rate: 7.0306 v 7.0217 prior
- (CN) China PBoC Open Market Operation (OMO): Skips for 3rd consecutive session
- (HK) Hong Kong Police Chief: To deploy ‘high-profile’ patrols on election day [Sunday, Nov 24th], appeals to protesters not to resort to violence on election day
Japan
- Nikkei 225 opened flat
- (JP) JAPAN NOV PRELIMINARY PMI MANUFACTURING: 48.6 V 48.4 PRIOR (7th straight contraction for PMI manufacturing)
- (JP) JAPAN OCT NATIONAL CPI Y/Y: 0.2% V 0.3%E; CPI EX-FRESH FOOD (CORE) Y/Y: 0.4% V 0.4%E [Reminder: Japan’s sales tax was raised from 8% to 10% on Oct 1st]
- (JP) Japan LDP Official Seko: Government should not hesitate to issue more bonds to fund stimulus package
- (JP) Japan Econ Min Nishimura: Exports and production are seeing ‘prolonged’ weakness; must continue to monitor employment and income situation
Korea
- Kospi opened +0.1%
North America
- (US) US Pres Trump’s recent pick for US Fed, Judy Shelton, cast doubt on the US Fed’s independence in a Oct interview – US financial press
- (US) Former Fed Chair Yellen: there is good reason to worry about the US economy sliding into recession, though I would bet that there would not be recession in coming year
- (US) Pres Trump signs stopgap spending bill, which keeps govt funded through Dec 20th (as expected) – press
- Wework: Softbank said to be discussing a reduction in offer and founder payout – US Financial Press
Europe
- (EU) Trump administration considering new and broader trade probe in order to justify tariffs on the EU – Politico
- (UK) PM Johnson’s conservatives pledge an additional 3% levy on property purchases by non-UK tax residents – US Financial Press
- (DE) German Fin Min: Expects to see €1B from finance transaction tax – German Press
Levels as of 00:20 ET
- Nikkei 225, +0.4%, ASX 200 +0.6%, Hang Seng +0.3%; Shanghai Composite -0.5%; Kospi +0.3%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.3%, Dax +0.1%; FTSE100 +0.2%
- EUR 1.1067-1.1056 ; JPY 108.71-108.56 ; AUD 0.6796-0.6783 ;NZD 0.6410-0.6399
- Gold +0.1% at $1,464/oz; Crude Oil -0.7% at $58.20/brl; Copper -0.2% at $2.621/lb
