China’s Industrial Production And Retail Sales Miss Ests

Jun 15 20, 06:59 GMT

General Trend:

Travel-sensitive companies are among the decliners in HK following the headlines related to Beijing
CanSino Biologics [developing coronavirus vaccine] rises over 10% in HK; Shanghai Health Care index rises over 1%
Real Estate, Electric Appliances and Transport firms decline in Japan; On Sunday new coronavirus cases in Tokyo hit the highest level since early May ; Japanese banks trade higher after losses on Friday
Consumer firms are among the leading decliners in Australia
PBOC conducted medium-term lending facility (MLF) operation (as expected), left the interest rate unchanged
China Official: New Hong Kong security law will not be ‘retroactive’
BoJ decision due on Tuesday (June 16th), there has been renewed speculation that the central bank could raise the size of its corporate lending program [the size of the program is currently equal to ~¥30.0T]
NZ to price debt syndicate on Tuesday

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%
(NZ) New Zealand May Food Prices m/m: -0.8% v +1.0% prior
(AU) Australia PM Morrison: ~A$100B in economic activity will be lost this year; will have record budget deficit this year and next

Japan

Nikkei 225 opened -0.8%
9984.JP Said to have invested more than $500M in Credit Suisse funds that were funding some of Softbank’s investments – FT
(JP) Japan PM Abe: Japan will review virus policies after outbreak ends – speaking to parliament
(JP) On Sunday, Tokyo (Japan) confirmed 47 new coronavirus cases (largest daily rise since May 5th), 18 of the cases were linked to nightlife businesses – Nikkei

Korea

Kospi opened -0.8%
(KR) Bank of Korea (BOK) launches legal advisory council for central bank-issued digital currency (CBDC) to help review legal issues related to its possible issuance of such a currency in the future – Yonhap
(KR) South Korea Fin Min Hong: Need to provide measures to support exports, will provide support aimed at helping companies win orders from overseas; targeting overseas orders of $30B in 2020
(KR) South Korea held an emergency security meeting Sunday; pressed North Korea to keep reconciliatory deals as it continues to up the ante by threatening to sever inter-Korean relations and even use military action – Yonhap
003620.KR Parent, Mahindra & Mahindra, considering selling its stake in amid the coronavirus pandemic – Yonhap
(KR) North Korea leader Kim’s sister, Kim Yo-jong: North Korea will take its next step against South Korea for its betrayal and crimes against N. Korea; army has been entrusted to plan and take any necessary action – KCNA

China/Hong Kong

Hang Seng opened -1.3%; Shanghai Composite opened -0.4%
(CN) CHINA MAY INDUSTRIAL PRODUCTION Y/Y: 4.4% V 5.0%E; YTD Y/Y: -2.8% V -3.0%E
(CN) CHINA MAY RETAIL SALES Y/Y: -2.8% V -2.3%E; YTD Y/Y: -13.5% V -13.5%E
(CN) CHINA PBOC CONDUCTS CNY200B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) OPERATION V CNY100B PRIOR: RATE 2.95% V 2.95% PRIOR
(CN) CHINA MAY NEW HOMES PRICES M/M: 0.5% V 0.4% PRIOR; Y/Y: 4.9% V 5.1% PRIOR
(CN) China National Health Commission Coronavirus Update for June 14th: 49 additional cases (10 imported v 19 prior) v 57 prior; Additional deaths: 0 v 0 prior; Additional Asymptomatic cases: 18 v 9 prior; Cases in Beijing 36
(CN) China National Health Commission Coronavirus Update for June 13th: 57 additional cases (largest spike since April) v 11 prior; Additional deaths: 0 v 0 prior (spike in cases resulted in Beijing locking down parts of the city and largest market)
(CN) Beijing, China officials have closed down parts of the city and implemented tighter controls after a record number of new coronavirus cases appeared – press
(CN) China PBOC sets Yuan reference rate: 7.0902 v 7.0865 prior
(CN) China PBoC Open Market Operation (OMO): Skips v injects CNY100B in 7 day reverse repos prior; Net drain CNY0B v drain CNY50B prior
(CN) China Hong Kong and Macau Affairs Office Deputy Dir: New Hong Kong security law will not be retroactive
(CN) CHINA MAY PROPERTY INVESTMENT YTD Y/Y: -0.3% V -0.8%E
(CN) China May Surveyed Jobless Rate: 5.9% v 5.9%e

Other

(SG) Singapore Central Bank (MAS) Economist: Cut 2020 GDP to -5.8% (prior +0.6%); CPI -0.5% (prior +0.8%), Core CPI -0.5% (prior +0.9%)

North America

SBUX Announces it will close 400 traditional locations in US and Canada and open new pick up locations only over the next 18 months – letter to shareholders
SVA Sinovac announces positive preliminary results of Phase I/II clinical trials for inactivated Vaccine candidate against COVID-19; coronavirus shot is safe and capable of eliciting an immune response from human trials
(US) Fed’s Kaplan (dove, voter) said the US unemployment rate will be at 8% or higher through the end of 2020 – US media
(US) White House econ adviser Kudlow: US needs to stop providing the extra $600/week virus boost to unemployment and replace it with a smaller bonus for those returning to work – CNN

Europe

(ES) Spain PM Sanchez said to be planning $4.2B package for Spain automakers – press
(FR) France President Macron: Want to build up an independent Europe, compared to US and China; starting Monday all of France will go into “green” zone regarding coronavirus risks, need to continue with social distancing, prepare for risks and return of virus

Levels as of 1:15ET

Hang Seng -1.8%; Shanghai Composite -0.5%; Kospi -2.0%; Nikkei225 -2.6%; ASX 200 -1.6%
Equity Futures: S&P500 -2.0%; Nasdaq100 -1.4%, Dax -2.3%; FTSE100 -1.3%
EUR 1.1269-1.1227; JPY 107.58-107.00; AUD 0.6848-0.6809; NZD 0.6456-0.6404
Commodity Futures: Gold -0.2% at $1,733/oz; Crude Oil -4.4% at $34.66/brl; Copper -1.4% at $2.56/lb