US Equity Markets Rose Amid Jobs Data, Ahead Of July 4th Holiday

Jul 03 20, 06:21 GMT

General Trend:

Nikkei pared opening gain, Tokyo’s daily coronavirus cases remain above 100; Transports lag in Japan, while Electric Appliance companies and Softbank gain
Gainers in Australia include Telecoms and Consumer Staples, Financials decline

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat
(AU) Australia Victoria state reports 66 additional coronavirus cases v 77 prior
(AU) Australia sells A$2.0B v A$2.0B indicated in 0.25% Nov 2024 bonds, avg yield 0.3654% v 0.3865% prior, bid to cover 4.5x v 4.0x prior
(AU) Australia AOFM Issuance Program Update: planning to sell 2025, 2026, 2031, and 2036 syndicated bonds; Also planning new 30 year (2051) benchmark treasury bond
*(AU) AUSTRALIA MAY FINAL RETAIL SALES M/M: 16.9% V 16.3%E (record increase)
(AU) Australia Jun Final CBA PMI Services: 53.1 v 53.2 prelim (Confirms 1st expansion in 5 months)
(AU) Australia Jun AiG Performance of Construction Index: 35.5 v 24.9 prior
(NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$160M v NZ$390M prior in government bonds as part of QE v NZ$260M sought
(NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$940M v NZ$940M prior in government bonds next week

China/Hong Kong

Hang Seng opened +0.8%, Shanghai Composite opened +0.4%
Bank of China HK [2388.HK]: To raise mortgage rates for apartment buyers – Press
(CN) CHINA JUN CAIXIN PMI SERVICES: 58.4 V 53.2E (Highest since Apr 2010); business activity index hit a 10-year high, and the gauge for total new business also reached its highest level since August 2010
(US) Senate approves China sanctions legislation related to Hong Kong; sends bill to Pres Trump for his signature
(US) US Senators Portman and Cardin have proposed a non-binding resolution related to changes at the WTO
(CN) China PBoC Open Market Operation (OMO): Skips reverse repos v Skips prior; Net drain CNY110B v Net drain CNY70B prior (5th straight skip)
(CN) China PBOC sets Yuan reference rate: 7.0638 v 7.0566 prior
(CN) China reported to tighten property resale rules to counter the speculation in the market – Press
(CN) Lawmakers in China are reviewing the draft related to data security law, some believe the law could seek to protect individual privacy – SCMP

Japan

Nikkei 225 opened +0.5%
(JP) Tokyo reports ~125 coronavirus cases (2nd straight day >100 cases )
(JP) Japan considering revising coronavirus regulations after finding >100 coronavirus cases in Tokyo – Press
(JP) Japan Jun Final PMI Services: 45.0 v 42.3 prelim (6th straight contraction)
(JP) Bank of Japan (BOJ): Q1 Japan output gap: 0.29% v 1.07% q/q (lowest since Q1 2017, 2nd straight decline)
(JP) Japan ruling Party LDP reported to call on Japan Govt to cancel China President Xi visit to China due to passage of Hong Kong Security Law- Press
(JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Raises purchases of 1-3 year JGBs (as expected)

Korea

Kospi opened +0.6%
(KR) South Korea Jun Foreign Reserves: $410.8B v $407.3B prior (record high)
(KR) North Korea Leader Kim said to have attended political bureau meeting on Thursday, officials said to have talked about work related to the coronavirus epidemic – KCNA

Other Asia

Cadila Healthcare [CDH.IN]: COVID-19 vaccine reportedly receives DCGI nod for clinical trials – press
Foxconn Technology: Plants reportedly are affected by India hold up of China imports – press
(IN) India Jun PMI Services: 33.7 v 12.6 prior (4th straight contraction)
(SG) Singapore Jun Retail Sales M/M: -21.5% v -8.0%e; Y/Y: -52.1% v -47.0%e

North America

(US) Texas Gov Abbott imposes mandatory face mask requirement in every Texas county that has 20 or more COVID-19 cases – press
(US) Fed Total Balance Sheet Size as of July 1st: $7.06T, -$33.9B w/w (3rd straight decline) [Central Bank liquidity swaps: $226.8B, -$49.9B w/w]
Regeneron [REGN]: REGN and SNY halt Kevzara (sarilumab) Phase 3 U.S. Trial in COVID-19 Patients; Did not meet primary and key secondary endpoints

Europe

Levels as of 1:20 ET

Nikkei 225, +0.2%, ASX 200 flat , Hang Seng +0.6%; Shanghai Composite +0.9% ; Kospi +0.4%
Equity S&P500 Futures: -0.2%; Nasdaq100 -0.1%, Dax flat; FTSE100 flat
EUR 1.1249-1.1233 ; JPY 107.57-107.43 ; AUD 0.6931-0.6912 ;NZD 0.6519-0.6503
Gold -0.2% at $1,787/oz; Crude Oil -0.8% at $40.34/brl; Copper -0.7% at $2.714/lb