HomeContributorsFundamental AnalysisEx-PBOC Official Commented On CNY

Ex-PBOC Official Commented On CNY

General Trend

  • Hang Seng TECH index drops over 2% after losses on the Nasdaq; Financial and Property indices decline by over 1%, Gaming firms also drop
  • Shanghai Composite declines by 1% during morning session, Consumer Staples index dropped over 2.3% (Kweichow Moutai dropped over 3%)
  • Australia Resources index declines by over 1.5%, tracks the recent declines in metals; Energy index tracks Wed’s rise in oil prices
  • Japanese equities outperform in Asia; Marine Transportation and Bank indices rise; Iron/Steel and Air Transportation indices are among the decliners
  • AUD/JPY declines after initially rising after Aussie jobs data
  • US 30-year Treasury FUTs rise in Asia after dropping on Wed
  • China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thursday
  • Indonesia and Taiwan Central Banks expected to hold rate decisions later today (consensus is unchanged)
  • BOE also due to hold rate decision later today

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened flat
  • (AU) AUSTRALIA AUG EMPLOYMENT CHANGE: +111.0K V -35.0KE; UNEMPLOYMENT RATE: 6.8% V 7.7%E; Full Time Employment Change: 36.2K v +43.5K prior; hours worked rose more modestly
  • (AU) Reserve Bank of Australia (RBA) Skips offering to buy bonds v skips prior (4 straight skips)
  • Scentre Group [SCG.AU]: Prices $3.0B in subordinated hybrid 60-yr notes [2 tranches]
  • (NZ) NEW ZEALAND Q2 GDP Q/Q: -12.2% V -12.5%E; Y/Y: -12.4% V -12.8%E (CONFIRMS TECHNICAL RECESSION, FIRST SINCE 2010)
  • NZ) New Zealand Debt Management Office (DMO) sells NZ$950M v NZ$950M indicated in 2023, 2029 and 2033 bonds; sells NZ$450M in Apr 2023 bonds, avg yield -0.213%, bid to cover 2.33x
  • (NZ) Reserve Bank of New Zealand (RBNZ) released stress test results
  • (NZ) New Zealand Aug Non Resident Bond Holdings: 49.5% v 51.6% prior

China/Hong Kong

  • Hang Seng opened -0.2%, Shanghai Composite opened -0.2%
  • (CN) China PBOC sets Yuan reference rate: 6.7675 v 6.7825 prior
  • (CN) Former China PBOC official Sheng Songcheng said China should closely monitor the risk of ‘rapid’ yuan (CNY) appreciation; expects capital inflow pressure to increase further – financial press
  • ICBC [1398.HK]: Prices $2.9B (~CNY19.6B) in 3.58% non-cumulative perpetual offshore preference shares [Reminder: ICBC said to consider issuance of up to CNY30B equivalent in US dollar denominated AT1 perpetual shares [preference shares] (from Sept 14th)]
  • (HK) Hong Kong Monetary Authority (HKMA) says rates have a slight increase but remain relatively low; rates will be influenced by local funding supply and demand
  • (CN) China Vice Minister of Commerce Wang Shouwen: China is seriously implementing the ‘Phase 1’ trade deal with the US
  • (CN) China PBoC Open Market Operation (OMO): Injects CNY110B in 7-day reverse repos v injects CNY120B 7-day reverse repos prior
  • (CN) US DOJ charges 5 Chinese nationals with hacking over 100 companies – press

Japan

  • Nikkei 225 opened -0.3%
  • (JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%, AS EXPECTED; Maintains policy framework of “QQE with Yield Control” from around 0.00% (as expected); Maintains asset purchases at annual pace of ‘unlimited’; raises assessments of industrial production and exports; notes the domestic economy has started to ‘pick up’
  • Sony [6758.JP]: To price Playstation 5 at $399.99 (no disc drive) and $499.99 (with disc drive); consoles to launch Nov 12th
  • (JP) Japan PM Suga: Will continue with Abenomics; top priority to deal with pandemic issues – inaugural press conference as PM (from Sept 16th)
  • (JP) Japan Aug Tokyo Condo Sales Y/Y: -8.2% v 7.8% prior

Korea

  • Kospi opened -0.2%
  • Kia Motors [000270.KR]: Said to suspend all factories in Sohari near Seoul after multiple workers test positive for coronavirus – Autoworker Union
  • (KR) Server DRAM prices are expected to continue their decline in Q4 – Korea Press citing TrendForce
  • (KR) US Govt said to offer talks with North Korea on Humanitarian Aid – Korea press
  • (KR) South Korea confirms 153 additional coronavirus cases v 113 prior; 5 Additional deaths (15 straight days of <200 cases)
  • LG Chem [051910.KR] Confirms spin off of battery business, considering IPO of business following spin off

Other Asia

  • (SG) SINGAPORE AUG NON-OIL DOMESTIC EXPORTS M/M: 10.5% V 2.2%E; Y/Y: 7.7% V 3.3%E
  • (US) US govt reportedly confirms it will sell $7B in arms to Taiwan, including cruise missiles and drones – press
  • Top Glove [TOPG.MY]: Reports Q4 (MYR) Net 1.3B v 74.2M y/y, Rev 3.1B v 1.2B y/y; gloves demand remains ‘paranormal’

North America

  • (US) FOMC LEAVES TARGET RANGE UNCHANGED BETWEEN 0.00-0.25%; AS EXPECTED; FED WILL MAINTAIN LOW RATES UNTIL JOB AND INFLATION GOALS MET; 13 OF 17 MEMBERS PROJECT NO RATE RISE THROUGH AT LEAST 2023; Decision was 8-2; Kaplan and Kashkari dissent
  • (US) Fed Chair Powell: today’s policy statement contained ‘powerful forward guidance’; expects guidance offered today will be ‘durable’ – post rate decision Q&A
  • (US) White House Chief of Staff Meadows: $1.5T stimulus proposal could be acceptable to Pres Trump

Levels as of 1:20 ET

  • Nikkei 225, -0.6%, ASX 200 -1.1% , Hang Seng -1.6%; Shanghai Composite -0.8% ; Kospi -1.3%
  • Equity S&P500 Futures: -1%; Nasdaq100 -1.1%, Dax -0.6%; FTSE100 -1.2%
  • EUR 1.1819-1.1737 ; JPY 105.17-104.87 ; AUD 0.7312-0.7255 ;NZD 0.6746-0.6681
  • Gold -1.2% at $1,946/oz; Crude Oil -1.5% at $39.55/brl; Copper -1.5% at $3.0213/lb

 

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading