China Released Sept PMI Data

Sep 30 20, 06:12 GMT

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.2%
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$35.9B v A$59.8B prior
(AU) Commonwealth Bank (CBA): Markets have misunderstood the recent speech by RBA Dep Gov Debelle [from Sept 22nd], RBA is very aware of the risk related to further rate cuts – US financial press
(AU) Australia Aug Private Sector Credit M/M: 0.0% v -0.1%e; Y/Y: 2.2% v 2.1%e
(AU) Australia Aug Building Approvals M/M: -1.6% V 0.0%E
(AU) Australia sells A$2.0B v A$2.0B indicated in 1.00% Dec 2030 bonds, avg yield 0.85%, bid to cover 4.2x
Australian Stock Exchange [ASX.AU]: To launch 5-year bond futures contract towards end of the year; Post coronavirus increase in Govt bond issuance around 5-year part of yield curve expected to aid demand for 5-year products
(NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$399M v NZ$450M prior in government bonds as part of QE v NZ$400M sought
(NZ) New Zealand Sept Final ANZ Business Confidence: -28.5 v -26.0 prelim; Activity Outlook: -5.4 v -9.9 prelim

China/Hong Kong

Hang Seng opened +1.2%, Shanghai Composite +0.3%
(CN) CHINA SEPT MANUFACTURING PMI (GOVT OFFICIAL): 51.5 V 51.3E (7th straight expansion); Non-Manufacturing PMI: 55.9 v 54.7e (7th straight expansion)
(CN) CHINA SEPT CAIXIN PMI MANUFACTURING: 53.0 V 53.1E
Evergrande Real Estate [3333.HK]: Investors have canceled repayment option related to the Shenzhen reorganization plan, the move may ease concerns about Evergande’s liquidity – SCMP
(CN) China PBoC Open Market Operation (OMO): Injects CNY50B in 14-day reverse repos v Injects CNY1000B in 14-day reverse repos prior; Net drain CNY50B v Net drain CNY100B prior
(CN) China PBoC Open Market Operation (OMO) Net drain CNY210B for the week v Net inject CNY480B prior (China Markets will be closed on Oct 1-8th)
(CN) China overnight dollar/yuan swap rate moves to highest level in over 3 years, some note rising demand for the Yuan (CNY) from financial firms ahead of the upcoming Chinese holiday – financial press
(CN) China PBOC sets Yuan reference rate: 6.8101 v 6.8171 prior

Japan

Nikkei 225 opened -0.3%
Rakuten [4755.JP]: Plans to offer its new 5G mobile service in Japan at ¥2,980/month ($28/month) – press
(JP) JAPAN AUG PRELIMINARY INDUSTRIAL PRODUCTION M/M: +1.7% V +1.4%E; Y/Y: -13.3% V -13.4%E
(JP) Bank of Japan (BOJ) announces Bond purchases for month of Oct: To maintain current pace of purchases in all maturities; To cut the amount of floating rate bond purchases
(JP) JAPAN AUG RETAIL SALES M/M: 4.6% V +2.0%E; Y/Y: -1.9% V -3.1%E
(JP) Japan Aug Housing Starts Y/Y: -9.1% v -10.1%e; Annualized Housing Starts: 819K V 817KE; Construction Orders Y/Y: +28.5% v -22.9% prior
(JP) JAPAN JULY PRELIMINARY LEADING INDEX CI: 86.7 V 83.8 PRIOR; COINCIDENT INDEX: 78.3 V 74.4 PRIOR

Korea

Kospi closed for holiday
(KR) South Korea confirms 113 additional coronavirus cases v 38 prior; 0 additional deaths

North America

(US) President Trump: Disagrees with experts on Vaccine timing – 1st Presidential Debate
(US) Democratic Presidential Nominee Biden: Declined to comment on removal of the Senate filibuster; Does not support the ‘Green New Deal’ – 1st Presidential Debate
(US) Senate has votes to advance stopgap funding bill, as expected; Senate expected to have full vote on Stopgap bill tomorrow
Duke Energy [DUK]: Said to have rejected takeover approach from Next Era Energy, Next Era said to still be interested in Duke – US financial press
Disney [DIS]: Reportedly plans to cut 28K US theme park positions (about 67% of part-time employees) – press
Boeing [BA]: In 2021 plans to cut monthly output of the 787 to 6 units (in line) from 14 units currently; plans to move all 787 Dreamliner production to South Carolina – US financial press

Europe

(US) World Trade Organization (WTO) approves EU Tariffs on $4.0B of US goods due to subsidies for Boeing
(ES) Spain to announce more new restrictions on movement in cities experiencing severe virus outbreaks – press
(UK) Sept BRC Shop Price Index Y/Y: -1.6% v -1.6% prior
(UK) Sept Lloyds Business Barometer: -11 v -14 prior
(NO) Norway Safe Labor Union: 2 labor unions have reached wage agreements for oil workers, the workers will not go on strike; According to a separate report, one oil union in Norway will go on strike after not reaching wage agreement; Norway oil strike could cut output by ~470K barrels/day

Levels as of 1:20 ET

Nikkei 225, -1.3%, ASX 200 -2% , Hang Seng +1%; Shanghai Composite +0.3% ; Kospi closed
Equity S&P500 Futures: -0.6%; Nasdaq100 -0.5%, Dax -0.6%; FTSE100 -0.4%
EUR 1.1755-1.1727 ; JPY 105.80-105.58 ; AUD 0.7150-0.7108 ;NZD 0.6614-0.6585
Gold -0.3% at $1,897/oz; Crude Oil -0.7% at $39.02/brl; Copper -0.2% at $2.9918/lb