General Trend
- Samsung expects lower profits in Q4 amid lower smartphone sales and weak server DRAM demand
- Australia’s Energy index drops over 3%, tracks the recent decline in oil prices; Financials drop amid weakness in the US and earnings from ANZ; Newcrest drops after Q1 production update and recent decline in gold prices; Consumer Discretionary index drops after sales update from JB Hi-Fi
- Decliners in HK include Gaming, Financial and Property shares; Tech firms also drop after recent gains, track declines on the Nasdaq; ZTE drops over 5% after reporting earnings
- Standard Chartered’s Q3 profits beat ests amid better than expected provisions
- Shanghai Composite traded flat during the morning session; Consumer firms outperformed as Kweichow Moutai rose
- China/HK companies that may report earnings include PetroChina, China Construction Bank, CITIC Bank , Tsingtao Brewery, SJM Holdings, BYD , Guangzhou Auto
- Topix Securities index declines after results from Nomura; Electric Appliance and Pharma indices rise; Sony rises over 6% after results/guidance
- Japanese companies expected to report earnings include Panasonic, Fanuc, Kyocera, Daiwa Securities, Docomo, NEC, Tokyo Electron, Takeda, Mitsubishi Electric, Oriental Land, AGC, Advantest, Fuji Electric, Konica Minolta
- Offshore yuan (CNH) rises after prior declines; Presidential Candidate Biden said to have noted he would consult US Allies for collective leverage for future tariffs on China (financial press)
- BoJ trimmed its near-term economic forecasts (as speculated), said factors (including forex) are risks to inflation
- BoJ Gov Kuroda is due to hold post rate decision press conference at 6:30 GMT
- China’s Plenary session is expected to conclude today
- Companies expected to report during the NY morning include Allegheny Technologies, Baxter International, Comcast, ConocoPhillips, DuPont, Huntsman, International Paper, Kellogg, Moody’s, Moderna, Newmont Mining, Royal Caribbean, Ralph Lauren, Spotify, Molson Coors, Tempur Sealy, Willis Towers Watson, YUM! Brands
- Apple is due to issue Q4 results after the US market close
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.4%
- ANZ.AU Reports FY20 (A$) adj Cash profit 3.76B v 6.47B y/y, NII 14.05B v 14.34B y/y
- FMG.AU Reports Q1 iron ore shipments 44.3Mt v 42.2Mt y/y; Ore production 58.4Mt v 50.6Mt y/y; affirms FY21 guidance
- (NZ) New Zealand Oct Final ANZ Business Confidence: -15.7 v -14.5 prelim
- (AU) Australia Q3 Import Price Index Q/Q: -3.5% v -2.0%e; Export Price Index Q/Q: -5.1% v -3.5%e
Japan
- Nikkei 225 opened -1.1%
- (JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED
- (JP) Bank of Japan (BOJ) Quarterly Outlook for Economic Activity and Prices: Cuts GDP and CPI outlook for FY20/21
- (JP) JAPAN SEPT RETAIL SALES M/M: -0.1% V 1.0%E; Y/Y: -8.7% V -7.6%; Dept. Store, Supermarket Sales Y/Y: -13.9% v -11.6%e
- (JP) Japan Investors Net Buying of Foreign Bonds: -¥1.01T v +¥419.8B prior; Foreign Net Buying of Japan Stocks: +¥228.4B v -¥94.0B prior
- (JP) Japan PM Suga: Need major countries cooperation to avoid debt problems; To take measures as needed to help struggling people; Not at a point to organize dates for China President Xi visit to Japan
Korea
- Kospi opened -1.4%
- 005930.KR Reports final Q3 (KRW) Net 9.36T v 6.29T y/y; Op 12.4T v 12.3T prelim, Rev 67.0T v 66.0T prelim
- (KR) Bank of Korea (BOK): To extend Loan facilities for Financial companies by 3 months until Feb 3rd 2021
- 005930.KR Confirms applying for export license to Huawei, has yet to hear from US Officials
China/Hong Kong
- Hang Seng opened -1.7%; Shanghai Composite opened -1.0%
- (CN) China PBoC Open Market Operation (OMO): Injects CNY140B in 7-day reverse repos v Injects CNY120B in 7-day reverse repos prior; Net inject CNY90B v Net inject CNY40B prior
- (HK) Hong Kong Monetary Authority (HKMA) sells HK$7.8B to again defend peg as HKD currency trades at strong end of trading band
- 1876.HK Reports Q3 $316M v $257M y/y; Adj EBITDA $607M v $633M y/y, Rev $1.82B v $1.82B y/y
- 386.HK Reports Q3 (CNY) IFRS Net 46.2B v 11.9B y/y, Rev 520.4B v 734.0B y/y
- (CN) China PBOC sets Yuan reference rate: 6.7260 v 6.7195 prior
Other
- UMC Confirms UMC and US Department of Justice reach Plea Agreement on Trade Secret Case to pay $60M
North America
- (US) Presidential Candidate Biden said to have noted he would consult US Allies for collective leverage for future tariffs on China, Biden would ‘immediately’ speak with key allies before deciding on the future of the current US tariffs on China – financial press
- (US) Speaker Pelosi: have been negotiating on a $2T relief package with the White House; details on aid bill could change after the election – press interview
- TIF Board said to approve sale to LVMH at lower offer of $131.50/shr – FT
US Earnings after the close: - AKAM Q4 guidance disappoints
Europe
- (UK) Sept Auto Manufacturing 114.7K units, -5.0% y/y; YTD manufacturing 632.8K units, -35.2% y/y – SMMT
- STAN.UK Reports Q3 adj Pretax $745B v $502B y/y, Op income $3.53B v $3.98B y/y; to considering shareholder returns in FY20
Levels as of 1:20 ET
- Nikkei 225, -0.4%, ASX 200 -1.6% , Hang Seng -1%; Shanghai Composite +0.1% ; Kospi -1.1%
- Equity S&P500 Futures: +1.1%; Nasdaq100 +1%, Dax +0.6%; FTSE100 +0.2%
- EUR 1.1758-1.1744 ; JPY 104.50-104.27 ; AUD 0.7070-0.7043 ;NZD 0.6656-0.6636
- Gold +0.2% at $1,882/oz; Crude Oil +0.2% at $37.47/brl; Copper +0.6% at $3.0838/lb
