General Trend
- Consumer stocks weigh on the markets in Australia; Financial and commodityrelated firms rise; AMP rises over 21% after receiving takeover proposal
- Topix Pharma, Securities and Electric Appliances indices decline amid earnings out of Japan; Kyocera drops after its financial results, Fanuc rises over 4%
- Shanghai Composite traded generally flat during the morning session; IT index rises over 1.5%
- Tech firms also rise in Hong Kong, Financials decline ahead of upcoming earnings
- LG Chemical declines, shareholders approved plan to spinoff battery unit
- Offshore Yuan (CNH) trades higher into monthend; AUD rises ahead of next week’s RBA decision (Tuesday, Nov 3rd)
- BoJ might release its Nov bond buying plan after the market close
- Companies expected to report during the NY morning include Chevron, Goodyear, Honeywell, Lear Corp, LyondellBasell, Altria, Newell Brands, Phillips 66, Under Armour, Exxon
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.2%
- (AU) Australia Sept Private Sector Credit M/M: 0.1% v 0.1%e; Y/Y: 2.0% v 2.0%e
- (AU) Australia Q3 PPI Q/Q: +0.4% v 1.2% prior; Y/Y: 0.4% v 0.4% prior
- (AU) Australia State Queensland to keep borders closed to Sydney and Victoria; To open border to rest of New South Wales on Nov 3rd
- (AU) Australia sells A$2.0B v A$2.0B indicated in 1.50% June 2031 bonds, avg yield 0.8498% v 0.9395% prior, bid to cover 4.7x v 4.9x prior
- (NZ) Reserve Bank of New Zealand (RBNZ): Will seek to purchase NZ$870M v NZ$880M prior in government bonds next week
China/Hong Kong
- Hang Seng opened 0.2%, Shanghai Composite +0.2%
- (CN) China NDRC Official: NDRC will set quantitative indicators for next 5 years based on proposals from leaders, to propose numeric targets for next 5 years; To improve policy adjustments beyond economic cycles
- (CN) China Science Min Wang: Tech Innovation is Vital for China ‘Dual Circulation’ model
- (CN) China Communist Party Plenary 5year plan said to stick with strategy of boosting domestic demand; No mention of GDP growth; officials only stress the quality of growth Chinese press
- (CN) China PBOC sets Yuan reference rate: 6.7232 v 6.7260 prior
- (CN) China PBoC Open Market Operation (OMO): Injects CNY100B in 7day reverse repos v Injects CNY140B in 7day reverse repos prior; Net inject CNY30B v Net inject CNY90B prior
Japan
- Nikkei225 opened flat
- (JP) JAPAN SEPT PRELIMINARY INDUSTRIAL PRODUCTION M/M: 4.0% V +3.0%E; Y/Y: 9.0% V 9.8%E [Japan government said the Sept data was supported by increased production of cars, car parts and production machinery]
- (JP) JAPAN OCT TOKYO CPI Y/Y: 0.3% V 0.1%E; CPI (exfresh food) Y/Y: 0.5% v 0.5%e [Core CPI (exfresh food) was +0.1% after taking out effects of subsidized travel program]
- (JP) JAPAN SEPT JOBLESS RATE: 3.0% V 3.1%E
- (JP) JAPAN SEPT ANNUALIZED HOUSING STARTS: 815K V 823KE; Y/Y: 9.9% V 8.6%E
- (JP) Japan Government Spokesman: Not considering third extra budget ‘in detail yet’, reiterates will not hesitate to take steps to help the economy
Korea
- Kospi opened 0.3%
- (KR) SOUTH KOREA SEPT INDUSTRIAL PRODUCTION M/M: +5.4% V 3.1%E; Y/Y: 8.0% V 1.3%E (Y/Y highest since Feb)
- (KR) Korea National Pension Service (NPS): To increase its holdings in ‘FX Havens’ in order to reduce risk
North America
- Apple [AAPL]: CFO: confirms not issuing specific Q1 Rev guidance – earnings call
- Apple [AAPL]: Q4 $0.73 v $0.69e, Rev $64.7B v $63.4Be; iPhone Rev $26.4B v $33.4B y/y v $27.9Be
- (US) US said to report > 86,000 new daily coronavirus cases on Thursday [Oct 29th] (record high)
Europe
- (EU) ECB LEAVES 7DAY MAIN REFINANCING RATE UNCHANGED AT 0.00%; AS EXPECTED; maintains size and timing of Pandemic Bond Buying Fund program
- (EU) ECB chief Lagarde: did not discuss any policy changes today; reiterates council unanimously agreed on recalibrating instruments at Dec meeting Q&A
Levels as of 1:20 ET
- Nikkei 225, 1.2%, ASX 200 0.6% , Hang Seng 0.7%; Shanghai Composite 0.1% ; Kospi 1.5%
- Equity S&P500 Futures: 1.5%; Nasdaq100 1.9%, Dax 0.9%; FTSE100 0.6%
- EUR 1.16941.1668 ; JPY 104.63104.36 ; AUD 0.70560.7021 ;NZD 0.66440.6619
- Gold +0.4% at $1,875/oz; Crude Oil +0.5% at $36.36/brl; Copper +0.5% at $3.0737/lb
