Copper FUTs Rise On China PMI Data

Nov 30 20, 06:33 GMT

General Trend

China banks rise after PBOC announcement related to MLFs; Consumer firms lagged
Consumer and Financial firms are among the decliners in Australia; Treasury Wine extended decline after issuing statement on China, later pared some of loss
Topix Insurance, Banks and Real Estate indices decline in Japan, automakers also drop; Marine Transportation and Information/Communication indices rise
Alibaba declines in HK, US House expected to vote on measure related to US-listed companies, there is also speculation that Ant Financial’s IPO could see further delay; Meituan Dianping declines ahead of earnings report
Hang Seng Financials index tracks the gains in Shanghai, Property index declines
NY Copper FUTs rise on China PMI data, futures contract rolled over to the March 2021 contract; Shanghai Copper FUTs rise by 3%
Japan Fin Min commented on corporate funding needs ahead of year-end
RBA is due to hold policy decision on Tuesday (Dec 1st)

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened +0.2%
TWE.AU Implements plan to cut impact of China Ministry of Commerce measure, to reallocate Penfolds Bin & Icon range from China
(NZ) RBNZ buys NZ$325M v NZ$155M prior in government bonds as part of QE v NZ$325M sought
(AU) Australia Treasurer Frydenberg notes fewer people and businesses accessing wage support first initiated during the pandemic (JobKeeper) is a sign the nation’s economic recovery is “well under way”
(AU) Australia Oct Private Sector Credit M/M: 0.0% v 0.1%e; Y/Y: 1.8% v 1.9%e
(AU) AUSTRALIA Q3 CORP OP PROFIT Q/Q: 3.2% V 4.0%E; INVENTORIES Q/Q: -0.5% V -0.7%E
(AU) Australia PM Morrison: China Minister of Foreign Affairs image is ‘repugnant’; China govt should be totally ashamed of posting violent and fake image of Australia soldier on Twitter

Japan

Nikkei 225 opened +0.7%
(JP) Japan ruling party (LPD) lawmaker Keisuke Suzuki: 3rd extra budget being drafted now may not be the end of Japan’s stimulus spending this FY20/21 given uncertainty with coronavirus
(JP) JAPAN OCT PRELIMINARY INDUSTRIAL PRODUCTION M/M: 3.8% V 2.3%E (5th consecutive month of increase, longest streak since 2016); Y/Y: -3.2% V -4.6%E
(JP) JAPAN OCT RETAIL SALES M/M: 0.4% V 0.5%E; Y/Y: 6.4% V 6.2%E
(JP) Tokyo, Japan Olympics virus response expected to cost more than ¥90B – Nikkei
(JP) Japan Fin Min Aso: Corporate funding needs expected to rise as end of year approaches; True some companies are struggling with financing
(JP) JAPAN OCT ANNUALIZED HOUSING STARTS: 802K V 820KE; Y/Y: -8.3% V -8.8%E

Korea

Kospi opened +0.6 %
(KR) South Korea said to consider up to KRW4.0T in cash handouts – press
(KR) South Korea Oct Industrial Production M/M: -1.2% v -1.7%e; Y/Y: -2.2% v +0.3%e
(KR) North Korea leader Kim to politburo meeting of the Workers’ Party to discuss preparation of a rare party congress scheduled to be held earlier next year – local media

China/Hong Kong

Hang Seng opened -0.2%; Shanghai Composite opened +0.3%
CN) CHINA NOV MANUFACTURING PMI (GOVT OFFICIAL): 52.1 V 51.5E (9TH MONTH OF EXPANSION, highest since Sept 2017); Non-manufacturing PMI: 56.4 v 56.0e; Composite PMI: 55.7 v 55.3 prior
883.HK US President Trump said to be planning to add CNOOC and SMIC to defense blacklist of alleged China military companies – press
6688.HK IPO not expected to get done in 2021 (prior thought to have a delay of ~6 months) as the company undertakes a “massive” overhaul and China govt forms task force to ensure regulatory compliance – financial press
(CN) China PBoC Open Market Operation (OMO): Injects CNY150B in 7-day reverse repos v Injects CNY120B in 7-day reverse repos prior; Net inject CNY110B v Net inject CNY40B prior
China PBOC sets Yuan reference rate: 6.5782 v 6.5755 prior
CHINA PBOC CONDUCTS CNY200B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) OPERATION: RATE 2.95% V 2.95% PRIOR (8TH CONSECUTIVE UNCHANGED RATE)
(CN) China plans to expand the quotas related to the Qualified Domestic Limited Partner (QDLP) and Qualified Domestic Investment Enterprise (QDIE) outbound investment programs – Chinese press (update)

Other

OPEC+ producer to meet Monday to discuss output cut agreement after panel failed to reach an agreement to delay January’s planned production increase
(IQ) Iraq Oil Min Jabbar: will not seek exemption from OPEC+ deal – local press

North America

(US) According to Adobe Analytics Black Friday online sales totaled $9.0B, +22% y/y (v +20-42% y/y expected); sees Cyber Monday sales $10.8B, +15% y/y – US financial press
(US) EU issues draft plan for new alliance with the US post-Trump, suggests EU/US summit in H1 2021 – financial press
INFO Said that S&P Is in talks to acquire company for $44B – Press

Europe

WAF.DE In advanced talks on a €125/shr takeover offer by GlobalWafers
(UK) PM Johnson in letter to Tory MPs promises “sunset” clause to bill for 2-tier lockdowns to end in February
(CH) Switzerland referendum that would hold companies based in Switzerland accountable if they violate human rights or harm the environment abroad, failed to pass (50.7% against, 49.3% in favor)

Levels as of 12:15ET

Hang Seng -1.2%; Shanghai Composite +0.4%; Kospi -0.9%; Nikkei225 -0.9%; ASX 200 -1.3%
Equity Futures: S&P500 -0.7%; Nasdaq100 -0.3%, Dax -0.9%; FTSE100 -1.2%
EUR 1.1974-1.1962; JPY 104.17-103.83; AUD 0.7408-0.7383; NZD 0.7047-0.7024
Commodity Futures: Gold -1.0% at $1,769/oz; Crude Oil -1.3% at $44.94/brl; Copper +1.6% at $3.47/lb