HomeContributorsFundamental AnalysisEquities Trade Generally Higher, USD Trades With Weaker Tone

Equities Trade Generally Higher, USD Trades With Weaker Tone

General Trend

  • Hang Seng TECH and Property indices rise over 3%; CNOOC extends gain
  • Shanghai lagged during the morning session; Consumer firms declined; Financial and Property firms rose
  • Gainers in Japan include Transports, Automakers and large Nikkei components (Fast Retailing, Softbank)
  • Consumer Discretionary, Financial and Resources firms rose in Australia; Rio Tinto gained after production update and guidance
  • US Soybean FUTs decline over 1.5%
  • China officials continue to stress that there will be no sudden policy shifts in 2021
  • BOJ is due to hold its policy meeting on Jan 20-21 (Wed-Thurs)
  • BHP is due to report Q2 production on Wed (Jan 20th)
  • Hyundai Motor and Kia Motors might issue results on Wed (US financial press); Both companies outperformed on today’s session
  • Companies expected to report earnings during the NY morning include Bank of America, Goldman Sachs, Halliburton, Charles Schwab, State Street

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.1%
  • RIO.AU Reports Q4 Pilbara Iron Ore production 86.0Mt v 83.6Mt y/y; Shipments 88.9Mt v 86.8Mt y/y; Guides initial FY21 Pilbara Iron Ore shipments at 325-340Mt
  • (NZ) New Zealand Q4 NZIER Business Confidence: -6 v -40 prior; Capacity Utilization: 95.1% v 92.6% prior
  • (AU) According to Capital Economic the Reserve Bank of Australia (RBA) may stop QE in April, sees Reserve Bank of New Zealand (RBNZ) the first to raise rates in 2022 – press
  • (AU) Australia total payroll jobs change for Dec 19th to Jan 2nd: -5.5% v 0.4% prior; Weekly total wages -7.7% v 0.7% prior

Japan

  • Nikkei 225 opened +0.6%
  • (JP) In its March review Bank of Japan (BOJ) said to plan to discuss ways to scale back its ETF buying program, cites sources; c.bank does not want to raise concerns of a full exit from its loose monetary policy – financial press
  • 4502.JP To start trial in Japan for Novavax in February – Japan press
  • (JP) Japan Fin Min Aso: Fiscal situation has deteriorated, tax rev will return after COVID, currently spending is up and tax rev is down due to pandemic
  • (JP) Japan MoF sells ÂĄ1.2T v ÂĄ1.2T indicated in 0.5% (prior 0.4%) 20-year JGBs: avg yield: 0.4430% v 0.3660% prior; bid to cover 3.35x v 3.0x prior

Korea

  • Kospi opened -0.0%
  • (KR) South Korea Vice Finance Min: South Korea long-term bond yield rise ‘noteworthy’; reiterates to closely monitor bond yields and market volatility

China/Hong Kong

  • Hang Seng opened +0.8%; Shanghai Composite opened 0.0%
  • (CN) China reports 118 new COVID cases (7th day above 100) v 109 prior
  • (HK) Hong Kong Finance Chief Chan: Expect to see recovery in H2 depending on vaccine – speaking from AFF conference
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY80B in 7-day reverse repos v CNY2.0B in 7-day reverse repos prior; Net injects CNY75B v Net drain CNY3.0B prior
  • (CN) China PBOC sets Yuan reference rate: 6.4883 v 6.4845 prior
  • (CN) China National Development and Reform Commission (NDRC) Official Zhao Chenxin: Urges local govts to speed up special bond funded projects, reiterates no sudden shifts to monetary policy this year; Monetary policy will provide necessary support to struggling companies this year
  • (CN) China State Asset Regulator SASAC spokesperson Peng Huagang: SOE bonds at generally reasonable level; China will strictly cap the proportion of short-term bonds in high-risk companies

North America

  • (US) Treasury Sec nominee Yellen: Time to act big for recovery with rates low; US economy was K-shaped before COVID – speech notes ahead of Jan 19th hearing
  • LOGI Reports Q3 $2.45 v $1.08e, Rev $1.67B v $1.23Be ; raises FY guidance
  • INTC Chairman said to be considering up to a $1.0B health/tech SPAC IPO – press
  • (US) Follow Up Biden Adviser Psaki: Biden administration not planning to lift travel restrictions on the UK, EU and Brazil on Jan 26th (comments following report that Trump would lift the ban for Jan 26th)

Europe

  • (IT) Italy PM Conte wins Chamber of Deputies Confidence vote by 321 to 259

Levels as of 12:15ET

  • Hang Seng +3.2%; Shanghai Composite -0.0%; Kospi +2.9%; Nikkei225 +1.6%; ASX 200 +1.2%
  • Equity Futures: S&P500 +0.7%; Nasdaq100 +1.0%, Dax +0.4%; FTSE100 +0.6%
  • EUR 1.2099-1.2074; JPY 104.08-103.66; AUD 0.7719-0.7672; NZD 0.7141-0.7105
  • Commodity Futures: Gold +0.5% at $1,839/oz; Crude Oil -0.1% at $52.36/brl; Copper +0.3% at $3.62/lb

 

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