Commodity Currencies And Copper Move Lower

Jan 26 21, 06:12 GMT

General Trend

Hang Seng declines over 2% after 2.4% gain in Monday; Shares of Tencent see volatility, TECH index drops over 3% [index rose over 4% on Mon.]
Early decliners in Shanghai included IT and Consumer firms
Kospi declines ahead of results from Hyundai and Kia; Chipmakers also decline
Japan automakers decline amid continued reports related to chip shortages; Other decliners included Transports and Iron/Steel cos; Topix Pharma index rises
MSCI warns that additional Chinese cos. could be removed from indexes as the firm awaits clarity from the US Treasury
Rates rise in China amid PBOC cash drain; CNY280B of reverse repos are due to mature on Wed (Jan 27th); PBOC advisor said to have commented on asset bubbles and outflows
China official does not expect COVID outbreak to lead to production shutdown
China plans to add more 5G base stations in 2021
Companies expected to report during the NY morning include Archer-Daniels, Autoliv, American Express, DR Horton, Freeport McMoran, GE, JNJ, Lockheed Martin, 3M, Polaris, Plug Power, Verizon, Xerox

Headlines/Economic Data

Australia/New Zealand

ASX 200 closed for holiday
(AU) Australia Securities and Investments Commission is working with cyber security advisers to undertake an investigation and to resume online systems after an incident related to Accellion software

Japan

Nikkei 225 opened -0.4%
(JP) Japan Fin Min Aso: Declines in Oil prices is a big factor in Core CPI; looked into using tax policy to offer support during pandemic
7203.JP Said to be on track to meet FY20/21 global production target of 8.25M units – Nikkei
(JP) Bank of Japan (BOJ) Dec Meeting Minutes: Many members agreed that it was appropriate to assess various measures, such as asset purchases and the conduct of yield curve control
9202.JP Announces interim FY21 flight schedule: To operate flights using mainly smaller aircraft to downsize operations and reduce costs, domestic operations to make up core of earnings; Large aircraft usage -50% y/y, Small aircraft usage +50% y/y
(JP) Japan PM Suga: Accepts criticism of virus policy with humility; Want to prepare for Olympics with virus measures; Not thinking about blanket cash handouts

Korea

Kospi opened -0.2%
005380.KR Reports Q4 (KRW) Net 1.38T v 772.1B y/y; Op 1.64T v 1.24T y/y; Rev 29.2T v 27.8T y/y
(KR) South Korea appeals WTO ruling on anti-dumping tariffs on Japan steel
(KR) SOUTH KOREA Q4 PRELIMINARY GDP Q/Q: -1.1% V 0.9%E; Y/Y: -1.4% V -1.6%E; 2020 GDP -1.0% (lowest level since 1998)

China/Hong Kong

Hang Seng opened -0.9%; Shanghai Composite opened -0.4%
(CN) Shanghai Stock Exchange: To suspend short selling in the CSI 500 ETF; the outstanding securities borrowed by investors for selling hit a cap of 75% of the total ETF
(CN) China PBOC Open Market Operation (OMO): Injects CNY2B in 7-day reverse repos v CNY2B in 7-day reverse repos prior; Net drain CNY78B v Net inject CNY0B prior
(CN) China PBOC sets Yuan reference rate: 6.4847 v 6.4819 prior
(CN) China Ministry of Industry and Information Technology (MIIT) Official: Confirms China plans to build 600K 5G base stations in 2021; Sector faces pressure due to coronavirus pandemic, a nationwide production halt is not likely even with COVID
(CN) China PBoC Advisor Ma Jun said to have proposed dropping GDP target permanently; stabilizing job market and controlling inflation should be the major goals of China’s macroeconomic policy – 21st Century Business Herald
(CN) China reportedly looking to buy more US soybeans as the Brazil crop delays have continued – press
(CN) According to United Nations Conference on Trade and Development China was the top recipient of foreign direct investment (FDI) in 2020 – Nikkei

North America

(US) Janet Yellen confirmed by US Senate to be Treasury Secretary – press (as expected)
(US) Senate Minority Leader (R-KY) McConnell: Will reach power sharing agreement after Democrat Filibuster assurances; Looking forward to power sharing agreement

Europe

(IT) PM Conte said to be likely to resign after informing the cabinet today or tomorrow; hopes to win mandate from Pres Mattarella to form a new govt – press
(UK) Reportedly UK Hotel chains expecting government to announce enforced quarantine policy on Tuesday – UK press
(DE) Germany Chancellor Merkel: Pandemic management slipped out of control – German press

Levels as of 12:15ET

Hang Seng -1.9%; Shanghai Composite -1.2%; Kospi -2.0%; Nikkei225 -0.8%; ASX 200 +0.4%
Equity Futures: S&P500 -0.5%; Nasdaq100 -0.5%, Dax -0.6%; FTSE100 +0.2%
EUR 1.2147-1.2127; JPY 103.81-103.67; AUD 0.7720-0.7685; NZD 0.7218-0.7171
Commodity Futures: Gold 0.0% at $1,855/oz; Crude Oil -0.6% at $52.48/brl; Copper -0.7% at $3.61/lb