RBA Continues To Deliberate YCC

Jun 15 21, 06:05 GMT

General trend

Shanghai and HK equities have declined following holiday [Mining, Property and Financial firms lead declines]; Hang Seng TECH index drops over 1%; Consumer Staples and Liquor firms also extend losses in Shanghai.
S&P ASX 200 has hit a record high after Monday’s holiday [Consumer Staples index outperforms; Austal weighs on Industrials].
Nikkei has remained higher [Topix Electric Appliances index rises as USD/JPY is above ¥110; Brokerage and Air Transportation firms track declines in the US].
Copper FUTs decline amid speculation related to reserves in China.
US May PPI and Retail Sales due later today.
US Fed decision [Jun 16th] is also among the key events for this week.
RBA Gov Lowe is due to speak on Jun 17th (Thurs) [title of speech is ‘From Recovery to Expansion’].
Companies due to report during the NY morning include Qudian.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened 0.0%.
(AU) RESERVE BANK OF AUSTRALIA (RBA) JUNE MEETING MINUTES: AGREED IT WOULD BE PREMATURE TO CONSIDER CEASING BOND BUYING PROGRAMME; POLICY WOULD NEED TO REMAIN HIGHLY ACCOMMODATIVE TO REACH FULL EMPLOYMENT.
(AU) AUSTRALIA Q1 HOUSE PRICE INDEX Q/Q: 5.4% V 7.8%E; Y/Y: 7.5% V 3.6% PRIOR.
SGM.AU Raises FY21 (A$) underlying EBIT 360-380M (260-310M); general improvement in gross margin per tonne due to higher scrap prices, and good margin management.
(NZ) New Zealand Treasury: RBNZ Gov should sit on the new governance board – issues comments on proposed bill currently in Parliament.
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$256.8B v A$252.8B prior (Record high).

Japan

Nikkei 225 opened +0.3%
(JP) Bank of Japan (BOJ): No need to act on Market function for now; To remain determined to keep yields in target range – Press.
(JP) Japan opposition parties planning to submit a no confidence motion against Japan PM Suga Cabinet, over handling of COVID and summer Olympics.
(JP) Follow Up: Japan Chief Cabinet Sec Kato: Ruling party members will vote against the no confidence submission against the Cabinet.
(JP) Okinawa, Japan sees need to extend COVID virus emergency – Japan press.
(JP) Bank of Japan (BOJ) Former Member Sakurai: BOJ likely to extend a September deadline for its pandemic-relief program at this week’s policy meeting; too early to take steps to revitalize JGB market.

Korea

Kospi opened 0.0%.
(KR) South Korea President’s office said to hope to hold talks with Japan PM Suga on Korea President Moon visit to Japan – Press.

China/Hong Kong

Hang Seng opened +0.4%; Shanghai Composite opened -0.1%.
(CN) CHINA PBOC CONDUCTS CNY200B IN 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) AT 2.95% V 2.95% PRIOR, 14th straight operation that rate remained steady.
(CN) China May YTD Foreign Direct Investment (FDI) CNY481B, +35.4% y/y, +30.3% from 2019.
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net drain CNY10B v Net CNY0B prior.
(CN) China Sec Journal: PBOC may increase its liquidity injections during the second half of June.
(CN) China Govt: Nato urged to stop exaggerating Nato’s military power; China does not pose systemic challenges to other countries.
(CN) China PBOC sets Yuan reference rate: 6.4070 v 6.3856 prior.

Other

2002.TW Chairman Chao-Tung: Will start charging a carbon surcharge, to take effect from 2022; would be among the first steel firms in Asia to implement such a surcharge – Press.

North America

(CA) Said that the US and Canada will have discussions on lifting border restrictions on June 15th – Press.
CHOBANI.IPO Chobani said to be planning an IPO for H2 of this year – press.
(EU) Said that the EU will lift travel restrictions on US Residents during this week – Press.

Europe

(UK) UK Australia free trade agreement (FTA) expected to be announced Tuesday (as expected) – Sky News.

Levels as of 01:00ET

Hang Seng -0.8%; Shanghai Composite -1.0%; Kospi +0.2%; Nikkei225 +1.0%; ASX 200 +1.0%.
Equity Futures: S&P500 +0.2%; Nasdaq100 +0.1%, Dax +0.2%; FTSE100 -0.7%.
EUR 1.2127-1.2115; JPY 110.16-110.02; AUD 0.7717-0.7696; NZD 0.7158-0.7131.
Commodity Futures: Gold +0.0% at $1,867/oz; Crude Oil +0.4% at $71.14/brl; Copper -2.2% at $4.42/lb.