10-Yr Yields Generally Track Earlier Decline In The US, Fed Minutes Due Later On Wednesday

Jul 07 21, 06:58 GMT

General trend

Oil cos. trade weaker after decline in oil prices.
Nikkei has pared some of the opening decline [Topix Banks, Air Transportation and Iron & Steel indices drop >1%].
Shanghai Composite traded modestly higher during the morning session [Consumer, IT and Industrial indices rose; Financial and Property firms lagged].
Hang Seng has remained lower, the index is currently off of the lows [TECH index drops over 1.5% amid continued regulatory concerns; Financials also trade generally weaker]; XPeng declines in HK debut.
S&P ASX 200 rebounds from loss seen during prior session [Consumer and Financial indices rise; Energy index declines].

Headlines/Economic data

Australia/New Zealand

ASX 200 opened flat.
(AU) Sydney confirms lockdown to be extended 1 additional week through July 16th.
(AU) Australia Jun AIG Services Index: 57.8 v 61.2 prior.
(AU) Australia sells A$1.0B v A$1.0B indicated in 1.50% Jun 2031 bonds, avg yield 1.332%, bid to cover 3.67x.
(AU) Reserve Bank of Australia (RBA) Deputy Gov Debelle and Board Member Harper to serve addition 5-years.
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$321.9B v A$318.2B prior (Record high).
(NZ) Westpac expects RBNZ to start raising OCR rates in Nov 2021 [brings forward prior call].

China/Hong Kong

Hang Seng opened -1.1%, Shanghai Composite -0.6%.
(CN) China Cabinet said to step up oversight and amend rules on overseas listing of companies – financial press.
(CN) China said to begin Graft checks in Security issuance sector; anti-graft officials in China are examining corruption related to financial risk events – Press.
(CN) White House official: expect Biden and Xi to have some sort of engagement before too long.
(CN) China NDRC: Sees steel scrap utilization amount at 320Mts by 2025; Nonferrous recycled production to hit 20Mt by 2025.
(CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net drain CNY20B v Net drain CNY20B prior [5th consecutive net drain].
(CN) China PBOC sets Yuan reference rate: 6.4762 v 6.4613 prior.

Japan

Nikkei 225 opened -1.3%
(JP) BOJ said to consider raising its inflation forecast to due energy gains in its next quarterly economic outlook [due on Fri Jul 16th] – financial press.
(JP) JAPAN MAY PRELIMINARY LEADING INDEX CI: 102.6 V 102.7E; COINCIDENT INDEX: 92.7 V 92.7E.
(JP) Japan Jun FX Reserves $1.38T v $1.39T prior.
(JP) Japan again considering alcohol restrictions in Tokyo area – Nikkei.
(JP) Osaka Prefecture said to be seeking extension of its quasi emergency – Press.

Korea

Kospi opened slightly lower.
Samsung Electronics [005930.KR]: Reports Prelim Q2 (KRW) Op 12.5T v 11.3Te (vs 5.5T y/y); Rev 63.0T v 61.5Te (vs 52.97T y/y); Q2 earnings will reflect 1 off gain in Display.
LG Electronics [066570.KR]: Guides Q2 Op (KRW) 1.1T v 495.4B y/y (vs 1.14Te); Rev 17.1T v 12.8T y/y (vs 17.0Te).
(KR) South Korea confirms 1,212 additional coronavirus cases (in line with earlier reports).
(KR) South Korea PM: To maintain current social distancing measures; Could raise measures in 2-3 days.
(KR) South Korea May Current Account (BOP): $10.8B v $1.9B prior (13th consecutive surplus); Balance of Goods (BOP): $6.4B v $4.6B prior.
(KR) Bank of Korea (BOK) Sells KRW2.24T v KRW2.20T indicated in 2-year Monetary Stabilization Bonds (MSB): avg yield 1.275% v 1.190% prior.

Other Asia

North America

Europe

(FR) France Finance Min Le Maire: Regret EU is not united over corporate tax deal, Ireland’s reaction to OECD tax deal was measured.

Levels as of 01:20 ET

Nikkei 225, -1.3%, ASX 200 +0.6% , Hang Seng -1.1%; Shanghai Composite +0.4% ; Kospi -0.8%.
Equity S&P500 Futures: flat; Nasdaq100 flat, Dax -0.1%; FTSE100 +0.1%.
EUR 1.1826-1.1815 ; JPY 110.66-110.39 ; AUD 0.7500-0.7482 ;NZD 0.7024-0.7003.
Gold +0.3% at $1,799/oz; Crude Oil +0.1% at $73.47/brl; Copper +0.7% at $4.2797/lb.

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