- Nikkei has remained lower during the session [Big component Fast Retailing drops after outlook].
- Shanghai Composite ended the morning session flat [Consumer indices decline].
- Hang Seng moved modestly higher after the lower open.
- S&P ASX 200 has remained generally flat [Rio Tinto has weighed on Resources index; Consumer Discretionary index rises].
- Taiwan Semi drops over 3% following results.
- Companies due to report during the NY morning include Autoliv, Charles Schwab, State Street.
- ASX 200 opened flat.
- Rio Tinto [RIO.AU]: Guides FY21 Pilbara Iron Ore shipments at ‘lower end of 325-340Mt’ (prior 325-340Mt); Raises FY21 Pilbara iron ore unit cash costs at $18-18.50/wmt (prior $16.70-17.70) v $15.40 y/y.
- (AU) Australia sells A$700M v A$700M indicated in 0.25% Nov 2025 bonds, avg yield 0.508%, bid to cover 6.57x.
- (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$334.6B v A$330.8B prior (Record high).
- (NZ) NEW ZEALAND Q2 CPI Q/Q: 1.3% V 0.7%E; Y/Y 3.3% V 2.7%E (First move above target range in 19 quarters) [this was the biggest increase in nearly 10 years and was driven by higher prices for new housing and petrol].
- (NZ) New Zealand Q2 RBNZ Sectoral Factor Model inflation Index Y/Y: 2.2% v 1.9% prior.
- (NZ) Kiwibank now sees RBNZ raising OCR in August 2021 (in line with 3 other calls).
- (NZ) Westpac sees RBNZ raising OCR rate 3x during 2021, in Aug, Oct, and Nov (5th call for a rate hike in Aug).
- (NZ) New Zealand Jun Business Manufacturing PMI: 60.7 v 58.6 prior.
- Hang Seng opened -0.1%, Shanghai Composite -0.1%.
- (CN) China said to have refused to grant a meeting with US counterpart (Wendy Sherman) – FT.
- (US) Pres Biden: the situation in Hong Kong is deteriorating; The Chinese govt is not keeping its commitment there.
- (HK) US to flag 4 categories of risk in Hong Kong.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net CNY0B v Net CNY0B prior.
- (CN) China Sec Journal: PBOC Liquidity operations are sending a stable signal to the market.
- (CN) China PBOC sets Yuan reference rate: 6.4705 v 6.4640 prior.
- (CN) China is said to be mandating Property developers disclose their Commercial Paper Debt every month; regulators are interested in knowing exactly how much commercial paper is held by these cos. and whether the amounts are being fully disclosed – Press.
- (CN) Funds in China favor Consumer stocks – China Securities Journal.
- (CN) China Carbon Emissions Market opens up at CNY48/ton.
- (CN) China Industry Ministry (MIIT): China has built 961K base 5G Stations [v 718K prior reported]; To enhance crackdown on illegal apps; Coronavirus output capacity reached 5.0B doses/year as of July.
- (CN) China State Planner (NDRC): China to build coal reserve capacity of ~600Mt.
- (HK) Said that China will plan to exempt IPOs in Hong Kong from Cybersecurity reviews.
- Nikkei 225 opened -0.8%.
- (JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED; Maintains 10-year JGB yield target (YCC) of ‘around 0.00%’ (as expected).
- (JP) Bank of Japan (BOJ) issues strategy on Climate Change: Confirms to Purchase FX Denominated green bonds from governments and institutions.
- (JP) Japan Chief Cabinet Sec Kato: Will Promptly consider State of Emergency if Kanagawa Prefecture requests it.
- Kospi opened -0.1%.
- (KR) Bank of Korea (BOK) Gov Lee: Reiterates still think rates can be increased this year ; Not desirable to prolong low rate expectations – Addressing parliament.
- (KR) South Korea said to be hiring ‘arrangers’ in order to issue Foreign Currency Denominated bonds – Press.
- (SG) SINGAPORE JUN NON-OIL DOMESTIC EXPORTS M/M: 6.0% V 1.0%E; Y/Y: +15.9% V 8.0%E.
- (US) Fed Chair Powell: bar for the Fed to start tapering asset purchases is still a ways off – Senate testimony.
- (US) Fed’s Evans (dove, voter): if unemployment is at 4.5% by the end of 2021, would guess some adjustment instance would be appropriate.
- Intel [INTC]: Said to be considering the acquisition of Globalfoundaries, transaction could value Globalfoundries at ~$30.0B – US financial press.
- (CA) Follow Up: Said that Canada may allow Vaccinated visitors from the US to enter the country for non-essential travel starting mid-August – Press.
- (UK) PM Johnson said to support a tax to transform ‘social care’ – Press.
- (UK) Certain UK Lords: BOE Asset purchases stoking inflation, Program has only benefitted rich and has done little for GDP Growth – financial press.
- Levels as of 01:20 ET
- Nikkei 225, -0.4%, ASX 200 flat , Hang Seng +0.5%; Shanghai Composite -0.2% ; Kospi -0.3%.
- Equity S&P500 Futures: flat; Nasdaq100 flat, Dax +0.1%; FTSE100 +0.3%.
- EUR 1.1817-1.1802 ; JPY 110.07-109.73 ; AUD 0.7441-0.7413 ;NZD 0.7037-0.6968.
- Gold flat at $1,828/oz; Crude Oil +0.1% at $71.68/brl; Copper +0.7% at $4.3412/lb.