General trend
- Metal prices all decline and USD strengthens after stronger US payrolls data Friday boosts view that recovery is here to stay.
- Modest equity moves have been seen thus far.
- Chinese markets have gained after the lower opens; Property and Financial shares rise; Chipmakers drop on state media warning.
- S&P ASX 200 has remained slightly higher [Financials supported by higher 10-yr yields; Resources index drops amid lower iron ore prices].
- Companies due to report during the NY morning include Air Products, BioNTech, DISH Network, Elanco Animal Health, Barrick Gold, Hertz Global, Kandi Technologies, Scientific Games, Sohu.com, TEGNA, Tyson Foods, The Trade Desk, US Foods.
- Softbank Group is due to report earnings on Tues. (Aug 10th).
- Analysts comment on expectations for China Q3 GDP growth.
- More analysts call for 50bps rate hike at Aug RBNZ meeting [Aug 18th].
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened 0.0%.
- SUN.AU Reports FY21 (A$) Cash profit 1.06B v 749M y/y, Rev 14.19B v 14.8B y/y; to pay A$0.08/shr special dividend, planning A$250M share buyback.
- WBC.AU Confirms to sell domestic life insurance business to Dai-ichi Life for A$900M.
- (AU) Australia PM Morrison popularity rating declines to 47% [lowest level since the pandemic started], cites Newspoll – press.
- HUO.AU To be acquired by JBS at A$3.85/shr cash, A$425M.
- REG.AU Identified possible underpayments to some current and past employees going back 6 years, total seen A$30-40M, impact seen on FY21 A$6-7M.
Japan
- Nikkei 225 closed for holiday.
- (JP) Japan PM Suga support rating falls below 30% (for the first time) after Olympics fail to give a boost – press.
Korea
- Kospi opened -0.4%.
- (KR) South Korea July Card Spending KRW14.1T, +7% y/y, +11.4% from 2019 – Yonhap.
China/Hong Kong
- Hang Seng opened %; Shanghai Composite opened %.
- (CN) CHINA JULY CPI M/M: 0.3% V 0.2%E; Y/Y: 1.0% V 0.8%E.
- (CN) CHINA JULY TRADE BALANCE: $56.6B V $52.0BE; Exports Y/Y: 19.3% v 20.0%e; Imports Y/Y: 28.1% v 33.6%e, July Trade Balance with US: $35.4B v $32.6B prior.
- (CN) CHINA JULY TRADE BALANCE (CNY): 362.7B V 340.7BE; Exports Y/Y: 8.1% v 9.6%e; Imports Y/Y: 16.1% v 21.9%e.
- (CN) CHINA JUN FOREIGN EXCHANGE RESERVES: $3.236T V $3.214T PRIOR.
- (CN) China Q2 Preliminary Current Account Balance: $52.8B v $69.4B prior (Friday after the close).
- (CN) China State Researcher: Expects Q3 GDP ~6.3% y/y (prior 7.9% ).
- BYTEDANCE.IPO Said to be working on addressing data security concerns brought up by China regulators in order to move forward with IPO in Hong Kong early 2022 – press.
- (CN) China PBOC sets Yuan reference rate: 6.4840 v 6.4625 prior.
North America
- BRK.A Reports Q2 Net EPS (Class A) $18,488 v $16,314 y/y, Rev $69.1B v $56.8B y/y.
- (US) JULY CHANGE IN NONFARM PAYROLLS: +943K V +858KE (highest print since Aug 2020 numbers) (Friday).
Europe
- (DE) ECB’s Weidmann (Germany): If inflation outlook rises sustainably, ECB will have to act in line with its price stability objective – press.
- (UK) Ministers said to have warned PM Johnson not to remove Chancellor of the Exchequer Sunak even though they have conflicting views on spending and lockdowns – press.
Levels as of 01:15ET
- Hang Seng +0.6%; Shanghai Composite +1.0%; Kospi -0.2%; Nikkei225 closed for holiday; ASX 200 +0.1%.
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.2%; FTSE100 -0.2%.
- EUR 1.1764-1.1743; JPY 110.36-110.18; AUD 0.7361-0.7329; NZD 0.7021-0.6981.
- Commodity Futures: Gold -1.2% at $1,741/oz; Crude Oil -2.0% at $66.94/brl; Copper -0.4% at $4.32/lb.
