General trend
- Modest equity moves have been seen.
- Nikkei pares gain following a holiday; Softbank Group to report earnings after the market close [Topix Air Transportation index rises; Financials see catch-up gains].
- S&P ASX 200 also pared advance [Materials index rises after guidance from James Hardie].
- Shanghai Composite ended morning trading generally flat.
- Hang Seng is trading below the opening level [TECH index rises over 1%].
- Precious metals and WTI have modest rebound.
- TSMC is due to report Jul sales later today.
- Companies due to report during the NY morning include Aramark, Casper, Gilat Satellite, II-VI, Sysco, Transdigm.
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened 0.0%.
- JHX.AU Reports Q1 adj Net $134.2M v $9.4M y/y; Rev $843.3M v $626M y/y.
- (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$351.6B v A$347.5B prior (fresh record high).
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence: 98.6 v 101.8 prior (1st time below 100 since Nov 2020).
- (AU) Australia July NAB Business Confidence: -8 v +11 prior; Conditions: 11 v 25 prior.
Japan
- Nikkei 225 opened +0.2%.
- (JP) Japan Fin Min Aso: No new stimulus package or extra budget being put together (refutes press); lots of funds for COVID still unspent.
- (JP) Japan July Bank Lending Y/Y: 1.0% v 1.4% prior; Bank Lending (ex-trusts) Y/Y: 0.5% v 0.8% prior.
- (JP) Japan Jun Current Account: ¥905.1B v ¥855.0Be; Adj Current Account: ¥1.78Y v ¥1.71Te.
Korea
- Kospi opened +0.4%.
- (KR) North Korea to strengthen preemptive strike abilities – KCNA.
- (KR) North Korea leader Kim’s sister, Kim Yo Jong, condemns the annual South Korea, US military drills; saying they will pay the price for their “self-destructive behavior” – KCNA.
China/Hong Kong
- Hang Seng opened +0.7%; Shanghai Composite opened -0.2%.
- (CN) China Economic Daily: Expects 2021 GDP Growth at 8.5% (v govt expectations >6.0%), cites Chinese Academy of Social Sciences (CASS).
- (CN) China Daily: China PBOC may need to fine-tune monetary policy, by cutting RRR or interest rate in order to boost growth.
- (CN) China PBOC sets Yuan reference rate: 6.4842 v 6.4840 prior.
- 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.
- Hong Kong Chief Exec Lam: Support adding China anti-sanctions law to the city’s constitution – press.
- 728.HK Reports H1 (CNY) Net 17.7B v 13.9B y/y; Rev 219.2B v 193.8B y/y.
Other
- (PH) Philippines Q2 GDP Q/Q: -1.3% v -1.1%e; Y/Y: 11.8% v 10.9%e.
North America
- SAFM Senator Grassley (R-IA) expresses concerns on Cargill’s acquisition of Continental Grain from Sanderson.
- (US) Senator Schumer (D-NY): Have agreement for final passage of infrastructure bill, voting to take place tomorrow.
- KSU Canadian Pacific said to make a higher $31Boffer (prior offer $29B) – press.
- TMST To increase prices on special bar quality and seamless mechanical tubing products by $60/T, effective Sep 6th.
- NTR.CA Reports Q2 $2.08 v $2.09e, Rev $9.76B v $9.99Be; Raises FY outlook.
Europe
- (UK) July BRC Sales LFL Y/Y: 4.7% v 5.0%e (weakest growth in 5 months).
Levels as of 01:15ET
- Hang Seng +0.3%; Shanghai Composite +0.0%; Kospi -0.6%; Nikkei225 +0.2%; ASX 200 +0.2%.
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.2%; FTSE100 -0.2%.
- EUR 1.1740-1.1731; JPY 110.40-110.28; AUD 0.7336-0.7316; NZD 0.6997-0.6969.
- Commodity Futures: Gold +0.5% at $1,735/oz; Crude Oil +0.8% at $67.00/brl; Copper +0.5% at $4.31/lb.
