General trend
- AU and NZ bond yields extend declines.
- Equities in Shanghai and HK extended declines.
- Shanghai Consumer Staples index drops over 4% on continued regulatory concerns related to liquor firms; Financials remain weaker as markets digest recent Huarong developments.
- HK TECH index also extends drop.
- Nikkei has moved modestly lower; Toyota extends drop amid production concerns.
- S&P ASX 200 has traded slightly higher [Financials rise; Resources index again lags].
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened flat.
- (AU) Sydney (Australia) Lockdown has been extended until end of Sept; Imposing curfew for certain areas of Sydney.
- (AU) Reserve Bank of Australia (RBA) Assist Gov Kent: Need for greater transparency in FX market.
- (AU) Australia sells A$700M v A$700M indicated in 3.25% Apr 2025 bonds, avg yield: 0.2696% , bid to cover 8.08x.
- (NZ) New Zealand PM Ardern: Extends countrywide lockdown through midnight Aug 24th, Outbreak not contained to Auckland.
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Have to focus on inflation and employment (in line); Oct meeting is a live meeting for OCR.
- (NZ) New Zealand confirms 2 coronavirus cases in the capital of Wellington.
China/Hong Kong
- Hang Seng opened -0.3%, Shanghai Composite -0.7%.
- (CN) PBOC Gov Yi: Reiterates the PBOC will guard gate of money supply.
- (CN) China said to have postponed a vote to add anti sanctions law to Hong Kong Law (unexpected)- SCMP.
- (CN) China Legislature passes the personal Information Protection Law – Press.
- (CN) China Cyberspace Admin: has issued draft rule on Auto Data Security Regulations to be effective Oct 1st.
- (CN) CHINA PBOC MONTHLY LOAN PRIME RATE (LPR) SETTING: LEAVES BOTH 1-YEAR AND 5-YEAR RATES UNCHANGED (16th straight month of steady rates).
- Hang Seng is due to hold next index review on Aug 20th (Fri).
- Evergrande Real Estate Group [3333.HK]: China PBOC and banking regulator CBIRC reportedly summons Evergrande Group to resolve debt risks – press.
- (CN) China Liquor Company Exec said to be attending a regulatory meeting – Press.
- (CN) China reiterates stance of releasing metal reserves to calm the markets.
- (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 PBOC sets Yuan reference rate: 6.4984 v 6.4853 prior.
- (CN) PBOC sells CNY25B in 3-month and 12-month bills in Hong Kong.
Japan
- Nikkei 225 opened -0.2%.
- (JP) JAPAN JULY NATIONAL CPI Y/Y: -0.3% V -0.4%E; CPI EX-FRESH FOOD (CORE) Y/Y: -0.2% V -0.4%E.
- (JP) Japan Govt requests establishment of a WTO panel regarding China’s measure imposing anti-dumping duties on stainless products originating from Japan.
Korea
- Kospi opened +0.4%.
- (KR) South Korea July PPI Y/Y: 7.1% v 6.4% prior.
- (KR) Said that South Korea will maintain the level 2 social distancing for an additional 2-weeks – Yonhap.
North America
- (US) AUG PHILADELPHIA FED BUSINESS OUTLOOK: 19.4 V 23.1E (lowest since Dec).
- (US) Fed Chair Powell to deliver a speech on the economic outlook at the Jackson Hole Symposium on Aug 27th at 10:00ET.
- Moderna [MRNA]: Officials in the US said to be reviewing whether co’s vaccine is linked to higher risk of uncommon side effect than previously thought – Washington Post.
- Apple [AAPL]: Said will not require employees to return to offices until Jan at earliest citing coronavirus – Press.
Europe
- (UK) Aug GfK Consumer Confidence: -8 v -7 prior.
- (DE) Germany Finance Ministry: economy on track for stronger growth in Q3 after 1.5% q/q growth in Q2 – monthly report.
Levels as of 01:20 ET
- Nikkei 225, -1%, ASX 200 -0.1% , Hang Seng -2.6%; Shanghai Composite -2% ; Kospi -1%.
- Equity S&P500 Futures: -0.3%; Nasdaq100 -0.2%, Dax -0.5%; FTSE100 +0.1%.
- EUR 1.1687-1.1675 ; JPY 109.88-109.63 ; AUD 0.7157-0.7125 ;NZD 0.6853-0.6808.
- Gold +0.3% at $1,787/oz; Crude Oil +0.5% at $63.84/brl; Copper +1.1% at $4.0898/lb.
