HomeContributorsFundamental AnalysisEquities Trade Generally Lower

Equities Trade Generally Lower

General trend

  • Nikkei has traded modestly lower after flat open [Toyota drops on reduced production guidance; Topix Information & Communication index declines; Topix Banks index rises after recent gain in UST yields, M&A has also been a focal point].
  • Hang Seng has extended decline [TECH index drops amid Nasdaq decline and continued regulatory concerns; Property firms generally decline, Evergrande’s CNY bonds again halted]; EV stocks decline, China says it has too many EV startups.
  • Shanghai Composite ended morning trading +0.1% [Property index gains over 2%; Consumer, Industrial, and IT indices drop].
  • S&P ASX 200 pares gain [Energy and Resources indices rise, Financials lag].

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened 0.0%.
  • RIO.AU US House Natural Resources Committee has voted to include language in a wider budget reconciliation package that would block the building of Resolution copper mine in Arizona – press.
  • (NZ) RBNZ Shadow Board (NZIER) quarterly report: Sees 2021/22 GDP 4.5% (prior 5.0%); 2022/23 GDP 4.5% (prior 3.7%).
  • SYD.AU Confirms received revised proposal for A$8.75/shr in cash from Sydney Aviation Alliance ; Will provide due diligence to bidders.
  • QAN.AU ACCC denies alliance with Japan Airlines (JAL); not in best interests of public.
  • (AU) Reserve Bank of Australia (RBA): Introduces new criteria for securities to be accepted as collateral in its open market ops: Robust Fallbacks Required for BBSW Securities.
  • (NZ) New Zealand bond market has priced in two 25bps rate hikes before the end of 2021 – press.

Japan

  • Nikkei 225 opened 0.0%.
  • (JP) Japan candidate Kono leader in latest Asahi poll with 33% for LDP leadership race.
  • (JP) JAPAN Q3 BSI LARGE ALL INDUSTRY Q/Q: +3.3 V -4.7 PRIOR; LARGE MANUFACTURING Q/Q: +7.0 V -1.4 PRIOR.
  • (JP) Japan Aug PPI (CGPI) M/M: 0.0% v 0.3%e; Y/Y: 5.5% v 5.7%e.
  • 7203.JP In North America, projecting reduction of ~60-80K vehicles in October, does not anticipate any impact to employment at this time (Friday US hours).

Korea

  • Kospi opened -0.3%.
  • (KR) North Korea has test fired new long range cruise missile – Yonhap.
  • (KR) South Korea Sept 1-10th Imports Y/Y: 60.6% v 63.1% prior; Exports Y/Y: 30.7% v 46.4% prior; Chip Exports y/y: -2.1% v +44.6% prior.

China/Hong Kong

  • Hang Seng opened -1.2%; Shanghai Composite opened -0.1%.
  • 6688.HK Said that China is seeking to break up Alipay from company, China is now requesting the further breakup of Huabei and Jiebei into two independent apps – China Press.
  • (CN) Analysts note with the release of Aug data from China shows new loans were at the slowest pace since Dec 2018, which is attributed to tightening property market, the lack of demand for long term loans highlights the downward pressure on the economy – press.
  • (CN) China Sec Journal: China said to be seeking to increase industrial automation and innovation with robotics under new 5-year plan.
  • (CN) China Ministry of Industry and Information Technology (MIIT) has requested tech companies stop blocking rival services and links. given time frame to comply – China press.
  • (CN) China PBOC sets Yuan reference rate: 6.4497 v 6.4566 prior.
  • (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) Trading volumes on the Shanghai and Shenzhen Exchanges have hit >CNY1.0T for 38 straight trading sessions [vs record 43 days seen in 2015] – China Securities Journal.

North America

  • KSU Confirms received revised stock-cash proposal (2.884 CP shares, $90 in cash) from Canadian Pacific that Board of Directors determines is a “Company Superior Proposal”.
  • PFE Speculation that the Pfizer/BioNTech COVID vaccine could be approved by the FDA for children ages 5-11 by the end of October – US press.
  • (US) NHC issues update on Tropical Storm Nicholas: The Hurricane Watch has been extended eastward to Freeport Texas, Louisiana has declared state of emergency.
  • (US) Said that Democrats are considering various tax increases to increase (long term) Capital gains to 28.8% (25% + 3.8% surcharge), 26.5% corporate tax rate.
  • (US) Fed’s Harker (non-voter): Hope the tapering process will start sometime this year, weaker than expected employment data largely to supply issues – Nikkei interview.

Europe

  • ZO1.DE Hellman & Friedman raises offer to €460/shr cash (prior €390/shr), declared superior offer.

Levels as of 01:15ET

  • Hang Seng -2.4%; Shanghai Composite -0.2%; Kospi -0.5%; Nikkei225 -0.3%; ASX 200 +0.0%.
  • Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 -0.1%.
  • EUR 1.1817-1.1792; JPY 109.98-109.85 ;AUD 0.7369-0.7340; NZD 0.7121-0.7100.
  • Commodity Futures: Gold -0.0% at $1,792/oz; Crude Oil +0.3% at $69.91/brl; Copper +0.1% at $4.43/lb.

 

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