Equities Trade Mixed After Similar US Session

Sep 28 21, 06:04 GMT

General trend

Evergrande’s near-term debt payments remain a focal point.
USD/JPY extends rise amid higher UST yields; AU and NZ bond yields rise.
BTC dropped at 40-year JGB auction, the yield also rose.
WTI Crude continues to rise, Brent trades above $80/bbl.
Hang Seng has extended gain [Property developers Sunac and Evergrande rise in early trading].
Shanghai Property index rose by over 4% during the morning session; Banks index also outperformed.
US equity FUTs pared declines.
Nikkei has moved off of the session lows and remained above 30K.
S&P ASX 200 declines after prior rise [Resources index declines with the drop in Iron Ore FUTs; Analysts comment on the impact of power cuts in China, CN property sector also remains in focus].

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened -0.0%.
(AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$369.3B (record high).
(AU) Australia says it will start an A$2.0B loan facility for critical minerals.

Japan

Nikkei 225 opened -0.3%.
(JP) Bank of Japan (BOJ) July Meeting Minutes (two decisions ago): Japan’s economy had picked up as a trend, although it remained in a severe situation due to the impact of COVID.
(JP) Japan Econ Min Nishimura: Will continue to have eateries keep shorter hours, will ease curbs in about a month in stages.
(JP) Japan Fin Min Aso: Does not believe pent up demand will emerge too easily; Will take time for demand to return after state of emergency ends.
JGB (JP) Japan MoF sells ¥600B v ¥600B indicated in 0.70% 40-year JGBs, Yield at lowest accepted price 0.7700% v 0.7350% prior, bid to cover: 2.53x v 2.72x prior (btc multi year low).

Korea

Kospi opened 0.0%.
(KR) South Korea Sept Consumer Confidence: 103.8 v 102.5 prior (1st increase in 2 months).
(KR) US State Dept: US is prepared to meet with North Korea without any conditions – Yonhap.
(KR) North Korea fires unidentified projectile into East Sea – Yonhap.
(KR) Bank of Korea (BOK): To gradually apply ESG elements to all of its foreign currency assets, while it continues to increase allocations in ESG bonds and stocks in the near term.

China/Hong Kong

Hang Seng opened +0.5%; Shanghai Composite opened -0.1%.
(CN) China Aug Industrial Profits Y/Y: 10.1% v 16.4% prior (6th consecutive slowdown).
(CN) China considering curbing coal prices in order to ensure steady electricity supply for factory production – Global Times.
(CN) Goldman cuts China 2021 GDP outlook to 7.8% (prior 8.2%); Cuts Q3 GDP to 0%.
(CN) China PBOC sets Yuan reference rate: 6.4608 v 6.4695 prior.
(CN) China PBOC Open Market Operation (OMO): injects CNY100B in 14-day reverse repos v CNY100B prior; Net Inject CNY100B v Net inject CNY100B prior.
1918.HK Clarifies Wechat post related to Sunac Shaoxing seeking financial assistant from local government; Sunac Shaoxing is only seeking support to solve the problem relating to the online settlement, the company has never had, nor has any need or willingness to submit a similar report to the government.
(CN) China State Planner NDRC: Will expand supply of non-basic public services, lower cost, and improve quality; Will expand public services using private businesses.
(HK) Hong Kong Monetary Authority (HKMA) Yuen: Banks in Hong Kong have limited exposure to ‘stressed’ China property developers.
(CN) China PBOC quarterly monetary policy meeting statement: Reiterates stance that domestic economy recovery remains fragile and ‘unbalanced’ (yesterday after the close).

North America

(US) Fed Chair Powell: Fed would act against ‘sustained’ high inflation; Bottleneck effects were larger and more persistent than expected – Senate testimony.
(US) Fed’s Bostic (FOMC voter, hawk): Not convinced we are facing a lengthy bout with troublesome inflation; Without clear data demonstrating inflation has arrived and is likely to last, we will allow labor markets to run their course.
(US) Dallas Fed’s Kaplan to retire on Oct 8th; Rosengren, Sept 30th; Fed’s Kaplan and Rosengren will sell all individual stocks they own by Sept 30th and reinvest in diversified index funds or cash; The move is meant to address ethics concerns.
F Announces Electric Vehicles Mega Campus in Tennessee and Twin Battery Plants in Kentucky; $11.4B Investment to Create 11,000 Jobs and Power New Lineup of Advanced EVs.
(US) Procedural vote on debt limit and Govt funding bill, looks like it will not pass, GOP has enough to block.
JNJ Jury finds not responsible for woman’s ovarian cancer tied to talc powder.

Europe

Levels as of 01:00ET

Hang Seng +1.2%; Shanghai Composite +0.5%; Kospi -1.0%; Nikkei225 -0.3%; ASX 200 -1.3%.
Equity Futures: S&P500 +0.0%; Nasdaq100 -0.2%, Dax +0.0%; FTSE100 +0.1%.
EUR 1.1699-1.1685; JPY 111.25-110.93; AUD 0.7307-0.7266; NZD 0.7023-0.6999.
Commodity Futures: Gold -0.1% at $1,750/oz; Crude Oil +0.9% at $76.09/brl; Copper +0.5% at $4.29/lb.