Mon, Nov 29, 2021 @ 11:09 GMT
HomeContributorsFundamental AnalysisNZD Drops After Widely Expected RBNZ Rate Hike

NZD Drops After Widely Expected RBNZ Rate Hike

General trend

  • US equity FUTS decline in Asia.
  • Nikkei has declined by over 1.5% after the higher open [Heavyweights continue to weigh on the index (Fast Retailing and Softbank Group)]; Topix Marine Transportation index drops again, Banks rise.
  • Hang Seng has also reversed the opening gain, has currently pared loss [TECH and Property indices drop, but pare declines during morning trading].
  • S&P ASX 200 has been weighed down by Financials.
  • Copper FUTs extend decline.
  • Companies expected to report during the NY morning include Madison Square Garden, RPM International, Constellation Brands.
  • Shanghai markets are closed for holiday from Oct 1-7 (Fri-Thurs).

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.1%.
  • (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) RAISES OFFICIAL CASH RATE (OCR) 25BPS TO 0.50%; AS EXPECTED (1st rate hike since July 2014).
  • MFG.AU Reports Sept FUM (A$) 113.3B v 118.0B prior; Outflows A$1.53B.
  • (AU) Australia sells A$1.0B v A$1.0B indicated in 1.75% Nov 2032 bonds, avg yield %1.6137, bid to cover: 5.88x.
  • (NZ) Reserve Bank of New Zealand (RBNZ) Appoints Assitant Gov Hawkesby as Deputy Gov, replacing Bascand who is leaving in January.
  • (CN) China said to have released coal from Australia that has been “trapped in storage” – FT.

Japan

  • Nikkei 225 opened +0.8%.
  • 4502.JP Safety signal emerged in its phase 2 study of investigational oral orexin agonist TAK-994; suspended dosing of patients as a precautionary measure.
  • (JP) Japan PM Kishida approval rating at 59% (3rd lowest for inaugural ratings among 9 prime ministers going back to 2002.
  • (JP) Japan Chief Cabinet Sec Matsuno: Stopping decline in Japan R&D Capability is important; CPI not as weak as headline numbers indicate.
  • (JP) Bank of Japan (BOJ) Gov Kuroda: Economy has picked up led by exports and manufacturing, high US GDP Growth has supported global economic growth).
  • (JP) Japan Fin Min Suzuki: PM has instructed me to be flexible on policy; will seek a new type of capitalism and peruse fiscal health and growth at the same time (yesterday after the close).
  • (JP) Japan Econ Min Yamagiwa: Govt will take all necessary measures to support the economy “in a flexible manner without hesitation” (yesterday after the close).
  • (JP) Japan Industry Min Hagiuda: Nuclear power is indispensable to decarbonizing Japan (yesterday after the close).

Korea

  • Kospi opened %.
  • (KR) SOUTH KOREA SEPT CPI M/M: 0.5% V 0.4%E; Y/Y: 2.5% V 2.4%E (6th straight month above target); CPI Core Y/Y: 1.9% v 1.8%e (fastest increase since 2017).
  • (KR) Japan spotted North Korea ship carrying missiles in June off the coast of Ishikawa prefecture – Japan press.

China/Hong Kong

  • Hang Seng opened +0.6%; Shanghai Composite closed for holiday.
  • (HK) Hong Kong Aug PMI (Whole Economy): 51.7 v 53.3 prior (8th consecutive expansion).
  • 880.HK Said to shut down 1 Macau casino ops due to a coronavirus patient visiting – Press.
  • 2393.HK Updates on debt restructuring: Proposed new offshore debt restructuring and Agreement for $200M 6.9% notes due 2021; to issue new notes under the agreement.
  • (HK) Hong Kong Chief Exec Lam: Hong Kong to continue with Article 23 National Security Legislation, confirms housing project in the North – Annual Policy Address.

Other

  • (TW) US President Biden: Spoke with China President Xi on Taiwan; Agreed to abide by Taiwan agreement.
  • (TW) Taiwan Ministry of National Defense (MND): China is unsure if an attack on Taiwan would succeed, could be ready for full scale invasion of Taiwan by 2025 – Taiwanese Press.

North America

  • (CN) USTR seeking public comment on tariff exclusions for 549 China import categories – press.

Europe

  • (UK) PM Johnson reportedly plans to announce a ‘significant’ boost to minimum wage within next few weeks – UK’s Times.
  • (IE) Ireland Central Bank raises 2021 GDP outlook to 15.3% (prior 8.3%) due to a stronger than expected surge in consumption that will add to inflationary pressure; also raises modified domestic demand outlook.

Levels as of 01:00ET

  • Hang Seng -0.9%; Shanghai Composite closed for holiday; Kospi -1.5%; Nikkei225 -1.3%; ASX 200 -0.7%.
  • Equity Futures: S&P500 -0.6%; Nasdaq100 -0.6%, Dax -0.7%; FTSE100 -0.7%.
  • EUR 1.1604-1.1583; JPY 111.76-111.43 ;AUD 0.7297-0.7254; NZD 0.6980-0.6919.
  • Commodity Futures: Gold -0.4% at $1,753/oz; Crude Oil +0.1% at $78.97/brl; Copper -1.0% at $4.14/lb.
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