Sat, Nov 27, 2021 @ 11:47 GMT
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Equity Markets Generally Improve

General trend

  • GBP rises amid BOE comments.
  • USD/JPY trades at the highest level since late 2018 amid recent rise in UST yields.
  • Nikkei rebounds from opening decline [Yen extends drop; Kishida played down tax concerns]; Topix Banks index supported by higher UST yields.
  • Hang Seng has extended gain [TECH index rises after Meituan news; Lenovo drops on withdrawal of listing application] Property index lags, various CN/HK property developers in the headlines (Evergrande, Fantasia, Modern Land).
  • Shanghai Composite has remained slightly higher.
  • S&P ASX 200 has declined after opening flat [Star Entertainment weighs on Consumer Discretionary index].
  • US equity FUTs decline after higher open.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened flat.
  • Star Entertainment [SGR.AU]: Issues response to media reports concerning allegations.
  • (AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$1.60B prior.
  • (NZ) New Zealand PM Ardern: Need to maintain coronavirus restrictions longer; Auckland to remain in Lv 3 lockdown, to review in 1 week.

China/Hong Kong

  • Hang Seng opened +1.3%, Shanghai Composite +0.2%.
  • (CN) China State Council said to call to that energy supply be ensured; To allow power generators to increase industrial tariff by 20% – financial press.
  • Evergrande [3333.HK]: Reportedly Evergrande’s offshore creditors’ advisers prepare backup contingency plan – press [Oct 8th].
  • (CN) China Vice Premier Liu He: China is negotiating cancellation of tariffs and sanctions; Exchanged views with USTR on the trade agreement – comments after Friday teleconference.
  • (CN) China City Harbin (NE China) said to be offering home buyers a subsidy of up to CNY100K for a purchase – China Daily.
  • (CN) China Sec Journal: PBOC may roll over MLF with a larger amount in Oct to maintain reasonable growth of credit and money supply [Note: PBOC normally conducts MLF operations around the 15th of the month].
  • (CN) Funds raised by property trust firms in China declined by >40% m/m in Sept [amid issues related to Evergrande] – Shanghai Securities News.
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B prior; Net drain CNY190B v Net drain CNY320B prior [Oct 11th].
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B prior; Net drain CNY320B v Net drain CNY330B prior [Oct 9th].
  • (CN) China PBOC sets Yuan reference rate: 6.4479 v 6.4604 prior.
  • Lenovo [992.HK]: Withdraws application to list on Shanghai STAR board.
  • Meituan [3690.HK]: China’s market regulator fines Meituan CNY3.4B for conducting monopolistic behaviour – press.

Japan

  • Nikkei 225 opened -0.3%.
  • (JP) Japan Chief Cabinet Sec Matsuno: Will strengthen tax system towards raising wages first.

Korea

  • Kospi is closed for holiday.

Other Asia

  • (SG) Singapore PM: Will allow vaccinated travelers from more countries, including UK and US, to enter without quarantining.

North America

  • (US) Treasury Sec Yellen: confident that Congress will be able to raise debt ceiling on Dec 3rd.
  • (US) Senate minority leader McConnell sends letter to Pres Biden saying he will not provide assistance again to Democrats in raising the US debt limit.
  • (US) Goldman Sachs analysts cut US 2021 GDP growth forecast from 5.7% to 5.6%; Cuts US 2022 GDP growth forecast from 4.4% to 4.0%.
  • (US) Fed’s Daly (non-voter, dove): labor market is going to have ups and downs, especially with the Delta variant; It is too soon to say that it is stalling.

Europe

  • (UK) BOE Gov Bailey: Inflation will be higher than our forecast; Concerned with inflation being above target – press interview.
  • (UK) BOE’s Saunders (QE dissenter): households should get ready for “significantly earlier” interest rates rise due to increasing inflation pressure – UK press interview.
  • (UK) UK Manufacturers of steel, glass, ceramics and paper, have warned the govt that unless something is done about rising wholesale gas prices they could shut down production.
  • (UK) Brexit Min Frost expected to tell EU Tuesday that “significant change” to the Northern Ireland protocol is vital for the restoration of genuinely good relations between EU and UK – press.
  • (UK) China Customs: bans imports of UK cattle beef that is under 30 months in age due to mad cow disease case found in beef.
  • (AT) Austria Chancellor Kurz steps down after pressure from his coalition partner, the Greens; proposes Foreign Min Alexander Schallenberg as next PM, will remain as party leader.

Levels as of 01:20 ET

  • Nikkei 225, +1.5%, ASX 200 -0.3% , Hang Seng +2.2%; Shanghai Composite +0.5% ; Kospi closed.
  • Equity S&P500 Futures: -0.1%; Nasdaq100 -0.2%, Dax +0.1%; FTSE100 flat.
  • EUR 1.1579-1.1563 ; JPY 112.72-112.15 ; AUD 0.7332-0.7291 ;NZD 0.6947-0.6916.
  • Gold flat at $1,757/oz; Crude Oil +2% at $80.94/brl; Copper +0.2% at $4.2900/lb.
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