Equity Indices Trade Mixed, HSBC Reported Mixed Results And Announced Buyback

Oct 25 21, 06:25 GMT

General trend

Modest equity moves have been seen thus far.
Nikkei has remained lower [Heavyweights decline (Fast Retailing, Softbank Group)]; Tokyo Steel rises on guidance raise.
S&P ASX 200 has remained higher [Resources and Energy indices outperform].
Hang Seng and Shanghai Composite pared losses; Shanghai Consumer Staples index dropped after results from Kweichow Moutai.
Shanghai and HK property indices drop, China confirmed expansion of property tax trial.
Has Evergrande officially confirmed USD interest payment? [grace period was due to end on Oct 23rd].
China bonds and WGBI [bond index] in focus [FTSE Russell previously stated that China bonds to be included in the WGBI over a period of 36 months, effective from Oct 29th 2021 (Fri)].
TRY drops on political news.
US Natural Gas FUTs extend gains.
LG Chem may issue results later today.
Companies due to report during the NY morning include Kimberly-Clark, Lennox International, Otis Worldwide, Restaurant Brands.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened +0.1%.
(AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$1.60B prior.
(AU) Australia sells A$1.0B v A$1.0B indicated in 0.25% Nov 2024 bonds, avg yield 0.7229%, bid to cover 6.62x.

China/Hong Kong

Hang Seng opened -0.4%, Shanghai Composite -0.2%.
(CN) China to launch pilot property tax schemes in some regions; the specific regions and other details will be determined by the State Council; The pilot schemes are expected to last for 5 years. – Xinhua.
HSBC [5.HK]: Reports Q3 Net $3.54B v $1.36B y/y, adj Pretax $6.00B v $4.4B y/y ($4.87Be), Rev $12.0B v $11.9B y/y ($12.3Be); To buy back up to $2.0B in shares.
(CN) China health official said it is more likely that latest COVID outbreak will spread further – financial press.
(CN) China State Planner (NDRC): Will strengthen credit supervision over medium and long term thermal coal contracts.
Evergrande [3333.HK]: Certain bondholders say they have received interest payments for tranche due on Sept 23rd [Grace period expired Oct 23rd, yet to receive confirmation from co.] – financial press.
(CN) China State Planner (NDRC) to meet with certain property developers on Tues (Oct 26th) – Press.
(CN) China PBOC Open Market Operation (OMO): Injects CNY200B in 7-day reverse repos v CNY100B prior; Net inject CNY190B v Net inject CNY90B prior.
(CN) China PBOC sets Yuan reference rate: 6.3924 v 6.4032 prior.

Japan

Nikkei 225 opened -1.0%.
(JP) FNN Poll indicates that it is unclear if Japan Ruling Party (LDP) can maintain a sole majority in Parliament.
(JP) Japan ruling LDP party said to have lost special election in Shizuoka [comes ahead of the Oct 31st general elections].

Korea

Kospi opened -0.2%.
(KR) South Korea President Moon: May have higher tax revenues than expected in 2021, to repay national debt with the extra revenue.

Other Asia

(SG) Singapore Sept CPI M/M: 0.4% v 0.3%e; Y/Y: 2.5% v 2.4%e; CPI Core Y/Y: 1.2% v 1.0%e.

North America

(US) White House Statement: President Biden had ‘productive’ discussion about Build Back Better Agenda today with Senators Schumer and Manchin.
(US) US Senator Manchin (D) said to be ‘agreeable’ to wealth tax for President Biden plan – US press.
(US) President Biden to give comments on economic agenda and infrastructure deal at 13:45ET [on Monday].
(US) Treasury Sec Yellen: Do not think we are about to lose control of inflation; Inflation will remain high until next year; Expects improvement in inflation rate in H2 2022 [from Oct 24th].

Europe

(TR) Turkey President Erdogan said to have ordered 10 foreign envoys be ousted, including envoys from US, France and Germany – press.
Banca Monte Paschi [BMPS.IT] UniCredit and Italy’s Ministry of Economy and Finance confirm decision to cease the negotiations on potential acquisition of Monte dei Paschi.
(IT) S&P revises Italy sovereign ratings outlook to Positive from Stable; Affirms BBB ratings [from Oct 22nd].
(UK) Reportedly EU has told the UK that British legal texts cannot be basis for talks, EU preparing response if UK triggers Article 16 of Northern Ireland Protocol [from Oct 22nd].
(UK) Chancellor of the Exchequer Sunak: Rise in COVID-19 cases do not currently suggest a need for tougher restrictions [from Oct 24th].
(UK) UK Finance Min expected to confirm plan to raise minimum wage in Wed (Oct 27th) budget statement; to also unfreeze public sector pay – UK Press.

Levels as of 01:20 ET

Nikkei 225, -0.9%, ASX 200 +0.4% , Hang Seng +0.1%; Shanghai Composite +0.3% ; Kospi +0.4%.
Equity S&P500 Futures: +0.1%; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 +0.2%.
EUR 1.1665-1.1636 ; JPY 113.82-113.45 ; AUD 0.7489-0.7463 ;NZD 0.7168-0.7145.
Gold +0.2% at $1,800/oz; Crude Oil +0.9% at $84.55/brl; Copper +1.1% at $4.55/lb.