General trend
- Japan and AU report hotter inflation data after US CPI surprise.
- USD index slightly extended rise during Asia; USD/JPY rose above ¥114.
- Nikkei 225 has reversed the opening decline, the index has outperformed amid the drop in the Yen.
- Japanese cos. due to report earnings include Rakuten, McDonald’s Japan, Suzuki, Bridgestone, Coca-Cola Bottlers Japan, ENEOS, Trend Micro.
- US equity FUTs have moved slightly higher after the losses on Wed, futures later pared gain; Musk sold shares in Tesla.
- Hang Seng has pared the opening decline; Property index rises amid reported debt payments by Evergrande, China regulators said to consider support for property developers; Kaisa Group’s debt payment deadlines in focus.
- Shanghai Composite ended morning trading higher after the lower open; Property index rises > 5.5%.
- China’s Singles Day in focus.
- China Ministry of Finance (MOF) has again sold EUR-denominated bonds at negative yields (US financial press).
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- China to hold briefing on the 6th Plenary meeting at 10AM local time on Nov 12th (Fri).
- S&P ASX 200 has lagged, REITs weighed down by higher bond yields; Energy index also drops; Resources index rises.
- Companies due to report during the NY morning include Brookfield Asset Management, Sally Beauty, Tapestry, Weibo.
- US cash Treasury market is closed on Thurs due to the Veterans Day holiday.
- Japan PM Kishida said to have ordered coronavirus measures be compiled by Friday (Nov 12th).
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened -0.2%.
- (AU) AUSTRALIA NOV CONSUMER INFLATION EXPECTATION: 4.6% V 4.6% PRIOR.
- (AU) AUSTRALIA OCT EMPLOYMENT CHANGE: -46.3K V +50.0KE; UNEMPLOYMENT RATE: 5.2% V 4.8%E; Participation Rate: 64.7% v 64.8%e (first rise since Jun).
Japan
- Nikkei 225 opened -0.2%.
- (JP) Japan Oct PPI (CGPI) M/M: 1.2% v 0.4%e; Y/Y: 8.0% v 7.0%e.
- (JP) Japan likely not to resume “Go Travel” until January at the earliest – Japan press.
- (JP) Japan Foreign Min Hayashi: Not yet at stage to set a date for China President Xi to visit.
Korea
- Kospi opened -0.6%.
- (KR) Bank of Korea (BOK) Gov Lee: Higher than expected CPI to continue for while, economic trend id in line with expectation.
- (KR) South Korea Nov 1-10th Imports Y/Y: +59% v 63.5%% prior; Exports Y/Y: 29.3% v 58.6% prior; Chip Exports y/y: 45.3% v +22.0% prior.
- (KR) South Korea think tank, KDI, sees 2022 GDP at 3.0%, boosted by strong private spending – Yonhap.
China/Hong Kong
- Hang Seng opened -0.6%; Shanghai Composite opened -0.2%.
- 3333.HK Reportedly China Evergrande met payment deadlines today for 2 of its bonds, relates to bonds due in 2022 and 2023; cites a co. bondholder – NYT.
- (CN) Reportedly China regulators are considering easing property rules to allow troubled developers to sell off assets and avoid defaults that could hurt the broader economy – press (US session).
- (CN) China President Xi expected to secure a resolution at plemum that will allow for a 3rd term, 1 year from now (1st in history) and may also secure mandate that would allow him to rule for life – financial press.
- (US) Reportedly virtual meeting between Biden and Xi has been tentatively scheduled for Monday – press.
- (CN) China PBOC sets Yuan reference rate: 6.4145 v 6.3948 prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY100B prior; Net inject CNY50B v Net inject CNY50B prior.
- 3333.HK China plans to manage a controlled dismantling, but could take years – press.
- 700.HK Reports Q3 (CNY) Net 39.5B v 38.5B y/y, Rev 142.4B v 125.5B y/y.
- (CN) CHINA OCT NEW YUAN LOANS (CNY): 826.2B V 800BE.
- (CN) CHINA OCT M2 MONEY SUPPLY Y/Y: 8.7% V 8.3%E.
- (CN) CHINA OCT AGGREGATE FINANCING (CNY): 1.590T V 1.700TE.
North America
- TSLA Musk files Form 4 for transactions on Nov 8th, 934,091 shares sold to meet tax obligations on 2.15M options.
- (US) OCT CPI M/M: 0.9% V 0.6%E; Y/Y: 6.2% V 5.9%E (highest annual pace since Nov 1990).
- (US) Said that the US will not open up a trade probe into Solar manufacturers from Asia – press.
- (US) Citi: Beleives US could release up to 60Mbbls of oil from strategic reserves.
- DIS Reports Q4 $0.37 v $0.52e, Rev $18.5B v $18.8Be.
Europe
- (UK) Oct RICS House Price Balance: 70% v 65%e (higher due to lack of supply).
- (NZ) EU Delays trade deals until after Apr 2022 with both New Zealand and Chile, postponement will wait until after French Presidential elections in Apr – FT.
Levels as of 00:15ET
- Hang Seng -0.3%; Shanghai Composite +0.7%; Kospi -0.5%; Nikkei225 +0.5%; ASX 200 -0.6%.
- Equity Futures: S&P500 +0.0%; Nasdaq100 +0.1%, Dax +0.0%; FTSE100 +0.0%.
- EUR 1.1488-1.1465; JPY 114.14-113.86 ;AUD 0.7341-0.7295; NZD 0.7071-0.7036.
- Commodity Futures: Gold +0.3% at $1,853/oz; Crude Oil +0.3% at $81.62/brl; Copper +0.9% at $4.34/lb.
