Equity Indices Trade Generally Lower After Nasdaq Decline

Nov 24 21, 07:22 GMT

General trend

US equity FUTs have traded slightly lower.
Nikkei 225 lags following holiday.
Hang Seng traded generally flat during the morning session; Tech earnings remain in focus [Kuaishou rises, Xiaomi declines].
Shanghai Composite ended morning trading slightly lower (-0.1%); Kweichow Moutai supported by broker comments.
S&P ASX 200 ended slightly lower.
Taiwan said to be considering an entry ban on senior China officials (press).
Companies due to report during the NY morning include Cheetah Mobile, Deere & Co., Futu, Yiren Digital.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened -0.1%.
(AU) AUSTRALIA Q3 CONSTRUCTION WORK DONE Q/Q: -0.3% V -2.9%E.
(AU) Australia sells A$1.0B v A$1.0B indicated in 1.75% Nov 2032 bonds, Avg Yield: 1.969% v 1.9302% prior, bid to cover 3.39x v 4.09x prior [from Oct 29th].
(NZ) RESERVE BANK OF NEW ZEALAND (RBNZ) RAISES OFFICIAL CASH RATE (OCR) BY 25BPS TO 0.75%; AS EXPECTED; raises rate path outlook to above 2% neutral by Q4 2022.
(NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Did consider 50bps rate hike today, amid a range of options, 25bps gives more optionality; RBNZ can take our time at this point – post rate decision comments.

Japan

Nikkei 225 opened -0.4%.
(JP) Japan PM Kishida: Confirms to release oil from state reserves in coordination with the US, the amount and timing to come from the Trade Ministry.
(JP) Bank of Japan (BOJ) considering reducing corporate bond purchases – Japan press.
(JP) JAPAN NOV PRELIMINARY PMI MANUFACTURING: 54.2 V 53.2 PRIOR (10th month of expansion).
(JP) Japan govt plans to set aside ¥600B ($5.2B) for fund to support semiconductor firms – Nikkei.
(JP) Consortium of 70 Japan companies (including 3 megabanks) to start experimental launch of digital currency – Nikkei.
(JP) Japan to hold auctions by end of the year for release of oil from stockpile – Nikkei.
6502.JP Second largest shareholder, 3D Investment Partners, sends letter objecting to 3 way split, extremely unlikely to solve Toshiba’s problems., likely to create 3 under performing companies.

Korea

Kospi opened +0.3%.
(KR) South Korea Govt: Have decided to accept the US request to release crude stockpiles, considering the need for international coordination on global oil prices, importance of the S. Korea-U.S. alliance and participation of major economies.
005930.KR Confirms $17B Texas factory, expect to start mass production of chips in H2 2024.

China/Hong Kong

Hang Seng opened +0.1%; Shanghai Composite opened 0.0%.
(CN) China Vice Premier Liu He reiterated call for stable housing market, reiterates housing is not for speculation – Chinese press.
(CN) China PBOC sets Yuan reference rate: 6.3903 v 6.3929 prior.
(CN) China PBOC Open Market Operation (OMO): Sells CNY100B in 7-day reverse repos v CNY50B prior; Net inject CNY50B v Net inject CNY0B prior.
(CN) Analysts note that China PPI may have peaked on coal price decline – China Securities Journal.
1810.HK Reports Q3 (CNY) adj Net 5.18B v 4.81Be, Rev 78.1B v 77.5Be; Expects to launch EV mass production in H1 2024.
(CN) China Economic Inflation Daily: rare earth price index 317.4, +8.3% from Nov 1st.

Other

(SG) SINGAPORE Q3 FINAL GDP Q/Q: 1.3% V 0.8%E; Y/Y: 7.1% V 6.5%E; Narrows 2021 GDP outlook to 7.0% (prior 6-7%); Gives initial 2022 GDO outlook 3.0-5.0%.
(SG) Singapore Central Bank (MAS) Official: To remain careful and vigilant on price developments.
(SA) Saudi-based analysis firm International Energy Forum (IEF): Oil prices will probably fall for the rest of the year, OPEC+ will be cautious in reacting to SPR oil release.

North America

(US) Weekly API Crude Oil Inventories: +2.3M v +0.7M prior.
DELL Reports Q3 $2.37 v $2.33e, Rev $28.4B v $27.4Be; Guides Q4 $1.85-2.05 v $1.76e, Rev $27-28B v $25.9Be – earnings call comments.
GPS Reports Q3 $0.27 v $0.49e, Rev $3.9B v $4.45Be; Cuts FY guidance.
(US) US Energy Sec Granholm: Notes cutting gasoline taxes is a tool.

Europe

(EU) EU’s Sefcovic: EU-UK talks on Northern Ireland trade rules will ‘probably’ continue into next year – Politico.
(UK) Former Bank of England (BOE) Gov King said central banks have ‘King Canute’ theory of inflation, said to question theory that inflation will stay low ‘because we say it will’ – UK press.

Levels as of 00:15ET

Hang Seng +0.1%; Shanghai Composite +0.1%; Kospi -0.3%; Nikkei225 -1.8%; ASX 200 -0.2%.
Equity Futures: S&P500 -0.2%; Nasdaq100 -0.2%, Dax -0.2%; FTSE100 -0.0%.
EUR 1.1254-1.1233; JPY 115.24-114.92; AUD 0.7229-0.7200; NZD 0.6957-0.6896.
Commodity Futures: Gold +0.6% at $1,794/oz; Crude Oil +0.3% at $78.77/brl; Copper -0.4% at $4.40/lb.