Equity Markets Generally Track The Earlier Losses On Wall Street

Dec 17 21, 06:25 GMT

General trend

Reminder: China loan prime rates (LPRs) may be lowered during Dec, cited analysts – Chinese press [from Dec 16th].
Australia New South Wales (highest population state) reported another record for virus cases.
Australia debt agency cut FY21/22 bond issuance plan.
Risk-sensitive commodity currencies trade lower, Crude Oil FUTs also drop.
Quiet Asian session seen for GBP/USD amid BOE rate hike.
USD/JPY trades slightly lower.
US equity FUTs extended declines in Asia, Nasdaq FUTs continued to lag; Some are focusing on Friday’s option expiration.
FedEx rose during afterhours trading amid earnings/guidance and buyback.
Cerner [CERN] rose on renewed M&A talk.
Nikkei 225 has extended declines.
Hang Seng ended the morning session near the lows (-1.3%).
Shanghai Composite also continued to decline during morning trading.
S&P ASX 200 has pared gain.
BOJ Gov Kuroda to hold post rate decision press conference at 06:30 GMT [will he comment on the recent rise in repo rates?].
Companies due to report during the NY morning include Darden Restaurants, Winnebago.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat.
(AU) Australia Treasurer Frydenberg: China is unable to replace Australia Iron Ore very easily.
(AU) NSW recorded 2,213 new COVID cases [record high]; South Australia has also reported a record high for new virus cases – Australian press.
(AU) Australia AOFM Issuance Program/MYEFO 2021-22: Cuts planned gross issuance of Treasury Bonds for 2021-22 to ~A$105B (of which A$44.3B has been completed) v ~A$130B prior.

Japan

Nikkei 225 opened -0.7%.
(JP) Bank of Japan (BOJ) leaves interest rate on excess reserves (IOER) unchanged at -0.10%; as expected; Announces partial extension of the Special Program to Support Financing in Response to COVID-19 to Sept 2022 (prior Mar 2022), but reduced the scale of the program.
(JP) Japan PM Kishida’s visit to the US has been postponed to 2022 – Nikkei.
(JP) Japan Govt said to be looking at maintaining new JGB issuance in the ~¥30T range for FY22/23 [~¥43.6T was initially planned]; notes economic recovery may support tax revenues – Press.
(JP) Japan Govt to convene diet session on Jan 17th (Mon) – Press.
(JP) Japan considers extending border controls past Jan – Press.

Korea

Kospi opened -0.7%.
(KR) South Korea to spend ~KRW3.2T on small business owners during coronavirus restrictions.

China/Hong Kong

Hang Seng opened -0.1%; Shanghai Composite opened -0.1%.
(CN) China PBOC Deputy Gov Chen: Calls for creation of financial risks alert system.
(CN) China PBOC sets Yuan reference rate: 6.3651 v 6.3637 prior.
(CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net CNY0B prior.
(US) Senate passes bill unanimously to ban all imports from Xinjiang, China unless US govt determines that they were not made with forced labor; Bill now moves to Pres Biden who has indicated he will sign it.
(CN) China Stats Bureau (NBS) Revises 2020 GDP growth to 2.2% v 2.3% prior (>40 year low).
CN) China Finance Ministry (MOF) said debt risks related to local governments are ‘generally’ under control – Chinese press.
(HK) Hong Kong Government: To sell land site in Tsing Yi by public tender, the move will support the development of logistics.
(CN) China Ministry of Finance (MOF) Sells 3-month bills and 50-year bonds.

North America

(US) President Biden: Has productive call with Schumer and Pelosi; Believes Build back better will receive support to pass in Senate.
(US) Nov Housing Starts: 1.679M V 1.567ME; Building permits: 1.712M V 1.661ME.
(US) Price-fixing case related to Chicken industry prices said to end in mistrial – US financial press.
(US) Initial Jobless Claims: 206K V 200KE; Continuing claims: 1.85M V 1.94ME.
(US) Dec Preliminary Markit PMI Manufacturing : 57.8 V 58.5E.
(US) Dec Philadelphia Fed Business Outlook Survey: 15.4 V 29.6E.
(US) Nov industrial Production M/M: 0.5% V 0.6%E; Capacity Utilization: 76.8% V 76.8%E.

Europe

(DE) German Chancellor Scholz: Will continue to closely watch energy price situation; Do not plan an obligation for coronavirus tests for travel in the EU.
(FR) France President Macron: No plans to introduce obligatory coronavirus tests for travel in the EU.
(UK) Liberal Democrats said to win the North Shropshire seat by defeating the UK Conservatives in special election – UK media.

Others

Levels as of 00:20 ET

Nikkei 225, -1.9%, ASX 200 +0.1% , Hang Seng -1.2%; Shanghai Composite -0.9% ; Kospi flat.
Equity S&P500 Futures: -0.2%; Nasdaq100 -0.3%, Dax -0.3%; FTSE100 -0.5%.
EUR 1.1340-1.1320 ; JPY 113.85-113.44 ; AUD 0.7187-0.7151 ;NZD 0.6829-0.6774.
Gold +0.3% at $1,803/oz; Crude Oil -1.2% at $71.53/brl; Copper flat at $4.2977/lb.