- Hawkish Fed speak also in focus, Waller spoke on Fri.
- PBOC again uses 14-day reverse repo ahead of year-end.
- WTI Crude FUTs extended drop after moving below $70/bbl.
- 10-yr UST yields also declined; USD/JPY trades slightly lower.
- EUR/GBP rises amid the Frost news.
- TRY continues to drop.
- Equity markets have generally extended drops.
- Nikkei 225 has declined by over 2%;Toyota announced additional production disruptions.
- Hang Seng dropped by >1% during the morning session; Property index declines [Kaisa Group, Sunac and Chinese Estates have been in the headlines].
- Shanghai Composite also ended morning trading lower (-0.8%).
- S&P ASX 200 pared decline.
- RBA Dec Minutes due on Tues (Dec 21st).
- ASX 200 opened -0.1%.
- (NZ) New Zealand Nov Trade Balance (NZ$): -0.9B v -1.3B prior.
- RIO.AU Appoints Canadian ambassador to China, Dominic Barton chairman, effective on May 5th.
- (AU) Reserve Bank of Australia (RBA) offers to buy A$800M in Semi Govt Bonds v A$800M prior.
- (AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$1.60B prior.
- MFG.AU Notes impact of St James place mandate being terminated, not material to interim results.
- CIM.AU Responds to ASX query: Actively working with Middle East ops acquirer to ensure BICC meets commitments to employees, which is currently A$7.0M outstanding.
- Nikkei 225 opened -0.8%.
- (JP) Bank of Japan (BOJ) Gov Kuroda: Not time to think about normalization; will seek appropriate policy as well as fiscal health; Increase in BOJ holdings does not impact policy.
- (JP) Bank of Japan Flow of Funds report: Q3 Household assets ¥1,999T, +5.7% y/y.
- 7203.JP To suspend ops in Jan at 5 factories due to supply chains, chip shortages, and due to coronavirus pandemic; Affirms 9.0M production guidance.
- Kospi opened -0.5%.
- 052690.KR Freezes electricity prices in Q1 [in line] – Yonhap.
- (KR) North Korea leader Kim’s sister makes appearance at event, after not being seen for over 60 days.
- (KR) South Korea markets to be closed Dec 31 (Fri) and resume trading Jan 3rd; ex-dividend date is Dec 29th (Wed).
- Hang Seng opened -0.5%; Shanghai Composite opened -0.3%.
- (CN) CHINA PBOC MONTHLY LOAN PRIME RATE (LPR) SETTING: CUTS 1-YEAR RATE 5BPS TO 3.80%, MAINTAINS 5-YEAR RATE UNCHANGED.
- (CN) China Senior Diplomat Wang: China does not fear confrontation with the US; To promote steady progress in ties with US in 2022.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior and CNY10B in 14-day reverse repos v CNY0B prior; Net inject CNY10B v Net CNY0B prior.
- (CN) Hong Kong Legislative Council elections saw just 30.2% of voter turnout (lowest on record), all candidates picked by China Communist Party and election under new rules.
- (CN) China regulators should not allow capital to have ‘wild’ growth – China press commentary.
- (CN) China PBOC sets Yuan reference rate: 6.3933 v 6.3651 prior.
- (CN) China PBOC Newspaper: China encourages property project purchases.
- (HK) China issues a paper related to Hong Kong Political development: Notes foreign forces disrupt democracy development.
- (CL) Chile names Left wing candidate Boric as president elect, to meet with Pinera Monday, Dec 20th.
- (US) Sen Manchin (D-VW) says he will not support Biden’s “Build Back Better” legislation.
- CERN Expected to announce it will be acquired by Oracle Monday at mid $90d/shr cash – press.
- PFE New Zealand notes death of a 26yo man may be linked to COVID vaccine, coroner is conducting investigations – press.
- (UK) UK Brexit Min Frost resigns, saying he is confident that Brexit was secure, but has concerns about the government’s direction – press.
- (ES) Spain PM Sanchez to meet with regional leaders due to steep increase in COVID cases.
Levels as of 00:15ET
- Hang Seng -1.2%; Shanghai Composite -0.6%; Kospi -1.6%; Nikkei225 -2.1%; ASX 200 -0.2%.
- Equity Futures: S&P500 -0.9%; Nasdaq100 -1.1%, Dax -1.4%; FTSE100 -0.9%.
- EUR 1.1252-1.1235; JPY 113.73-113.46; AUD 0.7134-0.7106; NZD 0.6747-0.6721.
- Commodity Futures: Gold -0.1% at $1,802/oz; Crude Oil -3.5% at $68.39/brl; Copper -0.9% at $4.26/lb.