Sun, May 22, 2022 @ 23:28 GMT
HomeContributorsFundamental AnalysisGenerally Quiet And Higher Equity Session Seen

Generally Quiet And Higher Equity Session Seen

General trend

  • USD trades generally firmer.
  • Hang Seng has traded modestly higher; JD.com declines by >10% on Tencent stake sale news, Tencent rises by over 4%; Alibaba drops amid continued regulatory concerns.
  • Shanghai Composite lagged during the morning session; Property index declined.
  • Nikkei 225 has remained slightly higher.
  • S&P ASX 200 also saw slight rise.
  • China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened +0.0%.
  • SYR.AU Executes offtake agreement with Tesla (shares +23%).
  • BGA.AU Guides FY22 (A$) EBITDA 195-215M v 142M y/y; Sees upward pressure on farm gate milk prices to remain for the year (shares -11%).
  • EVN.AU Withdraws from Murchison JV; Effective Jan 17th; Enterprise Metals to retain the project (shares +11%).
  • (AU) Australia Nov Private Sector Credit M/M: 0.9% v 0.5% prior; Y/Y: 6.6% v 5.7% prior.
  • (NZ) Reserve Bank of New Zealand (RBNZ) Nov Housing Lending growth slowed to 0.8% m/m, and increased 11.0% y/y; Annual growth below the peak in July.

Japan

  • Nikkei 225 opened +0.5%.
  • (JP) Japan PM Kishida: Aiming for a V shaped recovery from pandemic.
  • (JP) Japan Govt confirms that it expects FY22/23 new bond issuance at ¥36.9T, down ~¥6.7T vs initial est for FY21/22 ; Revenues at ¥65.2T; Confirms size of budget at ¥107.6T, largest budget in history ( Size in line with speculation).
  • (JP) Experts continue to puzzle over why Japan has seen a sudden drop in COVID cases and deaths recently, -99% from peak, while the rest of the world is spiking.
  • (JP) Japan Investors Net Buying of Foreign Bonds: -¥1.6T v +¥457.0B prior; Foreign Net Buying of Japan Stocks: -¥841.3B v -¥602.9B prior.
  • 4523.JP Confirms Japan’s First Committee on New Drugs of The Pharmaceutical Affairs and Food Sanitation Council seeks additional data; Aducanumab remains under review.
  • (JP) Japan Govt confirms real FY22 GDP Estimates at 3.2%, up from 2.2% – (JP) Japan Chief Cabinet Sec Matsuno: Not thinking of easing coronavirus restrictions now; Expects economic outlook to return to pre coronavirus levels by Mar (In line).
  • (JP) Japan Industry Ministry (METI): Expects Jan quarter [Q1] crude steel production -1.4% q/q.
  • (JP) Bank of Japan (BOJ) Gov Kuroda: monetary Policy played key role in early recovery from pandemic; Interest rates most important tools for monetary policy, have indrect impact on economy on FX moves and Equities.

Korea

  • Kospi opened +0.5%.
  • (KR) South Korea Unification Min Lee In-young: Korean peninsula is at an “extremely critical juncture” between peace and tensions”; next year uncertainties could increase if the current deadlock in nuclear negotiations and lack of dialogue continue.
  • (KR) Bank of Korea (BOK) notes that Housing prices and household debt are major risks to financial stability – Yonhap.
  • (KR) Bank of Korea (BOK) To join US Fed FIMA Repo Facility that was created in Mar 2020.

China/Hong Kong

  • Hang Seng opened +0.2%; Shanghai Composite opened +0.1%.
  • (CN) China PBOC sets Yuan reference rate: 6.3651 v 6.3703 prior.
  • (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 CNY10B prior; Net inject CNY10B v Net inject CNY10B prior.
  • (CN) China Sec Journal: PBOC expected to maintain ample liquidity through early next year.
  • 700.HK Declares interim special dividend payable in JD.com shares; To pay 1 Class A share of JD.com for every 21 shares held by shareholders.
  • 941.HK Completes 422M share strategic placement and upsized 436.0M (prior 253.7M) online offering subscription at CNY57.58/shr.
  • (CN) China announces Lockdown in Xi’an City [capital of Shaanxi Province in central China] due to increasing coronavirus cases.
  • (CN) Follow Up: China City Xi’an has cancelled all domestic flights after locking down the city over coronavirus.
  • (CN) China Nov Swift Global Payments (CNY): 2.14% v 1.85% prior.

Other

  • (TW) Taiwan Cabinet planning to advance an additional NT$430B of loans under the three “Invest Taiwan” programs for private businesses to encourage local investment – local press.

North America

  • INTC China regulator approves Intel Hynix deal with conditions – press.
  • (US) Supreme Court to hear arguments on Coronavirus vaccine mandates on Jan 7th.
  • (US) Biden administration to extend pause on student loan payments through May 2022 (set to expire early 2022).

Europe

  • (UK) Nov Car Manufacturing 75.8K unit, -28.7% y/y; YTD car manufacturing 797.3K units, -6.2% y/y – SMMT.

Levels as of 00:20 ET

  • Nikkei 225, +0.6%, ASX 200 +0.3% , Hang Seng +0.2%; Shanghai Composite flat ; Kospi +0.2%.
  • Equity S&P500 Futures: +0.1%; Nasdaq100 flat, Dax -0.1%; FTSE100 +0.5%.
  • EUR 1.1342-1.1318 ; JPY 114.21-114.07 ; AUD 0.7221-0.7195 ;NZD 0.6822-0.6795.
  • Gold % at $/oz; Crude Oil +0.3% at $72.96/brl; Copper -0.2% at $4.3795/lb.

 

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