HomeContributorsFundamental AnalysisEquity Markets Trade Mixed After US Cancellation Of North Korea Summit

Equity Markets Trade Mixed After US Cancellation Of North Korea Summit

General Trend:

  • Automakers in Asia remain weaker after recent US auto imports probe announcement
  • Shares of Samsonite [1910.HK] remain under pressure following report by short-seller
  • Yen (JPY) trades generally weaker, led by declines in JPY/KRW
  • Corporate defaults remain a topic in the Chinese press
  • Reserve Bank of Australia (RBA) faces temporary labor strike
  • US Commerce Sec Ross to visit China from June 2-4th to discuss trade – Xinhua

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened -0.3%; closed flat
  • ASX 200 Energy index -1.5%, Resources -1.4%, REIT -0.5%; Telecom +2.8%, Consumer Discretionary +1.5%, Financials flat
  • (AU) Australia banknote printer workers said to plan to go on temporary strike, seeking pay increase of 4%; Note Printing Australia is owned by the Reserve Bank of Australia (RBA) – Australian Press
  • (AU) Australia sells A$500M v A$500M indicated in Nov 2029 bonds, avg yield 2.8273% v 2.8181% prior, bid to cover 5.21x v 3.57x prior
  • (AU) Australia to sell new May 21, 2030 bond during week of June 4th

China/Hong Kong

  • Shanghai Composite opened -0.2%, Hang Seng -0.3%
  • Hang Seng Energy index -3.4%, Telecom -0.7%, Info Tech -0.6%; Consumer Goods +0.8%, Materials +0.8%, Industrial Goods +0.5%, Financials flat
  • Rusal [486.HK]: Says Oleg Deripaska resigns as non-executive board member; effective May 25 2018
  • (CN) China NDRC said to plan to hold a meeting with miners and utilities later today related to coal prices – US financial press
  • (CN) China regulator said to urge sellers of bonds to manage cash flows; Official rules out systemic risks related to bond defaults – Chinese Press
  • (CN) China PBoC Open Market Operation (OMO): Skips OMO v CNY40B injected in 7 and 14-day reverse repos prior: Net: v CNY0B prior
  • (CN) For the week, the PBOC drained a net of CNY30B through OMOs v CNY410B net injection w/w

Japan

  • Nikkei 225 opened -0.3%; closed +0.1%
  • TOPIX Marine Transportation index -1.7%, Iron & Steel -1.5%, Real Estate -1.5%, Information & Communications -0.7%, Securities -0.3%
  • Automakers remain weaker
  • Softbank and other telecoms decline: Japan government said to issue guidance to Softbank related to phone discounts (Japanese press)
  • Fast Retailing +0.8% (declined over 1% on prior session)
  • (JP) Japan May Tokyo CPI Y/Y: 0.4% v 0.5%e; Ex-Fresh Food (Core) Y/Y: 0.5% v 0.6%e
  • (JP) Japan Fin Min Aso: Financial sanctions against North Korea may be prolonged after cancellation of US/North Korea summit
  • (JP) Japan Chief Cabinet Sec Suga: Sees progress as more important than holding summit with North Korea

Korea

  • Kospi opened -0.5%
  • Samsung rises after Apple patent ruling; The ruling ordered Samsung to pay ~$533M in damages vs the $1B in damages that Apple had sought.
  • (KR) North Korea Vice Foreign Min Kim Kye Gwan: Willing to talk with US at ‘any time’; no change in will to do the best for peace – KCNA
  • (KR) Pres Trump sends letter to North Korea’s Kim: says inappropriate to have June 12 summit at this time; looks forward very much to meeting some day; The anger and open hostility in your most recent statement makes a meeting inappropriate at this time
  • (US) Pres Trump: Possible existing summit could take place or it could take place at a later date

Other

  • IMF Deputy Managing Dir Zhang: Short-term outlook for Asia and global economies is ‘strong’; Low inflation in Asia mainly due to temporary factors
  • (ID) Indonesia Rupiah (IDR) on track to trade lower for the 6th straight week – US financial press
  • (MY) Malaysia Finance Minister Lim Guan Eng said the government will honor all payments on debt raised by state investment fund 1MDB – financial press
  • (SG) Singapore Apr Industrial Production M/M: 0.2% v 1.2%e; Y/Y: 9.1% v 8.0%e
  • Nanya Technology [2408.TW]: Said to see sales growth on higher DRAM prices (Taiwanese Press)

North America

  • US equity markets closed mixed: Dow -0.3%, S&P500 -0.2%, Nasdaq flat, Russell 2000 flat
  • S&P500 Energy -1.7%, Financials -0.8%
  • (US) NY Fed Survey of Primary Dealers: expect 3 more Fed rate hikes this year (responses submitted between 4/19-4/23)
  • (US) According to Fed data, foreign holdings of US Treasuries declined for the 4th straight week – FT
  • (BR) Brazil Gov’t: Has reached ‘deal’ with certain truckers unions, under the agreement the nationwide strike will end for 15 days

Europe

  • (UK) BOE Gov Carney: the gentle path for rate hikes expected by BOE is dependent on GDP growing faster than the 1.5% trend rate; Rates might rise quicker than the path described in May if investment recovers much more robustly; Brexit will be key factor in BOE rate policy; Uncertainty about consumer spending is elevated due to slower consumer lending and spending and the state of the housing market
  • (ES) PSOE Leader Sanchez reportedly considering triggering no confidence vote against Spain PM Rajoy following corruption verdict this morning – press
  • (SA) Saudi Oil Min Falih: Aims for balancing and not ‘over correction’ of oil market, Easing OPEC+ caps is on the table but no decision yet
  • (RU) Russia Energy Min Novak: OPEC+ will in June for sure discuss easing caps
  • (RU) Russia Energy Min Novak: the global oil glut is over

Levels as of 02:00ET

  • Hang Seng -0.4%; Shanghai Composite -0.2%; Kospi -0.2%
  • Equity Futures: S&P500 +0.3%; Nasdaq100 +0.4%, Dax +0.2%; FTSE100 +0.2%
  • EUR 1.1705-1.1727 ; JPY 109.12-109.76 ; AUD 0.7561-0.7583 ;NZD 0.6923-0.6939
  • Jun Gold -0.2% at $1,301/oz; Jun Crude Oil -0.1% at $70.66/brl; Jul Copper -0.2% at $3.094/lb
Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading