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General Trend:

• Hang Seng nears ‘bear market’ territory
• Apple's suppliers decline during trading session
• On Friday (Sept 7th), US President Trump said there are another $267B in China tariffs that could be launched on short notice, in addition to the latest $200B of tariffs.
• Alibaba reveals succession plan for Executive Chairman Ma
• China says to fine tune monetary policy in a ‘pre-emptive’ way based on the economic and external situations
• China Aug CPI rises more than expected
• China Soybean Futures have largest daily rise in over 2 years
• Japan Q2 GDP revised higher on Capex

Headlines/Economic Data

Australia/New Zealand

• ASX 200 opened flat
• ASX 200 Telecom index -0.8%, Financials -0.2%, Consumer Discretionary -0.1%; Energy +0.9%, Utilities +0.5%
• NAB [NAB.AU]: CEO: Bank is keeping its variable home loan rate on hold; notes the need to rebuild customer trust
• (AU) According to Newspoll, PM Morrison is favored over opposition leader Bill Shorten; The ruling coalition trails the Labor Party by a 44% to 56% margin - Australian Press
• (AU) Reserve Bank of Australia (RBA) Assistant Gov Bullock: Widespread financial stress among households is not imminent; reiterates sees potential vulnerabilities from high household debt
• (AU) Australia Government: Recent rain in New South Wales (NSW) not enough to lift drought
• (AU) Australia sells A$600M v A$600M indicated in Nov 2022 bonds, avg yield 2.1168%, bid to cover 4.7x
• (NZ) New Zealand Institute of Economic Research (NZIER): Economists lower forecast for GDP growth - Quarterly Consensus Survey of Economists
• (NZ) New Zealand Q2 Manufacturing Activity Q/Q: 1.8% v 0.6% prior; Manufacturing Activity Volume Q/Q: -1.2% v +1.4% prior (largest drop in 5-years)

China/Hong Kong

• Shanghai Composite opened -0.2%, Hang Seng -0.2%
• Hang Seng Materials index -2.1%, Services -1.9%, Industrial Goods -1.6%, Consumer Goods -1.5%, Property/Construction -1.3%, Financials -1.2%, Info Tech -0.7%, Utilities -0.5%, Energy -0.2%
• Alibaba: Current CEO Daniel Zhang to succeed Jack Ma as Executive Chairman, effective Sept 10 2019
• (US) President Trump: there are another $267B in China tariffs that could be launched on short notice, in addition to the latest $200B of tariffs, which could be imposed soon (from Sept 7th)
• (CN) China: State Council Committee on Financial Stability met on Sept 7th: To fend off 'Black Swan' events; to fine-tune monetary policy in 'pre-emptive' way
• (CN) CHINA AUG TRADE BALANCE: $27.9B V $31.0BE; Trade Surplus with the US $31.1B (record high) v $28.1B m/m (released on Sept 8th)
• (CN) China Ministry of Finance said the government will soon grant higher tax rebates to exporters – Press
• (CN) CHINA AUG CPI Y/Y: 2.3% V 2.1%E (highest since Feb)
• (CN) CHINA AUG PPI Y/Y: 4.1% V 4.0%E
• (CN) China PBoC Open Market Operation: Skips OMO (14th straight skip)
• (CN) China PBoC set yuan reference rate: 6.8389 v 6.8212 prior

Japan

• Nikkei 225 opened -0.2%
• TOPIX Marine Transportation index +0.7%, Info & Communications +0.7%, Securities +0.3%, Electric Appliances +0.4%; Retail Trade -0.3%
• Megabanks outperform
• (JP) JAPAN Q2 FINAL GDP Q/Q: 0.7% V 0.7%E; ANNUALIZED Q/Q: 3.0% V 2.6%E (fastest growth since 2016); Business Spending Q/Q: 3.1% v 2.8%e (fastest rise since Q1 2015)
• (JP) JAPAN JUL TRADE BALANCE BOP BASIS: -¥1.0B V -¥47.7BE
• (JP) Japan PM Abe: This will be my last LDP leadership election; Reiterates trade fights don't benefit any country

Korea

• Kospi opened -0.2%
• (KR) Bank of Korea (BoK) said to consider cutting its 2018 GDP growth forecast (currently 2.9%) - Local Press
• (KR) North Korea holds military parade with no speech from Kim Jong Un and no display of ICBMs - Korean press
• (KR) South Korea sells KRW1.3T v KRW1.3T indicated in 10-year bonds: avg yield 2.265%

Other

• (ID) Indonesia Aug Foreign Reserves: $117.9B v $118.3B prior (7th straight decline, released on Sept 7th)
• (ID) Indonesia Central Bank: Reiterates commitment to remain in markets; to continue duel interventions
• (ID) Indonesia Fin Min Indrawati: Sees economic uncertainties to remain at least until 2019, sees higher downside risks in 2019
• (IN) Amid the currency weakness, India 10 year yield trades above 8.11% (highest since Nov 2014)
• (IN) India said to lack sufficient room to reduce borrowings in FY19/20 - financial press
• (PH) Philippines Central Bank (BSP) said to be considering a possible extraordinary policy meeting later in Sept to address inflation and declining peso (PHP) currency - Japanese Press
• (PH) Philippines said to be seen as less likely to reach 7-8% GDP growth forecast for 2018 - Local Press

North America

• Apple [AAPL]: Proposed tariff list said to cover a wide range of Apple products – press
• (CN) According to KLA-Tencor the US semiconductor industry plans to warn the Trump Administration that restrictions on exports of chip and equipment to China could hurt jobs in the US - Japanese Press
• CBS [CBS]: Confirms Moonves to depart as Chairman and CEO, effective immediately; CFO Ianniello to be named as acting CEO; Confirms it and National Amusements agreed to dismiss pending litigation, National Amusements agrees not to propose CBS-Viacom merger for at least 2 years
• (US) Fed Rosengren (moderate, non-voter): Would not be surprised if Fed estimates of neutral rate and therefore rate path shift higher; Sept rate hike 'highly probable'
• (US) Federal Reserve said to consider a new tool to avert crises - US financial press
• (US) US Energy Sec Perry to meet with officials from Saudi Arabia including Energy Minster Al-Falih on Monday in Washington - financial press

Europe

• (EU) EU said to be prepared to tell EU Chief Brexit Negotiator Barnier to 'zero in' on Brexit deal, preparing new instructions to help close the Brexit deal - FT
• (SE) Sweden PM: Election result is still uncertain: to continue as PM until parliament vote, to await the final election outcome before making decisions
• (SE) Following the recent election results, Sweden’s Centre right Moderates and Liberals parties have called on PM Lofven to step down.
• (IT) Italy Fin Min Tria said domestic bond yield spread to decline as government starts to act - financial press

Levels as of 01:30ET

• Nikkei 225, +0.2%, ASX 200 -0.1%, Hang Seng -1.1%; Shanghai Composite -0.7%; Kospi +0.2%
• Equity Futures: S&P500 +0.1%; Nasdaq100 +0.2%, Dax +0.1%; FTSE100 flat
• EUR 1.1565-1.1539 ; JPY 111.10-110.85 ; AUD 0.7120-0.7100 ;NZD 0.6537-0.6512
• Aug Gold -0.1% at $1,201/oz; Sept Crude Oil +0.6% at $68.14/brl; Dec Copper -0.3% at $2.612/lb

For the 24 hours to 23:00 GMT, the EUR declined 0.56% against the USD and closed at 1.1560 on Friday.

Data showed that, Euro-zone's seasonally adjusted final gross domestic product (GDP) jumped 0.4% on a quarterly basis in 2Q 2018, in line with market expectations and confirming preliminary print. In the previous quarter, the GDP had registered a revised gain of 0.3%.

In Germany, seasonally adjusted trade surplus narrowed €16.5 billion in July, compared to a surplus of €21.8 billion in the previous month, while market participants had anticipated the nation to record a surplus of €19.5 billion. Moreover, the nation's seasonally adjusted industrial production unexpectedly slid to a 5-month low level of 1.1% on monthly basis in July, defying market consensus for an advance of 0.2%. In the previous month, industrial production had fallen by a revised 0.7%.

In the US, data indicated that the US non-farm payrolls advanced to a level of 201.0K in August, following a revised gain of 147.0K in the prior month. Market participants had envisaged non-farm payrolls to rise to a level of 190.0K. Meanwhile, the nation's unemployment rate remained unchanged at 3.9%. Further, average hourly earnings climbed 2.9% on an annual basis in August, higher than market expectations for a rise of 2.7%. In the prior month, average hourly earnings had advanced 2.7%.

In the Asian session, at GMT0300, the pair is trading at 1.1549, with the EUR trading 0.10% lower against the USD from Friday's close.

The pair is expected to find support at 1.1514, and a fall through could take it to the next support level of 1.1480. The pair is expected to find its first resistance at 1.1616, and a rise through could take it to the next resistance level of 1.1684.

Moving ahead, investor's will await Euro-zone's Sentix investor confidence for September, due to be released in a few hours. Also, the US consumer credit data for July, set to release later today, will keep traders on their toes.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the GBP declined 0.05% against the USD and closed at 1.2923 on Friday.

On the macro front, Halifax house price index advanced 3.7% in the three months to June-August 2018, at par with market expectations. In the May-July 2018 period, the index had climbed 3.3%.

In the Asian session, at GMT0300, the pair is trading at 1.2919, with the GBP trading a tad lower against the USD from Friday’s close.

The pair is expected to find support at 1.2876, and a fall through could take it to the next support level of 1.2833. The pair is expected to find its first resistance at 1.2995, and a rise through could take it to the next resistance level of 1.3071.

Looking ahead, investors would await Britain’s GDP data, trade balance data, industrial production and manufacturing production, all for July, slated to release in a few hours.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.27% against the JPY and closed at 110.97 on Friday.

On the data front, Japan's preliminary leading economic index eased to a level of 103.5 in July, meeting market expectations. In the prior month, the index had recorded a level of 104.7. Additionally, the nation's flash coincident index dropped to a level of 116.3 in July, compared to market consensus for a decline to a level of 115.7. In the previous month, the index had registered a reading of 116.4.

In the Asian session, at GMT0300, the pair is trading at 110.99, with the USD trading a tad higher against the JPY from Friday's close.

Overnight data showed that, Japan's final annualised gross domestic product (GDP) rebounded 3.0% in 2Q 2018, rising at its strongest pace since 2016 and compared to a revised drop of 0.9% in the previous quarter. The preliminary figures had indicated a rise of 1.9%, while market participants had anticipated the GDP to climb 2.6%.

On the other hand, Japan posted a trade deficit (BOP basis) of ¥1.0 billion in July, compared to market expectations for a deficit of ¥47.7 billion. In the preceding month, the nation had recorded a surplus of ¥820.5 billion.

The pair is expected to find support at 110.58, and a fall through could take it to the next support level of 110.18. The pair is expected to find its first resistance at 111.32, and a rise through could take it to the next resistance level of 111.66.

In absence of key economic releases in Japan today, investor sentiment would be determined by global macroeconomic events.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.37% against the CHF and closed at 0.9687 on Friday.

In the economic news, Switzerland's seasonally adjusted unemployment rate remained unchanged at a rate of 2.6% in August, in line with market expectations.

In the Asian session, at GMT0300, the pair is trading at 0.9697, with the USD trading 0.10% higher against the CHF from Friday's close.

The pair is expected to find support at 0.9659, and a fall through could take it to the next support level of 0.9622. The pair is expected to find its first resistance at 0.9717, and a rise through could take it to the next resistance level of 0.9738.

Going forward, traders will closely monitor Switzerland's total sight deposits, scheduled to release in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.21% against the CAD and closed at 1.3180 on Friday.

The Canadian dollar weakened against the US dollar, following disappointing Canada's jobs data.

Macroeconomic data revealed that, Canada's unemployment rate climbed to 6.0% in August, higher than market expectations for a rise to a level of 5.9%. In the prior month, unemployment rate had recorded a rate of 5.8%. On the contrary, the nation's seasonally adjusted Ivey PMI rose to a level of 61.9 in August, after registering a reading of 61.8 in the preceding month.

In the Asian session, at GMT0300, the pair is trading at 1.3185, with the USD trading slightly higher against the CAD from Friday's close.

The pair is expected to find support at 1.3134, and a fall through could take it to the next support level of 1.3082. The pair is expected to find its first resistance at 1.3214, and a rise through could take it to the next resistance level of 1.3242.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the AUD declined 1.31% against the USD and closed at 0.7106 on Friday.

LME Copper prices declined 0.96% or $57.0/MT to $5883.0/MT. Aluminium prices declined 0.02% or $0.5/MT to $2030.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7104, with the AUD trading slightly lower against the USD from Friday’s close.

Elsewhere in China, Australia’s largest trading partner, China’s consumer price index (CPI) rose 2.3% on a yearly basis in August, compared to an advance of 2.1% in the previous month. Market participants had expected the CPI to climb to 2.1%. Moreover, the nation’s producer price index (PPI) climbed 4.1% on an annual basis in August, more than market anticipations for a gain of 4.0%. In the previous month, the PPI had risen 4.6%.

The pair is expected to find support at 0.7073, and a fall through could take it to the next support level of 0.7041. The pair is expected to find its first resistance at 0.7162, and a rise through could take it to the next resistance level of 0.7219.

Trading trend in the Aussie today is expected to be determined by Australia’s NAB business conditions and business confidence indices, both for August, slated to release overnight.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Gold declined 0.37% against the USD and closed at USD1201.40 per ounce on Friday, amid broad strength in the US dollar, following upbeat jobs data.

In the Asian session, at GMT0300, the pair is trading at 1199.90, with gold trading 0.12% lower against the USD from Friday’s close, on US rate hike expectations and trade war fears.

The pair is expected to find support at 1196.27, and a fall through could take it to the next support level of 1192.63. The pair is expected to find its first resistance at 1205.97, and a rise through could take it to the next resistance level of 1212.03.

The yellow metal is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Silver declined slightly against the USD and closed at USD14.20 per ounce on Friday, tracking losses in gold prices.

In the Asian session, at GMT0300, the pair is trading at 14.14, with silver trading 0.39% lower against the USD from Friday’s close.

The pair is expected to find support at 14.07, and a fall through could take it to the next support level of 13.99. The pair is expected to find its first resistance at 14.25, and a rise through could take it to the next resistance level of 14.36.

The white metal is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Crude Oil declined marginally against the USD and closed at USD67.87 per barrel on Friday.

Fresh figures from Baker Hughes disclosed that the number of active oil rigs declined by 2 to 860 in the week ended 7 September.

In the Asian session, at GMT0300, the pair is trading at 68.22, with oil trading 0.52% higher against the USD from Friday’s close.

The pair is expected to find support at 67.29, and a fall through could take it to the next support level of 66.37. The pair is expected to find its first resistance at 68.71, and a rise through could take it to the next resistance level of 69.21.

Crude oil is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.