Chinese markets lag, UST yields and USD trade higher, Fed’s Powell is due to speak later on Thurs
|General trend
- 10-yr JGB yield remains above 25bps.
- BOJ to conduct unlimited fixed rate operation on 10-year JGBs for consecutive days until Tuesday, Apr 26th [the next BOJ policy meeting is scheduled for Apr 27-28th].
- Japan Fin Min Suzuki and US Treasury Sec Yellen to meet this week, possibly on Apr 21st (Thurs) – Press.
- NZD declines as CPI accelerated less than expected.
- Offshore Yuan (CNH) extends drop; Yuan was again fixed weaker, Chinese equities decline.
- Shanghai Composite extended declines during morning trading [Industrial and Consumer stocks lagged]; Xi spoke.
- CNOOC rises over 40% in Shanghai debut.
- Hang Seng declines by over 1.5%.
- Nikkei 225 outperforms amid the weaker yen.
- S&P ASX 200 trades slightly higher.
- BHP drops after issuing production update.
- Nasdaq FUTs rise after results from Tesla.
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- Japan Mar CPI data due on Fri (Apr 22nd).
- Companies due to report during the NY morning include American Airlines, AutoNation, The Blackstone Group, Quest Diagnostics, Danaher, Dow Inc, Freeport-McMoRan, Genuine Parts, Marsh & McLennan, Nucor, Philip Morris, Pentair, Pool Corp, Sonoco Products, AT&T, Union Pacific.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened 0.0%.
- (NZ) NEW ZEALAND Q1 CPI Q/Q: 1.8% V 2.0%E; Y/Y 6.9% V 7.1%E.
- (NZ) New Zealand Q1 RBNZ Sectoral Factor Model inflation Index Y/Y: 4.2% v 3.8% prior; Sectoral Factor Model Non-Tradable Core Y/Y: 4.4% v 4.2% prior.
- BHP.AU Reports Q3 Iron Ore production (100% basis, Waio) 66.7Mt v 66.7Mt y/y; Waio Iron Ore Shipments 67.1Mt v 66.0Mt y/y; Attributable Iron ore production Mt v 59.9Mt y/y.
- BXB.AU Reports 9M Rev $4.1B v $3.8B y/y; Raises FY guidance.
- STO.AU Reports Q3 Rev $1.92B v $964M y/y; Production 26.0 MMBOE v 24.8 y/y.
Japan
- Nikkei 225 opened +0.2%.
- (JP) Bank of Japan (BOJ) Gov Kuroda: Reiterates that important FX reflects fundamentals.
- (JP) Japan Ruling Parties said to have agreed to create a FY22 extra budget - Japanese press.
- (JP) Japan Govt said to aim to increase battery storage production by 20x by 2030 – Press.
- (JP) Japan Investors Net Buying of Foreign Bonds: -¥72.7B v +¥10.2B prior; Foreign Net Buying of Japan Stocks: ¥406.5B v ¥1.68T prior.
- (JP) Japan Fin Min Suzuki: Currency not major discussion at G7; Will maintain existing G7 agreements on FX.
Korea
- Kospi opened +0.3%.
- (KR) South Korea Mar PPI M/M: 1.3% v 0.5% prior; Y/Y: 8.8% v 8.4% prior.
- (KR) South Korea Apr 1-20th Exports Y/Y: 16.9% v 10.1% prior; Imports Y/Y: 25.5% v 18.9% prior; Chip Exports y/y: 22.9% v 30.8% prior.
- (KR) IMF Official Kaufman: South Korea should continue with policy normalization, need to under take structural reforms, calibrate scale and scope of stimulus.
- (KR) South Korea Fin Min: Calling for policy coordination for fallout from Ukraine war.
- (KR) South Korea said to reconsider planned stock capital gains tax – press (after the close yesterday).
China/Hong Kong
- Hang Seng opened -0.8%; Shanghai Composite opened -0.4%.
- (CN) China President Xi: Global Economic recovery is weak; Calls for coordinated macroeconomic and coronavirus policies among countries - Boao forum comments.
- (CN) China PBOC sets Yuan reference rate: 6.4098 v 6.3996 prior.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net CNY0B prior.
- (CN) Shanghai reports 18,495 coronavirus cases v 18,901 prior.
- (CN) China still has room to cut the LPRs, cites analysts [PBOC unexpectedly left the loan prime rates unchanged on Apr 20th] – China Securities Journal.
- (CN) China Sec Times: CNY has room to fall due to weaker exports, possible fund outflows from emerging markets and faster Fed rate hikes.
- (CN) China reported to be pushing personal pension development; To set upper limit on individual pensions at CNY12K - Press.
- (CN) Shanghai, China Local Banking and Insurance Regulator: To step up financial support related to the resumption of production.
North America
- UAL Reports Q1 -$4.24 v -$4.19e, Rev $7.57B v $7.68Be; Sees strongest demand environment in decades.
- TSLA Reports Q1 $3.22 v $2.15e, Rev $18.8B v $17.3Be.
Europe
- (IE) Ireland Apr Consumer Confidence: 57.7 v 67.0 prior.
- (DE) German Fin Min Linder tested positive for coronavirus.
Levels as of 00:15ET
- Hang Seng -1.4%; Shanghai Composite -1.2%; Kospi +0.5%; Nikkei225 +1.2%; ASX 200 +0.3%.
- Equity Futures: S&P500 +0.4%; Nasdaq100 +0.7%, Dax +0.1%; FTSE100 +0.3%.
- EUR 1.0857-1.0824; JPY 128.63-127.83; AUD 0.7455-0.7421; NZD 0.6811-0.6767.
- Commodity Futures: Gold +0.0% at $1,953/oz; Crude Oil +0.8% at $103.05/brl; Copper -0.4% at $4.65/lb.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.