Equities decline, Nasdaq FUTs lag, Intel drops 10% on guidance, Tokyo core CPI below BoJ target

General trend

- Chinese markets take a breather after recent gains.

- Recent equity support measures to help stock market sentiment – Shanghai Securities Times [**Reminder Jan 23rd (CN) CHINA SAID TO CONSIDER EQUITY MARKET RESCUE PACKAGE BACKED BY CNY2T (~$278B) - US FINANCIAL PRESS].

- Japanese cos. due to report earnings include Fanuc, Hitachi Construction, Nitto Denko.

- JGB yields decline amid Japan macro releases; US bond auction results also in focus.

- Quiet FX session seen.

- US Core PCE data due later today.

Headlines/economic data

Australia/New Zealand

- ASX 200 closed for holiday.

China/Hong Kong

-Hang Seng opens -0.3% at 16,158.

-Shanghai Composite opens -0.3% at 2,897.

-China Gaming Regulator (NPPA) approved 115 domestic online games for Jan - Press.

-Recent equity support measures to help stock market sentiment – Shanghai Securities Times [**Reminder Jan 23rd (CN) CHINA SAID TO CONSIDER EQUITY MARKET RESCUE PACKAGE BACKED BY CNY2T (~$278B) - US FINANCIAL PRESS].

- China to ease export rules for certain Triethanolamine products – Press.

- Country Garden: Said to be in talks to sell residential property project in London; the project is said to be worth up to $572M - press.

- China 'presses' Iran to rein in Houthi attacks in the Red Sea - Press.

Japan

-Nikkei 225 opens -0.6% at 36,003.

-JAPAN JAN TOKYO CPI Y/Y: 1.6% V 2.0%E; CPI (EX-FRESH FOOD) Y/Y: 1.6% V 1.9%E [slowest annualized pace since Mar 2022; moves below the BOJ inflation target]; CPI (ex-fresh food, energy) Y/Y: 3.1% v 3.4%e [slowest annualized pace since Feb 2023].

-Japan Dec PPI Services Y/Y: 2.4% v 2.4%e.

-Bank of Japan Dec Minutes [2 meetings ago]: members shared the recognition that it was important for the Bank to continue to deepen discussions on issues such as the timing of the exit.

-Japan Fin Min Suzuki did not comment on FX market - Press.

-Japan PM Kishida: Reiterates no intention to resign over fund scandal.

Korea

-Kospi opens -0.5% at 2,458.

-LG Energy: Guides Q1 Rev down q/q; Expects revenue to gradually improve from Q2; Guides FY24 Rev to rise 'mid single digit pct' y/y.

North America

-Intel [INTC]: Reports Q4 $0.54 v $0.44e, Rev $15.4B v $15.1Be; Guides Q1 below consensus.

-*(US) TREASURY'S $41B 7-YEAR NOTE AUCTION RESULTS: DRAWS 4.109% V 3.859% PRIOR, BID-TO-COVER RATIO: 2.57 V 2.50 PRIOR AND 2.54 OVER LAST 12 AUCTIONS.

-*(US) Q4 ADVANCE GDP ANNUALIZED Q/Q: 3.3% V 2.0%E (above all estimates); PERSONAL CONSUMPTION: 2.8% V 2.5%E.

-*(US) Q4 ADVANCE GDP PRICE INDEX: 1.5% V 2.2%E (lowest since Q2 2020); CORE PCE Q/Q: 2.0% V 2.0%E.

- (US) Nomura expects the Fed to cut rates by 100bps in 2024; expects easing at the May, Jul, Sept and Dec 2024 meetings - financial press.

- ADM [ADM]: Raises quarterly dividend by ~11% to $0.50 [implied yield ~3.9%].

-Norfolk Southern [NSC]: To cut non-unionized workforce by 7% - US financial press.

- China E Fund Management: QDII premium has not been reduced after morning session; halts trading in the MSCI US 50 ETF QDII until the market close on Fri [Jan 26th].

Europe

-ECB policymakers said to be open to start discussing rate cuts in March, pivoting to action in June if data cooperates - press.

-(UK) Jan GfK Consumer Confidence: -19 v -21e [highest since Jan 2022].

Levels as of 00:20 ET

- Nikkei 225, -1.4%, ASX 200 closed , Hang Seng -0.5%; Shanghai Composite -0.2% ; Kospi +0.6%.

- Equity S&P500 Futures: -0.4%; Nasdaq100 -0.7%, Dax -0.1%; FTSE100 +0.4%.

- EUR 1.0849-1.0837 ; JPY 147.85-147.48 ; AUD 0.6594-0.6576 ;NZD 0.6120-0.6100.

- Gold +0.2% at $2,021/oz; Crude Oil -0.6% at $76.88/brl; Copper -0.1% at $3.8652/lb.