Equity markets trade generally lower despite the gains on Wall Street
|Asia Market Update: Equity markets trade generally lower despite the gains on Wall St.; CN markets lag amid property and banking concerns; BOJ was inline, ECB decision due today.
General trend
- EUR/USD rises.
- Nord Stream remains in the headlines.
- BOJ left policy unchanged as expected, raised CPI outlooks and cut GDP projections.
- China covid cases slightly lower on the day.
- Trade deficits seen in Asia [Japan, New Zealand and South Korea].
- Chinese bank and property indices lag; China Banking and Insurance Regulatory Commission (CBIRC) announced an expansion of repayments to victims of bank scam; Mortgage boycotts also remain in focus.
- Australian production updates in focus [Newcrest, Santos, Woodside].
- Japanese equities trade generally flat.
- US equity FUTS trade slightly lower; Tesla rose following results [+1.5%].
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs..
- BOJ Gov Kuroda to hold press conference at 6:30 GMT.
- Indonesia rate decision due later today.
- Companies due to report during the NY morning include AT&T, Philip Morris, Union Pacific, Blackstone Group, Freeport-McMoran, Dow, Travelers, Nucor, DR Horton, Fifth Third, Quest Diagnostics, Domino’s Pizza, IPG, American Airlines, AutoNation.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened +0.0%.
- NCM.AU Reports Q4 Gold production 637K oz v 542K y/y at AISC $896/oz v $797 y/y; doesn’t guide.
- WDS.AU Reports Q2 Production 33.8MMboe v 22.7MMboe y/y; Rev $3.44B v $1.33B y/y; Will discontinue sell down of Sangomar equity.
- STO.AU Reports Q2 Rev $1.88B v $1.08B y/y; Production 25.5 MMBOE v 22.5 y/y; Cuts FY22 production 102-107 MMBOE (prior 100-110).
- (NZ) New Zealand Jun Trade Balance (NZ$): -0.70B v +0.26B prior [largest Jun deficit on record].
- LNK.AU To be acquired by Dye & Durham at raised offer of A$4.81/shr; (prior A$4.57) board in favor of deal.
- (AU) Australia Q2 NAB Business Confidence: 5 v 15 prior; Conditions: 20 v 11 prior.
- (AU) Australia Jun RBA Govt FX Transactions (A$): -3.2B v -0.8B prior.
Japan
- Nikkei 225 opened -0.2%.
- (JP) Bank of Japan (BOJ) quarterly outlook for economic activity and prices: Cuts FY22/23 GDP outlook, raises core CPI.
- (JP) Bank of Japan (BOJ leaves interest rate on excess reserves (IOER) unchanged at -0.10%; as expected.
- (JP) Japan Jun Trade Balance: -¥1.38T v -¥1.56Te; Adj Trade Balance: -¥1.93T v -¥2.12Te.
- (JP) Japan PM Kishidia to reshuffle cabinet in early Sept - Japan press.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected]; there was no take up and opened operations for a second time in the session.
Korea
- Kospi opened 0.0%.
- 005490.KR To cut stainless steel prices by KRW500K/t, starting with Aug shipments, due to lower nickel costs - Korean press.
- (KR) South Korea Jul 1-20 Exports Y/Y: +14.5% v -3.4% prior; Imports Y/Y: 25.4% v 21.1% prior; Chip Exports y/y: 13.2% v 1.9% prior.
- 267250.KR Hyundai Oilbank cancels IPO plans due to difficulty receiving proper valuation amid market conditions.
- (KR) South Korea Chip Industry said to plan total KRW340T in investments by 2026; South Korea targets localizing ~50$ of supply by 2030 - Press.
- 005380.KR Reports Q2 (KRW) Net 3.09T v 1.98T y/y; Op 2.98T v 1.89T y/y; Rev 36.0T v 30.3T y/y.
China/Hong Kong
- Hang Seng opened -0.4%; Shanghai Composite opened -0.2%.
- (CN) China Ambassador to the US Qin Gang: A US-China Cold War would bring 'unbearable consequences'; US must clarify its intentions toward China.
- (CN) China Banking and Insurance Regulatory Commission (CBIRC): announces an expansion of repayments to victims of bank scam in Henan, depositors with savings of CNY100K to receive refunds starting Jul 25th (Mon) - Press.
- (CN) Shanghai reports 17 new covid cases (4 outside quarantine); adds 12 high, mid-risk areas subject to lockdown.
- (CN) China local governments said to be planning to help developers contain risks and resume projects that have been delayed - press.
- (CN) China Jun Swift Global Payments (CNY): 2.17% v 2.15% prior.
- 5.HK Reportedly has installed CCP committee in its China investment bank - FT.
- (CN) China PBOC sets Yuan reference rate: 6.7620 v 6.7465 prior (weakest level since May 17th).
- (CN) China PBOC Open Market Operation (OMO): Sells CNY3.0B in 7-day reverse repos v CNY3.0B prior; Net inject CNY0B v Net CNY0B prior.
- (CN) Shanghai reportedly asks citizens to take COVID test at least once a week until Aug 31st – press (yesterday after the close).
- (HK) Macau said to resume business activities, including casinos, to certain level on July 23-29th; To continue shutting cinemas, bars and dining-in services – press.
- (CN) China sovereign wealth fund (CIC) recently combined the operations of CIC Capital with its main overseas investment business, which brings private equity and infrastructure investments under one roof - press.
Other
- (LY) Libya National Oil Company (NOC): Resumes production at Nafoura, Tibesti, Al-Ghani and Al-Bayda oilfields.
- Asia Development Bank: Cuts China GDP Forecast to 4.0% from 5.0%; Cuts Asia Developing Economies Forecast to 4.6% from 5.2%.
- SIA.SG Forward sales for the next three months up to Oct 2022 have remained robust, expects demand steady into year-end holiday travel period - AGM.
North America
- (US) Pres Biden: Expects to speak with China Pres Xi in next 10 days.
- TSLA Reports Q2 $2.27 v $1.82e, Rev $16.9B v $17.1Be; Notes it focused on record-breaking H2 2022; Have converted 75% of Bitcoin holdings into fiat currency.
- UAL Reports Q2 $1.43 v $1.86e, Rev $12.1B v $11.9Be; Cuts some of its FY22 guidance.
- MSFT Said to be cutting "many open job listings" as economy weakens; hiring freeze to continue for foreseeable future - press.
Europe
- GAZP.RU Gas order signals have indicated Nord Stream Pipeline will return to ~40% of capacity.
- (US) Deputy Treasury Sec: To cap prices for Russia oil by Dec, EU wants insurance ban by Dec so our goal is that as the ban goes into place, we are in a position to put a price cap in place at the same time.
Levels as of 01:15ET
- Hang Seng -0.9%; Shanghai Composite -0.5%; Kospi +0.8%; Nikkei225 +0.3%; ASX 200 +0.1%.
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax +0.6%; FTSE100 +0.2%.
- EUR 1.0227-1.0175; JPY 138.55-137.99; AUD 0.6917-0.6880; NZD 0.6241-0.6215.
- Commodity Futures: Gold -0.6% at $1,690/oz; Crude Oil -0.9% at $98.97/brl; Copper -0.7% at $3.29/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.