Equity markets trade mixed, Evergrande declines following extended trading halt
|General trend
- AUD extends gain; NZD also continued to rise; Commodity currencies later reversed gains.
- RBA Gov Lowe is due to speak tomorrow amid focus on YCC (Oct 22nd at 7 pm GMT).
- Modest equity moves have been seen thus far.
- Hang Seng has traded cautiously amid trading resumption by Evergrande; China Huarong Asset Mgmt is due to hold AGM today.
- Shanghai Composite ended morning trading modestly higher [Property and Banks indices outperform]; Ping An Bank rises after earnings report.
- Nikkei has remained lower [Airlines and Electric Appliances firms decline].
- S&P ASX 200 has moved higher after opening flat [Financials and Resources indices rise].
- Companies due to report during the NY morning include American Airlines, AutoNation, Blackstone, Crocs, Quest Diagnostics, Dow, Freeport McMoran, Interpublic, Southwest Airlines, Nucor, Pool Corp, AT&T, Valero.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened +0.2%.
- BSL.AU Raises H1 guidance (A$) underlying EBIT 2.1-2.3B (1.8-2.0B).
- ILU.AU Reports Q3 Production 200.1Kt v 175.3Kt q/q, Mineral Sands Rev A$392.0M v 210.2M y/y.
- CIM.AU Reports 9M (A$) Net 303.1M v 306.6M y/y; EBITDA 676M v 664M y/y; Rev 10.9B v 10.0B y/y.
- STO.AU Reports Q3 Production 21.9 MMBOE v 25.1 y/y; Rev $1.14B v $797M y/y.
- (NZ) New Zealand reaches 15 year free trade agreement (FTA) with the UK, FTA will remove all tariffs on exports to the UK over time.
- (AU) Australia Q3 NAB Business Confidence: -1 v +18 prior.
- (AU) Australia Total Weekly Payroll Jobs change from Sept 11-25th: +0.2% v -0.7% prior.
- (NZ) New Zealand sells total NZ$500M v NZ$500M indicated in 2024, 2032, and 2041 nominal bonds.
- (AU) Reserve Bank of Australia (RBA) releases 2021 annual report: Underlying earnings A$4.2B v A$1.40B y/y; To pay dividend of A$2.67B v A$2.57B y/y to the Australia government.
Japan
- Nikkei 225 opened -0.4%.
- (JP) Early polling ahead of Oct 31st election shows PM Kishida should retain majority - Nikkei and Kyodo polls.
- (JP) Japan Industry Ministry: LNG inventory held by major utilities as of Oct 15th 2.3Mt, +0.7Mt y/y.
- (JP) Japan Deputy Chief Cabinet Sec Isozaki: Rise in energy prices can lead to decline in corporate profits.
Korea
- Kospi opened 0.0%.
- (KR) South Korea Sept PPI M/M: 0.2% v 0.5% prior; Y/Y: 7.5% v 7.4% prior.
- (KR) South Korea Oct 1-20 Exports y/y: 36.1% v 22.9% prior; Imports y/y: 48.0% v 38.8% prior.
China/Hong Kong
- Hang Seng opened 0.0%; Shanghai Composite opened +0.1%.
- Shares of Evergrande resume trading today.
- 3333.HK Said to have secured an extension on its Jumbo Fortune bond - press.
- (CN) China PBOC: To continue to monitor financial risks in key sectors; seeks to provide more financial support in green and innovative sectors.
- (CN) China PBOC sets Yuan reference rate: 6.3890 v 6.4069 prior (strongest since June 11th).
- (CN) China Sept Swift Global Payments (CNY): 2.19% v 2.15% prior.
- (CN) China PBOC Open Market Operation (OMO): Injects CNY100B in 7-day reverse repos v CNY100B prior; Net inject CNY90B v Net inject CNY90B prior.
- 941.HK Reports 9M (CNY) Net 87.2B v 81.6B y/y, EBITDA 237.5B v 216.9B y/y, Rev 648.6B v 574.4B y/y (yesterday after the close).
North America
- (US) Pres Biden advisers reportedly discussed new minimum tax on corporations and tax on stock buybacks – WaPo.
- TSLA Reports Q3 $1.86 v $1.35e, Rev $13.8B v $13.2Be; Continues to ramp up Gigafactory Shanghai; Still expect final permit approval for Gigafactory Berlin by end-2021.
- (US) White house: There are a 'menu' of option to finance infrastructure spending bill.
- (US) Fed's Daly (non-voter, dove): Pandemic to push long term treasury market reform to ensure there’s sufficient liquidity in a future crisis and that people are aware of it - Asian banking event.
- (US) Port of Los Angeles processed 903.9K containers in Sept, record high in 114 year history - press.
- IBM Reports Q3 $2.52 v $2.49e, Rev $17.6B v $17.8Be; Guides FY22-24: Will exit 2021 in position to deliver: mid-single-digit revenue growth and $35B FCF.
Europe
- (UK) According to a recent poll more than 80% of private companies are planning to increase pay, with avg raise of 2.5% in year ended Aug 2022 - FT.
- (UK) UK in talks to sell missiles to Ukraine for the first time - UK press.
Levels as of 01:15ET
- Hang Seng -0.8%; Shanghai Composite +0.3%; Kospi -0.1%; Nikkei225 -1.6%; ASX 200 +0.0%.
- Equity Futures: S&P500 -0.2%; Nasdaq100 -0.3%, Dax -0.2%; FTSE100 -0.4%.
- EUR 1.1667-1.1647; JPY 114.42-113.96; AUD 0.7547-0.7502; NZD 0.7219-0.7186.
- Commodity Futures: Gold +0.1% at $1,785/oz; Crude Oil +0.1% at $88.47/brl; Copper +0.2% at $4.74/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.