Equity markets trade mixed, modest moves seen
|Asia market update: Equity markets trade mixed, modest moves seen; CN markets extend declines; Corporate earnings remain in focus.
General trend
- Commodity currencies extend declines; There has been some focus on the recent data weakness in the US; Aussie CPI data due on Wed [Apr 26th].
- Quiet session for gold after prior decline.
- US equity FUTs begin the week lower.
- Australian production updates in focus.
- Fortescue declines after issuing production update [Q3 Iron Ore Shipments 46.3M Wmt, -6% q/q and flat y/y]. CN ore prices extend drop.
- Companies react to recent lithium news out of Chile [Chile President Boric plans to nationalize the country’s lithium industry, to create state-owned lithium production company].
- Nidec expected to report earnings later today.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opens -0.2% at 7,314.
-(AU) Australia releases Defense Strategic Review.
-Bluescope Steel [BSL.A]: Raises H2 EBIT guidance to A$700-770M (prior A$480-550M); The main contributor to the improved outlook for 2H FY2023 underlying EBIT is North Star.
-Fortescue [FMG.AU]: Reports Q3 Iron Ore Shipments 46.3M Wmt, -6% q/q and flat y/y; Guidance for FY23 shipments, C1 cost and capital expenditure remains unchanged.
-South32 [S32.AU] Group production was below plan in the March 2023 quarter due to adverse weather and other temporary impacts.
China/Hong Kong
- Hang Seng opens flat at 20,354.
- Shanghai Composite opens flat at 3,300.
-Evergrande [3333.HK] Said to be seeking to have Yuan-denominated bondholders join offshore debt plan – US financial press.
-ICBC]1398.HK] Being sued by ING in relation to losses on copper agreements - FT.
-(CN) China PBOC Open Market Operation (OMO): Sells CNY115B in 7-day reverse repo: Net injects CNY95B.
-(CN) China PBOC sets Yuan reference rate: 6.8835 v 6.8752 prior.
- (CN) Wuxi-traded Lithium Carbonate Jul Contract Price +14.8%.
Japan
-Nikkei 225 opens +0.2% at 28,631.
-(JP) Bank of Japan (BOJ) Gov Ueda: Reiterates not at stage to talk about how to normalize YCC; hard to say how much wage growth needed for price goal.
-(JP) Japan FSA Official Amaya: FSA is following up on how brokerage firms sold AT1 bonds.
- (JP) Japan PM Kishida: Not thinking now about possibility of snap election; will take by-election results as encouragement from public to conduct important policy tasks [follows ruling bloc's key victories in gubernatorial elections].
South Korea
- Kospi opens -0.2% at 2,538.
Other Asia
- (SG) Singapore Mar CPI M/M: 0.5% v 0.6% prior; Y/Y: 5.5% v 5.5%e; CPI Core Y/Y: 5.0% v 5.1%e.
-Adani Ports [ADSEZ.IN] To repurchase up to $130M of its USD denominated 2024 notes.
North America
-(US) US deposits -$76.2b in the week ended April 12TH (V ROSE BY $8B prior); US commercial bank loans and leases -$9.3B [unadjusted basis] - update from Apr 21st.
-(US) House of Rep Speaker Kevin McCarthy (R-CA): On Sunday said the House would vote on his spending and debt bill this week, and invited President Joe Biden to discuss the debt ceiling with him.
-Tesla [TSLA]: Said to be preparing to export Model Y from Shanghai to Canada (first time China-made vehicles would ship to NA) - financial press.
Europe
- Credit Suisse [CSGN.CH] Reports Q1 (CHF) Adj Pretax -1.32B v -1.01B y/y, Rev 18.5B v 4.41B; Includes write-down of 15.0B in AT1 capital notes.
- (EU) ECB's Wunsch (Netherlands): ECB to keep raising rates unless wage growth slows; would not be surprised if deposit rate goes to 4.0% [currently 3.00%] - FT.
Levels as of 01:20 ET
- Nikkei 225, +0.1%, ASX 200 flat , Hang Seng -1.1%; Shanghai Composite -0.2% ; Kospi -0.8%.
- Equity S&P500 Futures: -0.3%; Nasdaq100 -0.4%, Dax -0.3%; FTSE100 -0.2%.
- EUR 1.0996-1.0976 ; JPY 134.47-133.89 ; AUD 0.6698-0.6671 ;NZD 0.6148-0.6129.
- Gold -0.1% at $1,988/oz; Crude Oil -1.1% at $76.94/brl; Copper -0.2% at $3.9837/lb.
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