Mexican Peso rises over 1.5%, SPY futures rally 0.5% during first presidential debate
|Asia Mid-Session Market Update: Mexican Peso rises over 1.5%, SPY futures rally 0.5% during first presidential debate; China industrial profit growth expands
Asia Notes/Observations
- If Mexican Peso is the barometer of debate performance, Clinton had a better night as MXN rallies over 1.5% over the course of the 90-minute encounter
- S&P futures also rise about 20 handles (0.6%) and USD/JPY up some 70pips above 100.80; Sector performance (healthcare/biotech, defense, gun makers) on Tuesday should add more clarity.
- China industrial profit growth widens to 19.5% V 11.0; Stats bureau keeps expectations in check by referencing low y/y base and warning about soft internal/external demand; PIMCO concerned over high China corporate debt.
Top US session headlines
- Deutsche Bank shares weigh on global bank sentiment
- Crude prices rise while producers arrive in Algiers cautiously optimistic
- (US) AUG NEW HOME SALES: 609K V 600KE; increase in sales of lower-priced homes is main factor for drop in median and average prices
- Fed's Kaplan: US is not trapped in world of low interest rates; still seeing some slack in the labor market
- TWTR: Disney reportedly working with adviser on bid for Twitter - press
US markets on close: Dow -0.9%, S&P500 -0.9%, Nasdaq -0.9%
- Best Sector in S&P500: Utilities
- Worst Sector in S&P500: Healthcare
- Biggest gainers: RIG +4.6%, DO +2.8%, MUR +2.2%, STX +2.0%, AZO +1.9%
- Biggest losers: MNK -6.8%, ENDP -6.0%, FOSL -5.2%, KORS -5.0%, SIG -2.7%
VIX 14.50 (+2.2pts); Treasuries: 2-yr 0.74% (-2bp), 10-yr 1.59% (-3bp), 30-yr 2.33% (-1bp)
US movers afterhours
- KITE +10.3%: Announces positive topline KTE-C19 Data from ZUMA-1 pivotal trial in patients with Aggressive Non-Hodgkin Lymphoma (NHL)
- SNX +7.8%: Reports Q3 $1.73 v $1.56e, R$3.67B v $3.49Be
- THO +1.3%: Reports Q4 $1.57 v $1.37e, R$1.29B v $1.28Be
After extended session
- N: Oracle receives Department of Justice clearance to buy NetSuite
Equity Futures (23:00ET): S&P e-mini +0.5%, Dax +0.4%, FTSE100 +0.4%
FX/Commodities ranges (23:00ET):
- EUR 1.1237-1.1252; JPY 100.10-100.80; AUD 0.7610-0.7670, NZD 0.7260-0.7290
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6646 V 6.6744 PRIOR
- Gold -0.4% at 1,339/oz; Oil -0.2% at $45.81/brl; Copper -0.7% at $2.18/lb
Asian Equity Markets (23:00ET)
- Nikkei -0.3%, Hang Seng +0.7%, ASX -0.7%, Shanghai +0.1%, Kospi +0.3%
Key economic data:
- (CN) CHINA AUG INDUSTRIAL PROFITS Y/Y: 19.5% V 11.0% PRIOR; YTD: 8.4% V 6.9% PRIOR
- (JP) JAPAN AUG PPI SERVICES Y/Y: 0.2% V 0.3%E
Speakers/Press/Key Themes
China:
- (CN) China NBS: Aug industrial profit growth due to low base; Domestic and overseas demand still insufficient
- (CN) BlackRock head of China equities: Expect China economy to have a soft landing - financial press
- (CN) NDRC official: China to consider a carbon tax starting in 2020 - Chinese press
- (CN) PIMCO: China corporate debt relative to GDP well exceeds 100%; Companies are most extended in absolute terms - financial press
Japan:
- (JP) Japan Fin Min Aso: hopes to pass budget to escape from deflation
- (JP) Bank of Japan (BOJ) July 28th Policy Meeting Minutes: Inflation expectations had weakened recently; ETFs purchase increase was to offset sentiment risks; Agree that BOJ should review comprehensively in Sept for uncertainty over price outlook
- JGB: (JP) Japan MoF sells ¥499B in 0.4% 40-year bonds, bid to cover: 2.73x v 2.89x prior
Australia:
- (AU) HSBC: Slowing Australia mortgage loans and credit growth suggest overall cooling in housing market - AFR
- (AU) Australia MoF (AOFM) sells A$150M in 1.25% 2022 Bonds; avg yield: 0.3018%; bid-to-cover: 2.27x
Asia movers
- Consumer discretionary: Wanda Cinema 002739.CN -0.5% (parent group said to acquire Dick Clark Productions); Flight Centre FLT.AU -2.0% (acquisition)
- Consumer staples: Coca-Cola East Japan Co 2580.JP +0.8% (two Coca-cola bottlers to merge)
- Financials: China Pacific Insurance Group Co 2601.HK -0.2% (HSBC raised to Hold); Medibank MPL.AU -3.4% (Blackrock no longer as substantial holder); Charter Hall REIT CQR.AU -0.4% (Citi raised to Neutral)
- Industrials: Lintec Corp.7966.JP -0.2% (H1 result); Mitsui Chemical Inc 4183.JP +4.5% (Credit Suisse raised to outperform)
- Technology: NEXTDC NXT.AU -2.3% (revises outlook); Otsuka Corp 4768.JP -0.4% (9-month result speculation)
- Materials: Mitsui Chemicals 4183.JP +4.5% (Credit Suisse upgraded to Outperform); Newcrest Mining NCM.AU +2.2% (Goldman raised to Buy); Fortescue Metals Group FMG.AU -1.5% (Morgan Stanley cuts to underweight); Medibank MPL.AU -3.4% (nickel declined)
- Healthcare: Dainippon Sumitomo Pharma 4506.JP +5.2% (Readying cancer treatment napabucasin for release)
- Telecom: HKBN 1310.HK -0.7% (bids for Wharf's asset)
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