TradeTheNews.com Staff
TradeTheNews.com
Asia Market Update: USD generally stronger; No need for Plaza Accord?; GBP declines, CNH hits record low despite CCF news; Apple news weighs on Nasdaq FUTs.
General trend
- Yellen to be replaced?
- Analysts debate how low the Yuan might go.
- Quiet session seen for USD/JPY [remains below ¥145].
- BHP announced early redemption of GBP-denominated hybrid notes.
- Equity markets extend declines.
- Hang Seng Mainland Properties Index drops >4% [debt concerns remain in focus amid USD strength].
- UK concerns continue to weigh on HSBC and Standard Chartered.
- Thailand Central Bank is expected to hike rates [will decision be impacted by currency weakness?].
- Various US Fed speakers due.
- Australia’s Monthly CPI indicator is due on Sept 29th (Thurs).
Headlines/economic data
Australia/New Zealand
- ASX 200 opened +0.2%.
- (AU) Australia sells A$800M v A$800M indicated in 3.00% Nov 2033 Bonds; Avg Yield: 4.122%; bid-to-cover 3.81x.
- (AU) Australia Aug Retail Sales M/M: 0.6% v 0.4%e.
Japan
- Nikkei 225 opened -0.6%.
- (JP) Bank of Japan (BOJ) July Minutes (two decisions ago): Reiterates closely monitorin gimpact of covid on economy, won't hesitate to add easing if necessary.
- (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].
- (JP) Former Bank of Japan (BOJ) Dep Gov Nakaso: Fragmentation challenge for global economy; Too much pressure put on Monetary Policy with Abenomics.
Korea
- Kospi opened -0.8%.
- (KR) Bank of Korea (BOK) to conduct direct bond purchases.
- (KR) South Korea Vice Fin Min: Will conduct KRW2.0T in Korean bond buybacks.
- (KR) South Korea Aug Retail Sales M/M: 0.6% v 0.4%e; Y/Y: 15.4% v 9.7% prior.
- (KR) South Korea Aug Department Store Sales Y/Y: 24.8% v 0.2% prior; Discount Store Sales Y/Y: 9.9% v 31.6% prior.
China/Hong Kong
- Hang Seng opened -0.9%; Shanghai Composite opened -0.2%.
- (CN) Chinese banks reportedly plan to restart counter-cyclical factor in CNY midpoint fixing formula - press.
- (CN) Weaker demand for China goods means end of shipping boom - Caixin.
- (CN) On Tuesday China President Xi said to have made first public appearance following ‘coup’ rumors; cites China state media – press [update].
- (CN) China PBOC sets Yuan reference rate: 7.1107 v 7.0722 prior (weakest since early June 2020); CNH weakens to a record low after fixing.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY133B in 7-day reverse repos v CNY113B prior; Sells CNY67B in 14-day reverse repos v CNY62B prior; Net inject CNYB v Net inject CNY173B prior.
- (CN) China YTD (Aug) Transportation Fixed asset investments CNY2.3T.
- (CN) China said to have pressed charges on former CCP member in the Security Ministry - Press.
- (CN) Shanghai announces subsidies to consumers and industries that were impacted by coronavirus; To provide subidies to purchase green home appliances - Press.
Other
- (SG) Singapore Central Bank (MAS) Official Menon: Slowdown needed to relieve demand pressure; Monetary policy can't do much about labor supply.
North America
- (US) Senate votes to advance stopgap govt spending bill; the final vote was 72 to 23 - press.
- (US) White House Econ Advisor Deese: Sees resilience in the US economy; No desire for escalation of conflict with China, support $15/hr minimum wage.
- (US) White House said to be considering Treasury Sec Yellen exit after Nov midterm elections - Press.
- (US) White House Econ Advisor Deese: Does not anticipate headed toward plaza type accord [to adjust FX values].
- (US) Fed's Daly (non-voter): Wants to bring inflation down, but not unnecessarily tip economy into recession; Important to navigate through high inflation environment as carefully as possible.
Europe
- (UK) Chancellor of the Exchequer (Fin Min) Kwarteng said to plan meeting with Wall Street bankers on Weds - press.
- (UK) Sept BRC Shop Price Index Y/Y: 5.7% v 5.1% prior.
Levels as of 01:20 ET
- Nikkei 225, -2.2%, ASX 200 -0.9% , Hang Seng -2.7%; Shanghai Composite -1.4% ; Kospi -3.2%.
- Equity S&P500 Futures: -0.7%; Nasdaq100 -1%, Dax -1.5%; FTSE100 -0.8%.
- EUR 0.9600-0.9542 ; JPY 144.87-144.38 ; AUD 0.6444-0.6380 ;NZD 0.5705-0.5565.
- Gold -0.4% at $1.630/oz; Crude Oil -1.4% at $77.39/brl; Copper -1.4% at $3.2482/lb.
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