Asia Market Update: Asian equity markets trade mostly lower as G20 remains on radar; NZD fluctuates after RBNZ rate decision; USD/JPY rises after Fed comments

 

General Trend:

- US official seemingly plays down expectations for Trump/Xi G20 meeting

- Financials continue to weigh on Shanghai Composite

- Asian chipmakers rise, Micron gains in afterhours trading following its earnings/outlook

- China battery manufacturer CATL plans to raise investments in European production base

- RBNZ left rates unchanged (as expected), said lower cash rate may be needed over time, did not express concerns about currency

- NZD rises and falls after RBNZ decision, little reaction seen in bond market

- Probability of 50bps July US Fed rate cut declines after Fed comments

- USD/JPY rises with US bond yields

- Thai Baht (THB) weakens, Deputy PM supports 2019 rate cut

- US gasoline futures rise over 5% on possible closure of Philadelphia Energy Solutions refinery

 

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened -0.1%

- (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE (OCR) UNCHANGED AT 1.50%; AS EXPECTED; MEMBERS DISCUSSED A RATE CUT AT THIS MEETING

- (NZ) IMF: New Zealand Dollar is not immediate concern, still a bit above long-term average

- BNO.AU Announced the top line results of the exploratory trial of BNC210 for the treatment of agitation in elderly patients in a hospital setting

- MOY.AU Announces first gold discovered from sulphide ore at Nullagine; Commissioning of Stage 1 sulphide plant produces first gold

-(NZ) Reserve Bank of New Zealand (RBNZ) Dep Gov Bascand RBNZ is renewing approach to financial stability

Japan

-Nikkei 225 opened -0.6%

- 723.JP CEO Bunsei Kure to step down (3 months after reappointing him), CFO Hidetoshi Shibata to be named as the new CEO, effective end of June

-5938.JP Shareholders bring back ousted CEO Kinya Seto, re-naming him CEO; Seto comments he is targeting to return to company to profit this FY19/20, main issue is high fixed costs – AGM

- (JP) According to a joint study between Japan Center for Economic Research and Nikkei the USD/JPY at 107 is right around its equilibrium exchange rate, based on most recent economic data, 5 other regional Asian currencies are undervalued - Nikkei

- 8233.JP To exit China and close its Shanghai store by as early as 2020

- 3659.JP Founder stops process related to sale of stake - Korean press

- (JP) Japan Govt announced plans to hold Upper House election on July 21st

Korea

-Kospi opened slightly lower

- (KR) South Korea Fin Min Hong: To provide KRW70T over the next 5 years to support its services sector, will spend 70% of extra budget in Q3 if approved - Local Press

China/Hong Kong

-Hang Seng opened -0.5%; Shanghai Composite opened -0.6%

- (US) Senior Trump Administration official: no broad trade deal is expected to be made at the G20 meeting between Trump and Xi; US is not willing to come to the Trump-Xi meeting with concessions on trade; It’s possible that US and China may agree on no new tariffs as a goodwill gesture, but not clear if that will happen

-(CN) China Q2 Beige Book notes domestic economy shows modest improvement, manufacturing and retail outperformed; Risks ahead look more serious

- (CA) China Embassy in Canada confirms China has halted imports of Canadian meat after finding pork with residue of feed additive Ractopamine

- (CN) China PBoC Open Market Operation (OMO): Skips for the 3rd consecutive session

- (CN) China PBOC sets yuan reference rate: 6.8701 v 6.8580 prior

- (CN) CNOOC Energy Tech IPO opens for trade at CNY2.45 v CNY2.04/shr pricing, rises 44% to daily limit

- (CN) China PBOC sells CNY30B in 1-month and 6-month bills in Hong Kong

Other

- (JP) G20 draft communique: Calls for promotion of free trade as a means for strong global economic growth; calls for need to create positive economic cycle of growth and distribution (will not explicitly oppose protectionism due to opposition from US) - Japan press

North America

- (US) Philadelphia Energy Solutions expected to close oil refinery after recent fire (largest refinery on east coast) - press

- (US) Weekly API Oil Inventories: Crude: -7.6M v -0.8M prior

- (US) Fed Chair Powell: Monetary policy shouldn't overreact to short-term swings in sentiment; doing so would risk adding even more uncertainty to the outlook

- (US) Fed's Bullard (dove, voter, dissenter): a 50bps cut in July would be overdone; 50bps cut is not called for right now

- (US) Fed's Bullard (dove, voter, dissenter): Think 2 rate cuts before the end of the year would ensure a soft landing, move policy from slightly restrictive to slightly accomodative; if Fed does cut rates in July do not feel a need to also end reduction in the balance sheet since that is already going to end in Sept; Was approached by Trump administration about a possible seat on Fed board, but said was happy in current job

- (US) Fed's Barkin (hawk, non-voter): Fed policy stance is modestly accommodative; doesn't know whether rates should be cut this year

- MU Guides Q4 $0.45 +/-$0.07 v $0.72e, Adj Rev $4.5B +/-$0.2B v $4.70Be - earnings call

- (US) Special Counsel Mueller to testify before House Committee on Intelligence and Judiciary July 17th

- TSLA CEO Musk reiterates on track to set all-time delivery record, has enough vehicle orders to set the record - US financial press

Europe

- (UK) New UK PM to be announced on Jul 23 – press

- (EU) Reportedly Germany Chancellor Merkel says she hopes EU Parliament selects candidates by midweek; calls for an EU Commission solution by June 30th - closed-door comments to lawmakers

 

Levels as of 1:20 ET

- Nikkei 225, -0.6%, ASX 200 -0.1%, Hang Seng +0.1%; Shanghai Composite -0.2%; Kospi -0.1%

- Equity Futures: S&P500 flat; Nasdaq100 flat, Dax flat; FTSE100 -0.3%

- EUR 1.1373-1.1353 ; JPY 107.50-107.09 ; AUD 0.6971-0.6950 ;NZD 0.6663-0.6594

- Gold -0.6% at $1,410/oz; Crude Oil +1.8% at $58.88/brl; Copper -0.1% at $2.728/lb

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: 50-day SMA restricts immediate recovery

EUR/USD buyers look for confirmation, despite recent bounce, as prices still trade below the near-term key moving average, around 1.1025, during early Friday.

EUR/USD News

GBP/USD: On the bids above 100-bar SMA

GBP/USD holds on to recovery gains from 50% Fib retracement level while taking the bids to 1.2885 during the early Asian. Bullish MACD indicates pair’s another run-up to the short-term key resistance line.

GBP/USD News

USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 

USD/JPY News

US Dollar Index: DXY suck at monthly highs near 98.40 level

DXY (US Dollar Index) is trading in a bull trend above the main daily simple moving averages (DMAs). This Thursday the Greenback is once again challenging the 98.40 level while trading just above the 50 DMA.

US Dollar Index News

WTI testing offers near $ 57 amid trade optimism, ahead of US data

WTI is looking to extend the overnight bounce above the 57 handle, as the bulls find some solace from the renewed US-China trade optimism after both trade teams agreed to meet over trade talks later on Friday. 

Oil News

Forex Majors

Cryptocurrencies

Signatures