TradeTheNews.com Staff
TradeTheNews.com
Asia Market Update: Equity volatility seen at the start of the new quarter; Financials and DAX FUTs lag amid bank rumors; GBP fluctuates; Oil rises on OPEC+ speculation.
General trend
- Commodity currencies rebound [RBA and RBNZ to meet this week].
- Oil currencies also rise.
- Brazil Presidential Elections headed for runoff.
- HSBC and Standard Chartered decline in HK.
- HK Property names supported by stimulus [China said to have required large state-owned banks to add at least CNY600B ($85B) in net financing to the real estate sector in the last four months of 2022 – press; PBOC cuts personal housing fund (provident fund) loan rate by 0.15 ppt, effective from Oct ].
- Shanghai markets are closed this week for holiday; Hong Kong is closed on Tues (Oct 4th).
- US ISM Manufacturing data due.
Headlines/economic data
Australia/New Zealand
- ASX 200 opened flat.
- (AU) Australia Sept Final PMI Manufacturing: 53.5 v 53.9 prelim.
- (AU) Australia Sept Corelogic House Price Index M/M: -1.4% v -1.6% prior.
- (AU) Australia Sept Final PMI Manufacturing: 53.5 v 53.9 prelim (confirms 29th month of expansion).
Japan
- Nikkei 225 opened -0.6%.
- (JP) Japan Sept Final PMI Manufacturing: 50.8 v 51.0 prelim (confirms 20th month of expansion).
- (JP) Japan Fin Min Suzuki: Overall size of Japan PM Kishida price measures to be decided; Electricity price measures to be considered at METI; Reiterates will watch FX moves with sense of urgency, FX stability important.
- (JP) Japan Chief Cabinet Sec Matsuno: Tankan survey reflects modest economic recovery; To compile economic package taking into consideration risk of global economic slowdown.
- (JP) Japan Q3 Tankan large manufacturing index: 8 V 10E; outlook survey: 9 V 11E.
- (JP) Japan to ease rules related to corporate debt restructuring - Japanese press.
- (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].
- SONY 6758.JP Said to be targeting 2.0M sales of Playstation VR2 units by Mar 2023 (end of FY) - Press.
Korea
- Kospi closed for holiday.
China/Hong Kong
- Hang Seng opened -1.0%; Shanghai Composite closed for the week for holiday.
- (CN) PBOC cuts personal housing fund [provident fund] loan rate by 0.15 ppt, effective from Oct [first cut since 2015] (from Sept 30th).
- (CN) China said to have required large state-owned banks to add at least CNY600B ($85B) in net financing to the real estate sector in the last four months of 2022 – press [from Sept 30th].
- (CN) Traders circulating several photo reports suggesting some senior Chinese leaders, including China Pres Xi were not wearing masks at crowded gatherings during China's National Day celebration events.
- (HK) Macau Sept Casino Rev (MOP) 3.0B v 2.2B prior; Y/Y -49.6% v -50.7% prior [from Oct 1st].
Other
- (SG) Singapore prelim Q2 URA Private Home Prices Q/Q: 3.4% v 3.5% prior.
- (TW) Taiwan Sept PMI Manufacturing: 42.2 v 42.7 prior (4th straight contraction).
North America
- (US) US Fed to meet on Monday, Oct 3rd with the agenda set as Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.
- (US) Trade Rep Tai to hold a consultation on US Trade policy on Oct 5th and 6th.
- (US) US reportedly willing to support Ukraine’s finances with $1.5B/month in aid regularly throughout the war; US said to be pushing its European allies to commit to similar amounts - press.
Europe
- CSGN.CH Bank of England (BOE) 'monitors' co. amid market turbulence - UK Telegraph.
- (AU) ABC Australia correspondent David Taylor tweets: Credible source tells me a major international investment bank is on the brink.
- OPEC+ said to consider production cut of more than 1Mbpd on Oct 5th; To hold in-person meeting (first since early 2020) - press.
- (UK) PM Truss: I do accept we should have laid the ground better, but I do stand by the fiscal package we announced; I will not publish OBR forecasts early, want to work with OBR.
- (UK) S&P revises UK outlook to Negative from Stable; Affirms AA rating.
- (UK) Chancellor of the Exchequer (Fin Min) Kwarteng pledges to publish a credible plan to bring spending under control in November - Telegraph.
- NOVN.CH California Court told Novartis to pay $177.8M in daamages plus 9.0% royalty on Tafinlar sales until Patent expiration.
- (CH) Swiss National Bank (SNB) President Jordan: CHF is no longer 'clearly' elevated despite nominal rise, SNB will not comment on every move - Swiss Press.
Levels as of 01:15 ET
- Nikkei 225, +0.5%, ASX 200 -0.3% , Hang Seng -1.6; Shanghai Composite Closed; Kospi Closed.
- Equity S&P500 Futures: -0.3%; Nasdaq100 -0.7%, Dax -0.9%; FTSE100 flat.
- EUR 0.97824-0.98287; JPY 44.497-145.325; AUD 0.64000-0.64900; NZD 0.559400-0.564900.
- Gold flat at $1,671/oz; Crude Oil +2.7% at $81.62/brl; Copper -0.4% at $3.3750/lb.
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