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PBOC RRR cut talk continues

TradeTheNews.com Staff TradeTheNews.com

Asia Market Update: Quiet session ahead of Fed Chair comments at Jackson Hole [10 am EST]; China bank earnings in focus (including ICBC); PBOC RRR cut talk continues.

General trend

- WTI Crude FUTs rise, Tropical Storm Ida in focus.

- Equity markets are generally off of session lows.

- US equity FUTs trade higher after prior decline.

- Topix Marine Transportation index rises over 6%, Iron & Steel index lags.

- Australia Consumer Discretionary index weighed down by earnings from WesFarmers.

Headlines/Economic Data

Australia/New Zealand

-ASX 200 opened -0.1%.

- (AU) Australia sells A$1.0B v A$1.0B indicated in 0.25% Nov 2024 bonds, avg yield: 0.2599%, bid to cover 4.79x.

- (AU) Australia July Preliminary Retail Sales M/M: -2.7% v -2.5%e.

- (NZ) New Zealand expected to remain under lockdown until Aug 31st – Press.

-(NZ) New Zealand PM Ardern: Confirms lockdown extended until midnight Aug 31st; Auckland is likely to remain in Level 4 lockdown for a further 2 weeks.

- (NZ) New Zealand Aug ANZ Consumer Confidence: 109.6 v 113.1 prior; M/M: -3.1% v -0.9% prior.

- (NZ) New Zealand reports 70 additional coronavirus cases; Total cases at 347.

China/Hong Kong

-Hang Seng opened -0.3%, Shanghai Composite -0.2%.

- (CN) China Sec Journal Front Page Commentary: PBOC likely to cut RRR and step up credit supply 'soon', cites analysts; notes recent meeting between PBOC and financial institutions.

- (CN) China PBoC said to reiterate call to support rural sector of economy including with RRR - financial press.

- (CN) China Commerce Ministry (MOFCOM) spokesperson Gao Feng: Have maintained normal trade and economic communications with US; To study targeted measures to stabilize trade and logistics; No information on potential talks between Liu He and US Treasury Sec Yellen; Reiterates govt stance to keep economy within a reasonable range [comments from Aug 26th].

- (CN) China Commerce Ministry (MOFCOM): Extending anti subsidy investigation on Glycol Ethers imports from the US by additional 6 months, to conclude in Mar 2022; notes the 'complexity' of the case.

- (CN) China July Industrial Profits Y/Y: 16.4% v 20.0% prior.

- (CN) China Cyberspace Administration releases its draft rules for internet information algorithms, relates to the regulation of algorithms used by internet service providers to make recommendations to users.

- (CN) China Sec Times: China to launch Index fund that is linked to negotiable certificates of deposit (NCD).

- (CN) China is seeking opinions from automakers (including BYD) related to new-energy car development - press.

-(CN) China Civil Aviation Regulator (CAAC) suspended 2 flights after passengers tested positive for COVID; the companies impacted are Xiamen Airlines and China Southern Airlines – Xinhua.

- (CN) China Supreme Court said 'working 996' is severe violation of the law concerning the upper limit of extended working hours [relates to working extra hours].

- (CN) China said to release metals from its state reserves on Sept 1st (Wednesday).

- (CN) China Ministry of Finance (MOF): To moderately speed up special local gov't bond issuance.

- (CN) China PBOC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repos v CNY50B in 7-day reverse repos prior; Net inject CNY40B v Net Inject CNY40B prior.

- (CN) China Ministry of Finance (MOF) Sells 1-month deposits: avg yield 3.00% v 3.35% prior.

- (CN) China PBOC sets Yuan reference rate: 6.4863 v 6.4730 prior.

Japan

-Nikkei 225 opened -0.6%.

- (JP) Japan Fin Min Aso: Japan has ~¥2.6T in reserve funds remaining after Japan Govt confirms to use of ¥1.4T in reserve funds.

- *(JP) JAPAN AUG TOKYO CPI Y/Y: -0.4% V -0.3%E; CPI (EX-FRESH FOOD) Y/Y: 0.0% V -0.1%E (First non-negative reading in 13 months).

- (JP) Japan Financial Regulator (FSA): Will assess Crypto as anti money laundering.

Korea

-Kospi opened -0.4%.

North America

- (US) Kansas City Fed publishes agenda for Jackson Hole: Macroeconomic Policy in an Uneven Economy.

-(US) US President Biden said to make announcements on the US Fed later in the Fall; To reappoint Powell as Fed Chair and Brainard as Vice chair in effort to appease liberal Democrats.

- (US) NHC gives update on Tropical Storm Ida: Ida is forecast to strengthen; Ida could be near major hurricane strength when it approaches the northern Gulf coast.

- Shell: To shut production at four platforms in Gulf of Mexico ahead of Tropical Storm Ida - press.

- (US) US Supreme Court vacates Coronavirus eviction moratorium.

- (PE) Peru Congress has delayed confidence vote for the New Cabinet appointed by President Castillo until Aug 27th.

Europe

- (LY) Said that AGOCO (Arabian Gulf Oil Company) will suspend Oil Production due to lack of funds.

Levels as of 01:20 ET

- Nikkei 225, -0.4%, ASX 200 flat , Hang Seng +0.2%; Shanghai Composite +0.4% ; Kospi +0.1%.

- Equity S&P500 Futures: +0.2%; Nasdaq100 +0.3%, Dax flat; FTSE100 +0.1%.

- EUR 1.1762-1.1742 ; JPY 110.09-109.93 ; AUD 0.7249-0.7221 ;NZD 0.6954-0.6932.

- Gold +0.4% at $1,801/oz; Crude Oil +0.9% at $68.06/brl; Copper -0.1% at $4.2325/lb.

Author

TradeTheNews.com Staff

TradeTheNews.com

Trade The News is the active trader’s most trusted source for live, real-time breaking financial news and analysis.

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