TradeTheNews.com Staff
TradeTheNews.com
Asia Mid-Session Market Update: Japan manufacturing PMI returns to expansion as cabinet officials resume jawboning against Yen strength
Top US session headlines
- (US) AUG EXISTING HOME SALES: 5.33M V 5.45ME
- (US) INITIAL JOBLESS CLAIMS: 252K V 261KE; CONTINUING CLAIMS: 2.11M V 2.14ME (lowest initial jobless claims since April)
- Reportedly no breakthrough reached at OPEC meeting in Vienna ahead of meeting in Algeria next week - press
- (US) TREASURY $11B 10-YEAR TIPS REOPENING DRAW 0.052%; BID TO COVER 2.59 V 2.27 PRIOR AND 2.38 AVG OVER THE LAST 4 (highest BTC since May 2014)
- YHOO: Confirms certain data from 500M user accounts was stolen, including hashed passwords, names and email addresses
Asia Notes/Observations
- Volatility is compressed for the 2nd day and US yield curve flattens as markets process FOMC ripple and settle on 50-50 chance of December hike.
- Nikkei returns from holiday with a down day amid catch-up to Yen bid on BOJ policy change
- Oil pares gains on diminished prospects of Algiers agreement for any supply shift
- NZD still under pressure in the extended wake of more dovish than expected RBNZ; other USD majors in narrow ranges
- Japan PMI surprises to the upside with first expansion in 7 months; Output up for 2nd month and Employment rises to 4-month highs
- Japan Fin Min acknowledges not much impact anticipated from latest BOJ move; Cabinet Sec Suga warns govt watching market moves and Yen direction following BOJ and FOMC
- North Korea Army spokesperson threatens to strike Guam and Seoul if US flies its B-1B bombers over Korea
US markets on close: Dow +0.5%, S&P500 +0.7%, Nasdaq +0.8%
- Best Sector in S&P500: Consumer Discretionary
- Worst Sector in S&P500: Basic Materials
- Biggest gainers: WY +5.7%, RIG +5.6%, DISCA +4.8%, FTR +4.8%, RCL +4.6%
- Biggest losers: EQR -2.5%, SWN -2.3%, LVLT -2.1%, KSS -1.9%, PXD -1.8%
VIX 12.0 (-1.3pts); Treasuries: 2-yr 0.77% (-1bp), 10-yr 1.63% (-4bp), 30-yr 2.35% (-4bp)
US movers afterhours
- MIFI +29.8%; Pact to Sell Mobile Broadband Unit
- BATS +28.5%; CBOE reportedly in discussions to acquire BATS Global - press
- IMPV +16.4%; Said to Draw Acquisition Interest
- AIR +4.8%; 1Q EPS Cont. Operations, Sales Beat Ests.
- FB -1.4%; Said to have overestimated video ads' viewing time by as much as 60-80% for 2 years - financial press
- ENPH -21.0%; Will Cut 11% of Workforce, Offer Stock
After extended session
- GM: Chevrolet to begin offering all-new Equinox SUV model in China - financial press
Equity Futures (23:30ET): S&P e-mini flat, Dax flat, FTSE100 -0.1%
FX/Commodities (23:30ET):
- EUR 1.1195-1.1210; JPY 100.70-101.25; AUD 0.7630-0.7650, NZD 0.7275-0.7315
- Gold -0.2% at 1,338; Oil -1.1% at $45.81/brl; Copper -0.2% at $2.19/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 6.5 tonnes to 950.9 tonnes; Highest since Sept 7th
Asian Equity Markets (23:30ET)
- Nikkei -0.1%, Hang Seng +0.1%, ASX +0.7%, Shanghai -0.1%, Kospi +0.1%
Key economic data:
- (JP) JAPAN SEPT PRELIMINARY PMI MANUFACTURING: 50.3 V 49.5 PRIOR; first expansion in 7 months
- (HK) Macau Aug visitor arrivals: 2.88M, +3.1% y/y
Speakers/Press
China:
- (CN) Former China vice housing minister Qiu Baoxing warns about risk of overheating property sector - Chinese press
- (CN) Moody's: China developers will have stable margins in 2016 v 2015
- (CN) China State Administration of Foreign Exchange (SAFE) official: No basis for long term Yuan depreciation - financial press
Japan:
- (JP) Japan Chief Cabinet Sec Suga: Will continue to watch market moves, fx moves are very sensitive
- (JP) Japan Fin Min Aso: Reiterates Govt and BOJ need to work together on many issues; deflation is the main problem for the economy
- (JP) Japan Business Federation (Keidanren) chief Sakakibara met with China's Commerce Ministry, urging more transparent antitrust process - Nikkei
Asia movers
- China Unicom 762.HK +5.0%; Raised at Goldman Sachs
- Iluka Resources ILU.AU +4.8%; raised to buy from neutral at UBS
- Qube Holdings QUB.AU +4.6%; upgraded to outperform at Macquarie
- Warehouse Groupd WHS.NZ +1.4%: Reports FY16 adj net NZ$64.1M v NZ$57.1M y/y, Rev NZ$2.95B v NZ$2.78B y/y
- Gold miners trade lower on gold prices; Newcrest NCM.AU -2.8%, Evolution Mining EVN.AU -2.6%
- Wynn Macau -3.7%, MGM China -3.0% cut at Credit Suisse
- Dentsu 4324.JP -4.6%: Confirms issues with improper accounting in internet ads, apologizes to customers
- Charter Hall CHC.AU -6.6%; Halt lifted after Gandel Group block sale
- Whitehaven Coal WHC.AU -8.5%; Annual report, CEO pay hike
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Editors’ Picks
EUR/USD weakens below 1.1650 as strong US data boosts Fed hold outlook
EUR/USD extends its losses for the third consecutive session, trading around 1.1640 during the Asian hours on Thursday. The pair loses ground as the US Dollar advances as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.
GBP/USD holds above 1.3400 after UK GDP data
GBP/USD holds above 1.3400 in European trading, fading a spike to near 1.3450. The pair jumped on the upbeat UK growth and industrial data but failed to hold the uptick amid a broadly firmer US Dollar. The focus now turns to the mid-tier US data releases for further directives.
USD/JPY: Takaichi’s trade caps Yen’s upside
The USD/JPY pair trades in a tight range around 158.50 during the Asian trading session on Thursday. The pair consolidates as the upbeat US Dollar has offset the decent recovery in the Japanese Yen.
Editors’ Picks
GBP/USD holds above 1.3400 after UK GDP data
GBP/USD holds above 1.3400 in European trading, fading a spike to near 1.3450. The pair jumped on the upbeat UK growth and industrial data but failed to hold the uptick amid a broadly firmer US Dollar. The focus now turns to the mid-tier US data releases for further directives.
EUR/USD weakens below 1.1650 as strong US data boosts Fed hold outlook
EUR/USD extends its losses for the third consecutive session, trading around 1.1640 during the Asian hours on Thursday. The pair loses ground as the US Dollar advances as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.
Gold remains near $4,600 due to Fed rate pause bets, easing tensions
Gold loses ground after hitting a fresh record high of $4,643 in the previous session, trading around $4,600. The non-interest-bearing Gold lost ground as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.
Crypto market dips as Senate postpones market-structure bill discussion after Coinbase withdrawal
The cryptocurrency market trades in the red on Thursday after the US Senate Banking Committee postponed discussions on crypto market structure following Coinbase's withdrawal of support due to multiple issues.
US economic outlook: January 2026
Jerome Powell's eight-year tenure as Chair of the Federal Reserve is coming to a close during a period of intense pressure on the US central bank and divided views among policymakers about the appropriate stance of monetary policy.
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