Aug 31 ASIAN MACRO INITIAL THOUGHTS US Futures open +106pts, Asian Markets muted
Covid-19 Globally over 25m cases, 844k deaths
US Futures Opened +106pts with S&P and NDX +VE too
Apple and Tesla trade post stock split today and DOW index changes are effective; ExxonMobil, Pfizer and Raytheon are out and Salesforce.com, Amgen and Honeywell are in.
UK Markets closed for Bank Holiday re-open Tuesday
JAPAN Expect Nikkei to open higher following the US and may see bargain hunting after the sell off on Friday ahead of PM Abe announcing his resignation. Yen closed in US @ 105.34
Data due Pre market Retail Sales and Industrial Production. Later Consumer Confidence, Housing Starts and Construction Orders
Media full of speculation about who will succeed PM Abe, the LDP will hold a party election to select his successor around the 15 Sept at this stage a popular contender is former defense chief Shigeru Ishiba who has been a critic of Abe’s. Also Chief Cabinet Sec Suga (71 yrs old) is a strong contender and Shinjiro Koizumi has decided not to run. Suga is loyal to Abe and therefore likely to continue Abe’s policies.
Tokyo metropolitan government on Saturday reported 247 new cases of the coronavirus, up 21 from Friday.Japan Display said on Friday it has agreed to sell a smartphone screen plant to Sharp Corp for $390 million, raising funds to repay debt it owes Apple Inc for the plant construction costs.
Honda plans to abolish fixed commuting allowances and instead switch to the reimbursement of actual expenses from October. The move is in response to the increase of teleworkers within the company. A new telecommuting allowance, intended to reduce the employees burden of communication and utility costs and encourage them to work from home, is also to be introduced.
Nippon Sangyo Suishin Kiko Ltd. plans to acquire the protein brand DNS from Dome Corp., which is licensed to sell Under Armour sports gear in Japan, informed sources said Sunday.
Starting from September, Japan will loosen its entry restrictions on travellers from abroad, allowing all its foreign residents with a legal residence status to travel freely and thus enabling those seeking re-entry to the country to return, government officials said Friday. However, travel will be subject to some conditions, including pre-entry tests for COVID-19.
Japan Airlines tests touchless check-in kiosks at Haneda to ease coronavirus concerns The kiosk lets passengers scroll through text and "press" digital buttons by holding their fingers over the motion-sensor screen like a touch-screen panel.
SkyDrive Inc. recently unveiled its “flying car” and conducted a manned flight test in front of the press.
SOUTH KOREA Expect markets to open lower with weak pre market data and increased social distancing measures to cope with the latest covid outbreaks; with fears of a hospital bed shortage as S Korea sees triple digit rises in new cases. BUT the extension of short sell ban may encourage more retail participation and limit the downside
Retail Sales Jul +0.5% YoY vs +6.3% Jun (F/cast was +5.5%)
Retail Sales Jul -6% MoM vs +3.4% Jun (F/cast was -1.5%)
Industrial Production Jul -2.5% YoY vs -0.5% Jun (F/cast was -0.5%)
Industrial Production Jul +1.6% MoM vs +7.2% Jun (F/cast was +2.5%) Manufacturing Production Jul -2.4% YoY vs -0.4% Jun (F/cast was +0.5%)
Construction output Jul -0.6% YoY vs -3.6% Jun (F/cast was -0.9%)
Regulator extends short sell ban until March 2021, positive for retail investors but some institutions and hedge funds are -VE on the news.
Government ramped up efforts to end a strike by thousands of the country's doctors on Friday, as Seoul restricting eateries in the capital in a bid to blunt a surge in coronavirus cases, with 323 cases reported in the past day, including 308 community-acquired infections.-VE
Coupang is trialing a buy-now, pay-later service. The new service is applied to products directly bought from and sold by Coupang, which are available for its next-day delivery service, Rocket Delivery, according to one official at the company, allowing users to purchase items on credit until the 15th of the following month. +VE
CSOT, a panel unit of Chinese home appliance maker TCL, acquired Samsung Display’s Suzhou LCD plant for $1.08 billion, making China the producer of half the world’s large LCDs, industry sources said Sunday.
Department store sales of luxury brands jumped more than 30% last month, although overall sales declined due to the pandemic and the rainy season, government data showed Sunday. Analysts say people spent more of their savings on luxury goods because they were not allowed to travel abroad during the holiday season. +VE Luxury goods names
Samsung Electronics has sent invitations to global media outlets and industry officials to the unpacking event for its third foldable smartphone Galaxy Z Fold2 on Sept. 1. +VE
Hyundai Motor Group Executive Vice Chairman Chung Euisun will give a congratulatory speech at this year’s “Social Value Connect,” the largest privately-held social value festival in Korea hosted by SK Group Chairman Chey Tae-won. +VE sign of increased co-operation between the two firms
Hyundai Engineering & Construction said Sunday that the company will start distribution of its newly built Hill State apartments in the city of Gwangju, Gyeonggi Province, in early September.
The number of vehicle registrations in South Korea exceeded 24 million in the first half, helped by strong demand for environmentally friendly models, the Transport Ministry said. Slight +VE Autos
Hyundai Motor will launch nine new cars in China by the end of next year to seek a turnaround in its sluggish sales in the world’s biggest car market. +VE
Kumho Asiana Group -VE as South Korea’s antitrust watchdog has decided to impose a fine of 32 billion won ($27 million) on the Group for unfair internal transactions that aimed at tightening family control over the conglomerate, officials said Thursday. The Fair Trade Commission also reported Chairman Park Sam-koo and two other executives to prosecutors.
TAIWAN Expect market to open higher although upside limited
No data due
Taiwan will campaign to rejoin the UN this year and will highlight its achievements in containing COVID-19 and its commitment to multilateralism, the Ministry of Foreign Affairs (MOFA) said Friday +VE for Taiwan but likely to increase the tension with China
Taiwan has pledging to ease curbs on US pork and beef imports as it aligns itself more closely with Washington in the face of a growing military threat from China. It makes a bilateral trade deal with the US more likely. Worth noting that there was some local opposition to the move but most agree with the decision +VE Vanguard International Semiconductor on Saturday said that its revenue and earnings for this year are expected to continue growing, after its performance in the first eight months of the year met expectations. Chairman Fang Leuh said because of increased demand for high-end laptops and TVs, 8-inch wafers would continue to be in short supply through next year. +VE
MediaTek on Friday said it has submitted an application to the US government for permission to continue supplying chips to Huawei Technologies after Washington’s new restrictions on the Chinese telecom giant’s access to US technology take effect next month. +VE if successful but I think it is unlikely at present.
Evergreen Steel Friday applied to trade its shares on the Taiwan Stock Exchange (TWSE), moving up from the smaller Taipei Exchange’s (TPEX) emerging stock board. It would be the seventh company to apply for listing on the main board this year, the TWSE said. +VE
Eternal Materials a company known for its chemical exports, has emerged as a dark horse in the race to develop medication, test kits and vaccines aimed at COVID-19. It has now received formal approval to sell the product in Taiwan, as well as in the EU and several Southeast Asian countries, and it is applying for a permit in the US, company spokesman Liu Bing-cheng +VE
Domestic gasoline and diesel prices are to remain unchanged for a second straight week this week after the global oil market became stuck in range-bound trading last week. +VE
CHINA Expect market to open lower as US/China relations worsen with the prospect that more Chinese companies may face sanctions. Pre Market PMI data will also impact the market; the forecast is for little change
Data due Pre Market Manufacturing PMI (Jul was 51.1 F/cast is 51.3)
Non Manufacturing PMI (Jul was 54.2 and F/cast is 54)
China reported 9 new covid cases on Friday, the same number as Thursday all of them imported. The commission said another 10 asymptomatic carriers were found on Friday, compared to 16 a day earlier.
The Trump administration has determined that another 11 Chinese firms, including construction giant China Communications Construction Company, are owned or controlled by the Chinese military, the Pentagon said on Friday, laying the groundwork for new sanctions. -VE
China tightens export controls with Drones and laser tech. There are now about two dozen that require approval/licences to be sold overseas. Comes in response to the US sanctions Slight -VE and could hurt Chinese companies. It also means that Beijing’s approval is needed for the sale of TikTok.
Yunnan province sees worst locust infestation for decades -VE because it will impact corn supplies which in turn could prompt more food inflation.
Beijing warns of Apple boycott if WeChat is banned. Chinese consumers could boycott Apple if the US bans WeChat, the Chinese Ministry of Foreign Affairs said Friday, as the clock ticks down on a US order to block the popular social app.
I think that raising the threat shows how Beijing feels the need to show its domestic audience that it can stand up to the US. But it will be interesting to see how successful it would be. In the past the products targeted from Japan and S Korea were easily substituted. Also it will impact a lot of Chinese companies that are involved in the Apple supply chain.
Huawei to focus on cloud computing operations to secure its survival with the expectation of more government contracts. It is an area in which it still has access to chips. Slight -VE to Alibaba and Tencent whose cloud computer businesses are more advanced.
China embassy says Britain is distorting Beijing's diplomatic efforts in response to new claims that Beijing is pursuing a more aggressive diplomatic strategy. In response to the charge that Beijing was taking advantage of the coronavirus pandemic to pursue its “wolf warrior” diplomatic agenda, the spokesman said Chinese diplomats had a duty to tell the real story “in the face of misinterpretations, misunderstandings and even deliberate slanders”.
China must build an “impregnable fortress” to maintain stability in Tibet, protect national unity and educate the masses in the struggle against “splittism”, President Xi Jinping told senior leaders, state media said on Saturday.
US accuses Chinese researcher Guan Lei of destroying hard drive and dumping it after coming under investigation for alleged links to the Chinese military, according to FBI. Another example of the increased tensions.
Bay area city Jiangmen, seeing importance of nighttime economy, launches campaign to drive consumption upgrade by launching a programme that runs up to late October to develop its nighttime economy and drive consumption upgrade
The government is handing out 10 million yuan worth of vouchers and discount coupons and organising dozens of events and activities. I think it shows how the authorities are aware of how difficult it is to get public confidence and spending to return post covid.
China and India’s peace talks stall as both sides build roads in border region. The past random approach to infrastructure development in the Himalayas is key sticking point as post-clash talks stall. Tensions remain high with Indian disagreement over equal rate of troop withdrawals from conflict zone
China Buys Record Amt of Over 3,300 Tonnes US Beef Last Week, setting her largest weekly purchase record since 1999, said U.S. Department of Agriculture. US national security adviser Robert O’Brien calls Beijing’s claim to most of South China Sea claims ‘ridiculous’ and that China’s claim has been ‘rejected by all major countries’. He says high-level meetings of ‘the quad’, comprising the US, Japan, Australia and India are being planned for September and October. More pressure being put on Beijing and this time in a co-ordinated fashion. Comes as Beijing claims it has warned the US destroyer Mustin as it sailed close to the Paracel Islands in the South China Sea after the Chinese missile launch.
China strikes debt deals with poor nations under G20 scheme. FT report Half of requests to defer payments have been agreed — but key Angolan test awaits
HONG KONG ADR’s indicate +84pts to open at 25,505, likely to see an initial squeeze higher as shorts remain elevated but weakness in Chinese Financials post earnings on Friday likely to cap upside. Key swing factor the China PMI data. Expect more rotational trading as investors react to the latest earnings releases. Earnings still the focus. Turnover may be slightly lighter with UK markets closed for a Bank Holiday
No data due
Reuters survey shows agrowing majority of people in Hong Kong support the pro-democracy movement’s goals after China introduced a national security law for the city with 60% opposed to the new security law (up from 57%), but backing for the protest movement was a smaller 44%.
Small protests in Mongkok’s Moko Mall and Langham Place on Sunday with a flash mob chanting and singing on the eve of the August 31 incident.
Short Selling HSI Friday 20.4% vs 22.1% Thursday
Top Shorts Sino Land (83) 61%, Want Want (151) 43%, Wharf REIC (1997) 38%, China Res Land (1109) 36%, Power Assets (6) 34%, Ping An (2318) 34%, CLP (2) 32%, AAC Tech (2018) 31%, Techtronics (669) 30%, Hang Lung Ppty (101) 29%, BoC HK (2388) 29%, Hang Seng Bank (11) 28%, Country Garden (2007) 28%, China Shenhua (1088) 27%, Petrochina (857) 27%, HSBC (5) 25%, Henderson Land (12) 25%, HK & China Gas (3) 25%.
EARNINGS Due Tianneng Power (819), Genscript (1548), BoC HK (2388), BoC (3988), Hop Hing (47), Asian Citrus (73), AVIC (232), NewOcean Energy (342), Beijing Enterprises (392), Cogobuy (400), GOME retail (493), Karen Int (496), High Fashion (608), Skyworth (751), Glorious Property (845), China Qinfa (866), Trinity (891), Tibet Water (1115), Milan Station (1150), Hidili (1393), Nissin Foods (1475), Fusen Pharm (1652), BAIC Motor (1958), China Evergrade (3333),
EARNINGS OUT After market Friday include
LUOYANG GLASS (1108.HK) interim results ended 30 June 2020. Net profit +3.3% yearly to RMB16.14 million. EPS equaled 2.92 fen. No interim dividend was declared.
BANK OF GUIZHOU (6199.HK) interim results ended 30 June 2020. Net profit +7.8% yearly to RMB1.929 billion. EPS equaled 13 fen. No interim dividend was declared.
GOLDWIND (2208.HK) interim results ended 30 June 2020. Net profit +7.6% yearly to RMB1.275 billion. EPS equaled 29 fen. No interim dividend was declared.
CHINA RAILWAY (390.HK) interim results ended 30 June 2020. Net profit +11.3% yearly to RMB11.697 billion. EPS equaled 42.5 fen. No interim dividend was declared.
CHINA LEON (1586.HK) interim results ended 30 June 2020. Net profit +59.3% yearly to RMB21.26 million. EPS equaled 5.32 fen. No interim dividend was declared.
MINSHENG BANK (1988.HK) interim results ended 30 June 2020. Net profit -10% yearly to RMB28.453 billion. EPS equaled 61 fen. No interim dividend was declared.
CEB BANK (6818.HK) interim result ended June 2020. Operating income +9% year on year to RMB72.157 billion. Net profit RMB18.363 billion, -10.2%. EPS was RMB0.31. No dividend was declared.
GCL NEWENERGY (451.HK) interim result ended June 2020. Net profit RMB42.304 million, -89.7% yearly. EPS was RMB0.22 cents. No dividend was declared.
DATANG POWER (991.HK) interim result ended June 2020. The operating revenue -1.2% year on year to RMB44.478 billion. Net profit RMB1.842 billion, +99.6%. EPS was RMB7.02 cents. No dividend was declared.
BYD ELECTRONIC (285.HK) interim result ended June 2020. Net profit RMB2.473 billion, +329.9% yearly. EPS was RMB1.1. No dividend was declared.
GAC GROUP (2238.HK) interim result ended June 2020. Revenue -9.6% year on year to RMB25.642 billion. Net profit RMB2.318 billion, -52.9%.
EPS was RMB0.23. An interim dividend of RMB0.3 was declared.
MINTH GROUP (425.HK) interim result ended June 2020. Revenue -20.9% year on year to RMB4.849 billion. Net profit RMB370 million, -58.6%.
EPS was RMB0.321. No dividend was declared.
CZ BANK (2016.HK) interim result ended June 2020. Net profit HK$6.775 billion, -10% yearly. EPS was HK$0.27. No dividend was declared.
AIR CHINA (753.HK) interim result ended June 2020. Revenue -54.6% year on year to RMB29.646 billion. The profit swung into loss of RMB9.44 billion. LPS was RMB68.73 cents. No dividend was declared.
CHINA SOUTH AIR (1055.HK) interim result ended June 2020. The operating revenue -46.6% year on year to RMB38.964 billion. The profit swung into loss of RMB8.179 billion. LPS was RMB0.64. No dividend was declared.
ZTE (763.HK) interim result ended June 2020. Operating revenue +5.8% year on year to RMB47.199 billion. Net profit RMB1.857 billion, +26.3% yearly.
EPS was RMB0.4. No dividend was declared.
JOY CITY PPT (207.HK) interim result ended June 2020. Net profit RMB115 million, -86.9% yearly. EPS was RMB0.7 cents. No dividend was declared.
ANALOGUE HLDGS (1977.HK) interim results for the period ended June 2020. Turnover +17.4% year-on-year to HK$2.441 billion. Net profit HK$107 million, -0.8% yearly. EPS was HK8 cents. An interim dividend of HK3.82 cents was declared.
ASCLETIS-B (1672.HK) interim result ended June 2020. The loss widened to RMB51.465 million from RMB47.232 million in the corresponding period of the previous year. LPS was RMB4.94 cents. No dividend was declared.
CHINA RAIL CONS (1186.HK) interim result ended June 2020. Revenue +5.1% year on year to RMB370.789 billion. Net profit RMB9.316 billion, +0.3% yearly.
EPS was RMB0.62. No dividend was declared.
CTIHK (6055.HK) interim results for the period ended June 2020. Turnover -52.1% year-on-year to HK$1.885 billion. Net profit HK$57.2087 million, down 56.2% yearly. EPS was HK$0.08. No dividend was declared.
CNBM (3323.HK) interim results for the period ended June 2020. Turnover -4.8% year-on-year to RMB106.788 billion. Net profit RMB5.387 billion, -6.4% yearly. EPS was RMB0.639. No dividend was declared.
YANZHOU COAL (1171.HK) interim result ended June 2020. The sales income rose 6.3% year on year to RMB35.325 billion. Net profit RMB4.549 billion, -21.7% yearly. EPS. was RMB0.93.
CHINA COMM CONS (1800.HK) interim result ended June 2020. Turnover +2.5% year on year to RMB245.41 billion. Net profit RMB5.517 billion, -37.2% yearly. EPS. was RMB0.28. No dividend was declared.
SOCAM DEV (983.HK) interim result ended June 2020. The company swung into loss of HK$130 million from earnings of HK$11 million over a year ago. LPS was HK$0.35. No dividend was declared.
CM BANK (3968.HK) announced interim result ended June 2020. The net profit RMB49.788 billion, -1.6% yearly. EPS was RMB1.97. No dividend was declared.
CRRC (1766.HK) interim results for the period ended June 2020. Turnover -7% year-on-year to RMB89.403 billion. Net profit RMB3.693 billion, -22.8% yearly.
EPS was RMB0.13. No dividend was declared.
SHANGRI-LA ASIA (69.HK) interim results ended June 2020. Loss was US$283 million, against US$115 million in profit a year ago. LPS equaled US7.915 cents. No dividend was declared. In the first half of 2020, revenue from Hong Kong deflated 76.3% to US$41.50 million.
CHINA COAL (1898.HK) interim result ended June 2020. Revenue +0.6% year on year to RMB61.393 billion. Net profit RMB2.529 billion, -38.7% yearly.
EPS was RMB0.19. No dividend was declared.
MIDLAND HOLDING (1200.HK) interim result ended June 2020. The company swung into loss of HK$24.354 million from net profit of HK$93.597 million. LPS was HK3.39 cents. No dividend was declared.
TONGCHENG-ELONG (780.HK) interim result ended June 2020. The company swung into loss of RMB903,000 from earnings of RMB297 million over a year ago. EPS. was RMB0. No dividend was declared.
SINO BIOPHARM (1177.HK) interim results ended June 2020. Net profit RMB1.213 bn, -16% yearly. During the period, underlying profit +5.2% to RMB1.76 billion. EPS equaled 9.64 fen. Quarterly DPS was HK2 cents. Together with the first quarterly DPS of HK2 cents, the total dividend of first two quarters amounted to HK4 cents per share.
SHANGHAI IND H (363.HK) interim results for the period ended June 2020. Turnover -20.7% year-on-year to HK$13.211 billion. Net profit HK$803 million, -60.1% on a yearly basis. EPS was HK$0.725. An interim dividend of HK22 cents was declared. The company also planned to distribute one SH IND URBAN (563.HK) share for every five company shares owned as a special interim dividend.
CHONG HING BANK (1111.HK) interim results for the period ended June 2020. Net profit HK$715 million, -21% year-on-year. EPS was HK$0.64. An interim dividend of HK$0.11 was declared, against a payout of HK$0.17 the year-ago period.
CAR INC (699.HK) interim results ended June 2020. Loss amounted to RMB4.338 billion, against RMB279 million in profit a year ago. LPS equaled RMB2.046. No dividend was declared.
BANKCOMM (3328.HK) interim result ended June 2020. Net profit RMB36.505 billion, -14.6% yearly. Net interest income increased +5.41% on a year-on-year basis to RMB73.849 billion
Canada confirms CanSino vaccine development agreement has been cancelled -VE as the trial would have given the vaccine more credibility.
Centaline Property Agency recorded 20 secondary transactions at ten major estates over the past weekend, +17.6% WoW .
CIFI HOLD GP (884.HK) established a joint venture with Henderson China Investment and Guangzhou Jiejun, an indirect wholly-owned subsidiary of Henderson China Investment, to develop the Chengdu Site located at Zone 1 and 5 of Xiaolin Community, Zone 10, 11 and 12 of Wanhe Community, Xindu Street, Xindu District, Chengdu, Sichuan Province, the PRC. Chengdu Heru succeeded in the bidding of the Chengdu Site with a total planned gross floor area of 247,000 sq.m. at land consideration of approximately RMB1.838 billion.
SHANGRI-LA ASIA (69.HK) said in its interim results report that the group had a very challenging first half of 2020 and it anticipated the rest of the year to continue to be volatile. As the group entered the latter half of 2020, it will continue to utilise this quieter period to provide skills training and learning opportunities for its colleagues. It has also taken the opportunity to restructure and streamline some of its teams.
The Lands Department (LandsD) announced today (August 28) that a site, Tung Chung Town Lot No. 45 at Area 57, Tung Chung, New Territories, in the 2020-21 Land Sale Programme will be disposed of by public tender. The tender invitation for the lot will commence on September 4 and close on October 16.
Tung Chung Town Lot No. 45 has a site area of about 12,335 square metres and is designated for non-industrial (excluding residential, hotel, godown and petrol filling station) purposes. The minimum gross floor area and the maximum gross floor area are 70,310 sq m and 117,182 sq m respectively.
Nestle announced the disposal of its Chinese bottled water business to Tsingtao Brewery Group, involving the "Dashan" brand, the "Yunnan Shanquan" brand, plus three bottled water factories in Kunming, Shanghai and Tianjin.
XTEP INT'L (1368.HK) saw satisfactory increase in product prices and discounts in its telecom unit after making certain changes, chairman cum CEO Ding Shui Po said. In the future, probably in 2H21, the company would look into transformation into conducting DTC (Direct To Consumer) marketing, said Ding, adding it would focus on forging new brand this year.CFO Yeung Lo Bun saw continued operation improvement in core Xtep brand, the retail sell-through slide of which improved to single digits in 2Q20 from over 20% in 1Q20. During July and August, the firm basically maintained its single-digit sales growth. Yeung anticipated better 2H20 sales HoH, seeing passable growth after the pandemic is brought under control.
Centa-City Leading Index (CCL) last printed at 178.71, -1.21% weekly. Centaline Property, elaborated on the down trend that housing prices were obviously subdued during the first week of tightened social distancing measures at end-July. Transaction prices were low for individual cases, hampering market uptrend briefly. With tapering local epidemic in late August, the second-hand market recovered the vibrancy with rising deals. Going into September, they expected housing prices to pick up the growth.
US and Europe Friday’s closing data
DOW +0.57%, NDX +0.6%, S&P +0.67%, Russel 2K +0.88% Markets opened higher and traded sideways for the morning and worked slightly higher in the PM to close around the day highs. The DOW has now recovered all its 2020 losses and the S&P closed above 3,500 for the first time. The data was positive and especially the Personal Spending data which beat forecasts +VE for Retail and the recovery. However some are expecting a consolidation in the near future after such a good run, as the US has risen for the past seven session.
Walmart +2.7% and Coca-Cola +3.3% which announced re-organisation and voluntary layoffs led the Dow. Tech sector +1.1% and energy +1.9% were the best-performing sectors in the S&P 500.
HP +6.5% led the S&P 500 gainers on better than expected quarterly earnings. Dell Technologies +6.1% also beat forecasts, off initial high but trading at its year highs.
Ulta Beauty +5.8% as Q2 update showed online sales tripling.
Apple -0.2% announced it had terminated the developer account of Epic Games, creator of the battle royale hit "Fortnite".
MGM Resorts +4.6% lays off 18,000 furloughed employees. Las Vegas Sands says its maintaining employee pay through October.
Boeing +0.9% despite reporting that it has found manufacturing defects on some of its 787 long-range airliners in areas where parts of the fuselage are joined together, the latest setback for the aircraft maker.
Herbalife Nutrition -0.3% will pay $123.1 million to settle criminal and civil charges it bribed Chinese officials in government agencies and media outlets to boost its business in China, the US Department of Justice said on Friday.
Personal Income Jul +0.4% MoM vs -1% Jun revised (F/cast was -0.4%)
Personal Spending Jul +1.9% MoM vs +6.2% Jun revised (F/cast was +1.2%)
PCE Price Index Jul +1% YoY vs +0.9% Jun revised (F/cast was +1%)
PCE Price Index Jul +0.3% MoM vs +0.5% Jun revised (F/cast was +0.4%)
Goods Trade Balance Adv Jul $-79.32b vs -70.99b (F/cast was -73b)
Wholesale Inventories Adv Jul -0.1% vs -1.3% Jun revised (F/cast was -0.6%)
Core PCE Price Index Jul +1.3% YoY vs +1.1% Jun revised (F/cast was +1.1%)
Core PCE Price Index Jul +0.3% MoM vs +0.3% Jun revised (F/cast was +0.3%)
Chicago PMI Aug 51.2 vs 51.9 Jul (F/cast was 51)
University of Michigan Final Data
Consumer Expectations Aug 68.5 vs 65.9 Jul (F/cast was 66.5)
5 year Inflation Expectations Aug 2.7% vs 2.6 Jul (F/cast was 2.7%)
Inflation Expectations Aug 3.1% vs 3% Jul (F/cast was 3%)
Consumer Sentiment Aug 74.1 vs 72.5 Jul (F/cast was 72.8)
Current Conditions Aug 82.9 vs 82.8 Jul (F/cast was 82.5)
Baker Hughes Total Oil Rig Count 254 vs 254 prior
USD was weaker vs Yen & Euro. Bitcoin -0.0.4% @ 11,519.29, VIX -6.2% @22.96 , US T10 0.724%
OIL Brent +0.28% (Friday was futures expiry), WTI -0.26%
Gold +2.1%, Silver +2.1%, Copper +1.3%
AHEAD Dallas Fed Manufacturing Index
DAX -0.48%, CAC -0.26%, FTSE -0.61% markets opened mixed (DAX lower, CAC & FTSE higher) they saw initial weakness and then worked higher in choppy trading in reaction to PM Abe’s resignation, weak German Consumer Confidence data, weak French Household spending and despite the Fed Chairman Powells announcement of a change in policy and an improvement in the Eurozone sentiment numbers. After about 11am they trade sideways and then sold down slightly into the close.
Banks rose in reaction to the Fed's change in policy.
Centrica +4.7% despite news that British Gas paid a total of £1.73 million ($2.3 million) for mishandling a change in a top-up provider for prepayment meters, according to Reuters. The energy regulator Ofgem said it had decided not to take formal enforcement action.
Rolls-Royce -3.6% said it would sell assets in an attempt to raise £2 billion.
WPP -2.8% despite announcing plans to resume its dividend after beating dire second-quarter earnings expectations.
Consumer Confidence Final Aug -14.7 vs -15 Jul (F/cast was -14.7)
Economic Sentiment Aug 87.7 vs 82.4 Jul revised (F/cast was 85.5)
Industrial Sentiment Aug -12. 7 vs -16.2 Jul (F/cast was -14)
Services Sentiment Aug -17.2 vs -26.2 Jul revised (F/cast was -22)
Consumer Inflation Expectations Aug 16.9 vs 17.5Jul (F/cast was 16)
GfK Consumer Confidence Sept -1.8 vs -0.2 Aug revised (F/cast as +2.5)
Import Prices Jul -4.6% YoY vs -5.1% Jun (Consensus was -4.7%) [Jul +0.3% MoM vs +0.6% Jun (Consensus was +0.2%)
GDP Growth Rate Final Q2 -13.8% vs -5.9% Q1 (F/cast was -13.8%)
Inflation Rate Aug prelim +0.2% YoY vs +0.8% Jul (F/cast was +0.3%) [Aug prelim -0.1% MoM vs +0.4% Jul (F/cast was +0.0%)
Household Consumption Jul +0.5% MoM vs +10.3% Jun revised (F/cast was +2.5%)
PPI Jul +0.4% MoM vs +0.7% Jun (F/cast was +0.2%)
EUROZONE No data due
GERMANY Inflation Rate
FRANCE No data due
UK No data due UK Bank holiday market re-opens Tuesday.