Oct 2 ASIAN MACRO Initial thoughts S.Korea, China HK, Taiwan and India closed.
Covid-19 Globally over 34.1m cases, 1.02m deaths
US Futures opened flat as talks over stimulus package continue.
Japan's Nikkei futures indicate a higher open but Australia lower ahead of Retail Sales data
DOW +0.13%, NDX +1.42%, S&P +0.53%, Russel 2K +1.56% US markets opened higher on stimulus hopes, which could be in the $1.5 - 2.0tn range. They traded sideways / slightly lower Data was mixed as manufacturing activity slowed but initial claims were better.
Facebook +1.8%, Apple +0.9%, Amazon +2.3%, Netflix +5.5%, Alphabet +1.5% and Microsoft +1%.
Nvidia +0.6%, AMD +3.5%, Micron +2% and Skyworks +4.5%.
Re-opening stocks Boeing +1.5%, Caterpillar -1.6%, Simon Property +2.8%, Gap +5%, Carnival -1%. United Airlines +1.2%
Lock down names Campbell Soup +0.2%, General Mills +1.4% and JM Smucker +0.4%
Challenger Job Cuts Sept 118.804k vs 115.762k (F/cast was 120k)
Personal Spending Aug +1% MoM vs +1.5% Jul revised (F/cast was +0.8%)
Personal Income Aug -2.7% MoM vs +0.5% Jul revised (F/cast was -2%)
Initial Claims 26 Sept 837k vs 873k prior revised (F/cast was 855k)
4 week Ave Claims 867.25k vs 879k prior revised (F/cast was 871k)
Continuing Claims 11.767m vs 12.747m prior revised (F/cast was 12.3m)
PCE Price Index Aug +0.3% MoM vs +0.4% Jul revised (F/cast was +0.2%)
PCE Price Index Aug +1.4% YoY vs +1.1% Jul revised (F/cast was +1%)
Core PCE Price Index Aug +1.6% YoY vs +1.4% Jul revised (F/cast was +1.3%)
Core PCE Price Index Aug +0.3% MoM vs +0.4% Jul revised (F/cast was +0.2%)
Manufacturing PMI Sept 53.2 vs 53.1 Aug (F/cast was 53.5)
ISM Manufacturing Data
Prices Sept 62.8 vs 59.5 Aug (F/cast was 58)
New Orders Sept 60.2 vs 67.6 Aug (F/cast was 64)
Employment PMI Sept 49.6 vs 46.4 Aug (F/cast was 47)
Manufacturing PMI Sept 55.4 vs 56 Aug (F/cast was 55)
Construction Spending Aug MoM +1.4% vs +0.1% Jul (F/cast was +0.7%)
EIA Natural Gas Report 76 Bct vs 66Bcf Prior (Consensus was 79 Bcf)
After market due at 7am HK time Total Vehicle Sales Sept vs 15.2m Aug
USD was flat vs Yen & Euro. Bitcoin -1.3% @ 10,614.71, VIX +1.3% @ 26.7,
US T10 0.679% but did rise about 0.7% on the good jobs number
OIL Brent -3.8%, WTI -3.8% concerns of rising covid cases and increased OPEC outputs
Gold +1.2%, Silver +2.56%, Copper +0.49%
AHEAD Non Farm Payrolls, Unemployment Rate, Ave Weekly Hours, Ave Hourly Earnings, Participation Rate, ISM New York Index, Factory Orders data, Michigan Data Final (Consumer Sentiment, 5 year Inflation Expectations, Consumer Sentiment, Current Conditions, Inflation Expectations) and Baker Hughes Total Oil Rig Count.
DAX -0.23%, CAC +0.43%, FTSE +0.23% Markets opened higher but drifted lower. PMI data was for the most part better MoM as the recovery continues. The DAX had traded around flat all day. The CAC and FTSE both tested yesterday’s closing level but managed to close higher. Covid overhangs the market as Italy ends its state of emergency whilst UK extended localised restrictions. Earnings are back in focus. Retail names lead after H&M +6% results beat forecasts. But Oil and Gas were weak.
STMicro +7% on upbeat results, prompting buying in Infineon +7.5%
Bayer -12% announced more cuts and impairment charges and revised down guidance.
Rolls Royce -10% announced plans to raise $6.5m
Manufacturing PMI Final Sept 53.7 vs 51.7 Aug (F/cast was 53.7)
Unemployment Rate Final Aug 8.1% vs 8% Jul revised (F/cast was 8.2%)
PPI Aug +0.1% MoM vs +0.7% Jul revised (Consensus was +0.1%)
PPI Aug -2.5% YoY vs -3.1% Jul revised (F/cast was -2.6%)
Manufacturing PMI Final Sept 56.4 vs 52.2 Aug (F/cast was 56.6)
Manufacturing PMI Final Sept 51.2 vs 49.8 Aug (F/cast was 50.9)
New Car Registrations Sept -3% vs -19.8% Aug
Manufacturing PMI Final Sept 54.1 vs 55.2 Aug (F/cast was 54.3)
EUROZONE Core Inflation Rate Flash
GERMANY No data due
FRANCE Budget Balance
UK No data due
JAPAN Expect Nikkei to higher futures in Chicago was at 23,360 (Osaka 23,330) vs Nikkei 225′s last close at 23,185. Market will work higher playing catch uafter the US closed higher and for T/O to be higher following yesterday’s trading halt. Pre market data in line. Yen currently 105.56
Data out Unemployment Rate Aug 3% vs +2.9% July (F/cast was 3%)
Jobs/Application Ratio Aug 1.04 vs 1.08 July (F/cast was 1.05)
Later Consumer Confidence Sept (Aug was 29.3 F/cast is 32)
Tokyo Stock Exchange officials said they were working to get trading back to normal by Friday but gave no explanation for Thursday’s outage.
Japan is considering making it mandatory for companies to recommend employees take paternity leave, the Nikkei said on Thursday, as the government looks to boost the birthrate by making it easier for families to balance work and child-rearing.
Fujifilm Holdings Corp said on Thursday that it had signed a manufacturing contract agreement with U.S.-based firm VLP Therapeutics for a COVID-19 vaccine formulation. Fujifilm will use its manufacturing facilities and infrastructure to handle development of the vaccine for clinical trials, the two companies said in a statement. +VE
Nippon Paint FT reports it is preparing for a $150bn deal spree as the sector consolidates.
SOUTH KOREA Market closed Chuseok Holiday re-opens Monday
No data due
Seventy-seven new COVID-19 cases were reported on Thursday, going back to two digits after a day’s spurt to 113, with disease prevention authorities on alert as Koreans travel around the country over Chuseok.
TAIWAN Market closed re-opens Monday
No Data due
The Ministry of Foreign Affairs (MOFA) on Wednesday expressed appreciation to the European People’s Party (EPP) for condemning China’s increasing threats against Taiwan and supporting Taiwan as a “valuable partner” in the region.
US-Taiwan infrastructure investment deal aims to reduce dependence on China, experts say. Agreement will focus on infrastructure investment in Southeast Asia and Latin America to ‘help secure supply chains of the future’, US’s de facto embassy in Taipei says. Deal will also benefit Taiwan’s ‘New Southbound Policy’, Wang Ting-yu, a member of ruling Democratic Progressive Party, says
Mobile payments jumped 127% YoY earlier to NT$120.9 billion (US$4.15 billion) in the first seven months of the year, as consumers embraced contactless payment amid the COVID-19 pandemic, data compiled by the Financial Supervisory Commission showed yesterday.
Former Nanya Technology Corp president Charles Kau has reportedly quit his job at China’s Tsinghua Unigroup Ltd after his five-year contract expired. Kau joined Tsinghua Unigroup in 2015 after retiring from Nanya Technology, the biggest DRAM chipmaker in Taiwan. Slight -VE
TaiGen Biopharmaceuticals Holdings Ltd on Wednesday said that it is venturing into the North American market through its partnership with Luminarie Canada Inc, which would develop and commercialize its antibiotic Taigexyn in Canada. +VE
CHINA Market closed re-opens 9 Oct
No data due
China estimated that 13 million railway passenger trips were made on Thursday at the start of the Golden Week holiday, the highest for a single day since the coronavirus outbreak began in February, according to state media. But it is fewer than in previous years. Slight +VE
Vietnam said on Thursday that military drills conducted this week by Beijing in the South China Sea will hurt negotiations on a regional maritime code of conduct (COC) for the disputed waters. -VE
European Union leaders will call on China to finalise a stalled investment agreement by the end of the year and again criticise Beijing over its security crackdown in Hong Kong, according to a draft summit statement seen by Reuters. -VE
UK agency says that it made Huawei fixed flaws that could have put British Networks at risk -VE
HONG KONG Market closed re-opens Monday. ADR’s were +355pts in NY closing at 23,814
No data due
Police arrested 69 people in Causeway Bay for unlawful assembly