Covid-19 Globally over 5.43m cases, 345k deaths
DOW futures +250pts but thin volume on vaccine hopes as Novavax said it has started a human study of its experimental coronavirus vaccine
US Markets closed
OIL Brent -0.5%, WTI -0.2%
Gold -0.5%, Silver -0.6%, Copper %
AHEAD Chicago Fed National Activity Index, Case Schiller Home Prices, Home Price Index, CB Consumer Confidence, New Home Sales, Dallas Fed Manufacturing Index
DAX +2.87%, CAC +2.15%, FTSE closed Markets opened higher and worked higher with investors taking encouragement from more businesses re-opening. Unibail Rodam Westfield +7.8%, Accor, up 6.9%, Airbus +8.5%, MTU Aero Engines +7.5% and Lufthansa 7.5% on the news that it’s approaching a deal for a 9 billion euro bailout from the German government. Bayer +7.8% on news it reached agreement on a number of lawsuits over Roundup weedkiller.
GERMANY GDP Growth Rate Final Q1 -2.2% QoQ vs -0.1% prior (F/cast was -2.2%) [Q1 -2.3% YoY vs +0.4% prior (F/cast was -2.3%)]
Ifo Business Climate May 79.5 vs 74.2 Apr (F/cast was 79.1)
Ifo Expectations May 80.1 vs 69.4 Apr (F/cast was 74.6)
Ifo Current Conditions 78.9 vs 79.4 Apr (F/cast was 80.0)
EUROZONE ECB Financial Stability Review
GERMANY Consumer Confidence
FRANCE Business Confidence, Business Climate Indicator
UK CBI Distributive Trades
JAPAN Expect Nikkei to open higher on encouraging news about a vaccine. Yen currently 107.70
Data due at 12:30pm All Industry Activity Index (Feb was -0.6%, F/cast is -4.8%)
Government lifts state of emergency as number of new covid-19 infections drops
FamilyMart Co. announced Monday that 787 of its 14,600 affiliated stores nationwide roughly 5% will implement shorter business hours beginning June 1.
The government has decided to take steps to stimulate demand in the tourism and restaurant business, which have been suffering from the spread of the new coronavirus, from late July. A total budget of ¥1.7 trillion has been secured for benefits, such as subsidies for domestic travel and coupons usable at restaurants.
Toyota, Nissan and Honda said they are gradually restarting in Mexico as the nation's automotive industry reboots in line with a broader economic reopening, despite still-high numbers of new coronavirus cases.
Nissan, Renault and Mitsubishi to unveil a new tech sharing strategy on Wednesday.
All Nippon Airways Co will require all passengers to wear face masks inside airports and aboard aircraft.
SOUTH KOREA Expect markets to open higher on vaccine news from the US and good local Consumer Confidence data.
Data out Consumer Confidence May 77.6 vs 70.8 April (F/cast was 65)
Korean Air Lines Co. decided Monday to offer 300 billion won (US$242 million) worth of new shares as collateral to receive fresh financial support from creditor banks as it seeks to tide over a liquidity crunch.
South Korean duty-free stores saw their sales drop sharply below the 1 trillion-won ($804 million) mark in April, feeling the pinch of the fallout from the new coronavirus, industry data showed Tuesday. -VE
Bioneer said Monday it had filed a patent application for candidate materials for COVID-19 treatment co-developed with its subsidiary siRNAgen Therapeutics. Simply put, the SAMiRNA technology can disassemble RNA viruses and prevent them from working in the first place,” a company official said. +VE
TAIWAN Expect market to open higher on vaccine hopes but upside limited by the weak economic data out after market Monday and the market resistance at 11,000
No data due
After Market Monday Industrial Production Apr +3.51% YoY vs 11.18% Mar (F/cast was +5.5%) with strong demand for electronics especially 5G, IoT, cloud and high performance related. But non-tech was weak; especially auto and textile related
Retail Sales Apr -10.2% YoY vs -3.5% Mar (F/cast was -6.5%) with F&B seeing the latest declines in 20 years.
M2 Money Supply Apr +4.21% YoY vs 4.42% Mar
Taiwan may revoke the special status it extends to Hong Kong, due to the imposition of a National Security Law on HK, President Tsai Ing-wen said, a move that could anger Beijing and make it harder for Hong Kongers to visit and invest.
Government is working on the details of a voucher program for in-store purchases to revive consumer spending amid the COVID-19 pandemic. The preliminary plan would allow anyone, regardless of age or income, to pay NT$1,000 to obtain NT$3,000 worth of vouchers to spend at stores, buy train tickets or pay taxi fares, Kung said in a radio interview with Hit FM radio host Clara Chou. The council is also considering allowing the public to use the vouchers at local night markets when the program is launched in July +VE
Local banks’ combined exposure to China in Q1 dropped for the third consecutive quarter, to NT$1.62 trillion (US$53.86 billion), as they trimmed investment and loan positions amid the COVID-19 pandemic, Financial Supervisory Commission (FSC) data showed.
Phoenix Silicon Int yesterday said strong demand from customers means it would maintain its capacity expansion plan for this year. The silicon wafer recycler, which counts TSMC among its major customers, next quarter plans to add a capacity of 60,000 12-inch wafers per month, bringing its total capacity to 300,000 wafers a month.
CHINA Expect market to open higher but trading to remain volatile as investors watch for more news from the NPC and CPPCC meetings and watch US/China tensions.
No data due
China's state-owned enterprises reported net profit after tax of RMB210.56 billion, -74.3% YoY, announced by the Ministry of Finance (MOF).
China continues to try and defend the imposition of a national security law on Hong Kong and its by-passing of the existing legal systems. But many investors doubt its honesty and are aware of the activities of China’s security services within China and their reputation. It is not helping that China has not given any details of the proposed legislation.
Great Wall Motor (601633.SS) expects China’s overall auto sales in the 2H this year to return to the same level as last year, its president said, as the world’s biggest auto market recovers from a coronavirus-driven low.
HONG KONG No ADR’s but Europe closed higher so expect HK to open higher with a number of recent shorts covering.
No data due
Short Selling Short Selling HSI Monday 24.9% vs 25.7% Friday Top Shorts HK & China Gas (3) 56%, MTRC (66) 55%, Hang Seng Bank (11) 54%, Want Want (151) 49%, Wharf REIC (1997) 48%, ICBC (1398) 47%, Hang Lung PPTY (101) 45%, NWD (17) 40%, CCB (939) 39%, SHKP (16) 35%, BoC (3988) 35%, Hengan (1044) 34%, CLP (2) 32%, CITIC (267) 32%, BankComm (3328) 31%, Power Assets (6) 30%, Henderson Land(12) 30%, Tencent (700) 29%, CK Asset (1113) 28%, HK EX (388) 27%
HSBC reported in the FT to be reviewing its overhaul with more cuts expected. The article suggests it could be looking at the sale of its US unit and its retail network in France an operations in non-strategic countries.
TENCENT (700.HK)'s wholly owned subsidiary Image Frame Investment has bought a majority stake in Japanese game developer Marvelous for over HK$500 mn. On completion, TENCENT will own 20% equity interest in Marvelous and become the biggest shareholder of the latter.
CHINA RES GAS (1193.HK) announced completion of top-up placing of 90 million shares and receipt of total net proceeds of approximately $3.67 billion from the subscription. After completion of the Subscription, a total of 608 million shares, 26.28% of the issued share capital of the Company as enlarged by the Subscription, are held by the public.
MEITUAN-W (3690.HK) Q1 ended March 31, 2020; loss expanded to RMB1.578 bn from RMB1.432 bn in the same period last year, beating most brokers' forecasts of RMB1.393-1.957 bn. Adjusted EBITDA Rmb41.311m -91% YoY and adjusted net loss RMB216 mn -79.4% YoY. Revenue hurt by the fall in tourism and covid-19
SHKP (16 HK) THE Kwok family trust increased its holdings have bought 1m shares at an average price of HK$90.8692 on May 22, taking their stake to 26.63% from 26.59%. On the same day the son of Thomas Kwok bought 450k shares at an average price of HK$92.7516
K WAH (173 HK) reported 9 units forfeited deposits at Solaria in Tai Pao and one at The Vertix in Cheung She Wan.