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Asia likely to start cautiously ahead of China trade data and with a new wave of covid cases hitting Asia. Along with the start of US earnings season.
Australia Futures indicate market to opens +20pts, New covid cases continue to hurt sentiment. Oil & Gold weak and Iron ore names in focus with China Trade data due later this morning. WesFarmers and Australian Pharmaceutical Industries in focus.
Data due Business Confidence, New Home Sales.
Japan Nikkei futures opened lower currently -22pts (Chicago Futures -20pts) sentiment cautions but slight +VE exoect intial consolidation after good Machinery Orders Monday and a lower number of new covid cases .
S Korea Expect markets to open slightly higher but with caution ahead of US earnings.
Taiwan Expect market to open higher but likely to see selling above 17,900 with talk that investors are waiting for the TSMC investor conference Thursday for more clarity. Shippers saw some profit talking Monday which could prompt some bargain hunting.
China Expect market to open cautiously ahead of the todays trade data. Investors likely to remain cautious ahead of Thursday GDP, Retail Sales, House Price, Industrial Production and Unemployment data. The Wild Card remains ‘Team China’
HK ADR’s indicate +106pts @ 27,621 with only weakness in Sinopec, CK Hutch and Tencent.
Europe Expect a cautious open ahead of German & French Inflation data along with the UK BoE Financial Stability Report & FPC Meeting.
Opened flat Dow +13pts, S&P flat with NDX +0.05% ahead of bank earnings.
European Union foreign ministers agreed on Monday to launch a global infrastructure plan linking Europe to the world, to rival China’s ‘Belt and Road’.
DOW +0.36%, NDX +0.21%, S&P +0.35%, Russel 2K +0.08%
A weak open but worked slightly higher, S&P and Dow hit new highs and the NDX a new closing high; as investors await Q2 earnings; with JPMorgan, Goldman’s and Pepsico numbers out on Tuesday before the bell. Disney +4.2% after Black Widow taking $80m at the box office and $60m via Disney+ on its debut. Also this week inflation data, Powell’s testimony, PPI, Beige Book and Retail sales data.
Virgin Galactic -17% announces a share sale after the successful space flight.
Didi continued to see weakness as further Apps removed from on-line stores.
Tesla +4.4% as Musk defends his actions over Solarcity acquisition.
Banks JPMorgan Chase +1.4%, Citigroup -0.5% Wells Fargo +0.6%, Amex +1%
Work from home names: Facebook +0.78%, Apple -0.4%, Amazon flat, Netflix +0.25%, Disney +4.2%, Zoom Video -1.6%, Alphabet +1.2% and Microsoft -0.2%,
Tech NXP Semi +2%, Nvidia +2.3%, Micron +1%, AMD -0.1%, Skyworks +0.9%
Re-opening stocks Boeing -0.5%, Caterpillar +0.5%, Simon Property +0.5%, Kohl’s +0.5%, Nordstrom +0.8%, Gap -0.2%, United Airlines -0.9%, Carnival -1.7%, Wynn Resorts +0.1%, Chevron +0.2%, Exxon Mobil -0.1%,
Lock down names Campbell Soup -0.2% General Mills -0.7%, JM Smucker -0.3%
Consumer Inflation Expectations Jun +4.8% vs 4% May (F/cast was +4.1%)
WASDE report released
USD was slightly stronger vs Yen & Euro. Bitcoin-3% @ 32,889.50, VIX -0.06% @ 16.17, US T10 @ 1.368%
OIL Brent -0.46%, WTI -0.51% concerns over global growth on rising covid cases.
Gold -0.22%, Silver +0.25%, Copper -0.39% Platinum +2.1%, Palladium +1.58%.
AHEAD NFIB Business Optimism, Inflation Rate, Core Inflation Rate, Redbook. After market API Crude Oil Report
DAX +0.65%, CAC +0.46%, FTSE +0.05%
Markets intially dipped but then worked better through the day to close at the highs. Investors cautious ahead of the US banks Q2 earnings. UK confirmed lifting of lockdown rules on July 19.
Financials and Utilities lead the gains. Travel was the laggard.
Atos -17.4% after issuing a profit warning.
Investors cautious as Lagarde prepares to outline the new ECB strategy within 10 days; which is likely to discuss about the tapering of stimulus.
Eurozone No data due
Germany Inflation Rate
France Inflation Rate, IEA Oil Report
UK BoE Financial Stability Report & FPC Meeting
Nikkei futures opened lower currently -22pts (Chicago Futures -20pts) sentiment cautions but slight +VE exoect intial consolidation after good Machinery Orders Monday and a lower number of new covid cases .
Yen currently 110.34
No data due
Tokyo reported 502 new covid cases (-112 DoD) the nationwide total was 1,506.
Earnings Due Izumi Co. (8273 JP)
Kintetsu Department Store Co. L (8244 JP)
Koshidaka Holdings Co. (2157 JP)
Matsuya Co. (8237 JP)
PAL Group Holdings Co. (2726 JP)
Retail Partners Co. (8167 JP)
Sanei Architecture Planning Co. (3228 JP)
Shochiku Co. (9601 JP)
Toho Co. Ltd/Tokyo (9602 JP)
Tokyo Individualized Education (4745 JP)
WingArc1st Inc. (4432 JP)
Cosmos Pharma (3349): 4Q operating profit 7.1b yen vs analyst estimate 6.7b yen; forecasts OP of 33.2b yen for current fiscal year vs estimate 33.8b yen +VE
Create SD (3148): Full-year operating profit 18.6b yen vs company forecast 17.9b yen; targets OP of 19.4b yen for current fiscal year +VE
HIS (9603): Founder Sawada lowers stake to 31.7% from 34.2% Slight -VE
Hogy Medical (3593): 1Q operating profit +31% YoY to 1.5b yen +VE
Itochu (8001): FamilyMart same-store daily sales +3.3% YoY in June +VE
Kohnan Shoji (7516): 1Q operating profit -15% YoY to 9.2b yen -VE
Lawson (2651): Japan same-store sales -1.4% YoY in June -VE
Monotaro (3064): June parent sales +17.8% YoY +VE
Seven & i (3382): Seven-Eleven Japan same-store sales -0.3% YoY in June -VE
Rorze (6323): 1Q operating profit +50% YoY to 2.8b yen +VE
SoftBank Group (9984): Flipkart raises $3.6b in funding, putting valuation at $37.6b +VE
Expect markets to open slightly higher but with caution ahead of US earnings.
No data due
KDCA reported 1,100 new covid cases (-224 DoD but due to less testing);the sixth day over 1,000. -VE for sentiment
U.S. humanitarian aid is a "sinister political scheme" to put pressure on other countries, a North Korean researcher said, after suggestions from U.S. allies such as South Korea that coronavirus vaccines or other help could promote cooperation.
Korea Gas Corp. has signed an agreement with Qatar to purchase an additional 2 million metric tons of liquefied natural gas for 20 years starting from 2025, the Ministry of Trade, Industry and Energy said Monday. +VE
A global shortage of automotive chips is expected to last through next year, while efforts to localize production are not advancing fast enough, a local auto industry think tank said Monday. The Seoul-based Korea Automotive Technology Institute, in a report, predicted the situation will slowly get better for automakers, starting in the second half of this year. But, the supply will remain constrained by 2022. -VE Automakers +VE Chip makers.
LG Group affiliates operating in Vietnam have yet to receive any COVID-19 vaccines despite donating billions of won to help the Southeast Asian country secure the jabs, Korean media outlets reported Monday. It made its 1.6 billion-won donation to the provincial government of Haiphong instead of the central government. -VE
Expect market to open higher but likely to see selling above 17,900 with talk that investors are waiting for the TSMC investor conference Thursday for more clarity. Shippers saw some profit talking Monday which could prompt some bargain hunting.
No data due.
CECC reported 24 new covid cases.
Germany has been trying to maintain a balance between its ties with Taiwan and its economic links to China, outgoing German Institute Taipei Director-General Thomas Prinz has said.
TSMC announced to actively expand and optimize the production capacity of its 28nm technology, in order to address the increasing demand, predicting to stretch the total capacity of the 28nm chip by 100,000-150,000 units per month over the next 2-3 years.
China Steel Corp (CSC) yesterday posted revenue of NT$38.83 billion (US$1.39 billion) for last month, +62.32% YoY, but -2.23% MoM. Despite the month-on-month decrease, the company said that last month was its second-best month for revenue. In the first six months of the year, revenue was NT$213.27 billion, up 41.68 percent year-on-year, CSC said. Looking ahead, the company said that demand for steel would remain strong as the global economy roars back, which has been boosting international steel prices and the cost of raw materials such as iron ore. +VE
E-commerce operator Momo.com Inc yesterday reported NT$8.33 billion (US$297.3 million) in sales for last month, up 52.3 percent year-on-year and marking its second-highest monthly sales on record. +VE
Expect market to open cautiously ahead of the todays trade data. Investors likely to remain cautious ahead of Thursday GDP, Retail Sales, House Price, Industrial Production and Unemployment data.
The Wild Card remains ‘Team China’
Balance of Trade Jun (May was $45.53b F/cast is $40b)
Exports Jun (May was +27.9% YoY F/cast is 24%)
Imports Jun (May was 51.1% YoY F/cast is 32%)
China's military said it "drove away" a U.S. warship that illegally entered Chinese waters near the Paracel Islands on Monday, the anniversary of an international court ruling that held Beijing had no claim over the South China Sea. The Benfold asserted navigational rights and freedoms in the vicinity of the Paracel Islands consistent with international law, the U.S. Navy said in a statement. There were also protests in the Philippines about the Chinese occupation of the South China Sea despite the Hague determination that China had no rights and had violated the Philippines rights.
ADR’s indicate +106pts @ 27,621 with only weakness in Sinopec, CK Hutch and Tencent.
No data due
BRII - B (02137.HK), debut, closed at $20.9 in gray market, down 6.1% against the listing price of $22.25, on volume of 9.1 million shares and turnover of $202 million, PhillipMart data
SCVE GROUP (06913.HK), debut, closed at $1.49 in gray market, down 6.3% against the listing price of $1.59, on volume of 10.2 million shares and turnover of $15.8 million, PhillipMart data
Short Selling Monday 15% vs 13.8% Friday
Top Shorts Bank of China (3988) 43%, BankComm (3328) 34%, HSBC (5) 34%, Hengan (1044) 31%, AAC Tech (2018) 30%, Sunny Optical (2382) 30%, Hang Seng Bank (11) 29%, Country Garden (2007) 29%, CK Asset (1113) 28%, Ping An (2318) 28%, CCB (939) 28%, Haidilao (6862) 28%, China Life (2628) 28%, AIA (1299) 28%, Wuxi Bio (2269) 27%, Henderson Land (12) 26%, CLP (2) 25%,
YUE YUEN IND (00551.HK) announced that in June, the net consolidated operating revenue of the company amounted to approximately USD788 million, up about 8.71% year-over-year.
The net consolidated accumulative operating revenue for the six months ended June 30, 2021 amounted to USD4.807 billion, up about 17.66% year-over-year. +VE
MINMETALS LAND (00230.HK) announced that the contracted sales of the company for the first half of 2021 reached approx RMB12.5 billion, representing 50% of the company’s annual contracted sales target of RMB25 billion. The corresponding contracted gross floor area amounted to approximately 570,000 square metres. The company’s contracted sales and contracted gross floor area for the first six months of 2021 have increased approx 124% and 121% respectively year-on-year. +VE
GOOD FRIEND (02398.HK) announced that the total sales to customers for the six months ended 30 June 2021 amounted to approximately RMB478 million, representing an increase of approximately 25% when compared to the same period in 2020 +VE.
GANGLONG CHINA (06968.HK) announced that from January to June 2021, the group achieved contracted sales amounted to approximately RMB17.853 billion, increased by around 58% compared to the period from January to June 2020. +VE
Jon Jianwen Liao, Chief Strategy Officer of JD-SW (09618.HK), tendered a retirement application for health reason, as Chinese media cited the company's internal document. Respecting Liao's intention, the management said it will offer full support for his recovery. Slight -VE
Global Alliance for Vaccines and Immunisation announced that Sinopharm and Sinovac Biotech clinched a cooperation agreement respectively with COVAX for vaccine supply. Under the agreement, both Chinese drug makers will provide vaccine to COVAX from July, helping developing countries in containing COVID epidemic. +VE
TikTok's parent company ByteDance had earlier this year shelved its overseas listing plan indefinitely, taking into account of data safety risk and other issues, Wall Street Journal cited people with the knowledge of the matter. Sources added that the laydown of ByteDance's listing plan is also due to absence of CFO at that time -VE
Lilly China reached an in-depth strategic collaboration with TENCENT (00700.HK) on 12 July. Both sides will create a patient-centric and win-win smart medical ecosystem through cloud service, big data analysis, AI and other tech-empowered smart medical innovation services, based on Lilly China's healthcare market position, sector insight and active exploration of business models and drug accessibility, in combination with TENCENT's profound healthcare layout, digitalized platform and internet connectivity +VE.
The HKSAR Government, the National Development and Reform Commission (NDRC) and relevant Mainland ministries held the fourth Joint Conference on Advancing Hong Kong's Full Participation in and Contribution to the Belt and Road
Initiative (B&RI) today (July 12) through video-conferencing.
Financial Secretary Paul Chan stressed that, during the 14th Five-Year Plan, the country's economy will continue to expand steadily. Following this trend, the HKSAR Government will continue to support Hong Kong companies in promoting domestic sales, including assisting them in their brand building and moving up in the value chain. Slight +VE