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Equity markets trade generally lower despite the gains on Wall St.; CN markets lag amid property and banking concerns; BOJ was inline, ECB decision due today
General Trend:
- EUR/USD rises
- Nord Stream remains in the headlines
- BOJ left policy unchanged as expected, raised CPI outlooks and cut GDP projections
- China covid cases slightly lower on the day
- Trade deficits seen in Asia [Japan, New Zealand and South Korea]
- Chinese bank and property indices lag; China Banking and Insurance Regulatory Commission (CBIRC) announced an expansion of repayments to victims of bank scam; Mortgage boycotts also remain in focus
- Australian production updates in focus [Newcrest, Santos, Woodside]
- Japanese equities trade generally flat
- US equity FUTS trade slightly lower; Tesla rose following results [+1.5%]
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- BOJ Gov Kuroda to hold press conference at 6:30 GMT
- Indonesia rate decision due later today
- Companies due to report during the NY morning include AT&T, Philip Morris, Union Pacific, Blackstone Group, Freeport-McMoran, Dow, Travelers, Nucor, DR Horton, Fifth Third, Quest Diagnostics, Domino’s Pizza, IPG, American Airlines, AutoNation
***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened +0.0%
- NCM.AU Reports Q4 Gold production 637K oz v 542K y/y at AISC $896/oz v $797 y/y; doesn’t guide
- WDS.AU Reports Q2 Production 33.8MMboe v 22.7MMboe y/y; Rev $3.44B v $1.33B y/y; Will discontinue sell down of Sangomar equity
- STO.AU Reports Q2 Rev $1.88B v $1.08B y/y; Production 25.5 MMBOE v 22.5 y/y; Cuts FY22 production 102-107 MMBOE (prior 100-110)
- (NZ) New Zealand Jun Trade Balance (NZ$): -0.70B v +0.26B prior [largest Jun deficit on record]
- LNK.AU To be acquired by Dye & Durham at raised offer of A$4.81/shr; (prior A$4.57) board in favor of deal
- (AU) Australia Q2 NAB Business Confidence: 5 v 15 prior; Conditions: 20 v 11 prior
- (AU) Australia Jun RBA Govt FX Transactions (A$): -3.2B v -0.8B prior
Japan
-Nikkei 225 opened -0.2%
- (JP) BANK OF JAPAN (BOJ) QUARTERLY OUTLOOK FOR ECONOMIC ACTIVITY AND PRICES: Cuts FY22/23 GDP outlook, raises core CPI
- (JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%; AS EXPECTED
- (JP) Japan Jun Trade Balance: -Â¥1.38T v -Â¥1.56Te; Adj Trade Balance: -Â¥1.93T v -Â¥2.12Te
- (JP) Japan PM Kishidia to reshuffle cabinet in early Sept - Japan press
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected]; there was no take up and opened operations for a second time in the session
Korea
-Kospi opened 0.0%
- 005490.KR To cut stainless steel prices by KRW500K/t, starting with Aug shipments, due to lower nickel costs - Korean press
- (KR) South Korea Jul 1-20 Exports Y/Y: +14.5% v -3.4% prior; Imports Y/Y: 25.4% v 21.1% prior; Chip Exports y/y: 13.2% v 1.9% prior
- 267250.KR Hyundai Oilbank cancels IPO plans due to difficulty receiving proper valuation amid market conditions
- (KR) South Korea Chip Industry said to plan total KRW340T in investments by 2026; South Korea targets localizing ~50$ of supply by 2030 - Press
- 005380.KR Reports Q2 (KRW) Net 3.09T v 1.98T y/y; Op 2.98T v 1.89T y/y; Rev 36.0T v 30.3T y/y
China/Hong Kong
-Hang Seng opened -0.4%; Shanghai Composite opened -0.2%
- (CN) China Ambassador to the US Qin Gang: A US-China Cold War would bring 'unbearable consequences'; US must clarify its intentions toward China
- (CN) China Banking and Insurance Regulatory Commission (CBIRC): announces an expansion of repayments to victims of bank scam in Henan, depositors with savings of CNY100K to receive refunds starting Jul 25th (Mon) - Press
- (CN) Shanghai reports 17 new covid cases (4 outside quarantine); adds 12 high, mid-risk areas subject to lockdown
- (CN) China local governments said to be planning to help developers contain risks and resume projects that have been delayed - press
- (CN) China Jun Swift Global Payments (CNY): 2.17% v 2.15% prior
- 5.HK Reportedly has installed CCP committee in its China investment bank - FT
- (CN) China PBOC sets Yuan reference rate: 6.7620 v 6.7465 prior (weakest level since May 17th)
- (CN) China PBOC Open Market Operation (OMO): Sells CNY3.0B in 7-day reverse repos v CNY3.0B prior; Net inject CNY0B v Net CNY0B prior
- (CN) Shanghai reportedly asks citizens to take COVID test at least once a week until Aug 31st – press (yesterday after the close)
- (HK) Macau said to resume business activities, including casinos, to certain level on July 23-29th; To continue shutting cinemas, bars and dining-in services – press
- (CN) China sovereign wealth fund (CIC) recently combined the operations of CIC Capital with its main overseas investment business, which brings private equity and infrastructure investments under one roof - press
Other
- (LY) Libya National Oil Company (NOC): Resumes production at Nafoura, Tibesti, Al-Ghani and Al-Bayda oilfields
- Asia Development Bank: Cuts China GDP Forecast to 4.0% from 5.0%; Cuts Asia Developing Economies Forecast to 4.6% from 5.2%
- SIA.SG Forward sales for the next three months up to Oct 2022 have remained robust, expects demand steady into year-end holiday travel period - AGM
North America
- (US) Pres Biden: Expects to speak with China Pres Xi in next 10 days
- TSLA Reports Q2 $2.27 v $1.82e, Rev $16.9B v $17.1Be; Notes it focused on record-breaking H2 2022; Have converted 75% of Bitcoin holdings into fiat currency
- UAL Reports Q2 $1.43 v $1.86e, Rev $12.1B v $11.9Be; Cuts some of its FY22 guidance
- MSFT Said to be cutting "many open job listings" as economy weakens; hiring freeze to continue for foreseeable future - press
Europe
- GAZP.RU Gas order signals have indicated Nord Stream Pipeline will return to ~40% of capacity
- (US) Deputy Treasury Sec: To cap prices for Russia oil by Dec, EU wants insurance ban by Dec so our goal is that as the ban goes into place, we are in a position to put a price cap in place at the same time
***Levels as of 01:15ET/6:15 BST***
- Hang Seng -0.9%; Shanghai Composite -0.5%; Kospi +0.8%; Nikkei225 +0.3%; ASX 200 +0.1%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax +0.6%; FTSE100 +0.2%
- EUR 1.0227-1.0175; JPY 138.55-137.99; AUD 0.6917-0.6880; NZD 0.6241-0.6215
- Commodity Futures: Gold -0.6% at $1,690/oz; Crude Oil -0.9% at $98.97/brl; Copper -0.7% at $3.29/lb
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