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Markets Update: APAC Stocks Mixed aimd Geopolitical Tensions; Crude Oil Prices Reverse Gains on Lack of Geopolitical Escalation and Saudi Price Restraint.
Economic Calendar
Global Markets Roundup: 30 Oct 2023
FX majors traded quietly in a tight range. Equity markets traded mixed, with Japanese stocks lagging ahead of the BOJ decision. Asian stocks trading mixed, with Nikkei 225 and Hang Seng down over 1%. Australian Dollar outperforming other majors amid better retail sales data. Japanese Yen weaker against US Dollar on speculation of BOJ hawkishness. Gold and copper prices higher on safe-haven demand. European equity futures are indicative of a flat open on Tuesday, after cash markets closed -0.9% on Friday. This suggests that investors are cautious ahead of a busy week of economic data and corporate earnings. Investors are likely to be monitoring the data closely for signs of a slowdown in economic growth and a further rise in inflation. If the data is weaker than expected, it could put pressure on European equities. However, if the data is positive, it could boost sentiment and lead to a rebound in stocks.
Economic Data Highlights
Australia Retail Sales: 0.9% M/M v 0.3%e, adding a boost to turnover in household goods retailing
New Zealand Filled Jobs: 0.4% M/M v 0.2% prior
HSBC: Reports Q3 Net $6.3B v $2.7B y/y, adj Pretax $7.70B v $8.10Be, Rev $16.2B v $16.24Be
ICBC: Reports Q3 (CNY) Net 94.9B v 94.9B y/y, NII 164.5B v 175.7B y/y
Japan 2-Year JGB Auction: AVG YIELD: 0.1060% V 0.0450% PRIOR; BID-TO-COVER: 3.04X V 3.27X PRIOR
Crude oil futures reversed the majority of Friday's gains on Monday, as investors were disappointed by the lack of any major escalation on the geopolitical front. Additionally, reports emerged that Saudi Arabia may refrain from hiking prices to clients in Asia, which further weighed on sentiment.
According to Bloomberg, Saudi Arabia is considering keeping its flagship oil price for Asian customers unchanged for the first time in six months, as refinery margins weaken across the region and undercut demand for physical cargoes.
Meanwhile, the EU and UK are seeking a ban on subsidies for fossil fuel projects, according to the Financial Times. This move could further dampen demand for crude oil in the long term.
In other news, Russia's Dmitry Medvedev said that Europe's energy cooperation with Russia has been "ruined or frozen for a very long time" and that "hard times have come for the EU." He also added that the EU "can no longer act on its own" and that energy cooperation with the EU is "pointless."
Medvedev's comments come at a time when the EU is grappling with an energy crisis due to the ongoing war in Ukraine. The EU has been scrambling to find alternative sources of energy, and Medvedev's comments suggest that Russia may not be willing to help.
On the corporate front, Chevron Australia said that proposed enterprise agreements for frontline field operations employees at Gorgon and Wheatstone gas facilities were backed by a majority of employees in a vote. This is a positive development for Chevron, as it could help to avoid any industrial action. Spot gold traded sideways on Monday, testing support at the USD 2,000/oz level, which just about held. Copper futures were also rangebound amid the mixed risk appetite in the Asia-Pacific region.
BHP iron ore train drivers approve strike action, impacting ~350 workers
IGO Ltd expects spodumene sales to be impacted by market volatility in Q2
Chevron Australia says proposed enterprise agreements backed by majority of employees in vote
RBNZ issues Financial Stability Report, says New Zealand's financial system resilience compares well with advanced economies'
HSBC reports Q3 net profit of $6.3B, announces $3.0B stock buyback
Evergrande winding-up hearing adjourned to December 4th
ICBC reports Q3 net profit of CNY94.9B
PBOC says Yuan remains stable among major currencies
Japan to sell ¥2.9T in 2-year JGB bonds at an average yield of 0.1060%
BOJ to reportedly raise 2024 CPI outlook to 2% next week and address whether to revise YCC
Sumitomo Mitsui Trust cuts profit target by 50% to ¥100B, citing hedge loss
Toyota Motor to produce ~2.58M vehicles globally for November to January, +16% y/y
GM UAW broadens strike against GM, walking out at Spring Hill, TN plant
Ford UAW leaders approve Ford deal with $8.0B in manufacturing investment
Stellantis has reached a tentative deal with UAW that reportedly follows the model of the Ford contract agreement
ArcelorMittal Kazakh leader orders end of cooperation with ArcelorMittal following mine disaster
ECB's Vujcic says disinflation process is underway and interest rate hikes are finished for now
SNB Vice Chair Schlegel says further monetary policy tightening cannot be ruled out
Key Economic Data and Events
Spain Flash CPI (September)
Eurozone Consumer Confidence (Final) (September)
Germany Preliminary CPI (October)
Japan Unemployment Rate (September)
Japan Retail Sales (September)
Events
Speech by ECB Vice President Luis de Guindos
US Treasury Financing Estimates
Earnings from McDonald's and Lowes
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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