Morning Coffee Update - Equity markets track gains on Wall St.; US equity FUTs drop on weak earnings

- TradeTheNews.com

Asia Market Update: Equity markets track gains on Wall St.; US equity FUTs drop on weak tech earnings [Microsoft, Google]; Australia released hotter CPI, little initial impact seen on AUD

Wed, 26 Oct 2022 1:30 AM EST

General Trend:

- Chinese equities outperform

- Consumer Staples index lags in Australia [Coles and Woolworths drop after issuing sales updates]

- Hynix missed ests, to sharply reduce 2023 Capex

- Standard Chartered beat ests

- Japanese companies expected to report results include Canon, Renesas, Omron

- USTR Tai to discuss US-China relationship at an event on Wed [Oct 26th]

***Headlines/Economic Data***

Australia/New Zealand

-ASX 200 opened +0.2%

- COL.AU Reports Q1 (A$) Rev 9.89B v 9.77B y/y

- (AU) AUSTRALIA Q3 CPI Q/Q: 1.8% V 1.6%E; Y/Y: 7.3% V 7.1%E

- (AU) AOFM (Australia debt agency) announces Issuance Program Update: Revises 2022/23 Treasury Bond issuance to ~A$95.0B [follows budget release]

- MPL.AU Investigation into cybersecurity incident continuing; Withdraws FY23 policyholder growth guidance; Criminal had access to all customer personal data and significant health data

- (AU) Australia Fin Min Gallagher: Delivered responsible budget in uncertain times, mo re work to be done in finding budget savings

- TAH.AU Reports Q1 Rev +18.7% y/y; Affirms FY23 cost growth 3-4% - AGM

- WOW.AU Reports FY23 first 8 weeks Australia Food Sales -0.5% y/y - AGM Statement

- (NZ) New Zealand Oct Business Confidence: -42.7 v -36.7 prior; Activity Outlook: -2.5 v -1.8 prior; Firms' Inflation Expectations: 6.1% v 5.98% prior

- (AU) CBA expects the RBA to increase the cash rate by 25bps in Dec to 3.10%, which it views as the terminal rate

- (AU) ANZ Bank now expects RBA terminal Cash Rate of 3.85%, an increase of 25bps

Japan

-Nikkei 225 opened +0.6%

- (JP) Japan said to be beginning a >¥100B startup fund – Nikkei

- (JP) Japan Top FX Diplomat Kanda: Communicating with US on daily basis, including on FX; Talking with G7 members every day including on FX; US Treasury Sec Yellen respects Japan not disclosing intervention

- (JP) Japan Sept PPI Services Y/Y: 2.1% v 2.1%e

- (JP) Japan Fin Min Suzuki: Won't comment on US treasury stance on FX intervention

- (JP) Japan to gradually wind down gasoline subsidy from Jun - Japanese press

Korea

-Kospi opened +0.3%

- (KR) South Korea Oct Business Manufacturing Survey: 73 v 75 prior; Non-Manufacturing Survey: 78 v 81 prior

- 000660.KR Reports Q3 (KRW) Net 1.11T v 3.32T y/y; Op 1.66T v 4.17T y/y; Rev 11.0T v 11.8T y/y

- (KR) South Korea large brokerages said to be discussing another bond stabilization fund - Yonhap

- 373220.KR Reports Q3 (KRW) Net 185.7B v 258.2Be; Op 521.9B v 371.8Be; Rev 7.65T v 6.1Te

China/Hong Kong

-Hang Seng opened -0.5%; Shanghai Composite opened flat

- (CN) China PBOC sets Yuan reference rate: 7.1638 v 7.1668 prior

- (CN) Universal Studios in Beijing (China) to temporarily close due to coronavirus - Press

- (HK) Hong Kong Futures Exchange temporarily suspends volatility control mechanism for futures products in derivatives markets due to external vendor software issue

- (CN) China PBOC Open Market Operation (OMO): Sells CNY280B in 7-day reverse repos v CNY230B prior; Net inject CNY278B v net CNY228B prior

- 600019.CN Reports Q3 (CNY) Net 1.67B v 6.50B y/y, Rev 94.6B v 92.7B y/y (yesterday after the close)

- 288.HK Reports 9M Net $843M v $848M y/y, Rev $20.4B v $20.1B y/y (yesterday after the close)

- (CN) Financial News [PBOC-backed]: Notes optimism related to the China A-share market

Other

-

North America

- (US) Weekly API Crude Oil Inventories: +4.5M v -1.3M prior

- GOOGL Reports Q3 $1.06 v $1.25e, Rev (ex TAC) $57.3B v $58.2Be; Notes it is working to realign resources for growth

- CMG Reports Q3 $9.51 v $9.11e, Rev $2.22B v $2.23Be; Notes consumer discretionary spending tightening

- MSFT Reports Q1 $2.35 v $2.29e, Rev $50.1B v $49.5Be

- (US) US Dep Secretary of State Sherman: Remain committed to dialogue with North Korea without preconditions

Europe

- (UK) PM Sunak reportedly considering postponing fiscal statement that had been planned for Oct 31st - UK's Times

Levels as of 01:20 ET

- Nikkei 225, +0.9%, ASX 200 +0.2% , Hang Seng +1.8%; Shanghai Composite +1.2% ; Kospi +0.8%

- Equity S&P500 Futures: -1%; Nasdaq100 -2%, Dax flat; FTSE100 -0.1%

- EUR 0.9967-0.9943 ; JPY 148.41-147.88 ; AUD 0.6411-0.6372 ;NZD 0.5770-0.5725

- Gold +0.1% at $1,659/oz; Crude Oil -0.6% at $84.78/brl; Copper +0.3% at $3.4120/lb

---

TradeTheNews.com - 3 Weeks Free Trial FX News

Add TTA-UK on your registration to qualify for the 3 Weeks Trial.