Credit: Original article can be found here
General trend
– A quiet day in Asia with the focus on the above headline US releases having implications for the next Fed decision in May – and Canada’s BOC rate decision sandwiched in between the two.
– Equity markets and FX were mixed ahead of US data. The Hang Seng continues to lag, with Tech and Automakers weighing.
– US Equity FUTs were flat.
– Four Fed speakers during the past 24 hours kept their comments relatively subdued today ahead of US CPI, but did repeatedly warn the markets of potential further action if warranted (e.g. Fed’s Harker: – “If we see inflation not budging we will need more action”).
– Some important data tomorrow with China Balance of Trade, Aussie March jobs and Japan’s biggest component of the Nikkei225, Fast Retailing (9983.JP), scheduled to report their half year results.
Headlines/economic data
Australia/New Zealand
– (AU) ASX 200 opens +0.5% at 7,345.
– (AU) Australia sells A$800M v A$800M indicated in 3.25% Apr 2029 bonds; Avg Yield: 3.0282%; bid-to-cover 2.37x.
– (AU) Australia Roy Morgan Weekly Consumer Confidence +1.1pts.
– (AU) Australia Foreign Min Wong said diversifying export markets is an important part of national resilience – financial press.
– (NZ) New Zealand Mar job ads rise 1.3% M/M (3rd consecutive monthly rise) – BNZ.
– (NZ) New Zealand Mar Total Card Spending M/M: 3.1% v -1.7% prior.
China/Hong Kong
– (CN) Shanghai Composite opens +0.1% at 3,316.
– (HK) Hang Seng opens flat at 20,481.
– (CN) People’s Daily: Reiterates China should tighten supervision of technology firms’ algorithms.
– (CN) China PBOC Open Market Operation (OMO): Sells CNY7.0B v CNY5.0B prior in 7-day reverse repos: Net injects CNY7.0B v injects CNY3.0B prior.
– (CN) China PBOC sets Yuan reference rate: 6.8854 v 6.8882 prior.
– (CN) CHINA MAR NEW YUAN LOANS (CNY): 3.89T V 3.30TE.
Japan
– (JP) Nikkei 225 opens +0.2% at 27,985.
– (JP) Japan Mar PPI (CGPI) M/M: 0.0% v 0.0%e; Y/Y: 7.2% v 7.1%e.
– (JP) Japan Feb Core Machine Orders M/M: -4.5% v -6.3%e; Y/Y: 9.8% v 4.6%e.
– (JP) Japan Mar Bank Lending Y/Y: 3.0% v 3.3% prior.
– (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 50bps; Opens window to buy unlimited amount of 10-year JGBs at 0.50% [as expected].
– (JP) Bank of Japan Quarterly Survey: 85.7% of Japan households expect prices to rise a year from now (prior 85%).
South Korea
– (KR) Kospi opens flat at 2,546.
– (KR) Bank of Korea (BOK) sells 1-year Monetary Stabilization Bonds (MSBs): Yield 3.260%.
– (KR) Bank of Korea (BOK) sells 1-year Monetary Stabilization Bonds (MSBs): Yield 3.260%.
– (KR) South Korea Mar Unemployment Rate: 2.7% v 2.8%e.
– Hyundai Motor [005380.KR] To invest KRW24T in Korea EV business by 2030; Aiming to be in world’s top 3 EV Makers by 2030.
– POSCO (005490.KR) Signs MOU with Honda, relates to cooperation in steel and battery materials; Terms not disclosed.
Other Asia
– (TW) Taiwan Defence Ministry: In past 24 hours 14 China Airforce planes continue to cross the Taiwan Strait median line, with 35 Chinese aircraft and 8 ships spotted in all around Taiwan.
– Taiwan Semiconductor (TSM): To slow down expansion plans in Taiwan; cites chip industry downturn – Taiwan press.
– (TH) Thailand Central Bank releases March Minutes; Risks of higher inflation seen longer than expected.
North America
– (US) NY Fed’s Williams (voter): Too soon to see changes in credit conditions and availability.
– (US) Fed’s Goolsbee (voter): Given how uncertainty abounds about where these financial headwinds are going, I think we need to be cautious.
– (US) Philly Fed’s Harker (voter): Fed is fully committed to the 2.0% inflation target.
– (US) Fed’s Kashkari (voter): Not ready yet to declare all clear after SVB failure.
– IMF WORLD ECONOMIC OUTLOOK (WEO): CUTS 2023 GLOBAL GDP GROWTH FORECAST FROM 2.9% TO 2.8.
Europe
– (CH) Swiss Fin Min: CS had gigantic outflows during the weekend that the UBS merger was announced.
– (CH) Swiss Parliament Lower House votes to retrospectively reject CHF109B Credit Suisse Rescue Package; However, the vote is largely symbolic as funds are committed – financial press.
– (FR) ECB’s Villeroy (France): ECB policy should move from sprint to long-distance run, ECB fully committed to reigning in inflation.
– (UK) UK Treasury: Megan Greene appointed to BOE’s MPC, succeeding Tenryro, effective in July 2023.
Levels as of 01:20 ET
– ASX200 +0.4%; Hang Seng -0.8%; Shanghai Composite +0.4%; Nikkei 225 +0.6%; Kospi +0.4%.
– Equity S&P500 Futures flat; Nasdaq100 flat, DAX flat; FTSE100 +0.6%.
– EUR 1.0911 – 1.0929 ; JPY 133.55 – 134.04 ; AUD 0.6649 – 0.6677 ; NZD 0.6186 – 0.6205.
– Gold +0.8% at $2,034/oz; Crude Oil +0.1% at $81.59/brl; Copper -0.1% at $4.0280v/lb.