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Asia likely to see continued weakness. Afghanistan situation weighing on investors minds but focus on watching for sound bites from the Chinese NPC meeting which starts today. Indonesia closed today.
Australia Futures indicate market to open +9pts with earnings in focus especially BHP (also ARB, BRG, BXB, CQR, DHG, EML, MFG,SCP SGM, STO and WBC) but also a number of companies going ExDiv (CBA, CPU, GMA, IAG, and MIN) which will be a drag on the market. Oil names weak but Gold+VE.
RBA minutes due later.
Japan Nikkei local futures opened +23pts, Chicago Futures +5pts after Monday’s weakness. Tokyo Electron in focus after strong earnings. Extension of the State of Emergency -VE for sentiment.
Data later Tertiary Industry Index
S Korea Futures indicate markets to open -7pts following Monday’s weakness. Earnings in focus, with KakaoBank, Fila Holdings and others
Taiwan Expect market to open lower following the sell off in globally overnight. Local focus likely on the Power lottery tonight with a first prize of US$62.84m after 39 consecutive rollovers.
China Expect market to open lower with focus on NPC meeting which starts today with hopes of policy guidance from the government and PBOC. For HK it is likely to see the imposition of anti-sanctions legislation.
HK ADR’s -74pts (Futures +18pts) investors remain cautious as NPC meets and is expected to impose anti-sanction legislation on HK. They will also look for any signs of stimulus from the Govt or PBoC.
Europe GDP growth, Construction and Employment data.
Opened slightly lower Dow -24pts, with S&P and NDX also lower.
DOW +0.3%, NDX -0.2%, S&P +0.26%, Russel 2K -0.89%
A weak open for the Dow & S&P started rebounding. The NDX sold off more initially before starting to rebound. Concerns of the slowdown in China, the potentially global slow down and the Fed announce tapering sooner hurting confidence. But after the initial weakness markets worked better through the day; with Dow and S&P hitting another new high.
Tesla -4.3% on news the National Highway Traffic Safety Administration was investigating the country. Moderna -4% but Pfizer and Biotech higher on data about the effectiveness of third shot boosters.
Retail names +VE ahead of earnings this week; Home Depot +1.1%, Walmart +0.8%.
Biden addressed the Nation and said he stood behind the Afghan withdrawal; there would never be a good time to leave.
Banks JPMorgan Chase -0.7%, Citigroup -0.9% Wells Fargo -1.9%, Amex -0.2%
Work from home names: Facebook +0.9%, Apple +1.4%, Amazon +0.2%, Netflix +0.4%, Disney -1.1%, Zoom Video -1.9%, Alphabet +0.4% and Microsoft +0.6%,
Tech NXP Semi -1%, Nvidia -1.2%, Micron flat, AMD -2.8%, Skyworks -0.6%
Re-opening stocks Boeing -2.3%, Caterpillar -0.4%, Simon Property -2%, Kohl’s -0.9%, Nordstrom -1.9%, Gap -3.1%, United Airlines -0.4%, Carnival -0.3%, Wynn Resorts -1.9%, Chevron -1%, Exxon Mobil -1.5%,
Lock down names Campbell Soup +0.6% General Mills +0.5%, JM Smucker +0.7%
NY Empire State Manufacturing Index Aug 18.3 vs 43 Jul (F/cast was 32)
Foreign Bond Investment Jun $10.9b vs $-93.4b May
Net Long Term Tic Flows Jun $110.9 vs $-30.2b May
Overal New Capital Flows Jun $31.5b vs $105.3b May
USD was stronger vs Yen & Euro. Bitcoin -0.4% @ 46,123.64, VIX +4.3% @ 16.12, US T10 @ 1.268%
OIL Brent -1.4%, WTI -1.4%
Gold +0.6%, Silver +0.26%, Copper -1.46% Platinum -0.45%, Palladium -2.01%.
AHEAD Retail Sales, Redbook, Industrial Production, Manufacturing Production, Capacity Utilisation, Business Inventory, NAHB Housing Market, Fed Chair Powell speaks, API Crude Oil Stocks.
DAX -0.32%, CAC -0.83%, FTSE -0.9%
Markets opened lower and trended lower through the day; after weak China data which the Chinese National Bureau of Statistics said was due to the impact of a range of factors, including growing external uncertainties, the ongoing Covid-19 epidemic and flooding. The bureau added that the “economic recovery is still unstable and uneven.” Worth remembering that was before the covid resurgence and some of the floods in China. Concerns too over Afghanistan and wider impact of covid. Mining stocks weak; especially copper; where China has been a big factor. Retail names also weak leading the declines.
Faurecia +12% on agreeing to buy a majority stake in Germany’s Hella for 6.7 billion euros ($7.9 billion) over the weekend.
Lufthansa -3.6% as Germany’s finance agency said on Monday that the country plans to sell up to a quarter of its 20% stake in the coming weeks following positive developments at the bailed-out airline,
EUROZONE Construction Output, Employment Change, GDP Growth Rate
GERMANY No data due
FRANCE No data due
UK Claimant Count Chnage, Average Earnings (Inc and Ex Bonus), Unemployment Rate, Labour Productivity.
Nikkei local futures opened +23pts, Chicago Futures +5pts after Monday’s weakness. Tokyo Electron in focus after strong earnings. Extension of the State of Emergency -VE for sentiment.
Yen currently 109.27
Data due later Tertiary Industry Index.
Tokyo reported 2,962 new covid cases on Monday; (-1,333 DoD) nationwide total was 14,854 Slight +VE .
Government to extend the duration of lockdown measures and expand their reach. Concerns about the impact on the positive signs seen in Monday’s data from the continued covid resurgence.
Earnings from Nippon REIT (3296) and Pan Pacific Int (7532)
Futures indicate markets to open -7pts following Monday’s weakness. Earnings in focus, with KakaoBank, Fila Holdings and others
No data due
KDCA announced 1,556 new covid cases Monday (-261 DoD) but expected to be due to less testing. Still a record high for a Monday.
Samsung Display’s new power-saving OLED display panels can be found inside Samsung Electronics’ latest smartphone, the Galaxy Z Fold3, according to the display maker on Monday. The new displays, developed with what the company brands as Eco2 OLED technology, cut power consumption by up to 25 percent, it added +VE. Samsung Electronics’ two latest foldable smartphones, Galaxy Z Fold3 and Z Flip3, didn’t seem to have the “wow” factor when first unveiled, but at a closer look, they do deserve some praise. +VE
Lotte Engineering & Construction has been chosen as the preferred bidder to build a general hospital in Hanam, Gyeonggi Province, as part of the city’s urban development project. +VE
Kakao Group, which operates messenger app KakaoTalk, has established two new blockchain entities in Singapore in an effort to expand its blockchain platform abroad and chase after its biggest competitor, Naver.+VE
Hyundai Heavy Industries Group is to complete payment for the acquisition of Doosan Infracore this week, in a deal that would put the ship-focused group atop of the country’s construction equipment industry, according to industry officials Monday. +VE
A consortium led by Doosan Heavy Industries & Construction Co., has been awarded a 180 billion-won ($155 million) water treatment deal in Britain, the company said Monday +VE.
LG Energy Solution Ltd., said Monday it has signed a six-year deal with Australian Mines Ltd. for a stable supply of key battery materials.
In the deal that will begin at the end of 2024, LG Energy Solution will receive 71,000 tons of nickel and 7,000 tons of cobalt from the Australian company over six years +VE
Korean Air Lines Co., South Korea's biggest carrier, said Monday it will consider rerouting flights to avoid Afghanistan's airspace following the Taliban's takeover of Kabul.
Expect market to open lower following the sell off in globally overnight. Local focus likely on the Power lottery tonight with a first prize of US$62.84m after 39 consecutive rollovers.
No data due
CECC reported 10 new covid cases inc 2 imported cases along with a significant rise in bookings for vaccinations.
Bloomberg reports that the Chinese Govt has taken a 1% stake and a board seat in ByteDance’s key Chinese entity; a interesting move ahead of a widely expected listing and could be a template for future listings.
Chunghwa Telecom Co has signed an agreement to participate in a multilateral project to lay an undersea cable connecting several countries in Asia in a bid to increase its international presence, the company announced yesterday. The 12,000km-long Apricot subsea cable system that is to feature state-of-the-art transmission technology would connect Taiwan, Japan, Singapore, Indonesia, the Philippines and Guam, the company said +VE.
China Airlines Ltd’s cold chain logistics business has seen sales grow 220 percent annually in the first seven months of this year, as the airline was charged with transporting COVID-19 vaccines to Taiwan and neighboring Asian countries, it said yesterday +VE.
Scooter and motorcycle maker Kwang Yang Motor Co yesterday said it expects chip constraints to be alleviated by the end of the year at the earliest, after struggling with chip supply since the second quarter. In addition to chip shortages, rising manufacturing costs due to higher shipping and raw material prices in the first half of this year placed pressure on the company’s profitability, chairman Allen Ko said.
Exports of bolts and nuts reached US$2.93 billion in the first seven months of this year, an annual increase of 30.9 percent, the Ministry of Economic Affairs said yesterday. The increase came as the US and Europe reopened their economies and many governments pushed infrastructure projects after reining in COVID-19 outbreaks, the ministry said in a statement. In the first seven months of this year, the US was the main market for Taiwanese bolts and nuts, with US$1.23 billion in shipments, or 42 percent of total exports, the ministry said.
Expect market to open lower with focus on NPC meeting which starts today with hopes of policy guidance from the government and PBOC. For HK it is likely to see the imposition of anti-sanctions legislation.
No data due.
New local COVID-19 infections in China declined for a sixth day, official data showed on Monday, as most regions pulled the latest outbreak under control, while others kept up vigilance by adding mass testing or delaying school re-openings. In its lowest daily tally since July 24, China reported 13 new domestically transmitted COVID-19 cases for Sunday, the data from the National Health Commission (NHC) showed +VE.
Didi Global Inc said on Monday it will provide its drivers in several Chinese cities with more details on the fees they receive, the first big move by the ride-hailing giant after state media accused it of paying drivers unfairly. Didi said drivers in seven Chinese cities including Shenyang and Changchun will be the first to know details of how much they get and how much passengers pay for each ride through a new function it added to its app for drivers on Monday, it said in a Weibo post +VE.
SEC Commission Chair Gensler warns that American’s don’t know about some of the Chinese companies listed in the US; he has asked staff to halt IPO’s of Chinese shell companies until full information is available about their structure. He has also repeated demands that Chinese audits must be available to US officials; within the next three years.
ADR’s -74pts at 26,107 (Futures +18pts) investors remain cautious as NPC meets and is expected to impose anti-sanction legislation on HK. They will also look for any signs of stimulus from the Govt or PBoC.
No data due
EARNINGS due Tuesday includes: Towngas China (1083), Luoyang Glass (1108), Times China (1233), Nexteer (1316), 361 Degrees (1361), Mingsheng Education (1569), China Overseas Property (2669), China State Construction Int (3311), Bestway Global (3358).
AIA Group (1299) already reported 1H new business beat estimates +VE,
Short Selling Monday 14.4% vs 15.9% Friday
Top shorts Country Garden (2007) 57%, Ali Health (241) 47%, Bud Apac (1876) 44%, Hang Lung Ppty (101) 40%, MTR (66) 35%, Haidilao (6862) 35%, Bank of China (3988) 34%, Henderson Land (12) 31%, CK Asset (1113) 31%, HK & China Gas (3) 30%, Hengan (1044) 28%, HKEX (388) 28%, CCB (939) 28%, Mengniu Dairy (2319) 27%, CKH (1) 27%, AAC Tech (2018) 27%, Sunny Optical (2382) 26%, CSPC Pharma (1093) 26%, CLP (2) 26%.
A unions' alliance might be targeted next for government crackdown, a scholar said, after a local media named the Hong Kong Confederation of Trade Unions for providing its address for 37 newly established pro-democracy unions.
WEIMOB INC (02013.HK) Short selling $105.12M; Ratio 42.240% announced interim result ended June 2021. The revenue rose 44.5% year on year to RMB1.383 billion. The loss widened to RMB558 million from RMB544 million in the corresponding period of the previous year. LPS was RMB0.24. No dividend was declared.
For the six months ended 30 June 2021, HUAZHONG IN-V (06830.HK) is expected to record a significant increase in net profit by approx 50% as compared the net profit for the six months ended 30 June 2020.
STANCHART (02888.HK) Short selling $2.09M; Ratio 7.128% announced the repurchase of 1.292 million shares last Friday (13 August) at a weighted average price of GBX465.1356 each, involving GBP6.0096 million.
Tencent Music Entertainment Group (TME.US) has stalled its plan to raise US$5 billion in a Hong Kong IPO in late 2021 given market volatility and Chinese regulation on online platforms, reported Nikkei. Shares of Tencent Music cratered 2% to US$9.6 in pre-market trading session.
CHINA RES LAND (01109.HK) Short selling $42.66M; Ratio 11.301% announced that for July, the Group achieved gross contracted sales of approximately RMB23.01 billion with contracted GFA of approximately 1.2989 million square meters, down by 4% and up by 14.6% YoY respectively.