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Asia Japan closed so expect lighter volumes generally. Covid cases remain a concern. S Korea focus on results. China remains mixed the recent flooding could impact production going.
Australia Futures show the market to open +70pts, Energy names +VE as Oil rose but Gold was weak. Newcrest in focus as it is due to release Q4 results and outlook. Infrastructure plays a slight +VE on news Brisbane has been appointed to hold the Summer Olympics 2032.
Japan Markets closed; reopen Monday
S Korea Expect markets to open higher following the continued rebound in the US. Results in focus with HMC, KIA, LG H&H, Posco, Hana FG, KB FG and others. But the rise covid cases has hurt sentiment.
Taiwan Expect market to rebound strongly following the US
China Market to open higher following the global rebound. Flooding in Henan -VE for Insurers but +VE for infrastructure plays. Also -VE for Foxconn and that could hurt deliveries to Apple. A number of other overhangs remain like; international relations and local debt default issues. Airlines weak as a covid outbreak at an airport sees flights cancelled. Team China remains the wild card but the Govt looks keen to support the market at these levels.
HK ADR’s +309pts at 27,533 expect more initial upside as recent shorts cover.
Europe ECB rate decision in focus.
Opened flat Dow +27pts, S&P and NDX slight +VE. Initial claims and Existing Home Sales in focus
DOW +0.83%, NDX +0.92%, S&P +0.82%, Russel 2K +1.81%
Markets open higher and traded sideways but recouping most of Monday’s losses. Focus on results with good numbers from Coca-Cola, Johnson & Johnson, Moderna, Verizon and Chipotle. Re-opening stocks rebounded strongly. Netflix -3.2% after Q3 numbers disappointed.
Whilst new covid cases remain an issue the market seems to be taking the view that the vaccines mean the issue is being addressed.
Banks JPMorgan Chase +2.1%, Citigroup +2.8% Wells Fargo +2.1%, Amex +2.2%
Work from home names: Facebook +1.3%, Apple -0.5%, Amazon +0.3%, Netflix -3.3%, Disney +0.1%, Zoom Video -0.8%, Alphabet +1% and Microsoft +0.7%,
Tech NXP Semi +2.8%, Nvidia +4.3%, Micron +2.4%, AMD +2.6%, Skyworks +1.9%
Re-opening stocks Boeing +2.5%, Caterpillar +1.3%, Simon Property %, Kohl’s +4.2%, Nordstrom +1.4%, Gap +3.4%, United Airlines +3.8%, Carnival +9.4%, Wynn Resorts +2.8%, Chevron +3.4%, Exxon Mobil +3.2%,
Lock down names Campbell Soup -1.5% General Mills -1.6%, JM Smucker -2.2%
MBA Mortgage Applications -4% vs +16% prior
MBA 30yr Mortgage Rate 3.11% vs 3.09% prior
EIA Crude Oil Stocks Change +2.108m vs -7.8987m prior (Consensus was -4.466m)
EIA Gasoline Stocks Change -0.121m vs +1.039m prior (Consensus was -1.043m)
20yr Bond Auction +1.89% vs 2.12% prior
USD was slightly weaker vs Yen & Euro. Bitcoin +6.9% @ 31,867.19, VIX -9.2% @ 17.9, US T10 @ 1.292%
OIL Brent +4.1%, WTI +4.5% despite rising US inventories
Gold -0.4%, Silver +1.2%, Copper +0.4%, Platinum +1.3%, Palladium +0.9%.
AHEAD Initial Claims data, Chicago Fed National Activity Index, Existing Home Sales, Leading Index, EIA Gas Report, Kansas Fed Manufacturing Index, TIPS Auction.
DAX +1.36%, CAC +1.85%, FTSE +1.7%
Markets opened higher for the first couple of hours before trading sideways into lunch PM edged higher. All sectors in the green. Earnings in focus with numbers from Daimler, SAP, Julius Baer and Novartis, while Royal Mail released a trading update.
SAP -2.% despite raising its outlook for the second time this year, as a strategic push toward cloud computing began to bear fruit.
Next surged after smashing second-quarter sales forecasts.
Future also climbed 9% after raising its full-year guidance.
Daimler weak after keeping its profit margin outlook unchanged but warned that the global semiconductor shortage will continue to dent car sales into 2022.
Corbion -8.4% after a broker downgrade
EUROZONE ECB Rate Decision
GERMANY No data due
FRANCE Business Confidence, and Climate Indicator
UK CBI Business Optimism Index, Industrial Trends Orders
JAPAN Markets closed until Monday
Data due Foreign Bond and Stock Investment by Foreigners.
Tokyo reported 1,832 new covid cases (+445 DoD) nationwide the total was 4,943. -VE for sentiment
Japan brought forward the expected timing for achieving a primary balance surplus by two years to fiscal 2027 due to a surprise rise in tax revenues, even as the coronavirus pandemic hobbled a fragile economic recovery. The new estimate, released on Wednesday, still leaves the government struggling to hit its goal of achieving a surplus by fiscal 2025, which many analysts see as unrealistic given the huge cost of shielding the economy from the pandemic's pain.
Bank of Japan Deputy Governor Masayoshi Amamiya said the economy may enjoy a stronger-than-expected rebound next year if coronavirus vaccinations speed up, offering an upbeat view on recovery prospects even as the pandemic weighs on consumption. +VE
U.S. Casino operator MGM Resorts International and partner Orix Corp have submitted a proposal to build their first casino resort in Japan, the financial services group said on Wednesday. The proposal to develop a casino complex at Osaka will be reviewed by regulatory authorities and an operator will be selected at a later date, Orix said in a filing with the U.S. Securities and Exchange Commission. Slight +VE
Nidec Corp (6594.T) said on Wednesday its first-quarter operating profit jumped 60% to 44.6 billion yen ($406 million), helped by a rebound in demand for motors for electric vehicles (EVs) and home appliances. Nidec, better known for producing electric motors for computer hard drives and smartphones, is trying to capture about a third of an emerging market for energy-saving EV motors known as e-axles. Demand for those is widely expected to increase 10 times over the next decade. +VE
Suzuki Motor Corp (7269.T) and Daihatsu are joining a commercial electric vehicle coalition led by Toyota Motor Corp (7203.T), the carmakers announced on Wednesday, helping the Japanese alliance expand its focus from trucks to smaller cars. The two automakers will each acquire a 10% stake in the joint venture, on par with Isuzu Motors (7202.T) and Hino Motors (7205.T), while Toyota will hold a 60% stake, they said. +VE
Expect markets to open higher following the continued rebound in the US. Results in focus with HMC, KIA, LG H&H, Posco, Hana FG, KB FG and others. But the rise covid cases has hurt sentiment.
No data due
KDCA reported a daily record of 1,784 coronavirus cases for Tuesday, breaking a mark set last week, as the authorities struggled to get on top of a surge in outbreaks linked to the Delta variant.
The United States, Japan and South Korea are sending a clear message with their coordination on policy towards North Korea, a senior U.S. official said on Wednesday, despite some recent friction between the two Asian allies. "That close coordination sends a very critical message to North Korea in that we are together and shoulder-to-shoulder in our approach to this policy," U.S. Deputy Secretary of State Wendy Sherman told reporters after meeting the vice foreign ministers of Japan and South Korea.
Singapore's antitrust watchdog has approved SK hynix Inc.'s deal to acquire Intel's NAND business, the company said Wednesday. SK hynix is now only waiting for China's approval. +VE
“3N” game developers -- NCSoft, Nexon and Netmarble -- are estimated to have suffered disappointing earnings in the second quarter, hurt by a slew of negative developments amid the deepening distrust of players, brokerages and industry sources said. -VE
Samsung Electronics announced Wednesday that the company will hold the annual “Unpacked” on Aug. 11. The event, titled “Get ready to unfold,” will stream live on the company’s official channel on YouTube, at 11 p.m. local time, according to Samsung Electronics.
Unionized workers at GM Korea Co., the South Korean unit of General Motors Co., entered a partial strike Wednesday for higher wages amid the extended COVID-19 pandemic. GM Korea workers put down their tools in three plants -- two in Bupyeong, just west of Seoul, and one in Changwon, 400 kilometers south of the capital city, a company spokesman said over the phone.
Expect market to rebound strongly following the US
Data due after market Unemployment Rate.
Hon Hai Precision Industry Co yesterday said it is in discussions with Japan’s Nidec Corp to form a joint venture to produce and distribute motors via its subsidiary Foxtron Vehicle Technologies Co. The companies aim to reach an agreement by the end of December and to form the venture next year, with its headquarters in Taiwan, to develop, produce and distribute automotive motor systems. +VE
Taiwan’s industrial property transactions grew 34.6 percent to a record high of NT$59.3 billion (US$2.11 billion) in the first half of this year, driven by strong demand for industrial plots of land, as well as factories and logistics facilities, CBRE Taiwan said yesterday. +VE for developers and owners.
Evergreen Marine Corp has taken delivery of 16 new vessels this year and expects to take delivery of another 17 by the end of this year, including so-called “megaships” that carry 24,000 twenty-foot equivalent units (TEU), boosting the firm’s capacity, the shipper said yesterday. The addition of 33 new vessels that can carry a combined 260,000 TEUs would raise Evergreen’s capacity by 18 percent year-on-year, Evergreen Marine president Eric Hsieh told an annual shareholders’ meeting in Taipei. The 17 new vessels include four “megaships,” each with capacity of 24,000 TEUs, to be used on European routes, replacing smaller vessels with a capacity of 14,000 TEUs, Hsieh said. +VE
Expect market to open higher following the global rebound. Flooding in Henan -VE for Insurers but +VE for infrastructure plays. Also -VE for Foxconn and that could hurt deliveries to Apple. A number of other overhangs remain like; international relations and local debt default issues. Airlines weak as a covid outbreak at an airport sees flights cancelled. Team China remains the wild card but the Govt looks keen to support the market at these levels.
No data due
U.S. Deputy Secretary of State Wendy Sherman will visit China on July 25-26, the State Department said on Wednesday, as the world’s two largest economies seek to navigate a deeply troubled bilateral relationship. Slight +VE
Airbus on Wednesday delivered the first A350 widebody jet from its Tianjin final assembly line to China Eastern Airlines (600115.SS), further bolstering its industrial footprint in China relative to rival Boeing Co. The work conducted in Tianjin on the jet includes cabin installation, painting, production flight test, and aircraft delivery, Airbus said in a statement.
China appoints Afghanistan special envoy as it prepares to play greater role after US troop withdrawal. The appointment of Yue Xiaoyong comes amid growing concern about instability once the last American forces leave the country. Foreign ministry say the career diplomat will ‘establish contact with all sides as soon as possible’
This could become a thorn for China.
ADR’s +309pts at 27,533 expect more initial upside as recent shorts cover.
Data due after market Inflation Rate
Short Selling Wednesday 12.7% vs 17.4% Tuesday
Top Shorts Country Garden (2007) 62%, Hengan (1044) 53%, Ali Health (241) 44%, Sino Bippharm (1177) 41%, Bank of China (3988) 41%, Ping An (2318) 37%, AIA (1299) 35%, Bud Apac (1876) 32%, Haidilao (6862) 30%, Sands China (1928) 26%, China Overseas (688) 25%.
National Security Law
Four Apple Daily executives were arrested and charged with collusion with foreign forces by national security police on Wednesday.
They will appear in West Kowloon Magistrates' Court tomorrow.
The four included former associate publisher Chan Pui-man, former executive editor-in-chief Lam Man-chung and two former editorial writers Fung Wai-kwong and Yeung Ching-kee, who goes by his pen name “Li Ping”.
SINGAPORE SANDS Casino to be closed until Aug 5 due to Covid outbreak -VE
While major banks are purportedly rejecting equitable mortgages for EVERGRANDE (03333.HK)'s residential projects, the company's spokesman responded that the group's projects in Hong Kong are moving along well as scheduled. Declining to comment on practices of individual banks, EVERGRANDE believed the impact would be minimal as there are still other banks staying active in providing equitable mortgages. For affected customers, the developer will allow them case-by-case to apply for extension of transaction date till 60 days after the receipt of transaction notice, and will waive the 60-day penalty interest.
HSBC suspends mortgages on Evergrande Projects in HK; other banks may follow suit reported Bloomberg.
Hysan Development (0014) has acquired No 85 to 89 at Percival Street in Causeway Bay in 14 deals, amounting to HK$800 million in total.
The most expensive deal was a ground floor shop at 85 Percival Street for a price of HK$260 million. All properties were purchased by Prehnite Investments. Its director is Chiu Ming-king, who is also a director of Hysan's subsidiary.
Emperor International (0163), which owns 90 percent of shares of Ko Shing Building in Sheung Wan, unified the remaining lot shares in a compulsory sale at a reserve price of HK$259 million.
SINOPEC CORP (00386.HK) announced that the production of oil and gas reached 235 million BOE in 1H21, up 4.2% yearly; and that of crude oil 138 million BOE, down 1.5% yearly.
BABA-SW (09988.HK)’s shareholding in XPENG-W (09868.HK) was 14.97%, involving 192 million ordinary A shares, according to the interest disclosure of the Stock Exchange.
PING AN (02318.HK) has received more than 20,000 insurance claims linked with Henan's flooding up to now, with estimated payout of over RMB600 million as reported by Chinese media.
SHENZHEN INVEST (00604.HK) announced that the contracted sales for June amounted to approximately RMB1.418 billion, representing a decrease of 52.6% YoY.
Brisbane in Australia has been confirmed to be the host city for the 2032 Summer Olympic Games, according to the announcement made by the International Olympic Committee delegates during the 138th IOC meeting in Tokyo.
To maintain commodity price stability, China's National Development and Reform Commission (NDRC) and National Food and Strategic Reserves Administration (NFSA) decided to release copper, aluminum and zinc from national reserves in batches, reported Xinhua. The second batch of 30,000 tons of copper, 90,000 tons of aluminum and 50,000 tons of zinc will be released in late July.
HSBC HOLDINGS (00005.HK) announced that a meeting of a committee of the Board of Directors of the company will be held on 2 August 2021 to consider the announcement of the interim results for the six month period ended 30 June 2021 and to consider the payment of an interim dividend on the ordinary shares for the 2021 half year.
Nanjing city revealed during a press conference that the city government will endeavor to carry out nucleic acid tests for the entire city within a short period of time, reported Xinhua News Agency.
Nanjing has found a total of 17 people tested positive for COVID-19, with 9 of them being confirmed cases, 5 of them asymptomatic cases and the remaining three awaiting further diagnosis after testing positive in the nucleic acid test.
Centa-Salesman Index (CSI) last posted at 72.62, down 0.91 pts from last week's 73.53. CSI has gained a firm foothold at around the level of 75 for eight consecutive weeks but has been showing signs of weakening over the past five weeks, remarked the research department of Centaline Property. They contended that if CSI continues to soften, it might foreshadow certain prolonged struggle in the property price before reaching its historical high and that the trajectory of CSI in the coming few weeks will be a critical indicator.