06/20/2019 | News release | Distributed by Public on 06/20/2019 06:34
It was a risk-on day in China today with broad gains across the board today. Gains were not limited to that market with all the Asian majors seeing a decent day. Turnover on the mainland was strong but both Japan and Hong Kong lagged in that regard. The sectors of Consumer Staples and Financials both finished up over 3% in Shanghai with Communication and the RE sector up over a percent in Japan.
This after the BoJ left rates and their policy for now unchanged. They reiterated rates will continue at an extremely low level for an extended period, through at least next spring. Also on the central bank front the RBA's Lowe said a further reduction in the cash rate was 'not unrealistic'. He added that it was not 'unrealistic' to think a single 25bp move would alter the growth path. Despite the comments the $AUD has been to the upside vs the Dollar overnight.
WTI is up ~3% today after the DOE reported a 3.1M barrel draw but the focus is more so on headlines that Iran shot down a US drone over the Strait of Hormuz. The US has denied Iran's assertion the drone violated Iranian air space.
PM Abe will meet with France's Macron to discuss Nissan/Renault with the US Envoy to NK noting he expects constructive dialogue between China's Xi and NK on Xi's trip to Pyongyang.
In individual names Rio Tinto closed down 4% Down Under post its FY iron ore output estimate cut. On operational challenges the hit is especially tough as iron ore prices continue to work higher. Several analysts were noted as saying Rio's woes will somewhat offset Vale's restart of a facility with iron ore prices still to be better bid.
Back to Nissan -.1% Renault's CEO will reportedly get an audit committee seat on Nissan's board as the two sides work through issues. To note, the two firms signed an agreement with Waymo to research driverless services both in Japan and France.
European indices are mostly higher with Spain flat on the session. Tech names lead after a good report yesterday from Oracle with Autos and Industrials leading to the upside. Travel is off over a percent with Banks also weaker.
The BoE voted 9-0 to to leave both rates and asset purchases as-is. They see inflation as well-anchored adding their view for gradual rate increases on a smooth Brexit are being slowly diminished on global growth concerns. Norway upped their deposit rate to 1.25%, as expected, from the prior 1.00% level. On that the Krone is working higher on the day.
The ECB is evidently not lowering the boom on Italy just yet but Conte is working to get more time. He sent a letter addressing the possible sanctions adding he is seeking €2B in spending cuts.
To the downside Dixon's Carphone is off 10%, off 25% earlier, on warnings of losses next year in the mobile space. FY revs currently missed estimates with LfL's only up 1%.
Industrial product supplier Premier Technical is up 140% on a bid by Macquarie Group. A bid of 210.1 pence per share is on the table.
Rocket Internet +8% better as their CEO mulls taking the firm private and delisting the stock.
|JN||39)||Japan Buying Foreign Bonds||14-Jun||-||¥327.3b||¥1736.0b||¥1739.7b|
|JN||40)||Japan Buying Foreign Stocks||14-Jun||-||¥232.5b||¥30.6b||-|
|JN||41)||Foreign Buying Japan Bonds||14-Jun||-||¥471.7b||¥589.5b||¥590.0b|
|JN||42)||Foreign Buying Japan Stocks||14-Jun||-||-¥95.4b||-¥148.0b||-|
|AU||43)||Bloomberg June Australia Economic Survey (Table)|
|AU||44)||RBA FX Transactions Market||May||-||A$1384m||A$873m||-|
|AU||45)||RBA FX Transactions Government||May||-||-A$1526m||-A$993m||-|
|AU||46)||RBA FX Transactions Other||May||-||A$1831m||-A$4677m||-|
|JN||47)||Bank of Japan June Monetary Policy Decision and Briefing|
|JN||48)||BOJ Policy Balance Rate||20-Jun||-0.10%||-0.10%||-0.10%||-|
|JN||49)||BOJ 10-Yr Yield Target||20-Jun||0.00%||0.00%||0.00%||-|
|NE||51)||Consumer Confidence Index||Jun||-||0||-3||-|
|NE||52)||Consumer Spending YoY||Apr||-||1.80%||1.10%||1.00%|
|JN||53)||All Industry Activity Index MoM||Apr||0.70%||0.90%||-0.40%||-0.30%|
|DE||54)||Consumer Confidence Indicator||Jun||-||5.8||5.9||-|
|SZ||55)||Exports Real MoM||May||-||-1.20%||-0.60%||-0.30%|
|SZ||56)||Imports Real MoM||May||-||0.70%||1.50%||-|
|SZ||57)||Swiss Watch Exports YoY||May||-||11.40%||-0.40%||-0.30%|
|JN||58)||Machine Tool Orders YoY||May F||-||-27.30%||-27.30%||-|
|JN||59)||Convenience Store Sales YoY||May||-||1.70%||1.30%||-|
|EC||61)||ECB Publishes Economic Bulletin|
|UK||62)||Retail Sales Ex Auto Fuel MoM||May||-0.40%||-0.30%||-0.20%||-0.30%|
|UK||63)||Retail Sales Ex Auto Fuel YoY||May||2.50%||2.20%||4.90%||4.70%|
|UK||64)||Retail Sales Inc Auto Fuel MoM||May||-0.50%||-0.50%||0.00%||-0.10%|
|UK||65)||Retail Sales Inc Auto Fuel YoY||May||2.70%||2.30%||5.20%||5.10%|
|CH||66)||FX Net Settlement - Clients CNY||May||-||31.8b||-53.1b||-|
|UK||67)||Bank of England Bank Rate||20-Jun||0.75%||0.75%||0.75%||-|
|UK||68)||BOE Corporate Bond Target||Jun||10b||10b||10b||-|
|UK||69)||BOE Asset Purchase Target||Jun||435b||435b||435b||-|
|BE||70)||Consumer Confidence Index||Jun||-||-||-5||-|
|EC||71)||Consumer Confidence||Jun A||-6.5||-||-6.5||-|