Asia Mid-Session Market Update: New Zealand trade deficit widens to record high; China industrial profit growth slows
***US Session Highlights***
- (US) SEPT ADVANCE GOODS TRADE BALANCE: -$56.1B V -$60.5BE
- (US) OCT PRELIMINARY MARKIT SERVICES PMI: 54.8 V 52.5E (highest since Nov 2015)
- (EU) ECB reportedly almost certain to continue buying bonds beyond current March end date; expected to ease program rules - press
- (US) SEPT NEW HOME SALES: 593K V 600KE: median price jumps
- (US) DOE CRUDE: -0.6M V +2ME; GASOLINE: -2M V -0.5ME; DISTILLATE: -3.4M V -1ME
- Chipotle shares slump after street views initial FY17 outlook as optimistic
- Apple investors take profit following Q3 results
***US markets on close: Dow +0.2%, S&P500 -0.2%, Nasdaq -0.6%***
- Best Sector in S&P500: Industrials
- Worst Sector in S&P500: Healthcare
- Biggest gainers: AKAM +14.6%, OI +10.8%, JNPR +10.2%, FLIR +10.1%, TSS +5.7%
- Biggest losers: EW -17.1%, CMG -9.3%, LH -8.6%, LUV -8.5%, AMP -7.3%
- At the close: VIX 14.2 (+0.8pts); Treasuries: 2-yr 0.87% (+1bp), 10-yr 1.79% (+3bp), 30-yr 2.53% (+3bp)
***US movers afterhours***
- OCN: Reports Q3 GAAP $0.08 v -$0.44e, R$359.4M v $354Me; +16.2% afterhours
- CAKE: Reports Q3 $0.70 v $0.61e, R$560.0M v $556Me; +8.1% afterhours
- SFLY: Reports Q3 -$0.86 v -$0.96e, R$187.3M v $184Me; +7.0% afterhours
- NOW: NOW: Reports Q3 $0.24 v $0.20e, R$357.7M v $352Me; +5.8% afterhours
- PLNT: Reports Q3 $0.16 v $0.13e, R$87M v $77.8Me; +5.8% afterhours
- WDC: Reports Q1 $1.18 v $1.05e, R$4.71B v $4.48Be; +5.3% afterhours
- TSLA: Reports Q3 $0.71 v $0.14e, R$2.30B v $2.13Be; +4.3% afterhours
- VMW: Reports Q3 $1.14 v $1.10e, R$1.78B v $1.76Be; +2.4% afterhours
- NEM: Reports Q3 $0.38 v $0.51e, R$1.79B v $1.98Be; -1.1% afterhours
- TRN: Reports Q3 $0.55 v $0.52e, R$1.11B v $1.24Be; -5.4% afterhours
- RCII: Reports Q3 $0.11 v $0.09e, R$693.9M v $698Me; -6.6% afterhours
- AKS: Files to sell 65M shares through JPM, BAC, GS, WFC (27% of shares outstanding); -6.7% afterhours
- ARRS: Reports Q3 $0.77 v $0.76e, R$1.74B v $1.74Be; -6.9% afterhours
- GRPN: Reports Q3 -$0.01 v -$0.02e, R$720.5M v $708Me; acquires LivingSocial; no terms disclosed; -11.0% afterhours
- CYH: Guides Q3 -$0.35 v +$0.36e, R$4.38B v $4.25Be, EBITDA $465M v $661M y/y, SSS +1.2%; -18.3% afterhours
***Asia Session Notable Observations, Speakers and Press***
- (CN) China Stats Bureau: market demand remains weak in general; Companies profit continue positive trend (**comments following Industrial Profits data)
- (JP) BOJ Gov Kuroda: Yield curve moving inline with shape we considered desirable at previous policy meeting; May not need to buy ¥80T to keep 0% 10-year JGB yield in the future.
- (JP) BoJ Deputy Gov Iwata: Large scale JGB buys are still necessary - press
- (JP) BOJ increasingly more sensitive to financial sector in setting monetary policy; Expected to hold policy unchanged at the upcoming meeting next week - Nikkei
- New Zealand trade deficit widens to record high due to one-off rise in aircraft imports; Exports to US fell over 16% but shipments to China rose 2% y/y; Dairy exports down 1.2%.
***Asia Key economic data:***
- (CN) CHINA SEPT INDUSTRIAL PROFITS Y/Y: 7.7% V 19.5% PRIOR; YTD: 8.4% V 8.4% PRIOR
- (NZ) NEW ZEALAND SEPT TRADE BALANCE (NZ$): -1.44B V -1.15BE; 3rd straight and RECORD deficit
- (AU) AUSTRALIA Q3 IMPORT PRICE INDEX Q/Q: -1.0% V -0.8%E; EXPORT PRICE INDEX Q/Q: 3.5% V 2.0%E
- (SG) SINGAPORE Q3 PRELIMINARY UNEMPLOYMENT RATE: 2.1% V 2.2%E
***Asian Equity Markets (00:30ET)***
- Nikkei -0.5%, Hang Seng -1.2%, Shanghai Composite -0.3%, ASX200 -1.1%, Kospi +0.3%
***FX ranges/Commodities/Futures/Fixed Income (00:30ET):***
- EUR 1.0890-1.0910; JPY 104.30-104.70; AUD 0.7620-0.7650; NZD 0.7145-0.7160
- Dec Gold flat at 1,266/oz; Dec Crude Oil +0.2% at $49.26/brl; Copper -0.1% at $2.14/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 14.2 tonnes to 942.6 tonnes; 1-month low
- Equity Futures: S&P e-mini flat, Dax -0.1%, FTSE100 -0.1%
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.7736 V 6.7705 PRIOR
- (CN) PBOC to inject CNY115B in 7-day reverse repos, CNY55B in 14-day reverse repos, and CNY40B in 28-day reverse repos
- JGB: (JP) Japan MoF sells ¥2.08T in 2-yr 0.1% JGBs; Avg yield: -0.237% v -0.263% prior; bid to cover: 4.41x v 3.78x prior
***Asia movers***
- Consumer discretionary: Belle International Holdings 1880.HK -4.3% (KGI cuts to underperform); Ajisen China Holdings 538.HK -4.2% (Q3 result); APN News APN.AU -18.6% (completes capital raising); JB Hi-Fi JBH.AU +1.4% (Q1 result); H2O Retailing Corp.8242.JP +3.9% (H1 result)
- Financials: PAX Global Technology 327.HK -5.5% (9-month result); National Australia Bank NAB.AU +1.4% (FY16 result); Challenger Financial Services Group CGF.AU +4.4% (affirms guidance); Steadfast Group SDF.AU -4.5% (Q1 result)
- Industrials: Kia Motors Corporation 000270.KR -0.5% (Q3 result)
- Technology: Samsung Electronics 005930.KR +1.2% (Q3 final result); Fujitsu 6702.JP +1.2% (H1 result)
- Materials: Whitehaven Coal WHC.AU -2.6% (guidance); Newcrest Mining NCM.AU -2.6% (Q1 result)
- Energy: Beach Energy BPT.AU -2.7% (Q1 result)
- Healthcare: Blackmores BKL.AU -1.4% (Q1 result)
- Telecom: SK Telecom 017670.KR +0.7% (Q3 result)