Asia Market Update: Equity markets generally decline amid resignation of White House Advisor Cohn
-Fed’s Brainard suggests greater confidence in reaching inflation target; tailwinds could speed up rate hike pace (Note: Brainard is seen as dovish by some)
-Fed’s Brainard and Kaplan comment on possible trade impact
-AUD/JPY underperforms: Q4 GDP below ests
-RBA Gov Lowe reiterates there is no strong case for a near-term policy adjustment; likely that next RBA rate move will be up
-China PBoC conducts 1-year MLF facility at unchanged rate; skips daily OMO for third straight session
-China Finance Ministry official suggested drafting process has started for property tax bill
-Cold weather conditions in the US Northeast in focus: NY’s JFK to cancel ~250 flights on Wed
-BoJ Dep Gov Nominees continue testimonies
-India’s government starts to question banks on business man Nirav Modi amid fraudulent transactions scandal.
Australia/New Zealand
-ASX 200 opened -0.2%: closed: -1%
-ASX 200 Energy Index -1.4%, Financials -1.1%, Utilities -1%
-(AU) Australia Q4 GDP Q/Q: 0.4% v 0.5%e (slowest since Q1 2017); Y/Y: 2.4% v 2.5%e
-(AU) Australia Treasurer Morrison: Q4 GDP data shows Australia not immune to global influences; Net exports were the main drag on the data
-(AU) RBA Gov Lowe: Reiterates there is no strong case for a near-term policy adjustment; likely that next RBA rate move will be up - comments in Sydney
-(AU) Australia sells A$500M v A$500M indicated in 4.75% April 2027 bonds, avg yield: 2.7391%, bid to cover: 3.85x
-(AU) Australia PM Turnbull: Election to be held in H1 of 2019
-(NZ) NEW ZEALAND Q4 VOLUME OF ALL BUILDINGS Q/Q: 1.4% V 1.0%E
China/Hong Kong
-Shanghai opened flat, Hang Seng -0.6%
-Hang Seng Materials Index -2%, Energy -1.7%, Info Tech -0.9%, Financials -0.7%, Property/Construction -0.6%
-Shanghai Composite Property Sub-declines less than 1%
-(CN) PBOC CONDUCTS 1-YEAR CNY105.5B MEDIUM-TERM LENDING FACILITY (MLF) OPERATION: Interest rate unchanged at 3.25%
-(CN) China PBoC Open Market Operation (OMO): Skips OMO for third straight session
-(CN) China Vice Finance Min: NPC and other departments are drafting the property tax bill; Will reasonably design property tax system
-(CN) China Feb New Loans may decline m/m to less than CNY1T compared to Jan record level of CNY2.90T (in-line with analyst views) - China Securities Journal
-(CN) China End 2017 Outstanding Government Debt CNY29.95T; Debt-to-GDP ratio 36.2% v 36.7% y/y – MOF
-(CN) China announces new rules related to equity stakes in insurers, to take effect on April 10th
-(CN) China: To release surveyed jobless rate data monthly from April
Looking Ahead: Looking Ahead: China FX reserves expected to be released during European session
Japan
-Nikkei 225 opened -0.7%; closed -0.8%
-TOPIX Iron & Steel Index -2.2%, Electric Appliances -1.1%
-(JP) BoJ Dep Gov Nominee Wakatabe: Won't automatically propose more easing, but does not exclude proposing extra easing
-(JP) BoJ Dep Gov Nominee Amamiya ('Mr BoJ'): Reiterates Japan economy making progress toward CPI goal
-(JP) Japan Feb Official Reserve Assets: $1.26T v $1.27T prior
-(JP) Ripple said to develop blockchain payment app with banks in Japan - US financial press
Looking Ahead: Looking Ahead: Japan Q4 GDP revision due for release on Thursday
Korea
-Kospi opened +0.1%
-Samsung Electronics rises over 2%
-(KR) North Korea said to be open to denuclearize if regime safety is guaranteed and not use any weapons against South Korea – financial press
-(KR) South Korea said to closely monitor for possible rise in FX volatility - South Korea Press
-(KR) South Korea parliament to hold hearing on Bank of Korea (BoK) Gov Lee on Wed, March 21st - South Korean Press
-(KR) US imposes new sanctions on North Korea in relation to the assassination of Kim Jong Nam; Kim Jong Nam was the half brother of North Korea Leader Kim Jong Un. - FT
Other Asia
-(TW) Taiwan’s Advanced Semiconductor Engineering [2311.TW] said to receive orders from Bitmain, says a Taiwanese press report
North America
-US equity markets closed mostly higher: Dow flat, S&P500 +0.3%, Nasdaq +0.6%, Russell 2000 +1%
-S&P500 Materials +1.1%; Utilities -1.3%
-(US) White House economic adviser Gary Cohn to resign; Expected to leave in next few weeks - NYT
-(US) Andrew Puzder said to be considered as replacement for Cohn, says US financial press; Separate report suggests Adviser Peter Navarro and Larry Kudlow are said to be the top two candidates to replace Cohn
-(US) President Trump said that he will be making a decision soon on the appointment of a new Chief Economic Advisor, says 'many' people want the job.
-(US) Fed Brainard (voter): Has greater confidence Fed to achieve 2% inflation target; tailwinds could speed up pace of rate hikes
-(US) Fed's Kaplan (non-voter, dove): Trade discussion has not changed my outlook; Reiterates expects Fed to hike three times this year and should get started soon
-(US) House Speaker Ryan: Section 232 protocol is a little broad; urges administration to make potential tariffs narrower
-(US) Senate Maj Leader McConnell (R-KY): there is a lot of concern among GOP Senate caucus that steel/aluminum tariffs could spark trade war
-(US) OPEC Sec Gen Barkindo: supply is good but demand is even more robust - CNBC interview
-(US) Weekly API Oil Inventories: Crude: +5.7M v 0.9M prior
Looking ahead: US Feb ADP Nonfarm Employment change expected to be released, along with the Bank of Canada (BoC) interest rate decision and weekly US DOE Crude Oil Inventories
Europe
-(UK) EU internal report argues that UK PM May is 'double cherry-picking' on Brexit and calls her model unworkable; Report dismissed May’s Brexit speech as "being more about Conservative Party management than putting forward sensible solutions on trade" - UK press
-Telecom Italia [TIT.IT]: Reports Q4 Rev €5.1B v €5.1B y/y
Looking Ahead: UK Annual Budget expected to be released
***Levels as of 01:00ET***
- Hang Seng -0.9%; Shanghai Composite -0.2%; Kospi -0.2%
- Equity Futures: S&P500 -1.3%; Nasdaq100 -1.2%, Dax-1.1 %; FTSE100 -0.8%
- EUR 1.2402-1.2430 ; JPY 105.45-106.23; AUD 0.7771-0.7831 ;NZD 0.7275-0.7302
- Feb Gold flat at $1,334/oz; Feb Crude Oil -0.8% at $62.09/brl; Mar Copper -0.4% at 3.145$/lb