Asia Mid-Session Market Update: Japan govt raises economic assessment, tracking BOJ; New Zealand trade deficit widens
***US Session Highlights***
- (US) Dec Philly Fed Non-Manufacturing Index: 20.9 v 10.6 prior
- (US) Weekly Redbook Sales w/e Dec 17th: +1.1% y/y; Dec MTD +1.5% m/m; Dec MTD +0.5% y/y
- (UK) PM May: Brexit talks so far with EU leaders have been positive and constructive and they appear willing to make the Brexit process smooth and orderly
***US markets on close: Dow +0.5%, S&P500 +0.4%, Nasdaq +0.5%***
- Best Sector in S&P500: Financials
- Worst Sector in S&P500: Utilities
- Biggest gainers: KMX +6.1%, TRIP +5.0%, FCX +4.5%, SCHW +3.6%, NVDA +3.5%
- Biggest losers: AYI -5.6%, STZ -4.0%, PX -3.8%, FTR -3.4%, SWN -2.9%
- At the close: VIX 11.5 (-0.2pts); Treasuries: 2-yr 1.22% (flat), 10-yr 2.57% (+3bps), 30-yr 3.15% (+3bps)
***US movers afterhours***
- NKE: Reports Q2 $0.50 v $0.43e, R$8.18B v $8.08Be; Worldwide futures orders growth +2% v +5%e; +1.9% afterhours
- FDX: Reports Q2 $2.80 v $2.91e, R$14.9B v $14.9Be; -3.3% afterhours
- SCS: Reports Q3 $0.30 v $0.31e, R$786.5M v $787Me (2 est); -7.1% afterhours
***Asia Key economic data:***
- (NZ) NEW ZEALAND NOV TRADE BALANCE (NZ$): -705M (5th straight deficit) V -500ME; 12-MONTH TRADE BALANCE: -3.18B V -2.95BE
- (NZ) NEW ZEALAND NOV CREDIT CARD SPENDING M/M: -4.2% V +2.8% PRIOR; TOTAL M/M: 4.1% V 10.2% PRIOR
- (AU) AUSTRALIA NOV WESTPAC LEADING INDEX M/M: 0.0% V 0.1% PRIOR
- (AU) AUSTRALIA NOV SKILLED VACANCIES M/M: 0.0% V -0.3% PRIOR
- (CN) China Nov Conference Board Leading Economic Index: 1.0% v 0.8% prior
***Asia Session Notable Observations, Speakers and Press***
- Dow Industrials within earshot of psychologial 20,000 level; Nike beats on top and bottom lines but pares afterhours gains on lower than exp Futures Orders; FedEx falls on earnings miss, affirms guidance.
- Shanghai Composite leads regional indices; Local press notes 14% rise in China Nov railway cargo volume and expectations of regulatory easing on stock index futures such as reduced margin requirements.
- Japan Cabinet Office (govt) follows BOJ in raising its economic assessment for the first time since the first half of last year; Sees economy on a moderate recovery path, with improved household spending and exports.
- New Zealand trade in deficit for the 5th straight month; Exports below estimates, while imports slightly higher, putting trade deficit higher than expected. Exports to China and Australia rise just under 1%, while shipments to US down over 20%.
- Oil prices rise about 25c after API Inventories showing largest draw in 2 1/2 months.
China:
- (CN) China Vice Premier Ma: Not devaluing CNY to boost exports - press
- (CN) NDRC: China Nov railway cargo volume 304.9M tons, +13.9% y/y
- (CN) China's Hebei province said to cut production capacity of iron and steel in 2017 - China Daily
- (CN) China said to soon ease limits on stock index futures - Chinese press
Japan:
- (JP) Japan Finance Ministry, Financial Services Agency (FSA) said to survey banks' readiness for higher interest rates - Nikkei
- (JP) According to a survey by Japan Center for Economic Research (JCER), economist expect Q4 GDP of 0.8% q/q and 1.1% y/y - Nikkei
Australia:
- AUD/USD: Fixed income markets pricing in over 50% chance that RBA raises rates in 2017 following latest RBA meeting minutes - Australian press
***Asian Equity Indices/Futures (00:30ET)***
- Nikkei -0.3%, Hang Seng +0.6%, Shanghai Composite +1.1%, ASX200 +0.4%, Kospi flat
- Equity Futures: S&P500 flat; Nasdaq flat, Dax flat, FTSE100 flat
***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.0380-1.0420; JPY 117.40-118.10; AUD 0.7250-0.7275; NZD 0.6915-0.6950
- Feb Gold +0.4% at 1,138/oz; Jan Crude Oil +0.4% at $53.49/brl; Mar Copper +0.2 at $2.51/lb
- (US) Weekly API Oil Inventories: Crude: -4.2M v +4.7M prior (largest draw since Oct 4th)
- SLV: iShares Silver Trust ETF daily holdings fall to 10,552 tonnes from 10,575 tonnes prior
- (CN) China MoF sells 3-year bonds, Yield: 3.01% v 3.07%e, bid-to-cover 2.27x; Sells 7-year bonds, Yield 3.180% v 3.35%e, bid-to-cover 2.74x
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.9489 V 6.9468 PRIOR
***Asia equities / Notables / movers by sector***
- Consumer discretionary: Cabcharge Australia CAB.AU +0.5% (divestment); PanaHome Corp 1924.JP +13.2% (Panasonic to make it a unit); Sydney Airport SYD.AU -5.2% (Morgans Financial cuts to hold); Bega Cheese BGA.AU +3.9% (guidance); Slater & Gordon SGH.AU -7.6% (served ASIC notices)
- Consumer staples: A2 Milk ATM.NZ +5.9% (trading update)
- Industrials: Sydney Airport SYD.AU -5.2% (Morgans cut)
- Technology: Acer Inc 2353.TW -0.8% (impairment charge); Panasonic Corporation 6752.JP -1.9% (to absorb units)
- Materials: Whitehaven WHC.AU +3.0% (Macquarie raises 2017 hard coking coal forecast) St. Barbara SBM.AU -1.1%, Regis Resources RRL.AU -0.8% (gold faces downside risks); South32 S32.AU +1.9% (Macquarie raises PT)
- Healthcare: Mayne Pharma MYX.AU +7.1% (recover losses); Benitec Biopharma BLT.AU +15.8% (update)