Risk assets remain under pressure at the start of the new week in Asia as bears awoke from summer slumber to the sound of repricing of central bank easing expectations across the globe. Recall last week Gov Kuroda was not particularly persuasive that the central bank has enough conviction to expand asset purchases or push rates deeper into the red, with local press also commenting on a fractured BOJ containing a camp favoring no more easing. On Thursday, ECB's Draghi was similarly non-committal, stating his policy board also did not discuss extension of QE and suggesting that no additional stimulus was needed for the time being. On Friday, a typically dovish Boston Fed president and FOMC voter Eric Rosengren also seemingly endorsed another tightening this year in the face of the recently disappointing non-farm payrolls and ISM services US data, lifting the probability of a rate hike next week to 24% and that of 2016 to nearly 60% from low 50's last week. With the focus turning to Asia and the far east, traders are also closely watching the PBoC after it was reported to have gauged demand for 28-day reverse repos for the first time since February, having already added 14-day reverse repo to its liquidity toolbox last month. Hibor is rising to multi-month highs on funding worries, Shanghai Composite and Hang Seng are leading the decliners among indices, and Australias ASX200 is dragged down by materials. Political / geopolitical risk is also creeping into sentiment, adding policy uncertainty to the monetary worries. Stateside, Hillary Clinton was shown collapsing into the arms of Secret Service after leaving the 9/11 Memorial ceremony early. A statement from her doctor said the Democratic candidate was suffering from pneumonia and experienced. US and Russia had reached a ceasefire agreement on Syria. The ceasefire is effective on Monday, and if it holds for 7 days, Russia/US promise to do more coordinated bombing against the al-Qaeda wing in Syria.
Nikkei -1.97% Hang Seng -2.80% CSI -2.11% Shanghai -2.16%
Eur$1.1243 CNH 6.6830 CNY 6.6774 JPY 102.51 GBP 1.3278 CHF 0.9758 RUB$ 64.6874 WTI$45.12 (-1.66%)
S&P -0.53% EuroStoxx -1.57% Dax -1.50% SMI -1%
Macro :
- EU Turns to OECD for Advice on Financial Transaction Tax Plan
- Fed’s Kaplan Says Monetary Policy Won’t Fix Slow Growth: Reuters
- Sweden Eyes Slice of Apple EU13b Tax Bill: Nyhetsbyraan Direkt
- Swiss to Tell EU Immigration Deal Means No Talks Needed: SZ
- Central Bank Governors, Supervisors Back Basel Steps: Statement
Keep an eye on :
- ABE SM : Abertis Studies Initial Bid for M6 Toll, Cinco Dias Reports
- AF FP : Air France CEO Says Cost Cuts to Be Needed More Than Ever: JDD
- ALO FP : Alstom Job-Cut Methods Unacceptable, French PM Tells Europe 1
- ANTO LN : Antofagasta Said to Mull Stake Cut in Power Project: La Tercera
- AAPL US : Apple Said to Be Rethinking Strategy on Self-Driving Cars: NYT
- AAPL US : Iphone 7 Sold Out in H.K. Minutes After Pre-Order Starts: SCMP
- BMPS IM : Padoan Says He’s Confident That Paschi Capital Plan Will Succeed
- BMPS IM : ECB Will Review New Paschi CEO Run on Tuesday: Messaggero
- BMPS IM : BofA’s Morelli Gets an Informal ECB Nod for Paschi Role: Ansa
- BMW GY : BMW Plans ‘Major Restructuring’ of Executive Board: Handelsblatt
- COL SM : Colonial Says Line 1 Release ‘Confined’ w/ Repairs Ongoing
- DSM NA : DSM Growth, M&A Strategy in Focus at CMD, PT Raised: Jefferies
- LLOY LN : Lloyds Shareholders Seek Stronger Succession Plan: FT
- MC FP : LVMH’s Tag Heuer CEO Says Sales Grew 20% in August: L’Agefi
- EMG LN : Man Group Raised to Buy at Citi on Valuation, Capital Deployment
- MRL SM : Merlin, Santander Plan Testa Residencial IPO in 2017: Europa
- MUV2 GY : Munich Re Sees Ongoing Strong Competition Amid Ample Capital
- PRGO US : Starboard Said to Take 4.6% Stake in Perrigo: WSJ
- POP SM : Larena Makes Organizational Changes at Popular: Cinco Dias
- QIA GY : Qiagen Says It Will Defend U.S. Intellectual Property Position
- REP SM : Repsol, Caixa Offer GIP 3 Gas Natural Board Seats: Expansion
- RWE GY : RWE’s Innogy Said to Plan to File for $2.2b IPO Next Week
- RWE GY : RWE to Push Ahead With Innogy IPO, Still Sees Listing in 4Q
- SAN FP : Alphabet, Sanofi to Invest $500 Million in Diabetes Venture
- SFR FP : SFR to Consider All Sports TV-Rights Tenders, Media CEO Says
- SRG IM : Snam, Allianz Place Joint Bid in OMV’s Gas Unit Sale, Sole Says
- SREN VX : Swiss Re Aims to Steer Portfolio to Focus on Large Deals
- SCMN VX : Swisscom Should Be Privatized, Sunrise Chairman Kurer Tells SaS
- STL NO : Statoil Sets 1Q Subscription Dividend Price at NOK126.57/Shr
- TSLA US : Ex-Tesla Maps Leader Bill Chen Joins Uber: The Information
- FP FP : Total Costs Cuts Make Angola’s Zinia 2 Viable at $50/BBL: Echos
- UBER IPO : Uber, Drivers Jump-Start Settlement Talks After Pact Denied
- VOD LN : Vodafone’s Charms: 33% Upside and a 5.3% Yield - BArron's
- VOD LN : Vodafone Plans Pay-TV ’Soft Launch’ in October: Telegraph
- VOW3 GY : VW CFO Says ‘Mountain Is Moving’ on Efforts to Rein in Spending
- WMT US : Wal-Mart May Be Interested in Retailer Esselunga: Repubblica
- WB US : Weibo’s Largest Holder Alibaba Reports 68.1% Class A Stake