Dow -0.33% S&P -0.18% NAsdaq -0.10% Russell -0.25%
Asian equity markets are mixed as traders squared some of the recent bearish bets going into Wednesday's FOMC and BOJ policy decisions. Stocks were initially lower - particularly the indices in Shanghai and Hong Kong - after Morgan Stanley Capital International (MSCI) again postponed including the A-Shares in its emerging market index. Similarly, risk-off flows initially translated into gains in JPY at the expense of AUD and NZD before a reversal later in the day. Momentum in expectations that MSCI will finally include A-shares in its emerging market index had been building as of late given some of the financial regulatory reform in China over the past 12 months in fact, Goldman Sachs assigned about a 70% probability of inclusion. However, for the 3rd year in a row, MSCI deferred that inclusion while acknowledging the improvements in market accessibility. Among the reason behind the decision, MSCI said the "20% monthly repatriation limit remains a significant hurdle for investors that may be faced with redemptions such as mutual funds and must be satisfactorily addressed", adding that local exchanges' pre-approval restrictions on launching financial products are also unaddressed. MSCI did suggest however that A-shares would remain on 2017 review list and that a potential off-cycle announcement on A shares cannot be ruled out. After the decision, securities regulator CSRC said the decision to delay including A-share won't affect capital market reform. Similarly, state researcher Zhang said China should not make major changes to financial regulation framework because of downside risks remaining in the near term. With just over a week to the Brexit referendum, latest Comres poll put 46% in favor of staying in EU vs 45% for leaving (prior 52% for staying in EU, 41% for leaving), and researchers at Oxford University put about a 40% chance that the vote will be in favor of Leave. Fin Min Osborne remained vocal backing EU membership, estimating a £30B financial hole to UK economy in the event of a Leave victory and forcing an emergency budget within weeks of the poll.
Nikkei +0.69% Hang Seng +0.24% CSI +1.55% Shanghai +1.77%
Eur$ 1.1221 CNH 6.6054 CNY 6.5934 JPY 106.26 GBP 1.4162 CHF 0.9648 RUB 66.0254 WTI 47.87 -1.28%
S&P -0.01% EuroStoxx +0.86% Dax +0.71% SMI +0.29%
Macro :
- ECB, European Banks Discussed Stress Tests on Tuesday: Sole
- MSCI to Delay Including China A Shares in Emerging Markets Index
- Uber to Raise $1b-$2b in Form of Leveraged Loan: CNBC Cites DJ
Keep an eye on :
- ABBN VX : ABB Said to Likely Consider Rival Bid if Solicited by Kuka: WSJ
- AIR FP : Airbus to Deliver French Defense Ministry Ninth A400M: Echos
- AIR FP : Zodiac’s A350 Cabin Comments Show It Still Has ‘Challenges’: RBC
- AREVA FP : Areva to Be Divided Into 3 Units Under New Plan, Figaro Reports
- AVV LN : Aveva Ends Talks With Schneider Electric
- CBK GY : Commerzbank Sees ~19% Revenue Growth in Chinese Market in 2016
- DAI GY : Daimler’s Mercedes May Open Factory in Russia: Handelsblatt
- EDF FP : French Power Regulator Says France Interconnection Is Sufficient
- FCC SM : Slim’s Carso Exercises Purchase Option on 9.45M FCC Shrs
- HMB SS : H&M Sales Miss Estimates in May, 2Q
- ITX SM : Inditex 1Q Ebitda, Net Beat Estimates
- ITX SM : Inditex 1Q Is a Standout In a Tough Market, Bernstein Says
- KU2 GY : ABB Said to Likely Consider Rival Bid if Solicited by Kuka: WSJ
- ORA FP : Orange Could Make Moves to Boost Clout in Europe, CEO Says
- UG FP : CMA CGM, PSA in Container Terminal JV in Singapore
- RTN LN : Restaurant Group Names Barry Nightingale CFO
- RR/ LN : Rolls-Royce CEO Says Brexit Uncertainty Delaying Investment: BBC
- SU FP : Aveva Ends Talks With Schneider Electric
- TIT IM : Oi CEO Exit Said to Reveal Fight Between Bondholders, Investors
- HO FP : Thales CEO Reiterates Company Seeks 6,000 Hirings
- VOw3 GY : Volkswagen Said to Plan Merging Components Unit, Asset Reviews
- ZC FP : Zodiac’s A350 Cabin Comments Show It Still Has ‘Challenges’: RBC
- ZC FP : Zodiac Maintains Outlook for Current Operating Profit