Asian equity markets are mixed in the wake of inconclusive rhetoric out of G7 in Japan and more hawkish Fed-speak over the weekend. Shanghai Composite and the Hang Seng are up modestly while Nikkei225 is down over 1% amid renewed selling in USD/JPY. The pair fell over 50pips from Friday close below 109.70 after disappointing Japan trade components and more warning against further intervention from US Treasury's Lew at the G7. Japan may still get some help from the US in terms of generating more Yen weakness as there were further comments from Fed officials suggesting the FOMC is drawing close to another rate hike. FOMC voter Rosengren in an interview with FT said some recent data have been positive on spending, latest payrolls miss is still consistent with gradually tightening labor market, and concluding that the conditions for the hike laid out in the latest Fed minutes as of right now seem to be close to being met. UK Treasury report estimates that UK economy would take a 3.6pt hit and a likely recession in the event of a Yes vote on Brexit. In Athens, Greek ruling party MPs voted in favor of more austerity measures to secure continued funding despite thousands of protesters rallying against tax hikes. Also of note, a UBS report said investors have pulled out from funds tracking European equity and debt markets for nearly 15 straight weeks - the longest such period since 2008 - due to economic malaise, weak banks, and risky political climate.
Nikkei -0.51% Hang Seng +0.04% CSI +0.11% Shanghai +0.31%
Eur$ 1.1226 CNH 6.5604 CNY 6.5484 JPY 109.81 GBP 1.4509 CHF 0.9901 RUB 66.60 WTI $48.11
S&P +0.04% EuroStoxx -0.04% Dax +0.02% SMI -0.09%
Macro :
- Barron’s Roundup: Wien’s Weak Market; Red Hat, PepsiCo May Rise
- Japan’s Aso Told Lew That Japan Will Raise Sales Tax as Planned
- G-7 Reaffirms FX Agreements, Won’t Target Exchange Rates: Japan
- Brexit May Cut House Prices by a Fifth, Osborne Says: Telegraph
- Swiss Referendum May Cause CHF1.3b Budget Hole: FinMin in Blick
- Iran Won’t Freeze Oil Output as It Gears Up for OPEC Meeting
- Goldman Raises 2016, Cuts 2017 Oil Price Views on Shale, OPEC
Keep an eye on :
- ACS SM : ACS Wins Abu Dhabi Industrial Contract Valued at EU235 Million
- AIR FP : Iran Air Seeks to Finalize Airbus, ATR Deals in 45 Days: Fars
- AIR FP : Boeing Wins $11.3 Billion Order for 737 Max Planes From Vietjet
- AIXA GY : Aixtron Said in Talks to Sell Itself to Chinese Investor Group
- AIXA GY : Aixtron Gets EU6/Share Offer From Fujian Grand Chip Investment
- ALV GY : Allianz Italia Eyes Italy Investments: CEO Tells Milano Finanza
- ATL IM : Atlantia to Invest EU15b in Italy Over 10 Yrs: CEO to Repubblica
- CS FP : AXA to Sell Tobacco Investments Worth Over EU1.7b: BBC (26mil shares IMT LN, BATS 3.4mil shares, PM US 2.6mil sahres, Japan Tobacco 2.14mil shares, Swedish Match 571k shares)
- BARC LN : PIC Considering Group to Buy Barclays Africa Operations: FT
- BAYN GY : Bayer Offers to Buy Monsanto for $122/Share in Cash
- BAYN GY : Monsanto May Resist Any Offer Below $150/Shr: Jefferies
- GBF GY : Bilfinger May Announce Unit Sale in Days, Welt Says
- BT/A LN : BT to Search for New Chairman, Rake Set to Leave in 2017: Times
- BPER IM : BPER, UBI in Talks With Veneto Banca for Possible Merger: Sole
- BWO NO : BW Offshore 1Q Ebitda Rises; Planning to Raise $100m in Equity
- CARLB DC : Carlsberg Needs House In Order Before Mulling Larger Buys: FD
- ENEL IM : Enel CEO: Europe Power Prices to Stay Low at Least 2 to 3 Years
- FCA IM : German Transport Authority Finds Fiat Emissions Cheating: Bild
- GL FP : Galeries Lafayette in Sunday Opening Accord With 2 Unions: Echos
- GLEN LN : Glencore's NSW rail business could interest Carlyle, The Australian
- GBL BB : Groupe Bruxelles Lambert Raises Ontex Holding to 15.01%
- ILD FP : Iliad, Sky May Consider Creating Fourth Italian Operator: FT
- ISAT LN : Inmarsat May Have to Exit FTSE 100 After Plunge: Telegraph
- INXN US : InterXion Rises; Digital Realty May Pursue Co.: DealReporter
- BAER VX : Julius Baer CEO Says Kairos IPO When Mkt Conditions Right: Sole
- KCR1V FH : Konecranes confident Terex offer will succeed, thanks to large cash component - Talouselama
- NHH SM : NH Hotel Ready to Pay Dividend in 2017, CEO Tells Expansion
- NOKIA FH : Nokia to Cut 1,000 Jobs in Finland: DPA
- OHL SM : OHL Seeks Investors for Industrial Business: Expansion
- PBR US : Board says the appointment of the new CEO by the controlling shareholder will be analyzed at extraordinary board meeting on Monday; current CEO Bendine has not tendered his resignation
- PAH3 GY : Porsche SE Denies Spiegel Report of VW Supervisory Board Dispute
- RAND NA : Randstad to Acquire Obiettivo Lavoro in Italy for EU102.5m
- RCS IM : Mediobanca, UnipolSai, Pirelli Sign Pact in Joint RCS Bid
- RNO FP : Groupe, Renault in Talks With Proton on Strategic Pact: Edge
- RNO FP / 7201 : Nissan says battery power could more than double in 10 years - FT
- RYA LN : Ryanair Full-Year Profit Misses, Forecasts Net Below Consensus
- SAB LN : SABMiller’s CEE Assets Said to Draw Interest From Advent, KKR
- SKY LN : Sky Said to Be in Early Talks About Backing O2 Bids: Telegraph
- S32 LN : South32 Nickel Wage Talks Wrapping up With Deal Elusive: Union
- TIT IM : Telecom Italia Ready to Sell 100% of Sparkle for Metroweb: Sole
- TEF SM : Sky Said to Be in Early Talks About Backing O2 Bids: Telegraph
- TEF SM : Telefonica leaning towards listing for O2 rather than sale - Irish Independent on Sunday
- UCG IM : UniCredit Has Potential for Capital Rebuilding, Timing Key: Citi
- DG FP : Vinci Added to Goldman Conviction Buy List, Sees Re-Rating
- VOW3 GY : VW Truck Unit Starts Diesel-Recall Solution for Caddy 1.6 TDI