Asian equity markets have returned on a strong note, with S&P/ASX200 leading the charge to a 17-month high above 5,700; Nikkei225 remains on holiday. Among USD majors, high-beta/commodity FX are seeing the strongest gains; NZD is preferred with a rise of over 50pips, as some analysts still anticipate headwinds for AUD from further RBA rate cuts. China Caixin Dec Manufacturing PMI tops consensus by a full point, rising to a 4-year high with its 6th straight expansion.
Impressive Caixin PMI that tracks smaller Chinese institutions follows the official govt PMI focused on SOEs out this weekend, which showed a retreat in both manufacturing and services. PBoC's yuan fix was set at the weakest point in 2 weeks, while a state researcher is calling for a large one-off devaluation to keep the currency at equilibrium. Another China state researcher forecast 2017 GDP around 6.5% - the bottom end of the 6.5-7.0% official target range for 2016; Exports were estimated to fall 3%. Report out of IMF notes "China urgently needs to tackle its corporate-debt problem before it becomes a major drag on growth", adding current focus on addressing the overcapacity problem does not tackle its financial implications.
Nikkei Closed Hang Seng +0.67% CSI +0.89% Shanghai +0.92%
Eur$ 1.0487 CNH 6.9598 CNY 6.9545 JPY 117.49 GBP 1.2303 CHF 1.0220 RUB$61.0211 WTI$ 54 +0.52%
S&P +0.50% EuroStoxx +0.30% FTSE +0.65% CAC +0.40% DAX +0.27% SMI +0.66%
Macro :
- Caixin China Dec. Manufacturing PMI 51.9; Est. 50.9
- Japan, Europe Stocks Top Picks on Inflation, Yields: Strategists
- U.S. Finalizing Study on Protecting Semiconductor Sector: WSJ
- Earnings Set to Drive European Stocks in 2017, Barclays Says
Keep an eye on :
- AIR FP : Airbus CEO Enders Bought 16,448 Co. Shares on Oct. 31: Filing
- AIR FP : Airbus Sees German, Spanish Need for 100 New Fighter Jets: Welt
- AF FP : Air France-KLM Says Its Debt Level Dropped in 2016
- EDP PL : Portuguese Electricity Demand Rose 3.3% in December, REN Says
- FCT IM : French shipbuilder STX France is likely to be acquired by the Italian ship builder Fincantieri - Het Financieele Dagblad
- GLJ GY : Grenke Group 2016 New Business Volume Rises 16%
- MMT FP : M6 CEO De Tavernost Tells Les Echos He’s Confident for 2017
- EGL PL : Mota Agrees to Sell 85% Stake in Aruba Concessions to InfraRed