SHCOMP -65bps after yday's rally, earnings contniued to weigh on index. PBOC conducted 16b yuan of 14-day reverse-repurchase contracts today at a yield of 4.3%, for the second time the central bank adding cash into system and making total injection of 29.1b yuan this week. as a result, we saw the 7-day repo rate down to the level around 5% in the month end today. {otc cny repo <go>}. Secondly, props +1.8% & cement +0.8% after President Xi Jinping stressed the need to accelerate the country's housing security and supply to guarantee people's basic residential needs. {NSN MVHO8U3V7U9S <go>} basically the govt will provide more supply instead of curbing demand for the new round of props control measures, and the market-oriented policies are supposed to benefit the sector.
In other news China’s top four banks posted their biggest increase in soured loans since at least 2010 as a five-year credit spree left companies with excess manufacturing capacity and slower profit growth amid an economic slowdown.
Rubber -1.3%, Rebar +35bps, Coke +50bps and Iron Ore +20bps. Copper -1%, all LME meetals down, Gold -65bps and Crude -30bps...all following what was taken to be a relatively hawish FOMC.
Miners looking up coming out of Australia, implied +50bps-1% this mostly as a result of news out of Aussie banks. The APRA letter, effectively warning banks to limit dividend payouts in order to meet adequate capital buffers, is resulting in switching from banks to resource names today. {http://www.afr.com/p/markets/investors_stand_by_bank_dividends_buO8xjmjDfmHBGhIFrnYEI}
Will be gtting numbers/production from Total, Shell, BG, GLEN and ANTO shortly.
Headlines (=)Copper: Codelco Seen Raising China Copper Premium to Nine-Year High (-)ENI: ENI REMOVED FROM CONVICTION BUY LIST AT MACQUARIE (+)CLN: CLARIANT RAISED TO HOLD VS SELL AT SOCGEN
Research (*)GS Iron Ore 50: Move to seaborne surplus from next year as key projects remain on schedule
Source: Bloomberg, Reuters Cleared for Distribution to Clients in EMEA and US