Equity indices trade mixed, HSBC reported mixed results and announced buyback

General trend

- Modest equity moves have been seen thus far.

- Nikkei has remained lower [Heavyweights decline (Fast Retailing, Softbank Group)]; Tokyo Steel rises on guidance raise.

- S&P ASX 200 has remained higher [Resources and Energy indices outperform].

- Hang Seng and Shanghai Composite pared losses; Shanghai Consumer Staples index dropped after results from Kweichow Moutai.

- Shanghai and HK property indices drop, China confirmed expansion of property tax trial.

- Has Evergrande officially confirmed USD interest payment? [grace period was due to end on Oct 23rd].

- China bonds and WGBI [bond index] in focus [FTSE Russell previously stated that China bonds to be included in the WGBI over a period of 36 months, effective from Oct 29th 2021 (Fri)].

- TRY drops on political news.

- US Natural Gas FUTs extend gains.

- LG Chem may issue results later today.

- Companies due to report during the NY morning include Kimberly-Clark, Lennox International, Otis Worldwide, Restaurant Brands.

Headlines/Economic data

Australia/New Zealand

- ASX 200 opened +0.1%.

- (AU) Reserve Bank of Australia (RBA) Offers to buy A$1.60B in Govt bonds v A$1.60B prior.

- (AU) Australia sells A$1.0B v A$1.0B indicated in 0.25% Nov 2024 bonds, avg yield 0.7229%, bid to cover 6.62x.

China/Hong Kong

- Hang Seng opened -0.4%, Shanghai Composite -0.2%.

- (CN) China to launch pilot property tax schemes in some regions; the specific regions and other details will be determined by the State Council; The pilot schemes are expected to last for 5 years. – Xinhua.

- HSBC [5.HK]: Reports Q3 Net $3.54B v $1.36B y/y, adj Pretax $6.00B v $4.4B y/y ($4.87Be), Rev $12.0B v $11.9B y/y ($12.3Be); To buy back up to $2.0B in shares.

- (CN) China health official said it is more likely that latest COVID outbreak will spread further - financial press.

- (CN) China State Planner (NDRC): Will strengthen credit supervision over medium and long term thermal coal contracts.

- Evergrande [3333.HK]: Certain bondholders say they have received interest payments for tranche due on Sept 23rd [Grace period expired Oct 23rd, yet to receive confirmation from co.] - financial press.

- (CN) China State Planner (NDRC) to meet with certain property developers on Tues (Oct 26th) - Press.

- (CN) China PBOC Open Market Operation (OMO): Injects CNY200B in 7-day reverse repos v CNY100B prior; Net inject CNY190B v Net inject CNY90B prior.

- (CN) China PBOC sets Yuan reference rate: 6.3924 v 6.4032 prior.

Japan

- Nikkei 225 opened -1.0%.

- (JP) FNN Poll indicates that it is unclear if Japan Ruling Party (LDP) can maintain a sole majority in Parliament.

- (JP) Japan ruling LDP party said to have lost special election in Shizuoka [comes ahead of the Oct 31st general elections].

Korea

- Kospi opened -0.2%.

- (KR) South Korea President Moon: May have higher tax revenues than expected in 2021, to repay national debt with the extra revenue.

Other Asia

- (SG) Singapore Sept CPI M/M: 0.4% v 0.3%e; Y/Y: 2.5% v 2.4%e; CPI Core Y/Y: 1.2% v 1.0%e.

North America

- (US) White House Statement: President Biden had 'productive' discussion about Build Back Better Agenda today with Senators Schumer and Manchin.

- (US) US Senator Manchin (D) said to be 'agreeable' to wealth tax for President Biden plan - US press.

- (US) President Biden to give comments on economic agenda and infrastructure deal at 13:45ET [on Monday].

- (US) Treasury Sec Yellen: Do not think we are about to lose control of inflation; Inflation will remain high until next year; Expects improvement in inflation rate in H2 2022 [from Oct 24th].

Europe

- (TR) Turkey President Erdogan said to have ordered 10 foreign envoys be ousted, including envoys from US, France and Germany - press.

- Banca Monte Paschi [BMPS.IT] UniCredit and Italy's Ministry of Economy and Finance confirm decision to cease the negotiations on potential acquisition of Monte dei Paschi.

- (IT) S&P revises Italy sovereign ratings outlook to Positive from Stable; Affirms BBB ratings [from Oct 22nd].

- (UK) Reportedly EU has told the UK that British legal texts cannot be basis for talks, EU preparing response if UK triggers Article 16 of Northern Ireland Protocol [from Oct 22nd].

- (UK) Chancellor of the Exchequer Sunak: Rise in COVID-19 cases do not currently suggest a need for tougher restrictions [from Oct 24th].

- (UK) UK Finance Min expected to confirm plan to raise minimum wage in Wed (Oct 27th) budget statement; to also unfreeze public sector pay - UK Press.

Levels as of 01:20 ET

- Nikkei 225, -0.9%, ASX 200 +0.4% , Hang Seng +0.1%; Shanghai Composite +0.3% ; Kospi +0.4%.

- Equity S&P500 Futures: +0.1%; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 +0.2%.

- EUR 1.1665-1.1636 ; JPY 113.82-113.45 ; AUD 0.7489-0.7463 ;NZD 0.7168-0.7145.

- Gold +0.2% at $1,800/oz; Crude Oil +0.9% at $84.55/brl; Copper +1.1% at $4.55/lb.