TradeTheNews.com Staff
TradeTheNews.com
Asia Mid-Session Market Update: Japan manufacturing PMI returns to expansion as cabinet officials resume jawboning against Yen strength
Top US session headlines
- (US) AUG EXISTING HOME SALES: 5.33M V 5.45ME
- (US) INITIAL JOBLESS CLAIMS: 252K V 261KE; CONTINUING CLAIMS: 2.11M V 2.14ME (lowest initial jobless claims since April)
- Reportedly no breakthrough reached at OPEC meeting in Vienna ahead of meeting in Algeria next week - press
- (US) TREASURY $11B 10-YEAR TIPS REOPENING DRAW 0.052%; BID TO COVER 2.59 V 2.27 PRIOR AND 2.38 AVG OVER THE LAST 4 (highest BTC since May 2014)
- YHOO: Confirms certain data from 500M user accounts was stolen, including hashed passwords, names and email addresses
Asia Notes/Observations
- Volatility is compressed for the 2nd day and US yield curve flattens as markets process FOMC ripple and settle on 50-50 chance of December hike.
- Nikkei returns from holiday with a down day amid catch-up to Yen bid on BOJ policy change
- Oil pares gains on diminished prospects of Algiers agreement for any supply shift
- NZD still under pressure in the extended wake of more dovish than expected RBNZ; other USD majors in narrow ranges
- Japan PMI surprises to the upside with first expansion in 7 months; Output up for 2nd month and Employment rises to 4-month highs
- Japan Fin Min acknowledges not much impact anticipated from latest BOJ move; Cabinet Sec Suga warns govt watching market moves and Yen direction following BOJ and FOMC
- North Korea Army spokesperson threatens to strike Guam and Seoul if US flies its B-1B bombers over Korea
US markets on close: Dow +0.5%, S&P500 +0.7%, Nasdaq +0.8%
- Best Sector in S&P500: Consumer Discretionary
- Worst Sector in S&P500: Basic Materials
- Biggest gainers: WY +5.7%, RIG +5.6%, DISCA +4.8%, FTR +4.8%, RCL +4.6%
- Biggest losers: EQR -2.5%, SWN -2.3%, LVLT -2.1%, KSS -1.9%, PXD -1.8%
VIX 12.0 (-1.3pts); Treasuries: 2-yr 0.77% (-1bp), 10-yr 1.63% (-4bp), 30-yr 2.35% (-4bp)
US movers afterhours
- MIFI +29.8%; Pact to Sell Mobile Broadband Unit
- BATS +28.5%; CBOE reportedly in discussions to acquire BATS Global - press
- IMPV +16.4%; Said to Draw Acquisition Interest
- AIR +4.8%; 1Q EPS Cont. Operations, Sales Beat Ests.
- FB -1.4%; Said to have overestimated video ads' viewing time by as much as 60-80% for 2 years - financial press
- ENPH -21.0%; Will Cut 11% of Workforce, Offer Stock
After extended session
- GM: Chevrolet to begin offering all-new Equinox SUV model in China - financial press
Equity Futures (23:30ET): S&P e-mini flat, Dax flat, FTSE100 -0.1%
FX/Commodities (23:30ET):
- EUR 1.1195-1.1210; JPY 100.70-101.25; AUD 0.7630-0.7650, NZD 0.7275-0.7315
- Gold -0.2% at 1,338; Oil -1.1% at $45.81/brl; Copper -0.2% at $2.19/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 6.5 tonnes to 950.9 tonnes; Highest since Sept 7th
Asian Equity Markets (23:30ET)
- Nikkei -0.1%, Hang Seng +0.1%, ASX +0.7%, Shanghai -0.1%, Kospi +0.1%
Key economic data:
- (JP) JAPAN SEPT PRELIMINARY PMI MANUFACTURING: 50.3 V 49.5 PRIOR; first expansion in 7 months
- (HK) Macau Aug visitor arrivals: 2.88M, +3.1% y/y
Speakers/Press
China:
- (CN) Former China vice housing minister Qiu Baoxing warns about risk of overheating property sector - Chinese press
- (CN) Moody's: China developers will have stable margins in 2016 v 2015
- (CN) China State Administration of Foreign Exchange (SAFE) official: No basis for long term Yuan depreciation - financial press
Japan:
- (JP) Japan Chief Cabinet Sec Suga: Will continue to watch market moves, fx moves are very sensitive
- (JP) Japan Fin Min Aso: Reiterates Govt and BOJ need to work together on many issues; deflation is the main problem for the economy
- (JP) Japan Business Federation (Keidanren) chief Sakakibara met with China's Commerce Ministry, urging more transparent antitrust process - Nikkei
Asia movers
- China Unicom 762.HK +5.0%; Raised at Goldman Sachs
- Iluka Resources ILU.AU +4.8%; raised to buy from neutral at UBS
- Qube Holdings QUB.AU +4.6%; upgraded to outperform at Macquarie
- Warehouse Groupd WHS.NZ +1.4%: Reports FY16 adj net NZ$64.1M v NZ$57.1M y/y, Rev NZ$2.95B v NZ$2.78B y/y
- Gold miners trade lower on gold prices; Newcrest NCM.AU -2.8%, Evolution Mining EVN.AU -2.6%
- Wynn Macau -3.7%, MGM China -3.0% cut at Credit Suisse
- Dentsu 4324.JP -4.6%: Confirms issues with improper accounting in internet ads, apologizes to customers
- Charter Hall CHC.AU -6.6%; Halt lifted after Gandel Group block sale
- Whitehaven Coal WHC.AU -8.5%; Annual report, CEO pay hike
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Editors’ Picks
EUR/USD faces next resistance near 1.1930
EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.
GBP/USD slips heading into the Thursday trading window
The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions.
USD/JPY strengthens above 153.00 despite stronger US jobs data
The USD/JPY pair attracts some sellers to around 153.20 during the early Asian session on Thursday. The Japanese Yen strengthens against the US Dollar in the aftermath of Prime Minister Sanae Takaichi's landslide election victory. The attention will shift to the US Consumer Price Index inflation report, which is due later on Friday.
Editors’ Picks
AUD/USD now targets the 0.7150 zone
AUD/USD has rapidly left behind Tuesday’s pullback, advancing sharply to three-year highs past the 0.7100 barrier on Wednesday. The pair’s strong performance follows investors’ assessment of the RBA’s hawkish message and the likelihood of further tightening down the road.
USD/JPY strengthens above 153.00 despite stronger US jobs data
The USD/JPY pair attracts some sellers to around 153.20 during the early Asian session on Thursday. The Japanese Yen strengthens against the US Dollar in the aftermath of Prime Minister Sanae Takaichi's landslide election victory. The attention will shift to the US Consumer Price Index inflation report, which is due later on Friday.
Gold holds on to higher ground ahead of the next catalyst
Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.
Bitcoin holds steady despite strong US labour market
Bitcoin briefly bounced from $66,000 to above $68,000 but slightly reversed those gains following Wednesday's US January jobs report. The top crypto is hovering around $67,000, down 2% over the past 24 hours as of writing on Wednesday.
US jobs data surprises to the upside, boosts stocks but pushes back Fed rate cut expectations
This was an unusual payrolls report for two reasons. Firstly, because it was released on Wednesday, and secondly, because it included the 2025 revisions alongside the January NFP figure.
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