Jul 03 ,2023
Synopsis:
Asian markets set for a muted start to Tuesday trade. Nikkei and Hang Seng futures marginally lower while ASX futures flat. US contracts little changed afterhours. Follows similarly quiet offshore session ahead of US Independence Day holiday on Tuesday. Asian bond markets back under pressure with Australian curve flattening ahead of RBA. FX markets steady after dollar index eased from earlier highs. Commodities fluctuating.
RBA decision could go either way with economists split on whether central bank will hike by 25 bp or hold. Sticky services inflation, wage growth pressures from tight labor market, retail sales rebound and recent hawkish turn by global central banks underpinning rate hike expectations. Falling headline inflation, deteriorating high frequency data on consumer spending and need to assess lagged effect of past tightening among the arguments for a hold.
In geopolitical developments, China imposed curbs on two critical minerals important inputs to semiconductor and EV industries. Development considered retaliation for US-led restrictions on exports of advanced technology to China, though may not have long-term consequences given other countries produce those metals. Moreover, efforts to tamp down bilateral tensions continue with Treasury Secretary Yellen to visit Beijing this week.
Pre-open Company News:
2208.HK -- Goldwin Science & Technology sells remaining 26% stake in Moorabool windfarm pursuant to call option
603355.CH -- KingClean Electric Co. guides H1 net income attributable CNY495.0-605.0M vs year-ago CNY482.0M
5880.TT -- Taiwan Cooperative Financial Holding chair Lin Chien-Hao passed away
2696.HK -- Shanghai Henlius Biotech terminates plans to list on STAR Market
StreetAccount China Healthcare Sector Update: 27 provinces begin the rollout of centralized procurement program for generics and off-patent originator drugs; 39 drugs won the bid with (56%) average cut
China reports Jun lithium carbonate (battery grade) average price CNY309.6K/ton, +CNY47.5K from last month
601677.CH -- Henan Mingtai Al. Industrial Co. reports June aluminum sheet production 104.3K
Index changes: Due to prolonged suspension, stocks to be removed from Hang Seng Composite Index, effective 11-Jul
1908.HK -- C&D International Investment Group reports H1 accumulated contracted sales CNY74.73B, +55.7% y/y
NTP.VN -- Tien Phong Plastics chairman Dang Quoc Dung to purchase 10M shares from 4-Jul to 31-Jul
NTP.VN -- Tien Phong Plastics chairman Dang Quoc Dung's connected person to dispose 9.0M shares from 4-Jul to 31-Jul
1691.HK -- JS Global Lifestyle sets basis of entitlement for SharkNinja IPO at one-for-25 JS Global shares
BKL.AU -- Kirin receives FIRB and SAMR approval for acquiring 100% stake in Blackmores
S68.SP -- Singapore Exchange and NSE International Exchange commences full-scale operations of NSE IX-SGX GIFT Connect
C6L.SP -- Singapore Airlines downgraded to reduce from hold at CGS-CIMB
On Deck:
Australia:
Economic:
14:30 AEST: RBA Official Cash Rate; consensus +4.10%
Market Data:
Gold (Aug 23): ($0.80) or (0.04%) to $1928.70
WTI Crude (Aug 23): +$0.26 or +0.37% to $70.05
$-¥: +0.32 or +0.22% to 144.6330
$-KRW: (10.85) or (0.82%) to 1305.4500
A$-$: +0.00 or +0.17% to 0.6674
$-INR: (0.15) or (0.19%) to 81.9440
$-CNY: (0.01) or (0.19%) to 7.2398
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