Jul 03 ,2024
Synopsis:
Asian markets set for positive start to Thursday trade. Futures pointing to opening gains in Japan, Hong Kong and Australia. S&P 500 futures flat afterhours (US markets closed Thursday for Independence Day holiday). Australian and New Zealand yields lower, tracking earlier Treasury rally. FX markets steady after dollar index fell to mid-June low. Gold rallied towards one-month high. Crude marginally higher. Bitcoin off overnight lows.
US political uncertainty dominating press headlines as questions swirl around whether Biden will withdraw from election race. Biden reportedly said he intends to remain in race following barrage of articles and political commentary noting waning support from Democrats. Betting markets show Vice President Harris now favorite to replace Biden, though Trump remains overall favorite to win election.
Bonds extending rebound as focus swings from US election dynamics to Fed rate cut expectations. June FOMC minutes showed participants reiterated need for more confidence on disinflation trajectory but also pointed to signs economy and inflation cooling. Adding to support for soft landing narrative was a surprise contraction in ISM services and ADP payrolls miss. Markets continue to price in two rate cuts in 2024 with first occurring in September.
EU-China trade tensions continue to escalate following reports EU weighing removing duty-free threshold for online purchases, impacting Chinese e-commerce platforms like Temu, AliExpress and Shein. Development signals trade tensions are broadening with EU also reportedly set to confirm provisional duties of up to 37.6% on Chinese EV brands later Thursday.
Pre-open Company News:
532477.IN -- Union Bank of India downgraded to hold from buy at B & K Securities
2408.TT -- Nanya Technology reports June revenue NT$3.36B, +36.8% y/y
JFC.PM -- Street Takeaways - Jollibee Foods subsidiary to acquire 70% of Compose Coffee for $340M (PHP20.01B) (100% basis)
^ASIAREADS -- StreetAccount Asia Reads
3990.HK -- Midea Real Estate Holding reports Jan-Jun contracted sales CNY20.21B; StreetAccount notes year-ago figure was CNY40.56B
BANPU.TB -- Banpu Public unit sells BKV Chaffee Corners for $106.7M, divests from BKV Chelsea non-operated upstream assets for $25.0M
500674.IN -- Sanofi India's General Medicines Medical Head and India Medical Lead, Shalini Menon, last working day is 5-Jul
000998.CH -- Yuan Longping high-tech Agriculture appoints Zhang Lin, Yin Xianwen as new rotating presidents
DDG.VN -- Indochine Import Export Investment Industrial to divest stake in CL Joint Stock Company
533150.IN -- Godrej Properties publishes Business Responsibility and Sustainability Report for FY2023-4
3301.HK -- Ronshine China Holdings reports June contracted sales CNY543.5M; StreetAccount notes year-ago figure was CNY1.81B
541729.IN -- HDFC Asset Management releases business responsibility and sustainability report
SSC.TB -- Thai Beverage Public makes tender offer for remaining 93.9M shares of Sermsuk Public at THB63/share
9843.JP -- Nitori Holdings downgraded to neutral from buy at Goldman Sachs
5347.TT -- Vanguard International Semiconductor downgraded to reduce from neutral at Nomura
On Deck:
Japan:
Earnings:
Kewpie (2809.JP), Kusuri No Aoki Holdings (3549.JP), DISCO Corp (6146.JP)
Australia:
Economic:
11:30 AEST: Trade Balance on Goods; consensus
Thailand:
Economic:
07:00 SAST: CPI NSA Y/Y; consensus +0.8%
Market Data:
Gold (Aug 24): ($2.60) or (0.11%) to $2366.80
WTI Crude (Aug 24): ($0.23) or (0.27%) to $83.65
$-¥: +0.21 or +0.13% to 161.6430
$-KRW: (0.60) or (0.04%) to 1386.1300
A$-$: +0.00 or +0.60% to 0.6707
$-INR: +0.00 or +0.00% to 83.4912
$-CNY: (0.00) or (0.03%) to 7.2686
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