Sep 15 ,2024
Synopsis:
Asian markets set for mixed start to Monday trade. Futures signaling mild opening drop in Hong Kong and small opening gain Australia (Japan and mainland China markets closed for holidays). S&P 500 futures flat after US indexes capped off big weekly rally. Australian and New Zealand bonds strengthening, taking cues from Friday's Treasury yield curve bull steepening. FX markets steady after yen neared highest against dollar since mid-2023. Crude adding to Friday's gains while gold flat. Bitcoin pulling back.
Another round of soft China economic activity data heightened doubts about authorities achieving 2024 growth target of ~5% after industrial production, fixed asset investment and retail sales growth all missed expectations. Property metrics disappointed with real investment declines pacing at more than 10% and house prices contracting at faster rate. Credit demand also remained soft with rebound in new loans disappointing.
Weak August data appeared to confirm market fears after China benchmarks extended losses last week with CSI 300 down to lowest since early 2019. In contrast, risk aversion helped drive sovereign yields to fresh record lows even as PBOC steps up efforts to combat bond rally. While growth risks seen adding to urgency for fresh policy support, equities have largely shrugged off piece meal efforts so far amid concerns policymakers falling further behind the curve.
Fed the main even this week with key question around whether it cuts by 25 bp or 50 bp. Odds of 50 bp cut rose Friday following press reports suggesting decision will be close call, though most economists anticipate 25 bp cut. Updated dot plot will help shape expectations surrounding near-term rate path with futures pricing in ~114 bp of easing by end-2024, implying at least one 50 bp cut in final three meetings of the year.
Pre-open Company News:
533148.IN -- JSW Energy completes commissioning of 300 MW ISTS-connected wind power project awarded by SECI
543322.IN -- Glenmark Life Sciences downgraded to reduce from buy at Kotak Securities
6855.HK -- Ascentage Pharma releases latest data showing sustained clinical efficacy of olverembatinib in SDH-deficient GIST during a mini oral presentation
Morgan Stanley upgrades Innolux & AUO Corp
83.HK -- Sino Land downgraded to neutral from buy at BofA
BMY -- Bristol Myers Squibb presents landmark 10-Year follow-up data from CheckMate -067 which showed continued durable long-term survival benefit with Opdivo plus Yervoy in advanced melanoma
8795.JP -- T&D Holdings initiated A at Iwai Cosmo Securities
3711.TT -- ASE Technology Holding upgraded to overweight from equal-weight at Morgan Stanley
IPN.FP -- Ipsen provides update on CONTACT-02 Phase III trial in metastatic castration-resistant prostate cancer following final overall survival analysis
034220.KS -- LG Display upgraded to overweight from equal-weight at Morgan Stanley
9926.HK -- Akeso published ivonescimab plus ligufalimab as first-line treatment for PD-L1-positive recurrent/metastatic head and neck squamous cell carcinoma at ESMO 2024
S68.SP -- Singapore Exchange downgraded to sell from neutral at UBS
2142.HK -- Harbour BioMed announces the latest clinical data on the first-in-class fully human anti-B7H7/HHLA2 monoclonal antibody HBM1020 at the ESMO congress 2024
2096.HK -- Simcere Pharmaceutical Group announces Breakthrough Therapy designation for Sanbexin Sublingual Tablets granted by the FDA
2888.HK -- Standard Chartered upgraded to outperform at CICC
Market Data:
Gold (Dec 24): ($2.70) or (0.10%) to $2608.00
WTI Crude (Oct 24): +$0.24 or +0.35% to $68.89
$-¥: (0.07) or (0.05%) to 140.7500
$-KRW: (1.04) or (0.08%) to 1328.5000
A$-$: +0.00 or +0.12% to 0.6710
$-INR: (0.00) or (0.00%) to 83.8830
$-CNY: (0.00) or (0.01%) to 7.0927
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