Morning Report APAC: Asian shares open lower amid UK political turmoil
- Theresa May tweaks cabinet in an effort to suppress dissent
- PM's office admits May hasn't yet reached a deal to govern with DUP
- US Attorney General Jeff Sessions will testify on Tuesday before Senate
- Macron’s party projected to have won 33% of French first-round parliamentary vote
- GBP seems to have found good support ahead of 200-day moving average
- Gold left vulnerable to profit-taking after three-week buying spree
- Markets in Australia and Malaysia are closed for holidays
By Saxo APAC Sales Trading
Economic data of the day (Singapore Time)
UK: Theresa May's office admitted she hasn't reached a deal to govern with a Northern Irish party after last week's calamitous UK election. The Prime Minister tweaked her cabinet in an effort to suppress dissent but could now struggle to push through plans for a hard Brexit. Foreign Secretary Boris Johnson said "everyone" is backing May in the wake of a report suggesting he'd challenge for the leadership. Ex-chancellor George Osborne was quick to put in the knife. "May is a dead woman walking," he said.
North Korea: North Korea has moved closer to test-firing an ICBM with the potential of hitting the US mainland, according to Pyongyang's official news agency.
US: Attorney General Jeff Sessions will testify on Tuesday before the Senate on Russia's meddling in the election as Donald Trump slammed James Comey on Twitter. The president called the ex-FBI director "cowardly" and asked rhetorically if his descriptions of Oval Office conversations were "totally illegal?" Trump said he'd be willing to testify under oath that he didn't demand a pledge of loyalty from Comey.
France: Emmanuel Macron’s party En Marche won about 33% of the first-round vote in France's parliamentary vote, about 13 percentage points ahead of the Republicans, according to projections based on early vote counts. That may give Macron up to 440 seats out of 577 in the lower house, pollster Kantar Sofres said. The second round is next Sunday.
Foreign exchange movement
Asia Pacific Stocks
- Tus-Sound Environmental (000826 CH): Rated new buy at Qilu Securities, PT 40 yuan
- Developers: HK home prices rise 0.09% on week: Centaline; China to let Taiwan workers access public housing fund: Xinhua; HK to cut public housing unit offerings to 25,400: Oriental; HK government to sell site in Sha Tin by public tender
- Coal: Shandong province to to cut 3.51m tons of annual coal capacity in end-Aug: Xinhua
- Food producers: China corn seen in deficit for first time in 7 years: CNGOIC; China sees bumper grain harvest this summer: Ag Ministry
- Insurance: China may require insurance coverage on potential polluters
- Internet services: Regulator closes some celebrity gossip accounts
- Refiners: China cuts fuel prices from Saturday; China teapots raise run rate to highest level since mid-April
- Steel: EU imposes duties to counter Chinese steel subsidies
- Bocom International (3329 HK): Over-allotment option of about 10.16% offer shares exercised
- Baosight (601601 CH), Pacific Insurance (900926 CH) plan cooperation on data service
- Baosteel (600019 CH) keeps July hot-rolled steel prices flat
- China Railway Construction (1186 HK): Consortium wins 17.9bn yuan road project
- China Resources Land (1109 HK) May contract sales 12.1bn yuan
- China Shenhua Energy (1088 HK): Planning significant matter, A-shares to stay suspended
- China Vanke (2202 CH): Evergrande (3333 HK) to sell stake in China for $4.3bn; Shenzhen Metro says it will support Vanke’s board reshuffle, to be largest shareholder
- ICBC (601398 CH): Vale signs $2bn revolving credit line
- Kaisa (1638 HK): Said to indicate minimum yields for new bonds
- Man Wah (1999 HK): Bought back 18.3m shrs for HK$123.7m June 9
- Minsheng Bank gets CBRC approval for Tier-2 capital bonds
- Sunny Optical (2382 HK): May handset lens sets shipments rise 87.1% on year
- Yanzhou Coal (1171 HK): Glencore (805 HK) submits rival proposal for Rio’s Coal & Allied unit; Yanzhou coal sees its bid clearing regulators by end of June
- H2O Retailing (8242): Cut to neutral Plus at Iwai Cosmo
- IHI (7013): Upgraded to buy at Mizuho
- Kitz (6498): Raised to outperform at Daiwa
- Mizuno (8022): Raised to neutral at MUFJ-MS
- Nissha Printing (7915): Upgraded to overweight at JPMorgan
- Okinawa Electric (9511): Cut to underweight at MUFJ-MS
- Sodick (6143): Rated new neutral plus at Mito Securities
- Square Enix Holdings (9684): Cut to outperform at Daiwa
- Taisho Pharma (4581): Cut to underperform at Credit Suisse
- THK (6481): Raised to outperform at Daiwa
- TS Tech (7313): Raised to neutral at MUFJ-MS
- Astellas Pharma (4503): Together with Pfizer sees Enzalutamide trial completing two years early
- Don Quijote Holdings (7532): May store sales up 2.8% y/y
- Finance industry: Tokyo to reduce city taxes for financial firms to bolster transactions
- Giken (6289): Seeks 3.33bn yen from public share sale
- Gumi (3903): Swings to full-year net profit of 1.4bn yen from 3.3bn yen loss a year ago
- Hitachi Zosen (7004): Restates FY earnings to correct cash flow figure
- KOMEDA Holdings (3543): To conduct secondary share sale
- Nadex (7435): Preliminary full-year net income at 1.3bn yen, beating company forecast by 61%
- Neojapan (3921): To conduct 2-for-1 stock split on July 1
- Orix (8591): Said to explore bidding for $4bn Equis renewable assets
- Round One (4680): May same-store sales fall 0.2% y/y
- Sekisui House (1928): 1Q net income 69% y/y to 25.8bn yen, keeps full-year outlook unchanged
- Shimadzu (7701): Suspended from Japan defense ministry equipment contracts
Ex-UK chancellor George Osborne was quick to put in the knife: "May is a dead woman walking," he said. Photo: Shutterstock
– Edited by Susan McDonald
This report was compiled by the Saxo APAC Sales trading team in Singapore – the home of social trading. Follow the team on @SaxoStrats or post your comment below to engage with Saxo Bank's social trading platform. Follow us on @SaxoStrats on Twitter
All material contained herein is provided for your general information. The information and commentaries are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Saxo Capital Markets Pte. Ltd. (“SCM SG”). Any expression of opinion (which may be subject to change without notice) is personal to the presenter and/or author; they do not reflect the view or opinion of SCM SG or its affiliates, neither do they constitute an endorsement of SCM SG’s view or analysis of the same.
None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. SCM SG does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment based on any commentaries or information provided here.
For further information, please click here.
Saxo Capital Markets Pte Ltd ("Saxo Capital Markets") is a licensed subsidiary of Saxo Bank A/S, an online trading and investment specialist. Saxo Capital Markets serves as the APAC headquarters and holds a capital markets services licence under the Monetary Authority of Singapore; and a commodity broker licence issued by the International Enterprise Singapore. Clients can trade Forex, CFDs, Stocks, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, the leading multi-asset online trading platforms.
Trading risks are magnified by leverage - losses can exceed your deposits. Trade only after you have acknowledged and accepted the risks. You should carefully consider whether trading in leveraged products is appropriate for you based on your financial circumstances. Please consider our Risk Warning and General Business Terms before trading with us. Please see full General Disclaimer.
Thousands of serious traders receive free news and analysis from Saxo Capital Markets each day. Saxo Capital Markets never sends these emails unsolicited; they are sent following acceptance of your membership and subscription request by Saxo Capital Markets at saxomarkets.com.sg. If you do not wish to receive any emails from Saxo Capital Markets in the future, please reply to this email with the word "UNSUBSCRIBE" in the subject header.
Samsung Hub | 3 Church Street | # 30-01 | Singapore 049483
Company No. 200601141M