Article / 19 October 2016 at 1:51 GMT

Morning Report APAC: Asian markets wait on Chinese data

APAC Sales Trading Desk / Saxo Capital Markets


  • Asian markets are waiting on Chinese data, including third-quarter GDP 
  • Netflix closed up 19% on a larger-than-expected increase in new additions
  • US inflation came in broadly in line with expectations 
  • The USD was in a choppy mixed range yesterday with no real direction

By Saxo APAC Sales Trading

Economic data of the day (Singapore Time; GMT+8)



  •   2045 - USD - Federal Reserve's John Williams speaks in New Jersey
  • - 21:15 - GBP - UK Chancellor Philip Hammond testifies to the Treasury committee
  • - 23:15 - CAD - Bank of Canada’s Stephen Poloz holds a press conference post the BoC decision due today

Overnight news

United States

US inflation came in broadly in line with expectations showing a reasonably robust inflation picture with headline at a 23-month high at 1.5% and core printing at 2.2%, slightly below expectations.

United Kingdom

Inflation data in the UK showed a greater-than-expected increase as base effects of the weaker GBP appear to be showing. The strong set of data yesterday will create much debate as to the Bank of England's next move. The Brexit shock has not, as yet, reflected itself in much weaker economic data in part because of the GBP move acting as a shock absorber. The question the BoE now faces is whether to ease further, throwing the GBP further under the bus and risking inflation overshooting.

Foreign exchange



  • The USD was in a choppy mixed range yesterday with no real direction and divergent performance against the crosses. Positioning continues to be trimmed and levels sought to re-establish longs.
  • The EUR initially traded firm in Asia yesterday before losing momentum on the release of the US CPI data.
  • Emerging Markets currencies continued to rebound with all currencies performing. Is this a sustained bounce in EM or just a pull back? Personally we think the latter.

Foreign exchange volatilities


  • Generally volatilities continue to soften and gamma declines
  • Interest in EURUSD downside has increased. As we have mentioned previously, the best expression of USD strength in our opinion is EUR weakness. The market is seemingly in agreement as downside as the increase in positions looking at 1.09 and below has picked up.



  • US Treasury prices rose on Tuesday, driving yields lower, after September core CPI data disappointed.
  • The yield on the 30-year bond slipped 1.1 basis points to 2.511%, while the 10-year Treasury declined by 1.8 basis points to 1.748%. 
  • The UK’s 10-year gilt rose as high as 1.136%, after CPI data outstripped expectations, however the move eventually faded and retreated back to around 1%







  • US stocks closed higher as stronger-than-expected quarterly results from a roster of companies brought confidence broadly. The S&P 500 index finished up 13.10 points to 2,139.60, with all main sectors in green.
  • Goldman Sachs shares closed up 2.2% after the investment bank reported a strong rebound with quarterly earnings rising 47%, thanks to a rebound in trading revenues.
  • Netflix surged and closed up 19% after results blew past Wall Street expectations with a larger-than-expected increase in new additions. The streaming company’s shares recorded their largest daily increase since July 31, 2015.
  • A broad-based rally pushed European stocks to the biggest advance in almost a month on optimism monetary policy will remain supportive of growth. The Stoxx Europe 600 Index added 1.5% at the close. The FTSE 100 popped up 0.8% to close at 7,000.06.
  • Burberry Group tumbled 7.2% after its wholesale revenue declined more than expected in the first half of the year.

Asia-Pacific stocks

IPO watch

  • Charter Hall Long Wale REIT (CLW AU) trading debut expected after selling 280.2mln shares at $A4 each
  • New Zealand King Salmon Investments (NZK NZ) trading debut expected after selling 69.23mln shares at $NZ1.12 each

 Greater China highlights

  • Beijing Kunlun Tech (300418 CH): LendInvest buys back stake from Beijing Kunlun: Financial Times
  • China Mobile (941 HK): China Mobile H.K., Huawei H.K. in pact for LTE network
  • TCL Corp. (000100 CH): To invest $100mln in Argentina over 12 months

 Japan highlights

  • Astellas (4503 JP): FDA modifiesindication for Tarceva for NSCLC
  • DIC (4631 JP): Jan-Sept. oper. profit seen up 8% y/y: Nikkei
  • Mitsui & Co. (8031 JP): To buy stake in Indonesian online retailer: Nikkei

South-east Asia highlights

  • MNC Investama (BHIT IJ): To offer 1.45bn of new shares on Oct. 25
  • M1 (M1 SP): Q3 net $S34.4 vs $S44.9mln
  • Siam Commercial (SCB TB): Q3 net 11.53bn baht; analyst est. 12.4bn baht

Source: Bloomberg


WTI rose and hovered around $50/barrel. Photo: iStock

– Edited by Gayle Bryant

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. 

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 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.

Copyright | Disclaimer | Risk Warning | Privacy Policy | Contact Us
Samsung Hub | 3 Church Street | # 30-01 | Singapore 049483
Company No. 200601141M


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail