Morning Report APAC: Strong US data, USDJPY continues to rise
- US ISM non-manufacturing composite hit highest level since October 2015
- ISM new orders showed biggest month-on-month jump since April 2009
- Strong US data pushed up the probability of a rate hike in December
- USDJPY continued to rise, up 0.6% overnight at 103.50
- Oil price moved to nearly $50 a barrel for the first time since June
By Saxo APAC Sales Trading
Economic data of the day (Singapore Time; GMT+8)
19:30: EUR – European Central Bank's account of the monetary policy meeting
22:50: EUR – ECB’s Ignazio Angeloni speaks in Amsterdam
23:35: CAD – Bank of Canada’s Carolyn Wilkins speaks at University of Quebec
US : ISM Non-Manufacturing Composite rose to 57.1 from 51.4 (exp. 53.0), the highest level since October 2015. Measures of employment and orders led the advance.
USDJPY confirmed the break higher in the weekly and daily charts two days ago and continues to rise, up 0.6% overnight at 103.50. The first resistance will be the pre-non-farm payrolls number at 104.50.
GBPUSD continued to slide but we saw some profit-taking below 1.2700 as the market is slightly long gamma at this level. We should continue to see sellers on rallies in the 1.2850/1.2880 range.
In emerging markets, the currency to watch is USDSGD, trading now at the 200-day MA at 1.3706. A break of this level will bring the pair to May highs at 1.3830. USDMXN is consolidating just above the 19.0000 level.
Foreign exchange movement
- John Hardy hosted a webinar yesterday in Europe with the title Q4: Hello volatility.
- John also had his Q4 outlook released yesterday, with video.
- Ole Hansen looks at gold below 1300 and where it will go from here.
- Ole also looks at crude oil post API inventory decline yesterday.
- Michael Boye sent out the Weekly Bond Update.
- Bank of East Asia (23 HK), NWS (659 HK): Agree to sell Tricor to Permira’s Trivium for HK$6.5b
- Kerry Properties (683 HK): Gets Beacon Hill site for HK$7.27b
- Fosun Intl (656 HK): Said near buying 55% of Brazil Hospital for BRL1b: Valor
- Melco (200 HK): Submits proposal for Cyprus casino with Hard Rock consortium
- New World Development (17 HK): Sells Optimum Result unit
- StanChart (2888 HK): Appoints CFO for Africa, Middle East
- Kerry PPTY (683) won the bid for luxury residential land in Beacon Hill with HK$7.269bn, equivalent to ~HK$21,200psf. Market forecasts, after completion, selling px could hit above HK$40,000psf.
- K Wah (173) says HK property market has been positive in the past few months and expects some regions may post a larger growth in price, such as Kai Tai.
- New World Dev (17) sold its Optimum Result at a consideration of HK$285m. One of the main assets of Optimum Result is a property in Kowloon Bay.
- Modern Land (1107) Sep contracted sales at RMB1.907bn, up 90.44% YoY.
- Country Garden (2007) bought back 16.9m shares on Oct 5.
- Fantasia (1777) 9mth sales RMB9.518bn, up 16.41% YoY. Gross floor area sold was 997,600 sqm.
- Anhui Conch (914) short interest climbed to 14.5% of its outstanding shares on Oct 3, highest since Feb 2015 and highest among HK stocks.
- Cosco Group and China Shipping said to merge 11 shipbuilding yards into a single entity (WSJ)
- BEA (23) sold its Tricor to buyout firm Permira for HK$6.5bn, and expects to book HK$3.1bn profit vs its FY16 NP forecast of HK$3.9bn.
- Dah Sing (2356) launched a club deposit saving plan with 1.3% p.a. interest rate, which is higher than demand deposit.
- Shun Tak(242) said to sell 5 luxury houses in Stanley for HK$1.5bn
- Rici Health (1526) debut today, grey market closed at HK$2.43, down 5% from listing price.
- Honmagolf (6858) debut today, grey market closed at HK$10, same as listing price.
- Daikokutenbussan (2791 JP): Cut to neutral at Storm Research
- Kakaku.com (2371 JP): Raised to hold at Cantor Fitzgerald
- Nissan (7201 JP): Cut to neutral at UBS
- Ryohin Keikaku (7452 JP): Raised to outperform at Macquarie
- ABC-Mart (2670 JP): Q2 oper. profit down 9% to 9.68bn yen; trims full-year target 1.5%
- Aeon (8267 JP): Q2 oper. profit up 6% to 39.5bn yen; boosts 1H dividend 1 yen/share to 15 yen; maintains forecasts
- Aeon Delight (9787 JP): 1H oper. profit 8.51bn yen, in line with guidance
- Aeon Fantasy (4343 JP): 1H oper. profit 1.69bn yen vs co. forecast 1.47bn yen
- Askul (2678 JP): To buy back up to 1.9% of shares for 5bn yen
- Ryohin Keikaku (7453 JP): 2Q oper. profit up 28% to 8.34bn yen; maintains forecasts; to spend up to 4.8bn yen on buyback
- San-A (2659 JP): 1H oper. profit 8.08bn yen vs co. forecast 7.31bn yen
- United Super Markets (3222 JP): 1H oper. profit 6.96bn yen vs co. forecast 7.2bn yen
- Welcia Holdings (3141 JP): 1H oper. profit 11.6bn yen vs co. forecast 9.45bn yen
- Aristocrat Leisure (ALL AU) cut to sell vs hold at Morningstar
- Bendigo & Adelaide (BEN AU) cut to hold vs buy at Morningstar
- Vicinity Centres (VCX AU) raised to buy vs hold at Morningstar
- Nine Entertainment (NEC AU) cut to neutral vs buy at UBS
- Evolution Mining (EVN AU) Chairman Jake Klein speaks at Melbourne Mining Club, 12:30pm Melbourne
- BHP Billiton (BHP AU) petroleum chief Steve Pastor says oil & gas markets improving more quickly than minerals
- Arrium (ARI AU) to receive final bids on Australian unit in Dec.
- Syrah Resources (SYR AU) aims to appoint new CEO this year
Source: CIMB / Bloomberg
– Edited by Susan McDonald
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