Jacob Pouncey
Hype among retail investors drove the 2017 crypto bull market to feverish highs as newcomers sought quick and big profits. But a raft of regulatory changes as well as the launch of futures mean those days are long gone and the story of 2018 so far is of depressed sentiment and prices.
Article / 11 August 2017 at 1:32 GMT

Morning Report APAC: Trump's ramped-up rhetoric weighs on Asia

APAC Sales Trading Desk / Saxo Capital Markets

  • Donald Trump has escalated his rhetoric on North Korea again
  • US President says his warning to bring 'fire and fury' may not have gone far enough
  • US equities retreated and spot gold reached its highest level in eight weeks
  • Asian stocks were pressured in early trade and USDJPY fell to eight-week low


By Saxo APAC Sales Trading

Economic data of the day (Singapore Time)



21:40 - US Federal Reserve's Robert Kaplan speaks in Arlington, Texas

23:30 - US Federal Reserve's Neel Kashkari speaks to Independent Community Bankers of Minn

Overnight news

North Korea:  President Donald Trump on Thursday ramped up his rhetoric on North Korea again, saying his warning of bringing "fire and fury" to the isolated nation may not have gone far enough. "If anything, maybe that statement wasn't tough enough," he told reporters at his New Jersey golf club. "The people of this country should be very comfortable, and I will tell you this: If North Korea does anything in terms of even thinking about attack, of anybody that we love or we represent or our allies or us, they can be very, very nervous," Trump said. "I'll tell you why, and they should be very nervous. Because things will happen to them like they never thought possible." 

US:  Initial Jobless Claims increased 3,000 to 244,000 and continuing claims remain below the 2m mark. 

An unexpected decrease in US wholesale prices in July, the first in nearly a year, signals inflation will remain tame: PPI shrank to -0.1% from +0.1%. More than 80% of the July decline in producer prices was due to a 0.2% drop in costs of services, the first in five months. Most of the decrease in services inflation reflected a slump in margins at chemical wholesalers. Price indices also moved lower for equipment wholesalers, apparel retailers.


Foreign exchange



USD: Despite the big fall in equities, USD didn't move much overnight, with the exception of USDJPY, which dropped 0.7%. 

JPY: USDJPY is confirming a break of the support line we had since April 2017, which was a resistance in 2016. There is no major support now until 105 and an escalation of risk-off due to North Korea/Trump will trigger a lot of selling interest in crossJPY, EURJPY having one of the best values to sell at this level. 

NZD: Continues to be well offered following the comments from assistant governor McDermott yesterday indicating again the intervention talk. 

Emerging Markets: There was no risk-off trade in EM, except for obviously USDKRW. Watch out for the EEM ETF tracking the EM equities, which dropped 1.7% yesterday.

Foreign exchange movement



Cross JPY downside are very bid, with all the funds rushing to buy to hedge the risk-off generated by North Korea .

Volatilities in downside USDCNH are moving up because funds are buying back the short leg of their USDCNH put spreads to keep only the downside move.



US Treasury yields across 5-year to 30-year tenors lower with front-end slightly lagging as bull-flattening spurred by flight-to-quality momentum.

Bunds rallied with 10-year yields dragged to session lows in the afternoon, before stalling at 0.40%, while overall core EGB curves continued to bull-flatten as stocks fell.






Finally, volatility is back! And more often than not, when volatility, or fear indicators, creeps up we will see stock market indices retreat. The Dow Jones fell below the 22,000 level as tension between North Korea and the US increased. 

Macy's tumbled 10.2% today despite reporting better-than-expected earnings as results failed to convince investors of an improving outlook. Similarly, Kohl's Corporation also fell 5.8% as investors doesn't see top-line sales improvement, which triggered a drop in retail departmental stores.

Nvidia posted its result after the market close and future guidance easily beat analysts' estimate but still resulted in a 7% drop in the share price in after-market trading, as investors expected much more from one of the hottest stocks in the tech sector now. Bubbles in the tech sector?

Asia Pacific Stocks

Hong Kong 

Analyst Ratings: 

  •  Fuyao Glass (3606 CH): H Shares Cut to Hold at Jefferies, PT HK$25 
  •  HKEX (388 HK): HKEX Cut to Hold at China Galaxy, PT HK$246 
  •  Rusal (486 HK): Assumed New Buy At BCS, PT HKD7.3 
  •  Yuexiu REIT (405 HK): New Buy at DBS Vickers, PT HK$5.98 


  •  Baoshan Steel (600019 CH): Xinjiang BA Yi to Buy Assets From Parent in Restructuring 
  •  BOE Tech (200725 CH): BOE Tech Plans 6b Yuan Investment in TFT-LCD Project in Wuhan 
  •  Chalco (2600 HK): Guinea, Chinalco in Talks on Infrastructure of Simandou Project 
  •  Country Garden (2007 HK): Country Garden Jan-July Contract Sales 333.9B Yuan 
  •  Dongfeng Motor (489 HK): Dongfeng Group July Vehicle Sales Volume 228,904 Units 
  •  Fosun International (656 HK): Fosun, Shanghai Pharma Are Said to Bid for KKR-Backed Arbor 
  •  Glencore (805 HK): Glencore Slashes Debt as It Positions for M&A in Commodities 
  •  Glencore (805 HK): Glencore Looking at Different Opportunities in U.S. Agriculture 
  •  Greenland Holdings (600606 CH): Greenland Holding $500m 3Y Bond 4.9% 
  •  Henan Pinggao Electric (600312 CH): Henan Pinggao 1H Net 350.2m Yuan vs 541.6m Yuan Year Ago 
  •  HSBC (5 HK): HSBC Says 2017 Second Interim Dividend Payable Sept. 20 
  •  HSBC (5 HK): HSBC Bought Back 3.58m Shares at Avg 751.88 Pence Each Aug. 10 
  •  Huaxia Bank (600015 CH): Huaxia Bank 1H Net 9.84b Yuan vs 9.83b Yuan Year Ago 
  •  Huiyuan Juice (1886 HK): China Huiyuan Juice Sells $150m 6.5% Senior Notes Due 2020 
  •  Jiangsu Protruly (600074 CH): Jiangsu Protruly 1H Net 368.3m Yuan vs 336.2m Yuan Year Ago 
  •  Leshi Internet (300104 CH): Compal Unit Scraps Plan to Invest in Leshi Zhixin 
  •  MTR (66 HK): MTR First-Half Underlying Profit Rises 15% Y/y to HK$5.85 Bln 
  •  PCCW (8 HK): PCCW First Half Net Income HK$1.29 Bln 
  •  PCCW (8 HK): Hony Capital, Foxconn Ventures, Temasek Invest in PCCW Unit 
  •  Ping An Bank (000001 CH): Ping An Bank First Half Net Income 12.6 Bln Yuan 
  •  Risesun (002146 CH): Risesun 1H Net 1.68b Yuan vs 1.3b Yuan Year Ago 
  •  Semiconductor Manufacturing (981 HK): SMIC in Pact for $1.22B Cash Contribution to Joint Venture 
  •  Shanghai Electric (600021 CH):Shanghai Electric Is Said to Be Among Bidders for Eolia 
  •  Shanghai Fosun Pharma (600196 CH): Jilin Yatai Unit to Buy Assets From Fosun Pharma, Other Company 
  •  Wharf (4 HK): Wharf PT Raised to HK$100 at Citi on Privatization Expectation 
  •  Zhangze Electric (000767 CH): China Regulator Fines Zhangze Electric on Antitrust Violations 


Analyst Ratings: 

  •  Incitec Pivot (IPL): Raised to neutral at Credit Suisse, PT A$3.29 
  •  Northern Star (NST): Raised to buy at Canaccord, PT A$5.50 


  •  Trading ex-div.: Scentre Group, Tabcorp, Westfield 
  •  Alliance Aviation (AQZ): New buy at APP Securities, PT A$1.52 
  •  ANZ (ANZ): Said to hire 6 banks for potential A$1bn hybrid: AFR 
  •  Commonwealth Bank (CBA): May face fines from HKMA tied to Austrac investigation: AFR 
  •  Crown Resorts (CWN): Packer sells Crown shares taking voting stake to 48.46%: Filing 
  •  Fortescue (FMG), BHP Billiton (BHP), Rio Tinto (RIO): Iron ore rises for 3rd time in four sessions, rises to highest since April 6. 
  •  Macquarie Group (MQG): Said to charge $25,000 for MiFID research access 
  •  National Australia Bank (NAB): 3Q trading update; NOTE: FY16 3Q unaudited cash earnings from continuing ops ~A$1.6bn 
  •  News Corp (NWS): Fourth quarter revenue misses estimates 
  •  REA Group (REA): FY results expected; NOTE: FY17 adj. net income est. A$252.4m (13 analysts) 
  •  South32 (S32): Chief Technology Officer Ricus Grimbeek leaving company 
  •  Woodside (WPL), WorleyParsons (WOR), Oil Search (OSH), Beach Energy (BPT), Karoon (KAR), Origin Energy (ORG), Santos (STO): Oil drops after failure to hold $50 even as stockpiles shrink 
  •  Bank of New York Australia ADR Index -1.9%, biggest one-day fall since June 20 
  •  BHP Billiton ADR -1.8% to A$25.78 equivalent, 1.1% discount to last Sydney close 
  •  Rio Tinto ADR -1.7% to A$57.62 equivalent, ~11% discount to last Sydney close 
  •  Companies trading above 20/50/200 DMAs, Bollinger upper band with RSI above 70: MIN, CAR, IFL, WSA 
  •  Companies trading below 20/50/200 DMAs, Bollinger lower band with RSI below 30: JHX, TME, SKC, MYX


'Things will happen to them like they never thought possible,' said Trump of North Korea. 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 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

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