Morning Report APAC: WTI crude breaks $45 after Saudi comments
- The oil price fell after pessimistic comments from Saudi Arabia
- WTI crude plunged by 4%, to below $45 a barrel
- The US stock market was taken down by the sharp slide in oil prices
By Saxo APAC Sales Trading
Economic data of the day (Singapore Time)
13:30: JPY – Bank of Japan's Haruhiko Kuroda makes a speech in Osaka
22:00: EUR – European Central Bank's Mario Draghi speaks at European Parliament in Brussels
23:45: USD – US Federal Reserve’s Daniel Tarullo speaks on next steps in bank stress testing
Fed speech: Boston Federal Reserve President Eric Rosengren said, "Unemployment this low may well have the desirable effect of bringing more workers into the labour force but, unfortunately, only temporarily".
"By 2019, I expect the unemployment rate to have declined below 4.5%. While I have a long track record of advocating for policy that supports robust labour market conditions, that is below the rate that I believe is sustainable in the long run.”
Minneapolis Federal Reserve President Neel Kashkari said he was more worried about raising rates too quickly than too slowly, largely because the central bank is better equipped to fight high inflation than low inflation. Kashkari also suggested that he is worried that the Fed may not be willing to allow inflation to overshoot its 2% target.
US: The Markit US Manufacturing PMI dropped to 51.4 from 52.0 (Exp. 52.0). Softer rates of output and new business growth were the main factors weighing on the headline PMI.
Foreign exchange movement
- China Resources Gas (1193 HK): Cut to outperform at Daiwa
- Singyes Solar (750 HK): Raised to buy at Goldman
- China Cinda (1359): Issuing $3.2bn of 4.45% offshore preference shares
- China Gas (384): To earn 20% of gross profit from value-added services
- Chalco (3668) To be privatised at a prem of 33%. Resumes today
- CKI (1038): May see antitrust issues on National Grid deal
- CRGas (1193): Said to bid for National Grid arm stake
- Nanjing Panda (553): Says controlling holder planning asset injection
- Phoenix TV: Plans to invest HK$2.4bn in free channels: RTHK
- Wanda (3699): Co. to invest another 10bn yuan in Hefei Wanda City project
- HSBC (5) Buyback of 3.52m shares @ 573.28p
- CGN Power (1816) to acquire assets from China General Nuclear Power for 9.92bn yuan
- CKI (1038) may face regulatory hurdles if it bids for National Grid, since the co. already owns stakes in two networks in UK
- Guotai Junan (601211 CH) Board approves Hong Kong listing plan
- ASKUL (2678 JP): Rated new sell at Haitong
- Calsonic Kansei (7248 JP): Cut to neutral at Mizuho
- Kawasaki Heavy (7012 JP): Raised to overweight at JPMorgan
- Kura (2695 JP): Raised to outperform at Iwai Cosmo
- Nichirei (2871 JP): Raised to outperform at Daiwa
- Nikon (7731 JP): Raised to buy at Citi
- Olympus (7733 JP): Cut to neutral at Macquarie
- Starts (8850 JP): Rated new buy at Ichiyoshi Research
- Sumitomo Bakelite (4203 JP): Raised to overweight at Mitsubishi UFJ Morgan Stanley
- Acom (8572 JP): Credit rating raised to BBB from BBB- at S&P; rating withdrawn at co. request
- Aomori Bank (8342 JP): Lifts 1H net income forecast 56% to 2.8bn yen
- Ministop (9946 JP): Prelim. 1H oper. profit 1.56bn yen vs co. forecast 2.56bn yen
- Nitori (9843 JP): Sept. same-store sales down 1.2% y/y
- Shimamura (8227 JP): Sept. same-store sales down 13.8% y/y
- Snakk Media (SNK NZ) annual meeting
- Augusta Capital (AUG NZ) buys 9.3% stake in NPT
- Emeco (EHL AU) says to merge with Orionstone and Andy’s Earthmovers; announces recapitalisation plan
- Fortescue Metals (FMG AU) CEO says company and Vale remain committed to JV plan
Source: CIMB / Bloomberg
– 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
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