Daily European Opening News: 13th March 2018 – Now available in the Research Suite

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Asian equities trade mixed amid a lack of overnight catalysts USD/JPY recoups some losses seen after the government land-sale scandal on Monday Looking ahead, highlights include US CPI, UK Spring Statement and a speech from BoC Governor Poloz ASIA

Asia stocks were mixed following a similar varied lead from Wall St where S&P 500 and DJIA finished negative as Trump tariff overhang weighed heavily on industrials, while the Nasdaq outperformed amid tech resilience to post a 7th consecutive gain and fresh record high. Furthermore, trade across the Asia-Pac region was quiet in which stocks lacked any significant drivers for price action. As such, ASX 200 (-0.4%) was subdued as mining and commodity-related stocks dragged on Australia, while the largest weighted financials sector was also lower as the royal commission began hearings on mortgage fraud. Nikkei 225 (+0.7%) spent most the session in negative territory, but later coat-tailed on a rebound in USD/JPY. Elsewhere, Hang Seng (-0.1%) and Shanghai Comp. (-0.2%) were choppy with trade indecisive after the PBoC kept its liquidity efforts tepid. Sector-wise, the Hang Seng Telecom Index underperformed following some downward broker moves, while banking names benefitted from proposals to consolidate regulatory agencies and after ‘Big 4’ AgBank reported preliminary earnings as well as a private placement to raise as much as USD 15.8bln. Finally, 10yr JGBs lack demand and retreated below the 151.00 level amid a late recovery in Japanese stocks and following mixed 5yr auction results which attracted reduced interest than prior.

PBoC injected CNY 30bln via 7-day reverse repos and CNY 30bln via 28-day reverse repos. (Newswires)
PBoC set CNY mid-point at 6.3218 (Prev. 6.3333)


Eurozone creditors are working on debt relief for Greece, which includes support measures that could run into tens of billions of euros. (Newswires)


JPY was the most active currency overnight in which USD/JPY and JPY-crosses steadily recouped most of the losses seen from the resurfacing of the government land-sale scandal. The DXY eked mild gains and reclaimed the 90.00 level as EUR/USD and GBP/USD pulled back from Monday’s gains, with the latter back slipping back below the 1.3900 handle. Elsewhere, AUD/USD was range-bound amid mixed data releases and NZD/USD outperformed its peer after having reclaimed the 0.7300 handle.

Australian Home Loans (Jan) M/M -1.1% vs. Exp. -0.1% (Prev. -2.3%). (Newswires)
Australian Investment Lending (Jan) M/M 1.1% (Prev. -2.6%)
Australian NAB Business Conditions (Feb) 21 (Prev. 19)
Australian NAB Business Confidence (Feb) 9 (Prev. 12)


WTI was subdued after yesterday’s losses in which prices briefly fell below USD 61/bbl amid expectations of a build in stockpiles according to Genscape and with OPEC and IEA monthly reports also seen to add to the backdrop of record US output. Elsewhere, gold saw marginal losses amid a slightly firmer greenback and with attention shifting to today’s US CPI data release, while copper was uneventful and mirrored the lacklustre risk tone.

US total shale oil production for April forecast to rise 131k at 6.954mln bpd (Prev. +105k bpd in March). (Newswires)

Workers at Libya’s Zawiya oil port are said to halt loadings despite earlier reports of negotiations taking place to end strike action at Zawiya. (Newswires)


Action in Treasuries was subdued on Monday, and volume was thin. In the prior overnight trade, the curve had bear steepened amid a constructive risk environment. However, gains were seen through European and US trade, despite a healthy slate of corporate issuance. US T-note futures settled 6 ticks higher at 120-27.

US President Trump said he is very serious on part 2 of tax reform. (Newswires)

Sources reported that conservative commentator Kudlow has emerged as a strong contender to be Gary Cohn’s replacement. (Newswires)

Canadian PM Trudeau said Canada will continue to press the US to gain a permanent exemption to the tariffs and that Canada will have to see what needs to be done if the US imposes tariffs. Furthermore, Canada PM Trudeau commented that they were never willing to walk away from NAFTA talks. (Newswires)