USD Index FUTs Move Lower Into Year End

General Trend

• Hang Seng outperforms as TECH index extends gain
• Hang Lung Properties’ transaction with US gov’t delayed by China/HK
• Gainers in Shanghai include Consumer, Industrial and IT firms; Financial and property cos. lag
• Kospi trades at record high in final trading session of the year, chipmakers rise ; KRW gains
• Australian equities decline amid REIT ex-dividends
• In last trading day of 2020, Nikkei has modest drop after rising over 2.6% during prior session; Topix Pharma, Iron/Steel, Electric Appliances and Real Estate indices are among the decliners ; Transport and Securities indices rise
• USD/CNH declines toward 6.50
• Dalian Iron Ore FUTs decline by over 5%, China plans to cut crude steel production in 2021
• Note today is the last day of trade for the year for Japan and Korea markets

Headlines/Economic Data

Australia/New Zealand

• ASX 200 opened -0.0%
• IRI.AU Guides He Net to break even at A$2.0M v A$11.8M y/y, Rev A$34-37M v A$53.2M y/y; trading performance has been below expectations

Japan

• Nikkei 225 opened -0.0%
• 4552.JP Signs agreement to produce Astrazenena coronavirus vaccine
• (JP) Japan planning to issue Govt backed green bonds (1st time) – Nikkei
• 9984.JP To offer at home low cost COVID tests in Japan – Nikkei
• 9449.JP Receives license in New York to issue stablecoin pegged to the Yen (JPY) – US press

Korea

• Kospi opened -0.0%
• 003550.KR Indonesia confirms MOU with LG Group for Electric Vehicle Batteries for $9.8B
• (KR) South Korea Nov Industrial Production M/M: 0.3% v 0.8%e; Y/Y: +0.5% v -0.5%e
• (KR) South Korea Nov Retail Sales M/M: -1.0% v -0.9% prior; Y/Y: -1.5% v -0.2% prior (2nd consecutive decline)
• 000270.KR Union votes to accept wage freeze amid pandemic (1st freeze since 2009)
• (KR) South Korea reports 1,050 COVID cases v 1,046 prior (2nd consecutive day above 1,000)

China/Hong Kong

• Hang Seng opened +0.5%; Shanghai Composite opened -0.1%
• (CN) China Stats Bureau NBS: revises 2019 GDP lower from 6.1% to 6.0%
• (CN) China PBOC statement after quarterly policy meeting: Reiterates to avoid a sudden shift in monetary policy while maintaining necessary support for the economy’s recovery
• China PBOC Open Market Operation (OMO): Injects CNY40B in 7-day reverse repos v CNY20B in 7-day reverse repos prior; Net Injection: CNY30B v CNY10B prior
• China PBOC sets Yuan reference rate: 6.5325 v 6.5451 prior
• (CN) China State Post Bureau issues first standard for unmanned aircraft delivery (drones)
• 300433.CN Apple Supplier Lens Technology reportedly accused of using forced labor in China – press
• 1099.HK Coronavirus vaccine has 79.3% efficacy, meeting technical standard of WHO and Chinese regulator, submitted application for use of vaccine

North America

• (US) Weekly API Crude Oil Inventories: -4.8M v +2.7M prior
• (US) Trump campaign appeals to Supreme Court over Wisconsin challenge, seeking review before Jan 6th
• INTC Third Point (Loeb) in letter reportedly urges Intel to explore strategic alternatives including ‘potential divestment of certain failed acquisitions’ – press (US session)
• (US) Louisiana Congressman Elect Letlow (R-LA) dies of coronavirus at the age of 41

Europe

• (EU) EU member states approve UK post-Brexit trade deal – press (as expected)
• (UK) PM Johnson expected to be able to get Brexit deal approved by parliament within a day
• (UK) PM Johnson approves extension of Tier 4 restrictions – UK’s Times

Levels as of 12:15ET

• Hang Seng +1.7%; Shanghai Composite +0.9%; Kospi +1.8%; Nikkei225 -0.3%; ASX 200 -0.5%
• Equity Futures: S&P500 +0.5%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 +0.1%
• EUR 1.2295-1.2246; JPY 103.61-103.27; AUD 0.7663-0.7602; NZD 0.7189-0.7144
• Commodity Futures: Gold +0.3% at $1,889/oz; Crude Oil +0.6% at $48.28/brl; Copper +0.7% at $3.57/lb