China To Keep Housing Measures In PlaceEconomic Data
(CN) CHINA MAY NEW HOME PRICES M/M: FELL IN 43 OF 70 CITIES V 43 PRIOR; Y/Y: FELL IN 54 OF 70 CITIES V 46 PRIOR
(UK) UK JUN RIGHTMOVE HOUSE PRIVES M/M: +1.0% V 0.0% PRIOR; Y/Y: 2.4% V 2.0% PRIOR
(NZ) NEW ZEALAND MAY PERFORMANCE SERVICES INDEX: 56.8 V 56.7 PRIOR
(NZ) NEW ZEALAND Q2 WESTPAC NZ CONSUMER CONFIDENCE: 99.9 V 102.4 PRIOR (5-quarter low)
(AU) AUSTRALIA MAY NEW MOTOR VEHICLE SALES M/M: +2.4% V -1.0% PRIOR; Y/Y: 22.4% V 6.7% PRIOR
(JP) JAPAN MAY NATIONWIDE DEPARTMENT SALES Y/Y: -1.0% V 1.3% PRIOR; TOKYO DEPARTMENT STORE SALES Y/Y: 2.1% V 6.7% PRIOR
(JP) JAPAN BOJ JUNE MONTHLY ECONOMIC REPORT: RAISES ECONOMIC ASSESSMENT; Says Japan's economy is starting to pick up moderately
(JP) Japan May Tokyo Condominium Sales y/y: -14.9% v 81.7% prior
Markets Snapshot (as of 04:30GMT)
Nikkei225 +1.9%
S&P/ASX +1.8%
Kospi +2.0%
Taiwan's Taiex +2.0%
Singapore Straits Times Index +1.2%
Shanghai Composite +0.7%
Hang Seng +1.6%
Sept S&P Futures +0.4% at 1,342
Aug gold -0.2% at $1,624/oz
July Crude oil +1.0% at $84.82/brl
Overview/Top Headlines
Optimistic markets rallied higher after Greece pro-austerity New Democracy party won the parliament elections, they are expected to create a coalition by Wednesday and secure 179 of the 300 seats. Leaders around the world voiced their support for Greece as most assembled for the G-20 meeting this week in Mexico. Leaders did agree to increase the IMF firewall beyond the current $430B. Analysts are warning that the optimism could be short lived as attention shifts back to the long road to recovery and the unraveling situation in Spain.
Miners were noticeably higher in Australia, AUD/USD tested $1.0135 before settling around the $1.01 level. NZD/USD also followed higher reaching $0.7940. In Japan the USD/JPY rose 0.8% to ¥79.30, analysts have warned that the planned rolling black outs in Kansai alone could wipe off ¥1.0T from the annual GDP within 1-month. For today's session, the BoJ increased its JGB buying operations to ¥1T from ¥800B.
Corn wheat and copper were all stronger, while silver and gold were a bit weaker in the session as an appetite for risk returned. Parliamentary elections in France saw the ruling Socialist party win an absolute majority and the Muslim Brotherhood in Egypt declared their candidate Mursi the winner with 52% of the vote (official final results expected later in the week) and the Egypt ruling military council formally retakes legislative power with an amended constitutional document. Attention will now turn towards the Fed meeting where some are calling for the announcement of QE3.
Speakers/Geopolitical/In The Press
(NZ) NZ PM Key: Less confident on surplus target given Europe crisis, but will not surrender surplus target lightly; There is capacity to move on interest rates.
(CN) China International Capital Corp (CICC) cuts 2012 GDP forecast from 8.1% to 7.8%; Cuts 2013 forecast from 9.0% to 8.3%.
(AU) Australia PM Gillard: AUD still affecting manufacturers; AUD Bonds now a safe haven, seeing strong global demand for Australian debt.
(CN) Shanghai new home sales +6.4% w/w; New home prices +3.2% w/w. - UWIN
(CN) China Housing Ministry: Will strictly control mortgage policies and will firmly implement property control policies.
(NZ) NZIER lowers FY12 GDP target to 2.1% from 2.7% prior.
Equities
QAN.AU: 25M shares trade in 3 blocks at A$1.17/shr (9.4% of shares outstanding).
Tokyo Steel, 5423.JP: Cuts h-beam prices to ¥65K/ton; Cuts hot rolled price to ¥55K/ton.
Renesas Electronics, 6723.JP: Will reduce the number of its domestic plants to 10 from 19 and cut workforce by roughly 30%. - Nikkei
Agricultural Bank of China, 1288.HK: Granted a license by the New York Department of Financial Services; Will open first location in the US this summer. - HK press
FXJ.AU: Will introduce digital subscriptions by Q1 2013; will cut staff by 1,900 over next 3-years.
(UK) Kohlberg Kravis Roberts and Apax are said to be backing an £8.0B offer for Everything Everywhere from former CEO Tom Alexander. - Sunday Times