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Chinese April Data Shows Further Slowdown; Equity Indices Decline

By Trade The NewsStock MarketsMay 11, 2012 06:27AM ET
www.investing.com/analysis/chinese-april-data-shows-further-slowdown;-equity-indices-decline-122900
Chinese April Data Shows Further Slowdown; Equity Indices Decline
By Trade The News   |  May 11, 2012 06:27AM ET
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Economic Data

(CN) CHINA APR CONSUMER PRICE INDEX (CPI) M/M: 0.1% V 0.2% PRIOR; Y/Y: 3.4% V 3.4%E; YTD Y/Y +3.7%

(CN) CHINA APR INDUSTRIAL PRODUCTION: Y/Y: 9.3% V 12.2%E; YTD: 11.0% V 11.7%E

(CN) CHINA APR RETAIL SALES: Y/Y: 14.1% V 15.1%E; YTD Y/Y: 14.7% V 14.8% PRIOR

(CN) CHINA APR PRODUCER PRICE INDEX (PPI): Y/Y: -0.7% V -0.5%E

(CN) CHINA APR URBAN FIXED ASSETS YTD Y/Y: 20.2% V 20.4%E

(JP) JAPAN APR MONEY STOCK M2 Y/Y: 2.6% V 2.9%E; M3 Y/Y: 2.3% V 2.5%E

(NZ) NEW ZEALAND APR CARD SPENDING RETAIL M/M: 0.8% V 0.5%E; TOTAL M/M: 0.6% V 0.5%E

(NZ) NEW ZEALAND APR FOOD PRICES M/M: -0.1% V -1.0% PRIOR

(IN) INDIA MAR INDUSTRIAL PRODUCTION Y/Y: -3.5% V 1.7%E

(UK) UK APR NATIONWIDE CONSUMER CONFIDENCE: 44 V 53 PRIOR

(PE) PERU CENTRAL BANK LEAVES REFERENCE RATE UNCHANGED AT 4.25%, AS EXPECTED

(AR) ARGENTINA APR TRADE BALANCE: $3.98B V $1.08B PRIOR

Markets Snapshot (as of 04:30GMT)

Nikkei225 -0.6%

S&P/ASX -0.2%

Kospi -1.4%

Taiwan Taiex -1.2%

Singapore Straits Times Index -0.7%

Shanghai Composite -0.3%

Hang Seng -1.2%

Jun S&P Futures -0.7% at 1,347

June gold -0.7% at $1,585/oz

June Crude -1.2% at $95.95

Overview/Top Headlines

What little relief the markets took in a possible resolution in the Greek political situation was reversed and markets spooked after JPMorgan disclosed $2.0B loss on synthetic credit securities. CEO Dimon acknowledged the banks failure but said the risk was part of its business. Shares of the bank were down 6.7% after hours. Most analysts did not seem too concerned about it considering the size of the bank. Dimon was unable to say if the trades involved violated Volcker rules and would release more details in the near term. Shares of Sony fell to 32-year lows after reporting weak guidance for the new fiscal year.

Currencies were quiet in the session oscillating plus or minus 0.1%. EUR/USD remained around $1.2920 (reminder this week Spain, France and Italy will sell bonds); USD/JPY fell to ¥79.82. Japan Finance Minister Azumi declined to comment on the reason for the yen's gains recently. AUD stayed around yesterday's session levels at $1.005. Markets were little changed after China reported April inflation and PPI. China CPI came in at 3.4% in line with expectations and lower than March levels.

Food and non-food CPI were also lower m/m. Lower inflation gives room to introduce stimulus measures to China's slowing economy. China retail sales missed expectations and came in lower than March, industrial production also missed 12.2% expectations coming in at 9.3%, this was also lower than 11.9% prior. AUD/USD fell again on the news that their largest trading partner is slowing down even further. Analysts are renewing their outlook that China will cut the RRR by up to 50bps in the near-term.

Bank of Japan revised rule on Foreign Asset Management saying they will seek safer and more liquid foreign asset management as global markets show increase in volatility. Japan will keep Foreign Purchase maturities under 5 years and foreign currency assets are in USD, EUR and GBP. USD/JPY remained little changed around ¥79.84

Speakers/Geopolitical/In The Press

(KW) South Korea Fin Min Bahk: Consumer prices have stabilized recently; produce prices may increase this summer due to weather.

(CN) China, Japan and South Korea will focus on free trade agreement talks over the weekend. - Japan Press

(JP) Japan 2011 foreign direct investment (FDI) was ¥10.29T (first increase over ¥10T in 3-years). - Nikkei

Equities

China Shenhua Energy, 1088.HK: Set up 50/50 JV with General Electric on coal gasification and clean coal business. - Chinese Press

Itochu, 8001.JP: CEO: Will refrain from any large resource acquisitions due to uncertain market conditions.

ANZ.AU: Cuts variable mortgage rate by 37bps (follows RBA rate cut of 50bps).

Chalco, 2600.HK: Will launch $1.0B IPO for Peruvian mining unit.

OCBC.SG: Reports Q1 Net S$832M v S$632Me; Rev S$1.8B v A$1.6Be.

FB: IPO roadshow showing weaker than expected demand; Said to be guiding analysts to lower end of Rev estimates; IPO could still price at higher or above range. - Financial Press

JPM: CEO: Chief Investment Office (CIO) had $2B trading loss on synthetic positions due to sloppy errors and bad judgment. - Conference Call

JPM: Discloses CIO has encountered mark to market losses; forecast -$800M loss in Q2 in corporate/private equity segment; could see up to $4.2B in legal contingencies. - Quarterly Filing
Chinese April Data Shows Further Slowdown; Equity Indices Decline
 

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Chinese April Data Shows Further Slowdown; Equity Indices Decline

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