Forex news for Asia trading on Monday 4 October 2021
- Hong Kong developer Hopson plans to acquire about 51% of Evergrande management unit
- Japanese media report a snap election to called for October 31
- Is Evergrande considered too big to fail?
- US jobs report - NFP - due Friday. Early what-to-expect.
- UK Brexit minister David Frost to threaten EU on Monday on Northern Ireland
- AUD, other currencies, give back earlier gains - Evergrande suspension
- Evergrande share trading has been suspended in Hong Kong
- Federal Reserve's Bullard and Montgomery are speaking Monday 4 October 2021
- OPEC and its allies meet on Monday. 400K bbl/day to be added to output, but could be more.
- Reserve Bank of New Zealand Monetary Policy Review on Wednesday - preview
- Evergrande USD payment due today, has a 5-day period for dealing with (cough) administrative issues
- New week, same China Evergrande worries - China looks to make good for home buyers. Bondholders not so much.
- Marvell CEO says chip shortage may extend through 2022 (No, not that Marvel)
- RBNZ 'shadow board' split on cash rate hike recommendation
- NZ Delta Covid variant outbreak spreads outside Auckland - new local lockdowns
- Inter-Korean phone hotline communication will be restored Monday morning 4 October 2021
- Wharton finance professor Siegel warns on US inflation - a much bigger problem than the Fed believes
- Weekend - China flew nearly 100 military planes into Taiwan airspace over the long weekend
- Trade ideas thread - Monday 4 October 2021
- Japan LDP big gun says Japan will compile a large extra budget immediately after the election
- Australian Business Confidence has increased for the first time since May
- Weekend pitchfork news - Fed Vice Chair Clarida traded stocks, & Pandora papers bombshell
- Economic calendar due from Asia today - Monday 4 October 2021
- Asian markets holidays and hours changes heads up
- ECB's Visco (Governor of the Bank of Italy) says price pressures are temporary
- Former ECB President Trichet sceptical that US inflation is transitory
- Iraq's oil minister said $100/bbl oil price will not be sustainable, OPEC wants stable markets
- Monday morning open levels - indicative forex prices - 4 October 2021
- US will announce that China hasn't lived up to Phase 1 trade deal on Monday - report
- Citi equity strategist Tobias Levkovich dies after being hit by a car.
Currencies traded higher against the US dollar in the very early hours of Monday here in Asia, even before Japanese markets kicked off for the week. Trading at this time was thin, as it always is at this time of the new week, but more so today with Sydney out on a holiday. The gains were held though, until news began filtering through of another US dollar payment due from Evergrande today. FX began to slide a little against the dollar.
This payment does not have a 30-day grace period, as the two previous USD payments over the previous weeks had (it has a 5 day delay available for administrative &/or technical problems only). News soon crossed that trading in Evergrande shares was halted. As a digression it was a holiday again on the Chinese mainland today (China markets return on Friday October 8). Evergrande shares, and related products, trade in Hong Kong. HKEX announced the halt.
This contributed to further give-back of the previous gains for FX against the dollar. AUD, EUR, GBP, NZD all fully retraced their rises from earlier in the session.
A few hours later, as I write this wrap, media reports crossed that Hong Kong listed property developer Hopson Development plans to acquire about 51% of Evergrande's management unit for around HKD 40 bn. FX has thus stabilised just off its lows against the dollar.
This is pretty much the story of the session. US equity index futures on Globex traded a similar sort of pattern.
There was other news items about but none were impactful to much extent.
Newly-installed Japanese Prime Minister Kishida has been reported as planning to call the country's general election on October 31.
AUD/USD on the session (boxed):
