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Writer's pictureSimon Charles Hooper

01/09/22 Briefing


The S&P 500 futures are down 13 points and are trading 0.4% below fair value. The Nasdaq 100 futures are down 63 points and are trading 0.6% below fair value. The Dow Jones Industrial Average futures are down 61 points and are trading 0.2% below fair value.

General concerns about slowing growth, rate hikes, and inflation are fueling carryover negativity from recent sessions. Weakness this morning comes after several days of trying to stage a rebound that then gets sold into.

Some macro headlines this morning add fuel to the existing concerns, including news that China locked down Chengdu (21.2 million population) for COVID testing. China also had a weak August Caixin Manufacturing PMI, which came in below 50.0 indicating contraction. In Europe, August Manufacturing PMI from Germany, the UK, France, Spain, and the Eurozone all showed contraction with below-50.0 readings.

Sentiment is also pressured by news that the US government will restrict sales of semiconductors to Russia and China, bringing down some semiconductor names in premarket action.

Energy complex futures are trending lower. WTI crude oil futures are down 1.4% to $88.26/bbl. Natural gas futures are down 0.4% to $9.09/mmbtu.

In corporate news:

  • NVIDIA (NVDA 144.42, -6.52, -4.32%): US govt informs NVIDIA that it has imposed a new license requirement for sales of A100 and H100 chips to China and Russia

  • Advanced Micro (AMD 82.60, -2.27, -2.67%) : spokesperson says US told the company to stop selling artificial intelligence chip in China.

  • Signet Jewelers (SIG 68.00, +2.63, +4.02%): beats by $0.09, reports revs in-line; guides Q3 revs in-line; guides FY23 EPS above consensus, revs below consensus

  • Five Below (FIVE 132.20, +4.32, +3.38%): misses by $0.04, misses on revs; comps -5.8%; guides Q3 EPS and revs below consensus; guides FY23 EPS and revs below consensus

  • C3.ai (AI 15.35, -2.65, -14.72%): beats by $0.12, misses on revs; guides OctQ and FY23 revs below consensus, says its customers are scrutinizing big deals as never before

  • Okta (OKTA 76.69, -14.71, -16.09%): beats by $0.20, beats on revs; guides Q3 (Oct) EPS above consensus, revs in-line; guides FY23 EPS above consensus, revs in-line

  • MicroStrategy (MSTR 226.00, -5.56, -2.40%): Washington DC AG Karl Racine tweets "NEW: Today, we're suing Michael Saylor (MSTR Executive Chairman) - a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes - for tax fraud"

  • Veeva Systems (VEEV 173.26, -26.06, -13.07%): beats by $0.02, reports revs in-line; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs below consensus

  • MongoDB (MDB 267.10, -55.76, -17.27%): beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY23 EPS below consensus, revs above consensus

  • Ciena (CIEN 45.09, -5.65, -11.14%): misses by $0.01, misses on revs

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a lower note. Japan's Nikkei: -1.5%, Hong Kong's Hang Seng: -1.8%, China's Shanghai Composite: -0.5%, India's Sensex: -1.3%, South Korea's Kospi: -2.3%, Australia's ASX All Ordinaries: -2.0%.

    • In economic data:

      • China's August Caixin Manufacturing PMI 49.5 (expected 50.2; last 50.4)

      • Japan's Q2 Capital Spending 4.6% qtr/qtr (expected 3.0%; last 3.0%) and August Manufacturing PMI 51.5 (expected 51.0; last 51.0)

      • South Korea's Q2 GDP 0.7% qtr/qtr, as expected (last 0.6%); 2.9% yr/yr, as expected (last 3.0%). August trade deficit $9.47 bln (expected deficit of $8.00 bln; last deficit of $4.80 bln). August Nikkei Manufacturing PMI 47.6 (last 49.8)

      • India's August Nikkei Manufacturing PMI 56.2 (expected 55.0; last 56.4)

      • Australia's August AIG Manufacturing Index 49.3 (last 52.5) and August Manufacturing PMI 53.8 (expected 54.5; last 55.7). August Home Loans -7.0% m/m (expected -3.0%; last -3.3%). Q2 Building Capital Expenditure -2.5% m/m (last -1.7%). August Commodity Prices 21.7% yr/yr (last 14.1%)


  • In news:

    • China tightened coronavirus restrictions in Chengdu.

    • South Korea reported a record trade deficit for August.

    • Japan's Manufacturing PMI remained in expansion for the 19th month in a row but was at its lowest level in eleven months while China's Caixin Manufacturing PMI fell into contraction.

    • August casino revenue in Macau was down 50.7% yr/yr.

    • Continued weakness in the yen pressured the Japanese currency to its lowest level against the dollar since mid-1998.



  • Major European indices trade lower across the board despite the release of mostly better than expected data from the region. STOXX Europe 600: -1.6%, Germany's DAX: -1.3%, U.K.'s FTSE 100: -1.3%, France's CAC 40: -1.4%, Italy's FTSE MIB: -1.0%, Spain's IBEX 35: -0.9%.

    • In economic data:

      • Eurozone's July Unemployment Rate 6.6%, as expected (last 6.7%). August Manufacturing PMI 49.6 (expected 49.7; last 49.7)

      • Germany's July Retail Sales 1.9% m/m (expected -0.4%; last -1.5%); -2.6% yr/yr (expected -6.5%; last -9.6%). August Manufacturing PMI 49.1 (expected 49.8; last 49.3)

      • U.K.'s August Nationwide HPI 0.8% m/m (expected 0.1%; last 0.2%); 10.0% yr/yr (expected 8.9%; last 11.0%). August Manufacturing PMI 47.3 (expected 46.0; last 46.0)

      • France's August Manufacturing PMI 50.6 (expected 49.0; last 49.5)

      • Italy's July Unemployment Rate 7.9% (expected 8.1%; last 8.0%). Q2 GDP 1.1% qtr/qtr (expected 1.0%; last 0.1%); 4.7% yr/yr (expected 4.6%; last 6.2%). August Manufacturing PMI 48.0, as expected (last 48.5)

      • Spain's August Manufacturing PMI 49.9 (expected 48.5; last 48.7)

      • Swiss July Retail Sales 2.6% yr/yr (expected 0.9%; last 0.7%). August CPI 0.3% m/m (expected 0.2%; last 0.5%); 3.5% yr/yr (expected 3.4%; last 3.4%). August procure.ch PMI 56.4 (expected 56.8; last 58.0)


  • In news:

    • Germany's retail sales showed a larger than expected increase in July but were still down yr/yr.

    • European Commission President von der Leyen will reportedly outline the EU's plan for managing the energy crisis during a speech on September 14.

    • A Bank of England survey showed an increase in inflation expectations for the year ahead.



U.S. equity futures:

  • S&P 500 Futures: -13 @ 3,942

  • DJIA Futures: -79 @ 31,432

  • Nasdaq 100 Futures: -66 @ 12,207

Overseas:

  • Europe: DAX -1.3%, FTSE -1.3%, CAC -1.4%

  • Asia: Nikkei -1.5% Hang Seng -1.8%, Shanghai Composite -0.5%

Commodities:

  • Crude Oil -1.38 @ 88.17

  • Nat Gas -0.030 @ 9.097

  • Gold -12.65 @ 1713.55

  • Silver -0.254 @ 17.628

  • Copper -0.0553 @ 3.4632

U.S. Summary:

  • Earnings/Guidance:

    • 1-800-FLOWERS (FLWS) misses by $0.09, reports revs in-line; guides Q1 revs below consensus

    • Brady (BRC) beats by $0.02, misses on revs; guides FY23 EPS in-line

    • Buckle (BKE) reports August comparable store net sales +4.6%

    • C3.ai (AI) beats by $0.12, misses on revs; guides OctQ and FY23 revs below consensus, says its customers are scrutinizing big deals as never before

    • Campbell Soup (CPB) reports EPS in-line, revs in-line; guides FY23 EPS in-line, revs above consensus

    • Ciena (CIEN) misses by $0.01, misses on revs

    • Cooper (COO) misses by $0.04, beats on revs; guides Q4 (Oct) EPS below consensus, revs in-line

    • Costco (COST) reports August comparable sales, excluding the impacts from changes in gasoline prices and foreign exchange, increased by 8.7%

    • Credo Technology Group (CRDO) reports EPS in-line, beats on revs; guides Q2 (Oct) revs in-line; reaffirms FY23 revs guidance

    • Five Below (FIVE) misses by $0.04, misses on revs; comps -5.8%; guides Q3 EPS and revs below consensus; guides FY23 EPS and revs below consensus

    • Genesco (GCO) beats by $0.33, reports revs in-line; lowers FY23 guidance; Q2 Comparable direct sales -3%

    • GMS (GMS) beats by $0.18, reports revs in-line

    • Greif (GEF) beats by $0.35, beats on revs; guides FY22 EPS above consensus

    • Hello Group (MOMO) beats by CNY0.47, beats on revs; guides Q3 revs above consensus

    • Hormel Foods (HRL) misses by $0.01, beats on revs; guides FY22 EPS below consensus, revs in-line

    • Li Auto (LI) reports August deliveries of 4,571 vehicles

    • MongoDB (MDB) beats by $0.05, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY23 EPS below consensus, revs above consensus

    • NIO (NIO) reports August deliveries increased 81.6% yr/yr

    • Nutanix (NTNX) misses by $0.08, beats on revs; guides Q1 revs above consensus; guides FY23 revs above consensus

    • Ollie's Bargain Outlet (OLLI) misses by $0.11, misses on revs; guides Q3 EPS above consensus, revs below consensus; lowers FY23 guidance

    • Okta (OKTA) beats by $0.20, beats on revs; guides Q3 (Oct) EPS above consensus, revs in-line; guides FY23 EPS above consensus, revs in-line

    • Patterson Companies (PDCO) misses by $0.06, misses on revs; reaffirms FY23 EPS guidance

    • Pure Storage (PSTG) beats by $0.10, beats on revs; guides Q3 revs above consensus; guides FY23 revs above consensus

    • Samsara (IOT) beats by $0.03, beats on revs; guides Q3 (Oct) EPS in-line, revs above consensus; guides FY23 EPS above consensus, revs above consensus

    • Science Applications (SAIC) beats by $0.07, reports revs in-line; guides FY23 EPS in-line, revs in-line

    • SecureWorks (SCWX) beats by $0.04, reports revs in-line; guides Q3 EPS below consensus, revs below two analyst estimate

    • Semtech (SMTC) beats by $0.02, reports revs in-line, issues Q3 guidance

    • SentinelOne (S) beats by $0.05, beats on revs; guides Q3 revs above consensus; guides FY22 revs above consensus

    • Signet Jewelers (SIG) beats by $0.09, reports revs in-line; guides Q3 revs in-line; guides FY23 EPS above consensus, revs below consensus

    • Veeva Systems (VEEV) beats by $0.02, reports revs in-line; guides Q3 EPS in-line, revs below consensus; guides FY23 EPS above consensus, revs below consensus

    • Weibo (WB) beats by $0.01, reports revs in-line

    • XPeng (XPEV) reports August deliveries increased 33% yr/yr


  • General News:

    • China will lockdown Chengdu amid COVID-19 outbreak, according to Bloomberg

    • G7 will discuss cap on Russian oil, according to Bloomberg

    • United Nations says that China could have committed "crimes against humanity" in Xinjiang

    • California assembly approved bill that will require cryptocurrency businesses to get licensed, according to Bloomberg

    • Macau Gaming Inspection and Coordination Bureau reported August 2022 gross revs -50.7 yr/yr to HKD 2.189 bln versus -95.3% in July of 2022

    • Hong Kong is considering end of hotel quarantine for COVID-19 by November, according to Bloomberg

    • 3M (MMM) announced the preliminary results of its split-off exchange offer to 3M stockholders to exchange their shares of 3M common stock for shares of common stock of Garden SpinCo Corporation

    • AMD (AMD) spokesperson says US told the company to stop selling artificial intelligence chip in China, according to Reuters

    • Amneal Pharmaceuticals (AMRX) submits New Drug Application to FDA for IPX203, an oral formulation of carbidopa/levodopa extended-release capsules for the treatment of Parkinson's disease

    • AnaptysBio (ANAB) Reports HARP Phase 2 Top-Line Data of Imsidolimab in Moderate-to-Severe Hidradenitis Suppurativa

    • Arcturus Therapeutics (ARCT) obtains award for up to $63.2 mln from Biomedical Advanced Research and Development Authority

    • Bio-Techne (TECH) to seek approval to implement four-for-one stock split

    • Bitfarms (BITF) Provides August 2022 Production and Mining Operations Update

    • Boeing (BA) awarded $2.2 bln modification contract by U.S. Air Force; also awarded $927 mln U.S. Air Force undefinitized contract action for four KC-46A aircraft for Israel

    • Build-A-Bear Workshop (BBW) authorized $50 mln stock repurchase program

    • Deere (DE) announced that its board of directors elected Joshua A. Jepsen, as its Senior Vice President and Chief Financial Officer (CFO), effective September 16, 2022

    • Dover (DOV) establishes an accelerated share repurchase program to buy back $500 mln of its common stock

    • GoodRx (GDRX) approves a reduction in force involving approximately 140 employees or roughly 16% of its workforce, primarily in its tech-focused and marketing groups

    • KBR (KBR) awarded NOVASTAR contract through Xandar joint venture for U.S. Air Force

    • Liquidia Technologies (LQDA) provides update on Hatch-Waxman Litigation

    • MarketWise (MKTW) CFO Dale Lynch to resign to pursue another professional opportunity, effective September 16

    • MaxLinear (MXL): China SMAR advises MXL and Silicon Motion (SIMO) to refile under the normal procedure, which the parties intend to submit as promptly as practicable

    • Medtronic (MDT) ADAPT study results published in The Lancet Diabetes & Endocrinology show improved glycemic control and treatment satisfaction among those using MiniMed 780G system, compared to insulin injections

    • Meta (META) aiming to introduce more paid features, according to Verge

    • MicroStrategy (MSTR) confirms AG complaint

    • Molina Healthcare (MOH) confirms that the Iowa Department of Health and Human Services announced its intent to award Molina's Iowa health plan a Medicaid managed care contract

    • Netflix (NFLX) looking to charge brands premium prices to advertise on its upcoming ad-supported platform, according to the Wall Street Journal

    • Nevro (NVRO) Announces Multiple Positive Coverage Updates for the Treatment of Painful Diabetic Neuropathy

    • New Found Gold Corp. (NFGC) intercepts 18.95 g/t au over 5.75m in near-surface 60m step-out at keats north and provides exploration update

    • NVIDIA (NVDA): US govt informs NVIDIA that it has imposed a new license requirement for sales of A100 and H100 chips to China and Russia

    • Partner Comms (PTNR) reports that Ms. Dganit Kramer has been appointed as the Company's Deputy CEO

    • Photronics (PLAB) subsidiary in Cheonan, Korea experienced a power outage on August 15, 2022

    • Provention Bio (PRVB) receives $125 mln term loan facility with Hercules Capital (HTGC)

    • Roche Hldg (RHHBY) Canada: VABYSMO receives positive CADTH recommendation for the treatment of Neovascular (wet) Age-related Macular Degeneration (nAMD) in adults

    • Scotts Miracle-Gro (SMG) announces that CFO is departing, lowers 2022 free cash flow guidance, reaffirms all other aspects of prior guidance

    • Starry (STRY) issues statement on federal communications commission ready to authorize public notice regarding Starry's Rural Digital Opportunity Fund application

    • T Mobile (TMUS) is aiming eliminate jobs in engineering and networking, according to the Wall Street Journal

    • Toyota (TM) aiming to raise prices of steel supplies by 30%, according to Nikkei

    • United Therapeutics (UTHR) prevails in patent litigation

    • Vaxart (VXRT) announces positive top-line phase ii clinical study data demonstrating safety and immunogenicity of its Wuhan S-Only COVID-19 pill vaccine candidate

    • Walt Disney (DIS) may offer membership program similar to Prime for park discounts or perks, according to Wall Street Journal

    • Wash. Federal (WAFD) appoints Kelli Holz as CFO, effective January 1, 2023; as previously announced, current CFO Vincent Beatty will retire at the end of December

    • Werewolf Therapeutics (HOWL) Announces Initiation of Patient Dosing in Phase 1/1b Clinical Trial of WTX-124 for the Treatment of Patients with Selected Solid Tumors

    • Zimmer Biomet (ZBH) announced an exclusive, multi-year co-marketing agreement with Surgical Planning Associates, Inc. to commercialize HipInsight


  • M&A:

    • Activision Blizzard (ATVI): UK CMA says Microsoft (MSFT) / Activision deal could lead to competition concerns

    • Atkore International (ATKR) acquires Cascade Poly Pipe & Conduit and Northwest Polymers

    • Exxon Mobil (XOM) and Shell plc (SHEL) reporedtly close to divesting the Aera joint venture, according to Nasdaq

    • Noble Corporation (NE): UK CMA completes review of the Business Combination between Noble Corporation and Maersk Drilling - all merger control conditions to the Exchange Offer have been satisfied

    • Sony (SONY): India believes a merger between Sony and Zee will hurt competition, according to Reuters

    • Tencent (TCEHY) divesting roughly $14.5 bln of its $88.0 bln equity portfolio this year, according to Financial Times

    • Turquoise Hill Resources (TRQ) to be acquired by Rio Tinto (RIO) for CAD43.00 per share in cash

    • WPP plc (WPP) announces that it is acquiring Newcraft


  • Syndicate:

    • Avadel Pharmaceuticals (AVDL) files for $500 mln mixed securities shelf offering

    • HEICO (HEI) files for 576,338 share common stock offering by selling shareholder

    • Markforged Holding Corp. (MKFG) files for 4,100,000 share common stock offering by selling shareholder

    • PAR Technology (PAR) files for 162,917 share common stock offering by selling shareholders

    • ZeroFox Holdings (ZFOX) files for 16,213,430 share common stock offering, relates to warrants; also files for 118,148,438 share common stock offering by selling shareholders, relates to warrants


  • IPOs:

    • Expected to Price:

      • No IPOs expected.



Gapping Up/Down

  • Gapping up:

    • NTNX +15.7%, TRQ +13.5%, LQDA +6.2%, CRDO +5.9%, PSTG +5.3%, ARCT +5.2%, STRY +4.9%, FIVE +3.5%, GEF +3.3%, PRVB +3%, BBW +2.8%, S +2.5%, HWM +2.3%, GMS +1.7%, SMG +1.6%, DXCM +0.9%, IOT +0.8%, GVA +0.7%


  • Gapping down:

    • ZFOX -20.8%, MDB -17.5%, ANAB -15.2%, AI -14.3%, OKTA -14%, VEEV -10.8%, SMTC -10.5%, AVDL -5.6%, NVDA -5.5%, RIO -3.7%, MKFG -2.9%, MSTR -2.7%, MXL -2.5%, WB -2.3%, NIO -2.2%, XPEV -2.2%, LI -2%, COO -1.6%, XOM -1.4%, WAFD -1.2%, SIMO -0.9%, BA -0.8%, AMZN -0.8%, GDRX -0.8%, MSFT -0.8%, NFLX -0.7%


Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

    • Baidu (BIDU) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $200


  • Downgrades:

    • Bed Bath & Beyond (BBBY) downgraded to Underperform from Mkt Perform at Raymond James


  • Others:

    • AerSale (ASLE) initiated with a Buy at Stifel; tgt $23

    • AnaptysBio (ANAB) initiated with an Outperform at Raymond James; tgt $35

    • Appian (APPN) initiated with a Neutral at Citigroup; tgt $55

    • Asana (ASAN) initiated with a Neutral at Citigroup; tgt $23

    • Aviat Networks (AVNW) initiated with a Mkt Outperform at JMP Securities; tgt $50

    • BlackLine (BL) initiated with a Neutral at Citigroup; tgt $73

    • Box (BOX) initiated with a Buy at Citigroup; tgt $34

    • Ceridian HCM (CDAY) initiated with a Buy at Citigroup; tgt $73

    • Coupa Software (COUP) initiated with a Buy at Citigroup; tgt $77

    • Dropbox (DBX) initiated with a Neutral at Citigroup; tgt $24

    • Expensify (EXFY) assumed with a Buy at Citigroup; tgt lowered to $25

    • Instructure (INST) initiated with a Buy at Citigroup; tgt $30

    • Intellia Therapeutics (NTLA) initiated with a Sell at Citigroup; tgt $50

    • Intuit (INTU) initiated with a Buy at Citigroup; tgt $538

    • Mirum Pharmaceuticals (MIRM) initiated with a Buy at Citigroup; tgt $38

    • Monday.com (MNDY) initiated with a Buy at Citigroup; tgt $156

    • Open Text (OTEX) initiated with a Neutral at Citigroup; tgt $34

    • Paycom Software (PAYC) initiated with a Buy at Citigroup; tgt $457

    • Paycor (PYCR) initiated with a Neutral at Citigroup; tgt $30

    • Paylocity (PCTY) initiated with a Neutral at Citigroup; tgt $294

    • Pegasystems (PEGA) initiated with a Neutral at Citigroup; tgt $39

    • Pliant Therapeutics (PLRX) initiated with a Buy at Citigroup; tgt $36

    • PTC Therapeutics (PTCT) initiated with a Buy at Citigroup; tgt $70

    • Smartsheet (SMAR) assumed with a Neutral at Citigroup; tgt lowered to $40

    • Vertex (VERX) initiated with a Neutral at Citigroup; tgt $15

    • Workday (WDAY) initiated with a Neutral at Citigroup; tgt $186

    • Workiva (WK) initiated with a Buy at Citigroup; tgt $86


Upcoming Events:

  • Econ Data:

    • 08:30 ET: Initial Claims for Aug 27 (Briefing.com Consensus 250K; Prior 243K)

    • 08:30 ET: Continuing Claims for Aug 20 (Briefing.com Consensus NA; Prior 1415K)

    • 08:30 ET: Productivity - Rev. for Q2 (Briefing.com Consensus -4.6%; Prior -4.6%)

    • 08:30 ET: Unit Labor Costs - Rev. for Q2 (Briefing.com Consensus 10.7%; Prior 10.8%)

    • 09:45 ET: IHS Markit Manufacturing PMI - Final for Aug (Briefing.com Consensus NA; Prior 51.3)

    • 10:00 ET: ISM Manufacturing Index for Aug (Briefing.com Consensus 52.0%; Prior 52.8%)

    • 10:00 ET: Construction Spending for July (Briefing.com Consensus -0.1%, Prior -1.1%)

    • 10:30 ET: EIA Natural Gas Inventories for Aug 27 (Briefing.com Consensus NA; Prior +60 bcf)


  • Earnings:

    • Monday (Aug 29)

      • Morning: CTLT SLQT

      • Afternoon: HEI


  • Tuesday (Aug 30)

    • Morning: AMWD BIDU BMO BBY BIG CONN PLAB

    • Afternoon: AMBA CHPT CHWY CRWD HPE HPQ PVH


  • Wednesday (Aug 31)

    • Morning: BF.B DBI DCI VRA

    • Afternoon: AI COO CRDO FIVE GEF MDB NTNX OKTA PSTG SMTC S VEEV


  • Thursday (Sep 1)

    • Morning: FLWS BRC CPB CIEN GCO GMS MOMO HRL OLLI PDCO SAIC SCWX SIG TTC WB

    • Afternoon: AVGO CVGW JOAN LULU NCNO OXM PD SMAR SPWH




Asia & Europe detail:

Asia: Nikkei -1.5% Hang Seng -1.8%, Shanghai Composite -0.5%

Equity indices in the Asia-Pacific region ended Thursday on a lower note. China tightened coronavirus restrictions in Chengdu. South Korea reported a record trade deficit for August. Japan's Manufacturing PMI remained in expansion for the 19th month in a row but was at its lowest level in eleven months while China's Caixin Manufacturing PMI fell into contraction. August casino revenue in Macau was down 50.7% yr/yr. Continued weakness in the yen pressured the Japanese currency to its lowest level against the dollar since mid-1998.

  • In economic data:

    • China's August Caixin Manufacturing PMI 49.5 (expected 50.2; last 50.4)

    • Japan's Q2 Capital Spending 4.6% qtr/qtr (expected 3.0%; last 3.0%) and August Manufacturing PMI 51.5 (expected 51.0; last 51.0)

    • South Korea's Q2 GDP 0.7% qtr/qtr, as expected (last 0.6%); 2.9% yr/yr, as expected (last 3.0%). August trade deficit $9.47 bln (expected deficit of $8.00 bln; last deficit of $4.80 bln). August Nikkei Manufacturing PMI 47.6 (last 49.8)

    • India's August Nikkei Manufacturing PMI 56.2 (expected 55.0; last 56.4)

    • Australia's August AIG Manufacturing Index 49.3 (last 52.5) and August Manufacturing PMI 53.8 (expected 54.5; last 55.7). August Home Loans -7.0% m/m (expected -3.0%; last -3.3%). Q2 Building Capital Expenditure -2.5% m/m (last -1.7%). August Commodity Prices 21.7% yr/yr (last 14.1%)


---Equity Markets---

  • Japan's Nikkei: -1.5%

  • Hong Kong's Hang Seng: -1.8%

  • China's Shanghai Composite: -0.5%

  • India's Sensex: -1.3%

  • South Korea's Kospi: -2.3%

  • Australia's ASX All Ordinaries: -2.0%

---FX---

  • USD/JPY: +0.2% to 139.35

  • USD/CNH: UNCH at 6.9032

  • USD/INR: +0.1% to 79.58

Europe: DAX -1.3%, FTSE -1.3%, CAC -1.4%

Major European indices trade lower across the board despite the release of mostly better than expected data from the region. Germany's retail sales showed a larger than expected increase in July but were still down yr/yr. European Commission President von der Leyen will reportedly outline the EU's plan for managing the energy crisis during a speech on September 14. A Bank of England survey showed an increase in inflation expectations for the year ahead.

  • In economic data:

    • Eurozone's July Unemployment Rate 6.6%, as expected (last 6.7%). August Manufacturing PMI 49.6 (expected 49.7; last 49.7)

    • Germany's July Retail Sales 1.9% m/m (expected -0.4%; last -1.5%); -2.6% yr/yr (expected -6.5%; last -9.6%). August Manufacturing PMI 49.1 (expected 49.8; last 49.3)

    • U.K.'s August Nationwide HPI 0.8% m/m (expected 0.1%; last 0.2%); 10.0% yr/yr (expected 8.9%; last 11.0%). August Manufacturing PMI 47.3 (expected 46.0; last 46.0)

    • France's August Manufacturing PMI 50.6 (expected 49.0; last 49.5)

    • Italy's July Unemployment Rate 7.9% (expected 8.1%; last 8.0%). Q2 GDP 1.1% qtr/qtr (expected 1.0%; last 0.1%); 4.7% yr/yr (expected 4.6%; last 6.2%). August Manufacturing PMI 48.0, as expected (last 48.5)

    • Spain's August Manufacturing PMI 49.9 (expected 48.5; last 48.7)

    • Swiss July Retail Sales 2.6% yr/yr (expected 0.9%; last 0.7%). August CPI 0.3% m/m (expected 0.2%; last 0.5%); 3.5% yr/yr (expected 3.4%; last 3.4%). August procure.ch PMI 56.4 (expected 56.8; last 58.0)


---Equity Markets---

  • STOXX Europe 600: -1.6%

  • Germany's DAX: -1.3%

  • U.K.'s FTSE 100: -1.3%

  • France's CAC 40: -1.4%

  • Italy's FTSE MIB: -1.0%

  • Spain's IBEX 35: -0.9%

---FX---

  • EUR/USD: -0.3% to 1.0018

  • GBP/USD: -0.5% to 1.1561

  • USD/CHF: +0.1% to 0.9784

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