Economic Data
(NZ) NEW ZEALAND Q4 CURRENT ACCOUNT BALANCE (NZ$): -3.26B V -2.95BE (11th consecutive quarter of deficit); CURRENT ACCOUNT TO GDP RATIO YTD: -5.0% V -4.9%E
(NZ) NEW ZEALAND ONLINE JOBS VACANCIES M/M: -3.0% v +12.6% prior; SKILLED JOB VACANCIES M/M: -2.5% v +10.6% prior
(AU) AUSTRALIA FEB DEWR INTERNET SKILLED VACANCIES M/M: -1.5% V -1.7% PRIOR (11th straight decline)
(AU) AUSTRALIA JAN WESTPAC LEADING INDEX M/M: 0.3% V 0.3% PRIOR
Markets Snapshot (as of 03:00 GMT)
Nikkei225 closed
S&P/ASX -0.1%
Kospi -0.4%
Shanghai Composite +1.5%
Hang Seng +0.7%
June S&P500 -0.1% at 1,541
Apr gold flat at $1,611/oz
May Crude Oil +0.2% at $92.69/brl
Observations/Insights
BHP, Rio Tinto and Fortescue opened down sharply after Goldman Sachs downgrades that also cut iron ore price target by $5 to $139 before paring some of those losses; Rio is down 2.2%, while BHP and down 2.1% late in the day.
The Cyprus headline roulette keeping markets on edge. Late in US hours, a press report over ECB providing liquidity goosed bullish sentiment before traders realized the central bank has maintained a steadfast position regarding its support 'within existing rules.' Early in Asian hours, a press report indicated Cyprus and the ECB are working on a capital control plan as a contingency against bank runs ahead of bank reopening. Without specifying a new reopen date (previously expected Thursday), the report suggested banks may stay closed until Tuesday, March 26. Under the contingency plan, EZ officials would also establish daily limits on transactions and border checks for cash over certain amount, while flying in euro notes from other countries to feed Cyprus ATMs.
Gold remaining bid for the 4th consecutive session, just as ETF holdings rise for the first time in a month. PIMCO managing director noting the fund has drastically reduced EUR-denominated holdings over the past 24 hrs.
Currencies/Fixed Income/Commodities
EUR/USD consolidated its broad US session weakness that followed strong US housing data as well as a 'unanimous' (majority Disy party abstained) rejection of Eurogroup bail-in package for Cyprus; Lawmakers are now deliberating plans B and C. 200-day MA also succumbed to euro selling, as single currency briefly fell below $1.2850 before consolidating in 1.2850-80 range. USD/JPY was rangebound within a 40 pip band around ¥95. SGD remained offered, hitting 7-month lows against USD near S$1.2530. NZD was also relatively weak, down about 30 pips below $0.8230 despite a very strong Fonterra dairy auction overnight. Traders remain concerned over the Open Bank Resolution (OBR) plan coming into effect at the end of June that would call for a partial loss on all deposits if a bank in New Zealand failed. Volatility still subdued overall going into the Fed policy decision in the coming US session.
(CN) China MoF sells 10-yr Bonds; avg yield: 3.5198%
(AU) Australia MoF (AOFM) sells A$600M 5.5% 2023 Bonds; avg yield: 3.4870%; bid-to-cover: 3.18x
GLD: SPDR Gold Trust ETF daily holdings rise by 2.7 tons to 1,222.2 tons (first rise since Feb 7th)
SLV: iShares Silver Trust ETF daily holdings rise to 10,583 tons from 10,733 tons prior (first fall since Mar 4th, lowest since 10,539 on Feb 20th)
(US) API PETROLEUM INVENTORIES CRUDE: -415K V +1ME (2nd week of draw); GASOLINE: +280K V -2ME; DISTILLATE: -1.31M V -1.5ME; UTILIZATION: 82.9% V 80.5% W/W
Speakers/Political/In the Papers
(AU) Australia govt sees 2012/13 iron ore exports value -9% to A$57B, iron ore export volume +11%
(NZ) RBNZ Dep Gov Spencer: Open bank resolution differs from Cyprus situation; policy would facilitate rapid orderly resolution.
(NZ) NZD/USD: (NZ) Overnight NZD weakness attributed into part to RBNZ unveiling the Open Bank Resolution (OBR) plan as part of its 'macro-prudential' measures - Dominion Post.
(NZ) Randstad Workmonitor: New Zealand workers increasingly optimistic about the country's economy - NZ press.
(CN) Goldman Sachs economist Li Cui: China inflation may continue to rise - financial press.
(EU) PIMCO managing director Parikh: Reduced allocations to Euro investments over the past 24 hours; Cyprus deal is a reminder that 'euro is far from being a perfect reserve currency' - financial press.
(CY) Eurogroup Chief Dijsselbloem: Euro Zone's €10B bailout offer from Cyprus remains but will not be increased; decision is up to Cyprus.
(US) WSJ's Hilsenrath: I think Fed will be 'waving the green flag to markets' at FOMC meeting tomorrow; Fed won't try to tamp things down, haven't seen enough positive data yet - CNBC interview
Equities
DJS.AU: Reports H1 Net A$73.5M v A$71Me, Rev A$1.0B -0.7% y/y; +3.6%
ELD.AU: Provides trading update: Industry wide conditions affecting rural services operations; -3.9%
SYD.AU: Reports Feb traffic +2.3% y/y v +3.8% prior; +1.0%
FMG.AU: CEO: Sees iron ore prices sustainable at $120-130/ton; China steel demand will not decline for decades.
SGM.AU: Announces management changes; Europe division CEO Graham Davy no longer employed by company.
RIO.AU: Australia govt remains committed to Gove pipeline; expects due diligence studies to be completed by Dec - financial press.
WOW.AU: To consider purchasing milk directly from farmers - AFR.
LG 066570.KR: LG and Samsung Electronics said to have entered a patent dispute related to eye-tracking technology in their latest smartphone products - Korean press.
Hyundai Mobis 012330.KR: Started operations at a plant that manufactures key components of green (hybrid, electric, hydrogen fuel cell) vehicles - Korean press.
ICBC 1398.HK: President Yang: The core capital adequacy ratio for 2012 at 10.62%; Shareholders approve plan to raise CNY60B in capital - shareholder meeting.
CTAS: Reports Q3 $0.60 v $0.62e, R$1.08B v $1.06Be; -2.6% afterhours.
ADBE: Reports Q1 $0.35 v $0.31e, R$1.01B v $994Me; Guides Q2 $0.29-0.35 v $0.34e, Rev $975M-1.025B v $1.02Be; Raises FY13 $1.45 v $1.41e (guided $1.40 prior), Affirms R$4.1B v $4.13Be - slides; +6.3% afterhours.
WSM: Reports Q4 $1.34 v $1.29e, R$1.41B v $1.40Be; Raises quarterly dividend 41% to $0.31 (implied yield 2.7%) from $0.22 and announces $750M stock buyback (17% of market cap); +5.9% afterhours.