EUR/USD 1.16213
-0.008%
Gold 4408.49
-0.085%
Oil 91.755
1.121%
USD/JPY 153.798
-0.356%
GBP/USD 1.35401
0.000%
GBP/JPY 208.249
-0.351%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On September 8th, Daiwa issued a research report stating that Bilibili (09626.HK) issued US$700 million in zero-coupon convertible bonds maturing in 2031, while Tencent (00700.HK) completed the sale of its entire approximately 9.6% stake. The bank views this innovative win-win-win structure positively, believing it eliminates Tencents long-standing pressure to cash out, brings Bilibili approximately US$400 million in new funds, and limits equity dilution through the immediate US$300 million share buyback and cancellation. The report states that Bilibili has used US$300 million of the proceeds to buy back shares. Based on the initial conversion price of the convertible bonds (approximately 35.2 million shares), the total dilution is approximately 8.4%. However, after deducting the immediate cancellation of the repurchased shares, the net dilution is limited to approximately 3.5%. The bank reiterated its buy rating on Bilibili. The bank believes the benefits outweigh the drawbacks because it immediately eliminates Tencents selling pressure and raises long-term zero-coupon funds at a cost far lower than ordinary offshore bonds.Songyan Power: Officially launched Scalabot, a general-purpose embodied intelligence technology brand. Scalabot is dedicated to building the core capabilities of robots to understand the world, predict the future, and act autonomously, bringing intelligence from models to the real world.The Icelandic government summoned the U.S. ambassador to Iceland after Trump posted a map on social media that included Iceland within the U.S. territory.On September 8th, Citigroup issued a report stating that Nikes adjustment of its China distribution strategy starting in January 2027 is expected to negatively impact Topsports (06110.HK) business prospects for fiscal year 2028 (ending February 2028). Currently, the bank is not highly confident that Nike will continue to subsidize Topsports online distribution rights after the current fiscal year (ending February 2027). The bank lowered its net profit forecasts for Topsports for fiscal years 2027 to 2029 by 2%, 19%, and 18% respectively, while its sales forecasts were lowered by 1%, 5%, and 5% respectively. Based on an unchanged target P/E ratio of 11x for each historical year ending in 2027, the target price was lowered from HK$1.91 to HK$1.7. The bank maintains its "Buy" rating, considering the stocks double-digit dividend yield. The relative preference order for the Chinese sportswear sector remains unchanged: Anta (02020.HK) > Li Ning (02331.HK) > Topsports, all with "Buy" ratings.On September 8th, Futures News reported that Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman reaffirmed their commitment to maintaining market stability, deciding to keep their daily crude oil production quotas for October at the same level determined in September 2026. OPEC+ will continue to hold monthly meetings to monitor market dynamics, with the next meeting scheduled for October 4th, 2026. Previously, the production quotas of these seven OPEC+ countries had increased for six consecutive months, and member countries are still working to determine new production quotas. During these six months, the organization gradually lifted production cuts, and the market still has sufficient capacity to absorb the increased oil supply. However, despite the significant increase in production quotas, the Strait of Hormuz is blocked due to the war between the US and Iran, and Russian crude oil exports are also restricted due to Western sanctions. In other words, since these seven countries crude oil is mainly for export, the increased quotas are meaningless given the export restrictions.

USD/CAD declines to 1.3500 on firmer Oil prices, BoC concerns over US inflation, and Fed Minutes

Daniel Rogers

Apr 10, 2023 14:35

 USD:CAD.png

 

The USD/CAD maintains losses close to 1.3500, shattering a four-day winning trend, as traders brace for key Easter Monday data/events on major bourses. However, the recent decline in the Loonie-U.S. dollar exchange rate may be due to the increase in the price of WTI petroleum oil, Canada's primary export. In contrast to the recent increase in ardent Fed forecasts, the Bank of Canada's (BoC) dovish bias poses a challenge to pair sellers.

 

After increasing for three consecutive weeks, WTI crude oil prices gain 0.61 percent intraday near $80.00. Recent increases in the price of black gold may be due to geopolitical concerns surrounding China and Taiwan. In addition to the supply cut by OPEC+ and the faltering US dollar, the energy benchmark is sustained by the supply cut by OPEC+ and the weakening US dollar.

 

However, the US Dollar Index (DXY) has fallen for three consecutive weeks and is under pressure near 102,000.

 

Fears of higher Fed rates versus inaction from the Bank of Canada (BoC) grew after the upbeat US Jobs report versus the lack of significant positives in the March Canadian jobs report.

 

As a result, the CME's FedWatch Tool indicates a 69% chance of a 0.25 basis point rate hike in May, up from 55% prior to the US employment report.

 

Canada's headline Net Change in Employment increased to 34.7K in March from 21.8K in February, compared to the market consensus of 12K, while the Unemployment Rate came in at 5% versus the analysts' estimate of 5.0%. During the specified month, the Participation Rate decreased to 65.6% from the expected and previous rate of 65.7%. In addition, the average hourly wage fell 5.2% year-over-year in March, down from 5.5% in February.

 

In contrast, the US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls (NFP) increased by 236K in March, the lowest increase since January 2021 (considering revisions), compared to the expected 240K and the previous 330,000. Additionally, the unemployment rate fell from 3.6% to 3.5%, while the labor force participation rate rose from 62.6% to 62.6%. The annual wage inflation rate decreased from 4.6% to 4.2%, below market expectations of 4.3%.

 

Futures on US equities ended higher, but yields remain under pressure ahead of the crucial BoC monetary policy meeting, US inflation, and Fed Minutes. Given the dovish concerns from the Bank of Canada (BoC) and the likely hawkish comments in the FOMC Minutes, the USD/CAD may see additional gains, barring any unexpected developments.


Suggestion