General trend
- USD has traded modestly lower against the European major and commodity currencies; US currency later pared drop.
- TRY drops amid shakeup at Turkey’s Finance Ministry.
- UST yields rise in Asia after prior decline.
- US equity FUTS have extended gains.
- Modest moves have been seen for the Asian equity markets.
- Nikkei has remained modestly lower; the index is currently off of the session lows; Softbank Group has hit another 52-week low [Alibaba and WeWork have been in focus]; Index heavyweight Fast Retailing to release monthly sales after the market close.
- Hang Seng traded slightly higher during the morning session after the lower open; Kaisa Group’s debt exchange deadline in focus [4:00 p.m., London time, on December 2].
- Shanghai Composite traded flat during the morning session.
- S&P ASX 200 pared drop.
- Japan’s Monetary Base continued to slow in Nov.
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
- Companies due to report during the NY morning include CIBC, Dollar General, Duluth Holdings, Express, Kirkland’s, Kroger, Lands’ End, LightInTheBox, Methode Electronics, SecureWorks, Signet, TD Bank.
Headlines/Economic data
Australia/New Zealand
- ASX 200 opened -0.2%.
- API.AU Woolworths makes A$1.75/shr cash offer.
- (AU) Australia chief medical officer Paul Kelly: There is no evidence that the Omicron variant of COVID is more deadly than other strains – press.
- (AU) AUSTRALIA OCT HOME LOANS VALUE M/M: -2.5% V +1.5%E; INVESTMENT LENDING M/M: 1.1% V 6.0%E; Owner Occupied Loan Value M/M: -4.1% v +3.0%e.
- (AU) Australia Oct Trade Balance (A$): 11.2B v 11.0Be, Goods and services credits (exports) fell $1,491m (3%) to $43,053m driven by falls in iron ore prices.
Japan
- Nikkei 225 opened -0.8%.
- (JP) Japan Investors Net Buying of Foreign Bonds: -¥1.34T v -¥12.8B prior; Foreign Net Buying of Japan Stocks: -¥309.6B v -¥47.1B prior.
- (JP) Japan PM Kishida: Confirms report he is considering bringing forward boosters for coronavirus.
- (JP) Bank of Japan (BOJ) Member Suzuki: BOJ will continue to take appropriate policy steps; Officials must be vigilant to risks that credit costs may increase on a delay in the economic recovery.
- 9201.JP Along with ANA to partially resume taking flight reservations – Press.
- Japan MoF sells ¥2.6T v ¥2.6T indicated in 0.1% 10-year JGBs; avg yield 0.0600% v 0.1070% prior; bid to cover: 3.16x v 3.14x prior.
Korea
- Kospi opened -0.9%.
- (KR) SOUTH KOREA NOV CPI M/M: +0.4% V -0.2%E; Y/Y: 3.7% V 3.1%E; CPI Core Y/Y: 2.3% v 2.2%e (10-year high).
- (KR) Bank of Korea (BOK): CPI to be above target for considerable time, 2021 CPI may be slightly above Nov outlook of 2.3%; Gov Lee to hold inflation briefing mid-Dec.
- (KR) SOUTH KOREA Q3 FINAL GDP Q/Q: 0.3% V 0.3%E; Y/Y: 4.0% V 4.0%E (in line with prelim reading).
- (KR) South Korea govt reportedly considering halting its gradual return to normal life as Covid cases rise – press.
- (KR) South Korea National Assembly expected to pass 2022 KRW607.9T budget by deadline (increased from KRW3.5T) – Yonhap.
China/Hong Kong
- Hang Seng opened %; Shanghai Composite opened -0.1%.
- 1383.HK To resume trading: Chairman Chau Cheok Wa to resign, effective immediately; SCGPCL to suspend travel related businesses.
- 1638.HK To meet with offshore bondholders on repayment options, exchange and consent solicitation to expire today.
- China PBOC sets Yuan reference rate: 6.3719 v 6.3693 prior.
- Weibo, 9898.HK Expected to price 11M share IPO at HK$272.80/shr v HK$388/shr indicated – press.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net drain CNY90B v Net drain CNY90B prior.
- (CN) China Banking and Insurance Regulatory Commission (CBIRC): planning stricter regulations on major shareholders of banks and insurance companies, confirms to better regulate connected transactions of banks.
- (CN) China Sec Journal: PBOC to keep funding conditions steady and certain tools such as relending will play a key role in stabilizing market conditions.
- (CN) Shanghai Sec News: China yuan currency (CNY) may fall after recent strong rally; notes slowing FX settlement demand, PBOC has also strengthened the management of expectations.
- (CN) China and US top military officials said to meet to discuss Taiwan tensions – press.
- (CN) China Nov Preliminary passenger vehicle sales -10.8% y/y – CAAM.
North America
- (US) Fed’s Mester (non-voter, hawk): Very open to considering a faster taper pace, momentum in economy is clear, seen higher inflation rates, Omicron is a new risk but we need more data.
- WE To restate financial statements as of Dec 31st; Finds material weakness in internal control over financial reporting – filing.
- (US) CDC identifies first case of Omicron variant in the US in San Francisco, California; Individual was fully vaccinated and had mild symptoms; Patient is self-quarantining.
- AAPL Said to have told iPhone component suppliers that demand has slowed down [comments relate to the iPhone 13] – Press.
Europe
- VIFN.CH Australia’s CSL said to be in exclusive talks to acquire company, deal seen around A$10B – press.
Levels as of 00:15ET
- Hang Seng -0.0%; Shanghai Composite -0.1%; Kospi +1.0%; Nikkei225 -0.4%; ASX 200 -0.2%.
- Equity Futures: S&P500 +0.6%; Nasdaq100 +0.5%, Dax +0.7%; FTSE100 -1.2%.
- EUR 1.1340-1.1315; JPY 113.11-112.66; AUD 0.7120-0.7095; NZD 0.6826-0.6805.
- Commodity Futures: Gold -0.4% at $1,777/oz; Crude Oil +0.8% at $66.10/brl; Copper +0.8% at $4.26/lb.
