US Jobs Data Is Due Later Today

Dec 03 21, 06:58 GMT

General trend

KRW declines, SK FX reserves dropped for the first time in 5 months.
Commodity currencies trade lower.
WTI Crude pared gains following reports of additional US omicron cases [later rebounded]; US equity FUTs also reversed gains.
Modest equity moves have been seen in Asia.
Hang Seng extended decline; TECH index dropped >2% amid DiDi’s comments on delisting, US SEC news; HK property sector in focus; Kaisa Group’s debt exchange failed; Debt concerns also weigh on Aoyuan Property.
Nikkei has traded slightly higher; Index heavyweights decline [Fast Retailing drops after monthly sales figures; Softbank Group extends decline].
Shanghai Composite ended morning trading higher (+0.6%).
S&P ASX 200 pared gain.
Musk continues to sell Tesla shares.
Companies due to report during the NY morning include Big Lots, BMO, Genesco, Hibbett.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened flat.
(AU) Australia Nov Final PMI Services: 55.7 v 55.0 prelim (confirms 2nd consecutive expansion and highest since June).
(AU) Australia sells A$1.5B v A$1.5B indicated in 2.75% Apr 2024 bonds, Avg Yield: 0.6718%, bid-to- cover 2.59x.

Japan

Nikkei 225 opened +0.3%.
(JP) Japan Nov Final PMI Services: 53.0 v 52.1 prelim (confirms 2nd straight month of expansion).
(JP) Bank of Japan (BOJ) announcement related to daily bond buying operation: Unchanged.
(JP) Japan Fin Min Suzuki: Believes cash handout expenditures aren’t too high, will contribute to consumption.
(JP) Japan Government Draft: Must restore economy first and then deal with fiscal reform.

Korea

Kospi opened -0.3%.
(KR) South Korea Govt confirms limiting gathering to 6 individuals in the greater Seoul region; to pursue social distancing measures for the next 4 weeks – Press.
(KR) South Korea Nov Foreign Reserves: $463.9B v $469.2B prior.
(KR) South Korea reports record number 736 critical condition coronavirus patients.
(KR) South Korea Vice Fin Min: Inflation uncertainty is increasing; Govt will take steps to curb excessive inflation expectations.
(KR) South Korea Parliament approves KRW607.7T 2022 budget (As expected); Projects debt to GDP at 50% during 2022.

China/Hong Kong

Hang Seng opened -0.5%; Shanghai Composite opened +0.1%.
(CN) China PBOC sets Yuan reference rate: 6.3738 v 6.3719 prior.
(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.
1638.HK Kaisa Group Confirms exchange offer has lapsed; Existing $400M in 6.5% notes to mature Dec 7th; No guarantee of meeting repayment obligations.
(CN) China should improve rules to develop junk bond market – Chinese press.
(US) Issues joint statement with EU expressing strong concern regarding China’s actions in South, East China seas and Taiwan Strait.
(CN) China Ambassador to the US Qin Gang: to reduce approval times needed by US Business executives to at most 10 days [easing travel rules for US business execs]; affirmed call for the US to cancel tariffs on China – financial press.
(CN) China Nov Caixin PMI Services: 52.1 V 53.0E [lowest since Aug].
(HK) China to appoint National Security advisers in Macau.
(CN) China to raise coal term contract benchmark prices – Press.
(US) SEC adopts rule that would require US-listed foreign firms to disclose whether they’re owned or controlled by a govt entity.
(CN) China govt advisers said to have recommended lowering the official 2022 GDP growth target as headwinds are growing- press.
(CN) China Ministry of Finance (MOF) sells 3-month and 6-month bills.
(CN) China releases 5-year plan on green development for the industrial sector.

North America

(US) New York Gov: 5 coroanvirus omicron variant cases identified in New York [Suffolk County, Queens and Brooklyn]; encourages the use of indoor masks.
(US) Los Angeles County in California reports 1st omicron variant case.
(US) Pres Biden to seek a code of conduct at the upcoming Summit for Democracy; Aims to rally partners behind a crackdown on surveillance technology.
DIDI Begins prep for Hong Kong listing and working on delisting in the US.
(US) As expected, Senate passes the short term funding bill funding the Govt through Feb 18th.

Europe

(TR) Fitch revises Turkey sovereign rating outlook to Negative; affirms rating at BB.
(EU) ECB’s Muller (Estonia): Omicron is not reason to shift PEPP end timeable.
(IE) Ireland Nov PMI Services: 59.3 v 63.4 prior.
(UK) Expected that Conservatives have retained seats in the Old Bexley and Sidcup by-elections, with a smaller margin compared to 2019 – UK media.

Other

(SG) Singapore Nov PMI (Whole economy): 52.0 v 52.3 prior (12th consecutive expansion).
(IN) India Strategic Petroleum reserve CEO Ahuja: Have yet to receive advise on releasing 5M barrels of oil from reserves; Expects to lease out some capacity by Jan.

Levels as of 00:20 ET

Nikkei 225, +0.6%, ASX 200 +0.2% , Hang Seng -0.7%; Shanghai Composite +0.7% ; Kospi +0.8%.
Equity S&P500 Futures: flat; Nasdaq100 -0.1%, Dax +0.2%; FTSE100 +0.3%.
EUR 1.1307-1.1290 ; JPY 113.24-112.95 ; AUD 0.7102-0.7062 ;NZD 0.6827-0.6783.
Gold +0.6% at $1,770/oz; Crude Oil +1.9% at $67.78/brl; Copper +0.2% at $4.2968/lb.