HomeContributorsFundamental AnalysisEquity Markets Generally Track The Earlier Losses On Wall Street

Equity Markets Generally Track The Earlier Losses On Wall Street

General trend

  • Reminder: China loan prime rates (LPRs) may be lowered during Dec, cited analysts – Chinese press [from Dec 16th].
  • Australia New South Wales (highest population state) reported another record for virus cases.
  • Australia debt agency cut FY21/22 bond issuance plan.
  • Risk-sensitive commodity currencies trade lower, Crude Oil FUTs also drop.
  • Quiet Asian session seen for GBP/USD amid BOE rate hike.
  • USD/JPY trades slightly lower.
  • US equity FUTs extended declines in Asia, Nasdaq FUTs continued to lag; Some are focusing on Friday’s option expiration.
  • FedEx rose during afterhours trading amid earnings/guidance and buyback.
  • Cerner [CERN] rose on renewed M&A talk.
  • Nikkei 225 has extended declines.
  • Hang Seng ended the morning session near the lows (-1.3%).
  • Shanghai Composite also continued to decline during morning trading.
  • S&P ASX 200 has pared gain.
  • BOJ Gov Kuroda to hold post rate decision press conference at 06:30 GMT [will he comment on the recent rise in repo rates?].
  • Companies due to report during the NY morning include Darden Restaurants, Winnebago.

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened flat.
  • (AU) Australia Treasurer Frydenberg: China is unable to replace Australia Iron Ore very easily.
  • (AU) NSW recorded 2,213 new COVID cases [record high]; South Australia has also reported a record high for new virus cases – Australian press.
  • (AU) Australia AOFM Issuance Program/MYEFO 2021-22: Cuts planned gross issuance of Treasury Bonds for 2021-22 to ~A$105B (of which A$44.3B has been completed) v ~A$130B prior.


  • Nikkei 225 opened -0.7%.
  • (JP) Bank of Japan (BOJ) leaves interest rate on excess reserves (IOER) unchanged at -0.10%; as expected; Announces partial extension of the Special Program to Support Financing in Response to COVID-19 to Sept 2022 (prior Mar 2022), but reduced the scale of the program.
  • (JP) Japan PM Kishida’s visit to the US has been postponed to 2022 – Nikkei.
  • (JP) Japan Govt said to be looking at maintaining new JGB issuance in the ~¥30T range for FY22/23 [~¥43.6T was initially planned]; notes economic recovery may support tax revenues – Press.
  • (JP) Japan Govt to convene diet session on Jan 17th (Mon) – Press.
  • (JP) Japan considers extending border controls past Jan – Press.


  • Kospi opened -0.7%.
  • (KR) South Korea to spend ~KRW3.2T on small business owners during coronavirus restrictions.

China/Hong Kong

  • Hang Seng opened -0.1%; Shanghai Composite opened -0.1%.
  • (CN) China PBOC Deputy Gov Chen: Calls for creation of financial risks alert system.
  • (CN) China PBOC sets Yuan reference rate: 6.3651 v 6.3637 prior.
  • (CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY10B prior; Net CNY0B v Net CNY0B prior.
  • (US) Senate passes bill unanimously to ban all imports from Xinjiang, China unless US govt determines that they were not made with forced labor; Bill now moves to Pres Biden who has indicated he will sign it.
  • (CN) China Stats Bureau (NBS) Revises 2020 GDP growth to 2.2% v 2.3% prior (>40 year low).
  • CN) China Finance Ministry (MOF) said debt risks related to local governments are ‘generally’ under control – Chinese press.
  • (HK) Hong Kong Government: To sell land site in Tsing Yi by public tender, the move will support the development of logistics.
  • (CN) China Ministry of Finance (MOF) Sells 3-month bills and 50-year bonds.

North America

  • (US) President Biden: Has productive call with Schumer and Pelosi; Believes Build back better will receive support to pass in Senate.
  • (US) Nov Housing Starts: 1.679M V 1.567ME; Building permits: 1.712M V 1.661ME.
  • (US) Price-fixing case related to Chicken industry prices said to end in mistrial – US financial press.
  • (US) Initial Jobless Claims: 206K V 200KE; Continuing claims: 1.85M V 1.94ME.
  • (US) Dec Preliminary Markit PMI Manufacturing : 57.8 V 58.5E.
  • (US) Dec Philadelphia Fed Business Outlook Survey: 15.4 V 29.6E.
  • (US) Nov industrial Production M/M: 0.5% V 0.6%E; Capacity Utilization: 76.8% V 76.8%E.


  • (DE) German Chancellor Scholz: Will continue to closely watch energy price situation; Do not plan an obligation for coronavirus tests for travel in the EU.
  • (FR) France President Macron: No plans to introduce obligatory coronavirus tests for travel in the EU.
  • (UK) Liberal Democrats said to win the North Shropshire seat by defeating the UK Conservatives in special election – UK media.


  • (PE) Peru Congress to debate giving tax law powers to Govt on Dec 17.

Levels as of 00:20 ET

  • Nikkei 225, -1.9%, ASX 200 +0.1% , Hang Seng -1.2%; Shanghai Composite -0.9% ; Kospi flat.
  • Equity S&P500 Futures: -0.2%; Nasdaq100 -0.3%, Dax -0.3%; FTSE100 -0.5%.
  • EUR 1.1340-1.1320 ; JPY 113.85-113.44 ; AUD 0.7187-0.7151 ;NZD 0.6829-0.6774.
  • Gold +0.3% at $1,803/oz; Crude Oil -1.2% at $71.53/brl; Copper flat at $4.2977/lb.


Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading