Equity markets trade mixed, CN inflation data is due on Fri
|General trend
- Follow Up: China to hold press conference on COVID at 3 pm local time (7 GMT) [updates the time] – financial press.
- Hang Seng rebounds after prior decline.
- Japanese equities trade modestly lower.
- Japan reported a surprise current account deficit.
- Energy cos. lag in Australia.
- Taiwan Semi may report monthly sales this week.
- China’s Commerce Ministry (MOFCOM) sometimes holds weekly news conferences on Thurs.
Headlines/economic data
Australia/New Zealand
- ASX 200 opened flat.
- (AU) Reserve Bank of Australia (RBA) Assistant Gov of Financial Systems Jones gives speech called "The Economics of a Central Bank Digital Currency in Australia".
- (NZ) New Zealand sells NZ$400M v NZ$400M indicated in 2028, 2032 and 2037 bonds.
- (AU) Reserve Bank of Australia (RBA): Information Provided to the Review of the Reserve Bank of Australia.
- (AU) Australia Oct Trade Balance (A$): 12.2B v 12.1Be.
- (AU) Australia Treasurer Chalmers says RBA review to guide decision related to RBA Gov – Australia media.
Japan
- Nikkei 225 opened -0.2%.
- (JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.005% 5-year JGBs; Avg Yield: 0.1210% v 0.0600% prior, bid-to-cover: 3.58x v 3.31x prior.
- (JP) Japan Nov Tokyo Avg Office Vacancies: 6.4% v 6.4% prior.
- (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGBs at fixed rate of 25bps; Opens window to buy unlimited amount of 10-year JGBs at 0.25% [as expected].
- (JP) Japan Investors Net Buying of Foreign Bonds: ¥522.2B v ¥51.2B prior; Foreign Net Buying of Japan Stocks: -¥349.3B v ¥442.9B prior.
- (JP) Japan Nov Bank Lending Y/Y: 2.7% v 2.7% prior; Bank Lending (ex-trusts) Y/Y: 3.0% v 3.0% prior.
- (JP) Japan Oct BoP Current Account: -¥64.1B v + ¥621.7Be; Adj Current Account: -¥609.4B v +¥352.7Be.
- (JP) Japan Q3 FINAL GDP Q/Q: -0.2% V -0.3%E; GDP annualized Q/Q: -0.8% V -1.0%E.
Korea
- Kospi opened +0.2%.
- (KR) Bank of Korea (BOK) Dep Gov: To raise amount of repo purchases to >KRW6.0T - policy report to parliament.
- (KR) South Korea Govt said to have ordered truckers that haul Steel and Petrochemicals back to work [in line] - Press.
- (KR) South Korea Govt said to have asked the National Pension Service to increase its FX Hedging ratio to 10% - Korean press.
China/Hong Kong
- Hang Seng opened +0.8%; Shanghai Composite opened -0.1%.
- (CN) China PBOC Open Market Operation (OMO): Sells CNY2.0B in 7-day reverse repos v CNY2.0B prior; Net drains CNY8.0B v net drains CNY168B prior.
- (CN) China PBOC sets Yuan reference rate: 6.9606 v 6.9975 prior.
- (CN) China Nov Domestic Excavator sales 14.4K, +2.7% y/y.
- (HK) Hong Kong expected to decrease isolation period for coronavirus patients to 5 days - Press.
- (CN) China securities regulator (CSRC) Vice Gov Li: Looking into expanding REIT pilot program to more sectors [includes long-term rental and commercial properties].
- (HK) Said that Hong Kong is considering easing coronavirus testing rules for arrivals - Press.
North America
- TSLA: Said that bankers are considering new margin loans on CEO Musk's Tesla shares to replace the high interest loans to acquire Twitter - Press.
-(US) MBA Mortgage Applications w/e Dec 2nd: -1.9% v -0.8% prior.
-(US) Q3 final nonfarm productivity: 0.8% v 0.6%e; unit labor costs: 2.4% V 3.1%E (lowest Unit Labor Costs Q/Q increase since Q4 2021).
-Nov Manheim Used Vehicle Value Index: -0.3% M/M; -14.2% Y/Y; First time the MUVVI (14% y/y) has dropped below 200.0 since August 2021.
-(CA) Bank of Canada (BOC) raises interest rate by 50BPS TO 4.25%; as expected; Inflation is still too high, CPI expectations remain elevated.
-(US) DOE crude: -5.2M V -1.5ME; GASOLINE: +5.3M V +1.5ME; DISTILLATE: +6.2M V +1ME.
-(US) Oct consumer credit: $27.1B V $28.0BE.
Europe
- (UK) UK Nov RICS Housing Balance -25% v -10%e [lowest since May 2020].
- (DE) Germany Chancellor Scholz says the risk of Russia using nuclear weapons has declined, cites international pressure – German press.
-(EU) EU Commission Pres Von der Leyen: Confident EU will agree on gas price cap by year-end.
-(UK) PM Sunak Spokesperson: PM thinks it is right to look at further ways to curtail impact of strikes.
-(EU) ECB’s Kazimir (Slovakia): Many reasons to keep tightening pace in Dec.
-(RU) Russia Pres Putin: The threat of nuclear war is on the rise; No sense at all to conduct additional mobilization today in current conditions.
Levels as of 00:20 ET
- Nikkei 225, -0.5%, ASX 200 -0.8% , Hang Seng +2.5%; Shanghai Composite -0.1% ; Kospi -0.9%.
- Equity S&P500 Futures: -0.2%; Nasdaq100 -0.2%, Dax -0.2%; FTSE100 -0.2%.
- EUR 1.0515-1.0494 ; JPY 137.24-136.24 ; AUD 0.6730-0.6698 ;NZD 0.6372-0.6326.
- Gold -0.2% at $1,794/oz; Crude Oil +0.9% at $72.69/brl; Copper flat at $3.8442/lb.
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