Asian Market Update: Equity markets are trading in a mixed manner as the impact of Omicron remains uncertain; USD Index Declines, UST Yields Increase Mid Powell and End of Month; Yields later erase the rise; AU Q3 GDP is expected Wednesday, US consumer confidence is expected later today.
– Asian indices generally eat away at gains.
– Travel-related stocks are generally trading higher.
– Hang Seng is late; China Gas weighed on utilities; Casino cos. extend the drop in the middle of the probe linked to SunCity.
– China has published a five-year plan for the development of software and computer services.
– The S&P ASX 200 was supported by the Financials and Resources indices.
– WTI crude remained slightly higher; Precious metals also have modest gains.
– Chinese PMI data had little initial impact, while maintaining the expansion.
– Markets began to reverse earlier gains after Moderna CEO reiterated his comments on skepticism about the omicron vaccine.
– Companies expected to report this morning in New York include Barnes & Noble Education, Bank of Nova Scotia, Baozun, Chico’s, Citi Trends, JinkoSolar, Momo, UP Fintech.
Titles / Economic data
Australia / New Zealand
– ASX 200 open + 0.5%.
– (AU) Australia Q3 Current account balance (A $): 23.9 B against 29.3 Be; Government consumption will add 0.8% to GDP, government investment will reduce GDP by 0.1%.
– (AU) AUSTRALIA OCT BUILDING APPROVALS M / M: -12.9% V -1.5% E; Approvals for Houses in the Private Sector M / M: + 4.3% against -16.0% previously.
– (NZ) New Zealand Nov Final ANZ Activity Outlook: 15.0 v 15.6 prelim; Business confidence: -16.4 v -18.1 prelim.
– (NZ) Chief Economist of the Reserve Bank of New Zealand (RBNZ) Ha: no plans to use QEs as a monetary tool; Risks would increase without market prices.
– Nikkei 225 opened + 1.2%.
– (JP) JAPAN NOV JOB UNEMPLOYMENT RATE: 2.7% V 2.8% E, Job / candidate ratio: 1.15 against 1.17e.
– (JP) JAPAN OCT PRELIMINARY INDUSTRIAL PRODUCTION M / M: + 1.1% V -4.4% E (1st increase in 4 months); Y / Y: -4.7% V -2.3% BEFORE.
– (JP) Japan Fin Min Suzuki: It is important to have longer term goals in the budget.
– (JP) Japan MOF sells Â¥ 3.0T against Â¥ 3.0T indicated in 2-year JGB 0.00%: Average yield: -0.121% against -0.0970% before; Bid-to-cover: 4.05xv 4.04x front.
– Kospi opens + 1.0%.
– (KR) South Korea Oct. Industrial production M / M: -3.0% v -0.1% e; Y / Y: 4.5% vs. 2.0% e.
– (KR) Change in South Korea’s cyclical leading index in October: -0.5 vs. -0.3 previously.
China / Hong Kong
– Hang Seng opened -0.3%; Shanghai Composite opened + 0.2%.
– (CN) CHINA NOV MANUFACTURING PMI (OFFICIAL GOVT): 50.1 V 49.8E (first expansion since August); Non-manufacturing PMI: 52.3 v 51.3e (3rd consecutive expansion).
– (CN) China Financial News (PBOC Backed): OMO injections show that the objective of the PBOC is to maintain reasonably abundant liquidity.
– 1383.HK Comments on CEO Chau’s arrest will be negatively impacted if he loses the support of Chau and his associated companies.
– (CN) China PBOC will lead CNY5.0B in a 3-month Central Bank Note (CBS) swap operation in today’s session against CNY5.0B forward.
– (CN) The Chinese government issues guidelines to ensure that hailing car drivers have rights: urges car rental companies to offer social insurance to drivers; Deepen anti-monopoly repression in the auto hail sector.
– (CN) The Chinese PBOC fixes the benchmark rate of the yuan: 6.3794 against 6.3872 previously.
– (CN) China PBOC Open Market Operation (OMO): sells CNY100B in 7-day reverse repurchase agreements against CNY100B previously; Net inject CNY50B v Net inject CNY50B before.
– 2303.TW Increase prices by up to 12% on long-term contracts.
– (SG) Singapore has started tracing contacts for airport staff who may have come into contact with two travelers infected with the omicron variant, passengers have passed through Changi Airport en route to Australia from South Africa.
– (US) Adobe: US customers spent $ 7.1 billion on Cyber ââMonday at 9 p.m. ET vs. $ 10.2-11.3 billion previously guided vs. $ 10.8 billion annually .
– The CEO of MRNA reiterates that he believes the current coronavirus vaccines will not be as effective against the Omicron variant of the coronavirus.
– (US) Fed Chairman Powell: Heightened concerns over virus could slow labor market progress and intensify supply chain problems; Omicron variant adds to economic risks and inflation uncertainty – testimony in Senate.
– (US) NIH’s Fauci: does not plan new travel restrictions because of the Omicron variant, cannot predict whether it will become a dominant variant in the United States.
– The (US) Senate blocked the annual defense bill with Republican objections, with Democratic senators seeking passage, vote pending.
– TWTR confirms that Jack Dorsey is stepping down as CEO; The board of directors unanimously appoints the technical director Parag Agrawal as successor; Salesforce CEO Bret Taylor Appoints Independent Chairman of the Board; Affirms outlook for the fourth quarter and fiscal 21 (US morning).
– (EU) De Guindos (Spain) from the ECB: closely monitoring the omicron variant, recommends that banks be careful with provisions.
– The expected benefits of EasyJet and Volvo today.
Levels from 00:15 ET
– Hang Seng -1.4%; Shanghai Composite + 0.3%; Kospi -1.1%; Nikkei225 + 0.1%; ASX 200 + 0.7%.
– Equity Futures: S & P500 + 0.1%; Nasdaq100 + 0.1%, Dax -0.4%; FTSE100 -0.0%.
– 1.1305-1.1285 euros; 113.89 to 113.43 JPY; AUD 0.7155-0.7131; 0.6835-0.6815 NZD.
– Commodity Futures: Gold + 0.3% at $ 1,790 / oz; Crude oil + 0.8% at $ 70.48 / brl; Copper -0.4% at $ 4.33 / lb.