Market Trading Hours Summary: Yields tick up and stocks are mixed in thin year-end trading
Summary:
Trading volumes reached the lowest level all year on Tuesday as investors say they are becoming increasingly comfortable with the theory that the Omicron variant may not lead to harsh restrictions on commerce and movement. US state governors are implementing light-touch measures to try to avoid disruptions. Treasury yields moved up globally while the NASDAQ and Russell experienced relative weakness.
Overnight:
- China PBOC Open Market Operation (OMO) injects CNY200B in 7-day reverse repos with a net injection of CNY190B
- China Q4 Beige Book showed companies cut investment and remained cautious on borrowing
-(EU) EU Economic Commissioner Gentiloni (Italy) said to intend to propose a modification of the EU Stability Pact in 2022 - financial press
- Spain parliament approves record 2022 budget; Minimum 15% corporate tax clears final hurdle 2022
US Session
-(BR) Brazil Dec FGV Inflation IGPM M/M: 0.9% v 0.7%e; Y/Y: 17.8% v 17.6%e
-(CL) Chile Central Bank (BCCh) Dec Minutes: Pace of Hike in December to likely will set pace for future decisions
-(US) NOV ADVANCE GOODS TRADE BALANCE: -$97.8B V -$88.1BE (record deficit)
-(US) NOV PRELIMINARY WHOLESALE INVENTORIES M/M: 1.2% V 1.5%E
-(US) NOV PENDING HOME SALES M/M: -2.2% V 0.8%E; Y/Y: +0.2% V -4.7% PRIOR
-(US) Nevada reports Nov casino gaming Rev $1.32B, +71.4% y/y; Las Vegas strip Rev $755.1M, +115.6% y/y
-(US) DOE CRUDE: -3.6M V -3ME; GASOLINE: -1.5M V 0ME; DISTILLATE: -1.7M V 0ME
Europe and Asia
-(CN) China Antitrust agency said to vow boosting antitrust law enforcement in 2022 - press
-(TR) Turkey said to be proposing a bill to 'bring order' to the cryptocurrency market
-(IN) India Central Bank (RBI) Financial Stability Report: Sees India banks' gross bad-loan ratio at 8.1% by Sept 2022
-(FR) France Health Min Veran: Expect flu epidemic to be strong this year which will have an impact on the hospital system
-(RU) Russia President Putin: Nord Stream 2 will serve to stabilize gas prices in Europe; Russia has the capacity to increase gas exports
-(RU) Russia Central Bank official Tremasov: Russian economy is 'close to overheating'
Corporate Headlines
-JD enters into 5-year $2.0B green loan facility; Raises share buyback amount by $1.0B to $3.0B and extends length through Mar 2024
-BABA said to explore options for its Weibo stake with some state firms, including Shanghai Media Group - press
-FCEL Q4 top and bottom line miss estimates, adj EBITDA loss widens y/y
-TSLA CEO Musk files Form 4 to exercise ~1.56M options at $6.24/shr; Sells ~$1.0B in last tranche and completes his stock selling plan
-VSCO affirms Q4 outlook; Enters $250M accelerated share repurchase program (5.9% of market cap)
-IFX.DE sees supply chain issues to last well into 2022 - German press
- Dow Jones +0.2%
- S&P 500 +0.0%
- Nasdaq -0.4%
- Russell 2000 -0.1%
Treasuries:
- US 2-yr: +0.2bps at 0.752%
- 10-yr: +3.6bps at 1.517%
- 30-yr: +4.1bps at 1.944%
- 2-10 spread: +3.4bps at 0.781%
Commodities:
- Crude oil $76.14, +0.2%
- Gold $1,802/oz, -0.5%
- Silver $22.81/oz, -1.4%
- Copper $4.40/oz, -0.7%