The dollar and Treasury yields advanced after Federal Reserve Governor Christopher Waller cautioned that policymakers had “a ways to go” before ending interest-rate hikes. US stock futures declined while contracts for Europe climbed. Asian equities erased earlier gains, dragged down by Japanese shares. The greenback had been on the backfoot before Waller’s comments amid signs of cooling in US inflation and the prospects of a dovish tilt by the Fed. The University of Michigan’s preliminary November survey on Friday showed US consumer inflation expectations increased in the short and long run while sentiment retreated. Treasury yields rose across the curve. Yield gains were also seen in Australia and Japan. To be sure, while Waller said the hiking cycle would continue for some time, he noted that the Fed could start considering a downshift to a 50 basis-point move at the next meeting in December or the one after that.
A 16-point plan to boost China’s real estate market and efforts to reduce the economic cost of the government’s pandemic response saw Hong Kong and mainland stocks rally. Shares of developers led the charge, with Country Garden Holdings Co. surging by a record 55%. Investors will also keep a wary eye on the Group of 20 summit in Indonesia, where US President Joe Biden and Chinese leader Xi are expected to meet. Biden’s hand has been strengthened by the Democrats defying political forecasts and historical trends to keep control of the Senate. Cryptocurrencies fluctuated while the sector remained under pressure amid FTX’s deepening woes. A swift plunge in the value of FTX’s key crypto assets and unauthorized withdrawals of funds after it filed for bankruptcy suggest customers have little chance of recovering much of their deposits. A negative tone held sway in the Japanese market, with the nation’s benchmark stock indexes weighed down by SoftBank Group Corp., which failed to announce a widely-expected stock buyback.
While US stocks posted their biggest weekly gain since June on Friday, JPMorgan Asset Management prefers to remain cautious for now. Oil dipped after a two-day rally as a stronger dollar offset optimism around the outlook for improved Chinese demand. Gold declined.
Nikkei -1.06% Hang Seng +1.72% CSI +0.14% Shanghai -0.11% Shenzen -0.28%
Eur$ 1.0316 CNH 7.0316 CNY 7.0465 JPY 139.36 GBP 1.1761 CHF 0.9468 RUB 60.7937 TRY 18.60008 WTI$ 88.52 -0.49% Gold 1,760.70 -0.59% BTC 16,477.50 +0.66% ETH 1,231.75 +1.28%
S&P -0.21% Nasdaq -0.39% EuroStoxx +0.36% FTSE +0.12% Dax +0.33% SMI -0.16%
Macro :
- China Plans Property Rescue as Xi Surprises With Policy Shifts
- FTX’s Balance Sheet, Hack Paint Dim Picture for User Recovery
- Germany’s Biggest Wage Talks Keep ECB Officials in Suspense
Keep an eye on :
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- ORP FP : France’s CDC Could Take Stake in Care-Home Company Orpea
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- VTWR GY : Vantage Towers 1H Adjusted Ebitda After Leases Misses Estimates
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