Stocks were mixed Monday amid data showing steadying economic growth in China as well as ongoing challenges in the nation’s troubled property sector. Treasuries were steady and the dollar slipped.
Shares fluctuated in Hong Kong and dipped in China as traders weighed stronger-than-expected retail sales and industrial output, central bank liquidity support and a drop in home prices that hurt real-estate shares. Japanese equities gained, with stimulus plans softening the blow of an economic contraction. European, S&P 500 and Nasdaq 100 futures moved in tight ranges.
Beijing’s crackdown on real-estate leverage is among the headwinds for the world’s second-largest economy. There are now expectations that officials may try to help ailing developers. Chinese junk dollar bonds extended a rebound.
Sovereign bond markets were comparatively calm following a period of pronounced swings due to uncertainty about whether high inflation will be sticky and the likely speed of interest-rate hikes. Bond-market expectations for inflation over the coming decade are near the highest since 2006.
Fed Bank of Minneapolis President Neel Kashkari said the U.S. central bank shouldn’t overreact to elevated inflation even as it causes pain, because it is likely to prove temporary. Treasury Secretary Janet Yellen said controlling the Covid-19 virus in the U.S. is the key to easing price pressures.
Elsewhere, President Joe Biden will meet virtually with Chinese President Xi Jinping on Monday. Tensions between the two countries have been building over issues including Taiwan and restrictions on sales of U.S. technology to China.
In commodities, oil fell as traders wait to see what Biden might do to alleviate gasoline prices amid growing criticism about the impact of rising costs. Aluminum and base metals retreated in part on China’s property slowdown.
Meanwhile, Elon Musk raised the idea of selling more of his Tesla Inc. shares in online sparring with U.S. Senator Bernie Sanders. Musk offloaded almost $7 billion worth of Tesla stock over the past week, weighing on the shares of the electric-vehicle manufacturer.
Nikkei +0,52% Hang Seng -0,02% CSI -0,07% Shanghai -0,13% Shenzen -0,12%
Eur$ 1,1458 CNH 6,3579 CNY 6,3809 JPY 113,85 GBP 1,3432 CHF 0,9197 RUB 72,6020 TRY 10,02 WTI$ 80,42 Gold 1,857,50 BTC 65,739 +1400 ETH 4701 +125
S&P +0,05% Nasdaq +0,23% EuroStoxx -0,08% FTSE -0,08% Dax -0,06% SMI -0,15%
Macro :
- Morgan Stanley Stays Cautious on China, EM Equities, Likes Japan
- RBC Capital Caves to S&P 500’s Rally, Then Has to Do It Again
- Michael Burry Again Calls Foul on Musk, This Time Over Rivian
- Japan Says Agreed With U.S. to Start Talks on Metals Tariffs
Keep an eye on :
- ADEN SW : Adecco Shares Rally into Close After Betaville ‘Uncooked Alert’
- AIR FP : DHL Orders Nine More 767-300 Boeing Converted Freighters
- AIR FP : Got 225 jet order from Low cost Investor Franke - FT
- ATL IM : EU Clears Sale of Atlantia’s ASPI to Group Led by Italy’s CDP
- ATO FP : Atos Shares Pare Earlier Declines on Betaville Mention
- BBVA SM : BBVA to Launch Takeover Bid for Remaining 50.2% of Garanti Shrs
- BNTX US : Pfizer Shot Gave Most Antibodies in Comparative Study (Correct)
- BOKA NA : Boskalis, Keppel to Sell KST, Maju to Rimorchiatori Mediterranei
- BT/ A LN : Altice Founder Drahi Seeks Bigger Stake in BT Group: Rtrs
- CFR SW : Richemont Farfetch Deal, Consumers Fear Inflation: Consumer Wrap
- COTN SW : Comet Sees FY Sales CHF480M to CHF500M
- CBK GY : Commerzbank Concludes Talks With Works Council on Strategy 2024
- DOKA SW : Dormakaba Sees FY Sales +3% to +5%
- ECV GY : Encavis 9M Revenue EU259.1M Vs. EU234.3M Y/y
- EFGN SW : EFG Reports 9M Net New Assets of CHF6.2B, Higher Profitability
- ENI IM : Italy’s Eni Says Oil Prices Could Reach $100, But Not for Long
- FER SM : Aena, Ferrovial Eye Brazil’s Next Airport Auction, Minister says
- FILA IM : Fila 9M Revenue EU496.5M Vs. EU471.3M Y/y
- GYC GY : Grand City Properties 9M Revenue EU389.5M Vs. EU401.2M Y/y
- HEIA NA : Heineken Offers to buy Distell at ZAR180/Share in Cash
- LEON SW : Leonteq Raises FY 2021 Profit Outlook to CHF140m-CHF160m
- LHA GY : Lufthansa to Charge Customers to Flaunt Their Green Credentials
- NOLAB SS : Nolato Says Effects of Data Breach Have Been Limited
- RBI AV : KBC to Buy Raiffeisen Bank’s Bulgarian Business for ~EU1.015B
- REC BB : Greiner Sees ‘Likely’ Phase II EU Investigation of Recticel Bid
- SFQ GY : SAF-Holland SE 9M Adjusted Ebit EU71.3M Vs. EU38.5M Y/y
- SPM IM : Saipem Awarded Two New Offshore T&I Contracts for Over $600M
- SAP GY : A Strong End to a Week of Two Halves; SAP Slips: EMEA Tech Wrap
- SGRE SM : GE Wind Fight With Siemens Gamesa Gets Further ITC Scrutiny
- SOON SW : Sonova 1H Sales Beat Estimates
- TLX GY : Talanx Sees FY Net Income High End Of EU900M to EU950M
- TSLA US : Tesla’s Musk Sells 1.2 Million More Shares for $1.24 Billion
- TSLA US : Musk’s SpaceX Shouldn’t Get U.S. Broadband Subsidy, Viasat Says
- VTWR GY : Vantage Towers Boosts FY Recurring Free Cash Flow Forecast
- VBX GY : Voltabox Sells Car Unit, Holder Exits Most of Stake
- VOLVB SS : Volvo Cars to Launch Three New EVs by 2025, Plans Third EU Plant