Asian stocks fell the most in about two weeks after Federal Reserve officials pushed back against bets of aggressive interest rate cuts next year. The MSCI Asia Pacific Index lost as much as 1.1%, the biggest drop since Dec. 5, led by a near 1% drop in Hong Kong. US futures edged higher after the S&P 500 ended a six-day rally. The dollar was steady while two-year Treasury yields reversed gains made on Friday, when New York Fed President John Williams led a chorus of officials in saying it’s too early to begin thinking about lowering borrowing costs. The pushback may start to scupper the ‘everything rally’ after traders took previous Fed signals as a green light to ratchet up bets on rate cuts next year, helping US and Asian shares to their biggest weekly gains in a month. Swaps traders trimmed bets on cuts in 2024 to just under five from six before the latest Fed rhetoric, according to Bloomberg-compiled data. Central bankers from the US to Europe and Canada have already begun their battle with traders. Atlanta Fed President Raphael Bostic, who votes on monetary policy next year, told Reuters that he expects two rate cuts in 2024 but not starting until the third quarter. Separately, Chicago Fed President Austan Goolsbee said Sunday it’s an overstatement to consider rate cuts until officials are convinced inflation is on a path lower to its target. Bank of Canada Governor Tiff Macklem shared similar sentiment. In Europe, European Central Bank Governing Council Joachim Nagel said Friday it’s too early to be considering rate cuts, while fellow member Madis Muller said that markets are getting ahead of themselves in betting on policy easing in the first half of next year. ECB President Christine Lagarde said the bank had not discussed rate cuts at all. Attention will soon shift to Japan with the nation’s central bank beginning a two-day policy meeting Monday. While speculation has grown the Bank of Japan will soon end the world’s last negative-rate regime, economists see April as the most likely timing for a change, with around 15% expecting Ueda to pull the plug on negative rates in January, according to a Bloomberg survey of more than 50 economists. Elsewhere this week, the Reserve Bank of Australia will release its minutes from the December policy meeting while Bank Indonesia will make its final policy decision of the year. Traders will also be keeping a close eye on developments in the Middle East as Israel pushes back against calls for a ceasefire in Gaza. Chile rejected the second proposal for a new constitution in as many years at the weekend, highlighting the failure of the nation’s political system to channel social demands into a new set of basic laws. The result, broadly in line with recent polls, means that the current charter dating from the Augusto Pinochet dictatorship will remain in place. In commodities, gold edged higher while oil rose, extending last week’s rise as major shipping lines suspended transit through the Red Sea, following escalating attacks on merchant ships.
Nikkei -0.64% Hang Seng -1.18% CSI -0.36% Shanghai -0.40% Shenzen -1.25%
Eur$ 1.0915 CNH 7.1350 CNY 7.1309 JPY 142.27 GBP 1.2690 CHF 0.8697 RUB 90.3069 TRY 29.0612 WTI$ 72.17 +1.04% Gold 2,023 +0.16% BTC 41,1187 -1.66% ETH 2,179 -2.60%
S&P +0.23% Nasdaq +0.12% EuroStoxx -0.28% FTSE -0.22% Dax -0.27% SMI -0.38%
Macro :
- Gundlach’s 3% US Yield Call Aided by Recession Study
- EU AI Rules May Be Watered Down Further for ChatGPT and Peers
- Morgan Stanley’s Wilson Sees Positive Stock Signals on Fed Pivot
- Goldman’s Kostin Hikes S&P 500 Target for 2024 Amid Dovish Fed
- Shipping Giants Pause Red Sea Route as Houthi Attacks Intensify
- Shipping Giants Pause Red Sea Route as Houthi Attacks Intensify
- Barrons Stoscks for 2024 : Alphabet, Alibaba, Berkshire Hathaway U-Haul, Madison Squre Garden
- JPMorgan, Goldman Sound Alarm on Climate Deals Upended by Basel
- UK FCA Rules Out Extension of Post-Brexit Licensing Regime: FT
- US Shale’s Surprise Oil-Production Surge Poses Threat to OPEC
Keep an eye on :
Keep an eye on :
- ABDN LN : Abrdn Cuts Staff Benefits in Fresh Round of Cost Reductions: FT
- AKERBP NO : Aker BP Now Sees FY Output at Lower End of Guidance
- ALO FP : Alstom Completes Syndication of €2.25B Revolving Credit Line
- ALO FP : Electra: TMT Signs Financing Agreements for Light Rail Project
- AAL LN : Anglo Plans Mid-2024 Maintenance at Chile Copper Plant, DF Says
- ASCL LN : Ascential Shares Jump After Betaville ‘Uncooked Alert’
- 7936 JP : Asics to Sell Haglofs for Over ¥10b to LionRock Capital: Nikkei
- BMY US : Bristol Myers Squibb Discontinues Phase 3 Oncology Study
- AFX GY : Carl Zeiss Meditec Agrees to Buy D.O.R.C. From Eurazeo
- CEC GY : Ceconomy FY Adjusted Ebit Beats Estimates
- CLARI FP : Clariane, Crédit Agricole Sign €140M Real Estate Partnership
- ACA FP : Clariane, Crédit Agricole Sign €140M Real Estate Partnership
- ACA FP : Clariane, Crédit Agricole Sign €140M Real Estate Partnership
- CRH US : CRH Offers to Buy Australia-Listed Adbri in $1.4 Billion Deal
- EMBRACB SS : Embracer Extends SEK17b of Loan, Credit Facilities to 2025
- ENI IM : Eni Exploring Novamont Stake Sale, Could Value Unit at €1b: Rtrs
- FER SM : Ferrovial Plans to Sell Stakes in Three UK Airports: Expansion
- GSK LN : GSK on hunt for drug deals in China
- HLAG GY : Hapag-Lloyd Pauses Red Sea Shipping Until at Least Monday
- BOWL LN :
- ILMN US : Illumina Deal Sent Back to FTC for Review by Appeals Court (1)
- IPH FP : Innate Pharma CEO Mondher Mahjoubi Resigns Effective January
- LHA GY : Lufthansa Returns to Tel Aviv With Flights From Early January
- MC FP : Luxury’s Year of Changing Fortunes Set for Reverse Act in 2024
- MSS US : Hindenburg Research Says It’s Short Grocer Maison Solutions (1)
- MSFT US : Activision Blizzard to Pay Around $50 Million to Settle Lawsuit That Spurred Microsoft's Takeover -- WSJ
- NG/ LN : National Grid Drops China-Backed UK Power Network Supplier: FT
- NOBI SS : Nobia CEO Jon Sintorn Leaves to Become CEO of Nilfisk
- NOVOB DC : Novo Nordisk’s Obesity-Fueled Gains Seen Tough to Repeat in 2024
- NOVOB DC : IndiaMart Working With Novo to Halt Illegal Wegovy Sale: Reuters
- OCI NA : OCI Confirms Sale of Iowa Unit to Koch Industries for $3.6B
- RBI AV : Raiffeisen Bank Removed From Ukraine List of War Sponsors: ORF
- S92 GY : Germany Looking to Support Solar Companies, Habeck Tells RND
- SKAB SS : Skanska Constructs New Buildings for College in US for $155m
- SOW GY : Silver Lake Makes Delisting Offer to Software AG at €32/Share
- SOW GY : IBM to Buy Streamsets and Webmethods Platforms From Software AG
- SON PL : Sonae Says Finnish Regulator Approves Tender Offer for Musti
- IIG IM : Lapo Elkann’s Firm to Ask Investors to Decide on Liquidation
- TIT IM : Vivendi Starts Legal Action Against Tel Italia Network Sale
- THO FP : Tikehau Capital Launches Aero Strategy, Targets €800M in AUM
- UBSG SW : UBS Ermotti Not Convinced Inflation Really Under Control: LMD
- UCB BB : Receives US FDA NDA Supplemental 13 approval for Fintepla (Fenfluramine Hydrochloride)
- ULVR LN : Unilever to Sell Elida Beauty to Yellow Wood Partners; No Terms
- VIV FP : Vivendi Starts Legal Action Against Tel Italia Network Sale
- VOD LN : Iliad Seeks Vodafone Italy JV Proposal by End-Jan.: Reuters
- WBD IM : Webuild Sells Stake in SPV Milan M4 Line to ATM for EU141.3m
- YPFD AR : YPF Board Approves Horacio Marin Appointment as CEO (1)