Asian equities declined as investors awaited the release of the Federal Reserve’s preferred inflation gauge for fresh clues about its policy outlook. A gauge of regional shares is set to drop for a sixth straight session, the longest losing run since April. Stocks fell in Australia and South Korea, and Japanese equities swung between gains and losses. China’s one-year bond yield slumped to 1% for the first time since the global financial crisis, as traders ramped up bets on monetary easing. Market attention is now on the US personal consumption expenditures data for November, due later Friday. This last major piece of data for the year follows the Fed’s latest hawkish policy pivot, and is weighing on US stock index futures in Asian trading. Thursday’s US data, which showed faster-than-expected economic growth and robust consumer spending, has further weakened the case for imminent rate cuts. Treasuries were steady after the 10-year yield rose Thursday to 4.57%, a level last seen in May. A Bloomberg dollar index hovered around 2022 highs. Concerns are also growing about the implications of the Republican-led House rejecting a temporary funding plan backed by President-elect Donald Trump on Thursday, with a US government shutdown looming in just over 24 hours. The development can “inevitably increase the market volatility in the short term, especially after Fed’s hawkish pivot two days ago,” Jasmine Duan, senior investment strategist at RBC Wealth Management Asia, said in a Bloomberg TV interview. Investors face risks from “potentially more sticky inflation and also the debt issue in the US,” she said, adding it may not be surprising to see a 5% to 10% decline in US equities in the near term. Government funding will lapse Friday night without congressional action. The new deal includes aid for disaster victims and US farmers, but has been met with opposition from some Republicans and Democrats, who argue it doesn’t include sufficient spending cuts. The Trump-backed plan would set March 14 as the new funding deadline. In Asia, the yen erased losses after Japan’s key inflation gauge strengthened for the first time in three months and Finance Minister Katsunobu Kato warned against currency speculation. Data set for release Friday includes inflation for Hong Kong, and Taiwan export orders for November. China may release its one-year Medium-Term Lending Facility rate as early as today. The cautious trading in the US on Thursday indicated investors are still digesting the Fed’s scaled rate cut expectations for 2025. The swaps market is now implying fewer than two quarter-point reductions for the entirety of 2025, even less than what was implied in the Fed’s so-called dot plot on Wednesday. Bitcon slid for a third day, extending its slide from a record high earlier this week. In commodities, oil declined for a second day, extending a weekly fall, as a strengthening US dollar pressured prices. Gold advanced. US After Hours FDX +8% up big on earnings and decision to separate its FedEx Freight unit; NKE +0.4% ticks higher on earnings; SCHL -11.4%, X -3.8% lower on earnings/guidance
Nikkei -0.29% Hang Seng +0.08% CSI -0.50% Shanghai -0.13% Shenzen +0.30%
Eur$ 1.0378 CNH 7.3026 CNY 7.2965 JPY 156.96 GBP 1.2502 CHF 0.8975 RUB 102.5168 TRY 35.1549 WTI$ 69.12 -0.37% Gold 2,605 +0.46% BTC 97,565 +0.25% ETH 3,375 -1.30%
S&P -0.17% Nasdaq -0.44% EuroStoxx -0.65% FTSE -0.07% Dax -0.63% SMI -0.44%
Macro :
- Warren Says Fed, OCC Need Stronger Bank Merger Guidelines
- Xi Repeats Calls for Macau to Diversify, Grow New Industries
- Xi Repeats Calls for Macau to Diversify, Grow New Industries
- UK Suffers Worst November for Car Production Since 1980
- Trump Threatens Tariffs If EU Doesn’t Buy More US Oil
- Trump Backs Latest House Republican Funding, Debt-Limit Deal
- Biden’s EPA Advances Methane Regulation Talks with Europeans
- Imminent EU Climate Rule for Ships Is Set to Add to Fuel Bills
Keep an eye on :
Keep an eye on :
- A2A IM : A2A to Sell Some Gas Distribution Assets to Ascopiave for EU430m
- AKTIA FH : Aktia Bank Names Citycon’s Sakari Jarvela as New CFO
- ARBN SW : Arbonia Climate Division Sale EU Approval Expected in Jan. 2025
- ASML NA : ASML Hires Former French Finance Minister Bruno Le Maire
- AZN LN : Beijing Woos AstraZeneca for Investment While Probe Continues
- AZN LN : Beijing Woos AstraZeneca for Investment While Probe Continues
- SAN SM : Banco Santander to Sell 30.5% Stake in Caceis to Crédit Agricole
- BESI NA : BE Semi New Top European Semiconductor Pick at Morgan Stanley
- BA US : Boeing Aims to Build 38 of 737 Max Jets/Mth by May: Air Current
- BA US : Boeing Wins $36 Billion Deal From Turkey, Trumping Airbus
- IAG LN : British Airways Owner IAG Bucks Tough Year for Airline Stocks
- AVGO US : Broadcom chief Hock Tan says AI spending frenzy to continue until end of decade
- AVGO US : Broadcom chief Hock Tan says AI spending frenzy to continue until end of decade
- CAN LN : Canal+ Sinks as UBS Says Stock Fairly Priced After London Debut
- CLW US : Brazil’s Suzano Said to Be Exploring Offer for Clearwater Paper
- CCI US : TPG Said in Talks to Buy Crown Castle Unit for $8 Billion (1)
- ATD CN : Seven & i Considered Buying Couche-Tard: TV Tokyo (Dec. 19)
- 1COV GY : Fresenius Medical Care to Replace Covestro in DAX Index
- ACA FP : Banco Santander to Sell 30.5% Stake in Caceis to Crédit Agricole
- EDP PL : EDP Sells Portuguese Tariff Deficit & Adjustments for ~€900m
- EDP PL : EDP Renováveis to Exit Two Wind Projects in Colombia
- EIT IM : RAI Way, EI Towers Owners Sign Memorandum to Explore a Merger
- FDX US : FedEx Jumps on Plan to Spin Off $30 Billion Freight Unit, FedEx to Separate FedEx Freight Into Publicly traded Co.
- FRA GY : Fraport Rises after Closing Deal with Airlines on Airport Fees
- FME GY : Fresenius Medical Care to Replace Covestro in DAX Index
- GOOGL US : Google cut manager and VP roles by 10% in its efficiency push, CEO Sundar Pichai said in an internal meeting
- HBH GY : Hornbach Holding 3Q Adjusted Ebit EU34.6M Vs. EU48.1M Y/y
- IDIA SW : Idorsia Says Tryvio Deal Talks Stall, Threatening Funding Gap
- ISP IM : Italy Rail Operator Ferrovie Gets €2b Loan From Intesa Sanpaolo
- LUMN US : Lumen Technologies Launches Sale of Consumer Fiber Unit: Reuters
- MFEB IM : RAI Way, EI Towers Shareholders Sign MOU for Combination
- NKE US : Nike Shares Jump After Sales, Profit Top Estimates
- NKE US : *NIKE'S NEW CEO SAYS HE'LL RETURN FOCUS TO SPORTS, ATHLETES
- NAS NO : Oslo Court Rules in Favour of Norwegian Air on EU ETS Obligation
- RWAY IM : RAI Way, EI Towers Owners Sign Memorandum to Explore a Merger
- SAP GY : *SAP PROMOTED MANAGER AFTER REPEATED ACCUSATIONS OF HARASSMENT
- SBUX US : Starbucks Union to Strike Friday in LA, Chicago, Seattle (2)
- 5401 JP : Steelworkers Union Says No Progress in Nippon Steel Meeting (1)
- TIT IM : Italy Probes CK Hutchison Unit on Tax in €3.4 Billion Asset Sale
- UBER SU : Uber to Take Full Ownership of Korean JV, Buying Stake From TMAP
- VANTI FP : Vantiva Plans to Sell Unit to Fund Managed by Variant Equity
- VOW GY : VW Labor Talks Drag Into Friday as Key Issues Remain Unresolved
- WMT US : Walmart Says to Miss Climate Targets as Green Challenges Mount
- WMT US : Walmart’s Walton Family Expands Voting Power to Next Generation
- ZEAL DC : Zealand Pharma Says US FDA Fails to Approve Glepaglutide