TheChek News Flow

Shares in Asia were mixed while Treasuries fell after declines in European bonds, eroding a November rally in US debt. Oil extended losses. Hong Kong and mainland Chinese equities dropped, reversing Thursday’s rally inspired by Beijing’s widening property rescue campaign. Japanese stocks rose in catch-up play after a national holiday, while those in Australia also gained. US futures contracts were steady. Treasuries fell after trading resumed in Asia following a holiday, paring gains for the month that have pushed one measure of the market toward its best month since March. The 10-year yield rose more than five basis points and followed Thursday declines in European bonds. Investors responded to a report that Germany will suspend debt limits for a fourth consecutive year, adding to concerns over more borrowing as the euro-area economy slows. The Bloomberg dollar index steadied after falling Thursday as the greenback gave up gains against most major currencies. Australian and New Zealand yields advanced. In China, a gauge of developer stocks fell 1.5% in early afternoon trade, following a 8.9% jump Thursday. The previous surge came after Bloomberg News reported that China may allow banks to offer unsecured short-term loans to qualified builders for the first time, the latest effort to arrest a housing slump. 

“The property developer debt issue will be solved sooner or later,” said Jian Shi Cortesi, a fund manager at GAM Investment Management. “If this measure is not enough, we will see more support next year,” she added, referring to the report on banks extending unsecured loans.  Still, global stocks are on track for the best month in three years, with the MSCI All Country World Index up 8.6% this month amid growing hopes for peaking US interest rates. European Central Bank Governing Council member Francois Villeroy de Galhau said the ECB won’t increase borrowing costs again, unless there is an unexpected event. Oil continued its slide on news that OPEC+ will hold its delayed meeting online rather than in-person. The delay, and discord between members over quotas, has cast doubt on the prospect of further production cuts. Inflation in Japan accelerated, although the October reading was slightly less than expected. Consumer prices rose 3.3% year-over-year, shy of the 3.4% consensus estimate. This went against the Bank of Japan’s view that prices will decelerate, likely strengthening expectations of policy normalization.  Elsewhere in Asia, data set for release includes Taiwan money supply. In the US, manufacturing PMI data will be released later Friday.

Macro :
- Xi Tolerance for Property Pain Nears Limit as Rescue Emerges

- Germany to Suspend Borrowing Limit Again After Budget Shock

- Citi’s Manthey Turns More Positive on European Small, Mid Caps

Keep an eye on :

- AF FP : Europe Airline Consolidation to Progress in 2024 as Deals Close

- AMBEA SS : Inbursa Signs Deal to Acquire 80% of BNP Paribas Mexico Unit

- BARC LN : Barclays Looking at Cutting £1 Billion in Costs, Reuters Says

- BAS GY : Adnoc Is Said to Mull Acquisition of BASF’s Wintershall Dea Unit

- BATS LN : Harmonizing EU Tobacco Tax Risk Aiding €11 Billion Illicit Trade

- BNP FP : Inbursa Signs Deal to Acquire 80% of BNP Paribas Mexico Unit

- DMRE GY : Demire Adjusts Guidance on Lower-Than-Expected Property Sales

- ELI BB : Elia Group Raises FY Adj ROE View to Upper End of Range
- ENG SM : Spanish Firms Are ‘Well Positioned’ to Get EU Funds, Enagas Says

- EVO SS : Evolution Resolves to Buy Back Up to €400M of Shares

- HAL NA : HAL 3Q Net Asset Value per Share EU151.44 Vs. EU149.72 Q/Q

- RNO FP : Nissan Pledges £2 Billion to Expand UK Electric-Vehicle Hub

- SGO FP : Saint-Gobain CEO to Combine CEO, Chairman Positions From June 6

- SCMN SW : Swisscom’s Fastweb Is Said to Explore Deal for Vodafone Italy

- VOD LN : Swisscom’s Fastweb Is Said to Explore Deal for Vodafone Italy

- VOW GY : VW Eyes Faster China Vehicle Development With New Tech Unit

- WTB LN : Whitbread Dips Following Morgan Stanley’s Cautious Sector Note