Asian stocks swung to a loss and US equity futures fell as slowing Chinese industrial profit growth sapped optimism after last week’s equity rally. The yen strengthened against all its Group-of-10 peers. China shares led declines with the Hang Seng China Enterprises Index dropping as much as 1.4%, while benchmarks also fell in Australia and Japan. Rising Treasury yields siphoned some funds away from stocks. Equities trimmed some of last week’s gains amid uncertainty before the next installment of key global economic data this week including euro-zone inflation data, China PMIs and US personal consumption numbers on Thursday, and US, European and Chinese PMIs on Friday. Asian markets had little direction from the US following the holiday shortened post-Thanksgiving session Friday. US stock futures dropped in Asia after the S&P 500 capped a fourth week of gains Friday, when the VIX — Wall Street’s “fear gauge” and a measure of equity volatility — fell to its lowest level since January 2020. This week, investors will be looking especially closely at Chinese activity data to gauge the health of the world’s second largest economy. Traders will be assessing shadow banking stocks after Chinese authorities said they recently opened criminal investigations into the money management business of Zhongzhi Enterprise Group Co. Profits at China’s industrial companies climbed at a slower pace in October than the prior month as deflationary pressures persisted, suggesting the economic recovery remains uncertain. The Hong Kong dollar one-month interbank rate jumped to the highest since 2007 as the supply of cash tightened toward year-end. Treasury 10-year yields climbed as much as five basis points to 4.51%, the highest in more than a week. The dollar was mixed in Asian trade after Bloomberg’s index of the greenback slipped 0.5% last week. The US currency may “remain heavy” for most of the week as fund managers adjust hedges and cash heads into developing economies, Commonwealth Bank of Australia strategists including Joseph Capurso wrote in a note to clients. “The backdrop of low volatility and expectations for a soft landing in the US economy supports portfolio capital flows into emerging markets,” they said. In earnings due this week, Crowdstrike Holdings Inc. will underscore how businesses are prioritizing cybersecurity after recent high-profile corporate hacks, while Salesforce Inc. and Dell Technologies Inc. are expected to post slower sales growth as overall corporate expenditure tightens. Traders will also be keeping an eye on gold and oil after Israel and Hamas signaled that a temporary cease-fire in Gaza could be extended beyond Monday to allow for the release of more hostages and prisoners. Meantime, OPEC+ looks close to resolving a dispute over output quotas that forced the group to postpone a pivotal meeting at the weekend. Oil steadied after notching a three-day drop.
Nikkei -0.53% Hang Seng -0.30% CSI -0.65% Shanghai -0.24% Shenzen -0.33%
Eur$ 1.0946 CNH 7.1618 CNY 7.1537 JPY 149.06 GBP 1.2606 CHF 0.8821 RUB 89.1241 TRY 28.8960 WTI$ 74.78 -1.02% Gold 2,013 +0.62% BTC 37,370 -0.68% ETH 2,050 -1.13%
S&P -0.28% Nasdaq -0.41% EuroStoxx -0.20% FTSE -0.34% Dax -0.17% SMI -0.02%
Macro :
- Bearish Conviction on Oil Grows as OPEC+ in Dispute Over Cut
- ‘Lighten Up’ on Asia Stocks, Buy US Peers: AllianceBernstein
- SNB Is Evaluating Banks’ Reserve Requirements, Jordan Tells NZZ
- Germany faces threat of creeping deindustrialisation, warns steel boss
- Jordan Explores Alternatives to Israeli Gas Amid Supply Concerns
Keep an eye on :
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- HNSA SS : Hansa Biopharma CFO Donato Spota Leaves Company
- BAER SW : Julius Baer Confirms CHF606M Exposure to European Conglomerate
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- SAN FP : Sanofi’s Dupixent Shows Strong Efficacy in Second Lung Trial
- SKAB SS : Skanska Builds Highway in Norway for NOK1.3b
- STATT NO : Sparebank 1 Ostfold Akershus Raised to Buy at Pareto Securities
- THG LN : Adore Beauty Rejects Conditional Takeover Bid From THG
- TIM IM : TIM Launches NetCo Unit in View of Fibercop Closing With KKR
- TIT IM : Open Fiber Lenders Pick Adviser Amid €2 Billion Fund Gap (1)
- UBSN SW : SNB Is Evaluating Banks’ Reserve Requirements, Jordan Tells NZZ