TheChek News Flow

Stocks in Asia dropped, with weakness in China adding to the risk-off mood after Federal Reserve meeting minutes indicated interest rates will remain elevated for longer. A gauge for regional shares slid for a third straight session as benchmarks declined from Australia to South Korea, with Chinese stocks also in a three-day losing streak. Japan’s Topix Index turned higher, reversing early losses on the first trading day of the new year after a holiday break. US stock futures gained slightly in Asia after the S&P 500 ended Wednesday 0.8% lower, extending a run of daily declines that began on the last trading day of 2023. The Nasdaq 100 fell 1.1%, a fourth daily drop, and the longest losing streak in two months. Attention will now turn to upcoming US jobs data on Friday after minutes from the Fed’s December meeting suggested rates could remain at restrictive levels “for some time.” Swaps traders have been reining in their bets on rate cuts after factoring in a full quarter point cut to the benchmark rate by the March meeting. Chinese stocks were the biggest drag in Asia following a report that showed wages offered to Chinese workers in major cities declined by the most on record. The CSI 300 benchmark extended a two-day decline to fall 1.4%. The selling came even as a private gauge of the country’s services activity climbed to the highest in five months in December.  Meantime, Chinese government bond yields fell to the lowest in more than three years, while the offshore yuan was steady. The People’s Bank of China weakened Wednesday’s currency fixing by the most in over six months, a sign policymakers may have shifted their focus from stabilizing the currency to monetary easing. The country’s finance minister said government spending will rise this year. Chinese equities are “still trying to find a bottom” and likely to “stay weak in January,” said Redmond Wong, a market strategist at Saxo Capital Markets. “I will not short the China/Hong Kong markets here but need confirmation for a meaning rally.” In currencies, a gauge measuring dollar strength was little changed after advancing for a fourth straight session Wednesday, its best run since November. The yen traded over 143 per dollar after weakening almost 1% against the greenback in the prior session.

The Japanese currency is coming under renewed pressure as the recent powerful earthquake makes it harder for the central bank to abolish negative interest rates.  Treasuries were mostly steady in Asia, following declines from one of the worst opening days to a year on record. The 10-year Treasury yield inched one basis point lower to 3.9% Wednesday as the Fed minutes showed the possibility of slowing the pace of quantitative tightening.  US manufacturing data on Wednesday showed activity remained in contraction. Separate figures showed the number of job openings fell slightly in November from the prior month’s revised number in a sign of labor market softening. Elsewhere, geopolitics remained in focus. Iran said attacks that killed almost 100 people in the country were carried out to punish its stance against Israel, intensifying tensions in the region. The tensions supported crude, which climbed further Thursday. Oil prices were also buoyed by supply disruptions in Libya and a statement from OPEC pledging to stabilize prices.  A slump in Bitcoin saw the cryptocurrency erase almost all gains it had made so far this year. Gold edged higher. US After Hours RGP +5.2% higher on earnings; CALM -6.5% slips on earnings; ABBV -2.2% slips as CVS Caremark to remove Humira from formularies; SAVE +2% on sale-leaseback transactions.

Macro :
- Hedge Funds Cashed In on 2023 Rally, Retail Missed It, BofA Says

- Fed Sees Rates Staying High for Some Time With Cuts Eyed in ’24

- World’s Biggest Banks Made $3 Billion on Green Debt in 2023

- Oil Rises on Middle Eastern Turmoil, Libyan Supply Disruption

- U.S. Investor Bull-Bear Spread 25.1: AAII

Keep an eye on :

- ADS GY : Adidas to Set Up Global Business Services Hub in India: ET

- ALO FP : Alstom Signs Saudi Arabia Tramway Contract Worth More Than €500M

- EQNR NO : Equinor, BP Agree to End OREC Accord for Empire Wind 2 Project

- ENX FP : Euronext Completes €200M Share Repurchase Program

- EVT GY : Evotec Slumps as Cowen Calls CEO Departure Disappointing

- EVT GY : Evotec, Owkin Enter Strategic AI Partnership in Oncology, I&I

- GLPG NA : Galapagos to Pay BridGene Up to $727m in Drug Discovery Deal

- GLJ GY : Grenke FY Leasing New Business Volume EU2.58B

- GM US : GM, Other Carmakers See High Rates, Prices Dent Sales Growth

- IPH FP : FDA Lifts Partial Hold on Innate’s Lymphoma Treatment Trial

- LDO IM : Leonardo calls for reform of EU’s fragmented defence industry

- LBPH US : Longboard Said to Price Upsized $210M Share Sale at $21 Each

- MAERSKB DC : Maersk, Shipping Peers Jump on Red Sea Halt, Goldman Upgrade (1)

- NOVN SW : Voyager Therapeutics Extends Gain After Novartis License Deal

- ORSTED DC : Orsted’s New Wind Revenue Plan Could Earn Extra £2 Billion: BNEF

- PRTC LN : PureTech Hits 3-Month High as Jefferies Sees Company Undervalued

- RR/ LN : Rolls-Royce Needs Share to Power Profit Through the Decade's End
- SIFG NA : SIF Says Empire Offshore Wind Terminated Contract

- SIGNA (SDSELE) : Signa Units Seek Bridge Funding From Existing Investors: Spiegel

- SLIGR NA : Sligro FY Sales Meets Estimates

- STLAM IM : GM, Other Carmakers See High Rates, Prices Dent Sales Growth

- UHR SW : Rolex Is Hiking UK Watch Prices With US Pricing Unchanged

- TEF SM : Telefonica: Unions Agree to Pact Including Up To 3,421 Job Cuts

- 700 HK : Tencent Buybacks Hit Record as China Watchdog Roiled Markets