Shares fell across Asia following declines on Wall Street, pressured by weak oil prices and concerns about China’s fiscal health. Treasuries slid after a rally as Japanese debt sold off. Equities were lower from Hong Kong to mainland China and Australia, following a third daily decline for the S&P 500. US futures were steady. 10-year Treasury yields rose after Wednesday’s decline that had pushed them to 4.1%, the lowest since August. The seven-basis-point jump, which reflects a broader shift in sentiment also seen in Australian bonds, came after a selloff in Japanese sovereign debt.
Japan’s 10-year yield jumped as much as 10.5 basis points to 0.75% Thursday, snapping a three-day decline, with the move getting an extra boost after weak demand from an auction of 30-year government debt. The yen strengthened 0.5% against the dollar. Driving the weakness in equities were declines in energy producers after oil fell to its lowest since June on concerns about oversupply, as well as worries over China’s debt burden after Moody’s Investors Service lowered its view on a number of local companies, after earlier cutting its outlook for the nation’s sovereign bonds. Further souring investor mood was a surprise contraction in China’s imports in November from a Covid-hit period one year ago, dashing hopes that domestic demand would rebound from a low base to spur growth in a slowing economy. The country’s exports rose 0.5% on year last month, slightly better than expected and marking the first expansion since April. The focus now shifts to Friday’s US jobs report after private payrolls data that fell short of estimates in a sign of softening in the employment market. Oil stabilized after a five-day run of losses on signs that global supplies are eclipsing demand despite plans by OPEC+ to rein in its production into 2024. A key gauge for prices of raw materials earlier tumbled to the lowest level since August 2021.
Apart from weakening against the yen, the dollar is broadly steady versus other major currencies. Markets fully priced six quarter-point rate cuts by the European Central Bank in 2024 earlier on Wednesday, a move that would take the key rate to 2.5%. Although bets were pared slightly later in the day, Deutsche Bank AG helped stoke the dovish sentiment by revising its outlook to also forecast 150 basis points of cuts. Meantime, the Bank of England stepped up warnings about hedge funds shorting US Treasury futures, saying its measure of the net position is now larger than before the “dash for cash” crisis in March 2020.
The net short position has grown to $800 billion from about $650 billion in July, the central bank said, citing calculations based on Commodity Futures Trading Commission data. That suggests a jump in the so-called basis trade, which is where investors seek to exploit price differences between futures and bonds. In corporate news, Apple Inc., seeking to reverse a decline in Mac and iPad sales, is preparing several new models and upgrades for early next year, according to people familiar with the situation. Advanced Micro Devices Inc., meanwhile, is taking aim at a burgeoning market dominated by Nvidia Corp. by unveiling new so-called accelerator chips targeting the artificial intelligence boom. Elsewhere, gold extended Wednesday’s gains, while bitcoin traded just below $44,000, a level not seen since June last year. US After Hours ABBV will acquire CERE +16.2%; BRZE +13%, VRNT +10.7%, SMTC +6.9% higher on earnings; SPWH -13.5%, AGX -9.8%, AI -9.5%, CHWY -9%, GEF -6.2% lower on earnings.
Nikkei -1.76% Hang Seng -1% CSI -0.12% Shanghai +0.03% Shenzen -0.11%
Eur$ 1.0765 CNH 7.1670 CNY 7.1585 JPY 146.26 GBP 1.2558 CHF 0.8752 RUB 92.9277 TRY 28.9309 WTI$ 69.73 Gold 2,028 BTC 43,885 ETH 2,260
S&P -0.05% Nasdaq -0.06% EuroStoxx -0.55% FTSE -0.54% Dax -0.45% SMI -0.29%
Macro :
- Bitcoin Rally Burns $6 Billion for Short Sellers in Stock Market
- Hedge Fund Payout to Hohn Halves to $346 Million as Profits Dip
- Hedge Fund Payout to Hohn Halves to $346 Million as Profits Dip
- Kuwait Supports OPEC+ Agreement, Committed to Cuts: Kuna
- NO CHANGES TO BEL 20 INDEX
- Key Republican Slams Lax Enforcement of China Tech Trade Curbs
- EU Nears Deal to Regulate ChatGPT, Other AI Tech in Landmark Act
Keep an eye on :
Keep an eye on :
- AMS SW : AMS Osram Gets ~CHF781 Million Gross Proceeds From Rights Issue
- ATO FP : Atos Names D’Asaro Biondo as Group General Manager
- BARN SW : Barry Callebaut Shareholders Elect Mauricio Graber to Board
- AI US : C3.ai Reports Sales That Miss Estimates and Projects Wider Loss, Subscription Growth Beat Fails to Improve Outlook: React
- CHR DC : EU Likely to Clear Novozymes, Chr. Hansen Deal: Reuters
- DBG FP : Derichebourg FY Revenue Beats Estimates
- EUR FP : Euro Ressources Buyout Offer to Run Dec. 27 to Jan. 10
- HANZA SS : Hanza Offering of 3.53m Shares Prices at SEK85/Share
- HNSA SS : Hansa Biopharma Reports Positive Safety Outcomes for Imlifidase
- IPN FP : Ipsen, Genfit Get FDA Priority Review for Elafibranor
- KCT LN : Apax Partners Raises Offer for Kin & Carta to 120p per Share
- MC FP : GLitz : Jacques Mus could be next Givenchy Designer
- MAU FP : Maurel ET Prom to Own 60% of Mnazi Bay After Wentworth Closing
- MSFT US : Microsoft-Activision Deal Draws Fresh Questions From Judges
- NKLA US : Nikola Said to Seek 7.75%-8.25% Coupon for $200M Convertible
- NIO US : EV Maker Nio Considers More Job Cuts After Shedding 10% of Staff
- RNO FP : Renault Seeks to Cut EV Production Costs by 50% by 2027
- REP SM : Repsol, Eni Set to Renew Oil Terms in Venezuela with Eye on Gas
- SAN FP : Sanofi R&D to Lead to 50% Boost in Number of Phase 3 Studies
- SAN FP : Sanofi Says 2nd Sarclisa Phase 3 Trial Met Primary Endpoint
- SNOW SW : Bain Capital Is Last Remaining Bidder for SoftwareOne: Reuters
- SNOW SW : Bain Capital Is Last Remaining Bidder for SoftwareOne: Reuters
- STLAM IM : Stellantis Files Plea to Invalidate California Emissions Deal
- TSLA US : Danish Pension Fund Sells Tesla Shares Due to Labor Dispute: DR
- HO FP : Thales Alenia Space, PT Len Industri Sign Multi-Satellite Pact
- VPLAYB SS : Viaplay Gets Backing for Debt-to-Equity Swap, Other Amendments