UST Yields Rise Amid Powell

Dec 01 21, 06:11 GMT

General trend

USD rises versus JPY, EUR and CHF; Commodity currencies gain.
Hang Seng index has outperformed and extended gains; Financial, Property and TECH indices rise; Casino names continued to be weighed down amid concerns related to SunCity.
Nikkei 225 has traded modestly higher after the volatility seen earlier during the session.
Little action seen for the Shanghai Composite during morning trading.
S&P ASX 200 pared some of decline; Energy index rebounded, Resources index moved higher; Travel names lagged.
Little reaction seen from the surprise contraction in the CN Caixin Mfg PMI.
US ADP data due later today.
Companies due to report during the NY morning include Donaldson, G-III Apparel, RBC.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened -0.2%.
(AU) AUSTRALIA Q3 GDP Q/Q: -1.9% V -2.5%E; Y/Y: 3.9% V 3.0%E.
(AU) Australia Nov Final PMI Manufacturing: 59.2 v 58.5 prior (confirms 18th month of expansion).
(AU) Australia sells A$1.0B v A$1.0B indicated in 4.50% Apr 2033 bonds, Avg Yield: 1.7480%, bid-to-cover 2.75x.
(AU) Australia Treasurer Frydenberg: Omicron not likely to be the last variant to be confronted, midyear budget review to show budget repair ahead of schedule.

Japan

Nikkei 225 opened +0.2%.
(JP) JAPAN Q3 CAPITAL SPENDING (CAPEX) Y/Y: 1.2% V 1.5%E; CAPITAL SPENDING EX-SOFTWARE: 2.2% V 3.0%E.
(JP) Japan Nov Final PMI Manufacturing: 54.5 v 54.2 prelim (highest since Jan 2018, 10th consecutive expansion).
(JP) Bank of Japan (BOJ) Board Member Adachi: BOJ will scrutinize COVID developments and impact on corp finance in deciding fate of pandemic relief loan programs.
(JP) Japan Chief Cabinet Sec Matsuno: Symptomatic contact of Omicron case has tested negative, no other issues have been reported from close contacts.
(JP) Former Japan PM Abe: A China Military adventure would be economic suicide, a crisis in Taiwan would involve the US-Japan Alliance.

Korea

Kospi opened +0.7%.
005490.KR Said to be considering splitting into a holding company and an operating company – Korean press.
(KR) South Korea Nov Trade Balance: $3.1B v $2.0Be.
(KR) The man who tested positive for coronavirus Omicron Variant in Japan had a layover in South Korea – Yonhap.
(KR) South Korea has been asked to increase tax and R&D benefits for chip industry – press.
(KR) South Korea Nov PMI Manufacturing: 50.9 v 50.2 prior (13th straight expansion).
(KR) South Korea confirms record high 5,123 daily coronavirus cases.

China/Hong Kong

Hang Seng opened +0.5%; Shanghai Composite opened -0.1%.
(CN) CHINA NOV CAIXIN PMI MANUFACTURING: 49.9 V 50.5E (1st contraction in 3 months).
(HK) Macau Nov Casino Rev (MOP) 6.75B v 4.37B prior; Y/Y 0.0% v 2.0%e.
(CN) China Vice Premier Liu: 2021 GDP growth will exceed targets; China will keep continuity and stability of macro policies – Hamburg Summit video conference.
9899.HK Prices 16M share Hong Kong IPO at HK$205/shr v HK$190-220/shr indicated range.
USD/CNY (CN) China PBOC sets Yuan reference rate: 6.3693 v 6.3794 prior.
(CN) China PBOC Open Market Operation (OMO): Sells CNY10B in 7-day reverse repos v CNY100B prior; Net drain CNY90B v Net inject CNY50B prior.
1383.HK Said to have closed all VIP gaming rooms in Macau after the Chairman was arrested – Press.

North America

TSLA Denies press report that production goal in Shanghai is 500K vehicles this year, confirms plan to localize more than 90% of its supply chain in Shanghai.
(US) Weekly API Crude Oil Inventories: -0.7M v +2.3M prior.
MRK US FDA panel votes (13 Yes; 10 No; 0 Abstain) in favor of approval of molnupiravir oral capsules for treatment of mild to moderate COVID-19 in adults who are at risk for progressing to severe COVID-19 and/or hospitalization – AMDAC Meeting.

Europe

Levels as of 00:15ET

Hang Seng +1.5%; Shanghai Composite +0.1%; Kospi +2.2%; Nikkei225 +0.7%; ASX 200 -0.1%.
Equity Futures: S&P500 +0.9%; Nasdaq100 +1.4%, Dax +0.7%; FTSE100 +0.6%.
EUR 1.1343-1.1317; JPY 113.56-113.08; AUD 0.7169-0.7119; NZD 0.6859-0.6813.
Commodity Futures: Gold +0.2% at $1,780/oz; Crude Oil +2.6% at $67.91/brl; Copper +0.8% at $4.35/lb.