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Writer's pictureSimon Charles Hooper

02/12/21 Briefing

The futures market is trading mixed after a bout of volatility, as the S&P 500 futures trade eight points, or 0.2%, above fair value while the Nasdaq 100 futures trade 0.4% below fair value.

Conviction seems to be lacking when considering the S&P 500 faded a positive start and sliced through its 50-day moving average (now 4542) yesterday. In addition, there's a Bloomberg report indicating that Apple (AAPL 159.77, -5.00, -3.0%) is telling suppliers that it's seeing less demand for the iPhone 13.

The Treasury market also seems wrapped up in possible growth concerns amid risks posed by the Omicron variant and a potential policy mistake from the Fed. The 2-yr yield is up three basis points to 0.59%, while the 10-yr yield is down one basis point to 1.43%. The U.S. Dollar Index is down 0.2% to 95.87.

On the upside, Boeing (BA 196.50, +8.31, +4.4%) is up 4% in pre-market action amid a Bloomberg report indicating that Boeing and Airbus are in discussions with JetAir for a possible $12 billion order. Snowflake (SNOW 352.00, +41.00, +13.2%) is up 13% after beating revenue estimates.

Separately, the weekly Initial Claims (Briefing.comconsensus 255,000) and Continuing Claims report will be available at 8:30 a.m. ET, and OPEC+ should announce a production decision later today. WTI crude futures are currently down 0.1% to $65.54/bbl.

In U.S. Corporate news:

  • Apple (AAPL 159.77, -5.00): -3.0% after telling suppliers that it's seeing less demand for the iPhone 13, according to Bloomberg.

  • Boeing (BA 198.00, +9.81): +5.2% amid a Bloomberg report indicating that Boeing and Airbus (EADSY) are in discussions with JetAir for a possible $12 billion order.

  • Snowflake (SNOW 352.00, +41.00): +13.2% after beating revenue estimates.

  • CrowdStrike (CRWD 205.00, +3.50): +1.7% after beating top and bottom-line estimates issuing upside guidance for Q4 and FY22.

  • Dollar General (DG 219.00, -3.70): -1.7% despite beating EPS estimates, raising its FY21 guidance, and increasing its share repurchase program by $2.0 billion.

  • Square (SQ 194.00, -0.50): -0.3% amid an announcement of a name change to "Block," starting on or about Dec. 10.. Its ticker symbol will remain SQ for now.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Japan's Nikkei: -0.7% Hong Kong's Hang Seng: +0.6% China's Shanghai Composite: -0.1% India's Sensex: +1.4% South Korea's Kospi: +1.6% Australia's ASX All Ordinaries: -0.3%.

    • In economic data:

      • Japan's November Household Confidence 39.2 (last 39.2)

      • South Korea's Q3 GDP 0.3% qtr/qtr (last 0.8%); 4.0% yr/yr (last 4.0%). November CPI 0.4% m/m (expected -0.2%; last 0.1%); 3.7% yr/yr (expected 3.1%; last 3.2%)

      • Australia's October trade surplus AUD11.22 bln (expected surplus of AUD11.00 bln; last surplus of AUD12.24 bln). October Home Loans -4.1% m/m (expected 1.0%; last -2.7%) and October Invest Housing Finance 1.1% m/m (last 1.4%)

      • New Zealand's Q3 Terms of Trade Index 0.7% qtr/qtr (expected 2.0%; last 3.3%)


  • In news:

    • Chinese property developer Kaisa Group is facing an 11:00 ETdeadline to complete a debt swap aimed at averting a default.

    • The Bank of Korea expects South Korea's CPI to remain above target for a considerable time.

    • Governor Lee is scheduled to hold a press conference on inflation in mid-December.

    • China Banking and Insurance Regulatory Commission is planning to strengthen oversight of major shareholders of banks and insurers.



  • Major European indices trade in the red. STOXX Europe 600: -1.5% Germany's DAX: -1.6% U.K.'s FTSE 100: -0.9% France's CAC 40: -1.3% Italy's FTSE MIB: -1.3% Spain's IBEX 35: -1.8%.

    • In economic data:

      • Eurozone's October PPI 5.4% m/m (expected 3.5%; last 2.8%); 21.9% yr/yr (expected 19.0%; last 16.1%). October Unemployment Rate 7.3%, as expected (last 7.4%)

      • Italy's October Unemployment Rate 9.4% (expected 9.1%; last 9.2%)

      • Spain's November Unemployment Change -74,400 (last -700)

      • Swiss October Retail Sales 1.2% yr/yr (last 2.6%)


  • In news:

    • Spain's unemployment decreased for the ninth consecutive month in November, returning employment to a pre-pandemic level.

    • GlaxoSmithKline (GSK) announced positive results from early trials of its antiviral pill against the omicron variant.

    • Ministers from OPEC+ are expected to decide at today's meeting whether to maintain the cartel's plan for increasing output by 400,000 bpd in January.

    • France and Spain sold 10-yr debt to good demand.



U.S. equity futures:

  • S&P 500 Futures: +12 @ 4,525

  • DJIA Futures: +214 @ 34,236

  • Nasdaq 100 Futures: -28 @ 15,850

Overseas:

  • Europe: DAX -1.6%, FTSE -0.9%, CAC -1.3%

  • Asia: Nikkei -0.7%, Hang Seng +0.6%, Shanghai Composite -0.1%

Commodities:

  • Crude Oil -0.19 @ 65.38

  • Nat Gas +0.010 @ 4.268

  • Gold -3.80 @ 1780.50

  • Silver +0.118 @ 22.457

  • Copper +0.0095 @ 4.2570

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

    • ArcBest (ARCB) reports November consolidated revenues grew ~45% yr/yr on a per day basis

    • Buckle (BKE) reports November comps increased 36% yr/yr

    • C3.ai (AI) beats by $0.06, beats on revs; guides JanQ revs above consensus; guides FY22 revs above consensus

    • CIBC (CM) misses by $0.16, reports revs in-line

    • Clarivate (CLVT) completes acquisition of ProQuest for $5.3 bln; also reaffirms FY21 guidance and provides combined outlook for FY22

    • Costco (COST) reports November adjusted comparable sales growth of 9.2%; net sales up 15.7% yr/yr

    • CrowdStrike (CRWD) beats by $0.07, beats on revs; guides Q4 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus

    • Descartes (DSGX) beats by $0.05, beats on revs

    • Elastic (ESTC) beats by $0.07, beats on revs; guides Q3 EPS in-line, revs above consensus; guides FY22 EPS in-line, revs above consensus

    • Five Below (FIVE) beats by $0.14, beats on revs, comps +14.8%; guides JanQ EPS below consensus, revs in-line

    • Geo Group (GEO) announces change in corporate structure; sees Q4 FFO above consensus

    • GMS (GMS) beats by $0.40, beats on revs

    • Greenbrier (GBX) reports new orders of 6200 units worth $670 mln

    • Methode Electronics (MEI) reports Q2 (Oct) results; lowers FY22 sales, earnings guidance citing supply chain disruptions

    • Newmont Goldcorp (NEM) provides outlook for FY22 and beyond; sees FY22 gold production guidance of 6.2 million ounces

    • Novartis AG (NVS) provides long-term outlook at its R&D day; sees sales of 4%+ CAGR through 2026

    • Okta (OKTA) beats by $0.16, beats on revs; guides Q4 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus

    • PVH (PVH) beats by $0.61, misses on revs; guides JanQ EPS below consensus, revs in-line

    • SecureWorks (SCWX) beats by $0.07, reports revs in-line; guides Q4 EPS in-line, revs below consensus

    • Semtech (SMTC) beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line

    • Snowflake (SNOW) reports Q3 (Oct) results, beats on revs

    • Splunk (SPLK) beats by $0.16, beats on revs; lowers FY22 revs outlook

    • Synopsys (SNPS) beats by $0.03, reports revs in-line; guides JanQ EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus; also announces planned retirement of CFO

    • Toronto-Dominion Bank (TD) misses by $0.35, beats on revs

    • Veeva Systems (VEEV) beats by $0.09, beats on revs; raises FY22 EPS, revs guidance; guides FY23 revs below consensus

    • VTEX (VTEX) announces November 2021 GMV +17% yr/yr to $1.3 bln

    • Zuora (ZUO) beats by $0.01, beats on revs; guides JanQ EPS in-line, revs above consensus; guides FY23 revs above consensus


  • General News:

    • There could be a brief government shutdown over the weekend because any one Senator can delay vote on funding measure that Congress is trying to pass by Friday nightdeadline. Senate Minority Leader Mitch McConnell (R-KY) believes there will not be any shutdown, according to CNN

    • White House announces Omicron variant plan: Will require all international travelers (not domestic) to be vaccinated & test within one day of departure globally; announces new actions to get kids vaccinated and get adults boosted

    • Germany will approve new restrictions for unvaccinated people, according to DW

    • Incoming German chancellor Olaf Scholz supports vaccination mandate by end of February, according to the New York Times

    • The sentiment at the OPEC+ meeting is to stick to existing oil output plan - CNBC, citing Reuters

    • Macau closes VIP rooms of a key junket operator, according to the Wall Street Journal

    • Amgen (AMGN) announces top-line results from Phase 3 DISCREET trial

    • Apple (AAPL) autos engineer Michael Schwekutsch is leaving the company to join electric aviation startup Archer, according to CNBC

    • Apple (AAPL) tells suppliers it is seeing less demand for iPhone 13, according to Bloomberg

    • AstraZeneca (AZN): There could be additional links between AstraZeneca coronavirus vaccine and blood clots, according to Bloomberg

    • Bank of Hawaii (BOH) Chairman, CEO and President adopted a pre-arranged stock trading plan

    • Boeing (BA) and Airbus (EADSY) in discussions with JetAir for possible $12 bln order, according to Bloomberg

    • Boeing (BA): China will allow 737 Max jets to return to flight, according to Reuters

    • Bolt Biotherapeutics (BOLT) to present interim clinical data on BDC-1001 Phase 1/2 clinical trial at ESMO Immuno-Oncology Congress 2021

    • Chesapeake Energy (CHK) authorizes $1 bln repurchase of common stock and/or warrants from time to time

    • Chevron (CVX) announces $15 bln capital and exploratory budget for 2022; also raises its share buyback guidance range to $3-5 bln per year vs prior guidance of $2-3 bln per year

    • Clarivate (CLVT) confirms appoints of Jonathan Collins as CFO, effective December 16

    • Coinbase (COIN) execs will testify to House on December 8, according to the New York Post

    • Commercial Vehicle Group (CVGI) appointed Rich Tajer as its first CCO

    • CrowdStrike (CRWD) selected by CISA to support protection of critical endpoints and workloads

    • Dana Inc (DAN) announces appointment of Timothy Kraus as senior vice president and chief financial officer

    • Dollar General (DG) beats by $0.06, reports revs in-line; raises FY21guidance

    • EastGroup (EGP) approves 22% increase to its quarterly dividend, raising it to $1.10/sh from $0.90/sh

    • Endeavour Silver (EXK) Intersects High-Grade Silver-Gold Mineralization at its Guanacevi and Bolaitos Operations

    • Exact Sciences (EXAS) highlights publication of RxPONDER trial results in The New England Journal of Medicine

    • Flora Growth' Beauty (FLGC) division has received initial orders for its Mind Naturals and Awe CBD skincare brands

    • Fulgent Genetics (FLGT) confirms its RT-PCR tests detect Omicron variant

    • HireQuest (HQI) appoints David Burnett as Chief Financial Officer

    • Humanigen (HGEN): The Lancet Respiratory Medicine Publishes Peer-Reviewed Paper and Independent Expert Commentary on Positive Phase 3 Lenzilumab Results

    • Inhibrx (INBX) receives orphan drug designation from FDA for INBRX-109 for the treatment of chondrosarcoma

    • JBT Corp (JBT) authorizes new share repurchase plan of up to $30 mln

    • Katapult Group (KPLT) provides inter update on quarter-to-date gross orginiations

    • Kellogg (K) and union reach new 5 year contract, according to Reuters

    • Krispy Kreme, Inc. (DNUT): JAB Holding Company increases economic exposure in Krispy Kreme

    • Mesoblast (MESO) confident that collegial collaboration could lead to a resubmission of our current Biologic License Application

    • Moderna (MRNA) secures supply agreement with the UK for additional 60 mln doses of its COVID-19 Vaccine in 2022 and 2023

    • Murphy USA (MUSA) authorizes new share repurchase program for up to $1 bln of stock, upon completion of current $500 mln authorization

    • Palantir Technologies (PLTR) receives additional $43 mln contract from Space Systems Command; signs multi-year agreement with Kinder Morgan (KMI)

    • PS Business Parks (PSB) declares one-time special cash dividend of $4.60/share

    • PulteGroup (PHM) raises quarterly dividend by 7% to $0.15 per share

    • Qiagen (QGEN) launches CE-marked version of QuantiFERON SARS-CoV-2 to assess T-cell response to COVID-19

    • Qualcomm (QCOM) introduced new chip for handheld gaming devices, according to Reuters

    • Raytheon (RTX) awarded $270 mln Navy contract

    • RedHill Biopharma (RDHL) Data Published in GastroHep Shows Consistent Efficacy of Talicia Irrespective of Patient BMI

    • SL Green Realty (SLG) increases dividend and declares first monthly ordinary dividend of $0.3108 per share, up from $0.3033 per share; declares special dividend

    • Square (SQ) to change its name to Block, ticker symbol will remain same for now

    • SQZ Biotechnologies (SQZ) announced interim results from the highest-dose monotherapy cohort of its ongoing Phase 1/2 clinical trial of SQZ-PBMC-HPV

    • Taboola (TBLA) announced a 10-year deal with NDTV Convergence, reaffirming its position as India's leading platform for online news

    • Taro Pharm (TARO) appoints William Coote as CFO and Chief Accounting Officer, effective today

    • TriState Capital Holdings (TSC) names Brian S. Fetterolf as CEO, effective January 1

    • Triterras Fintech (TRIT) provides update on independent audit of its financial statements

    • Wallbox (WBX) announces that it launches app for electric vehicle charger installers in seven countries

    • Walt Disney (DIS) elects Susan E. Arnold as Chairman of the Board, effective December 31, 2021

    • Weatherford (WFRD) awarded three-year digital oilfield contract in Kuwait

    • WeWork (WE) discloses material weakness in internal control over financial reporting, to amend financial statements

    • Xos (XOS) announced the receipt of a purchase order for Xos last mile delivery vehicles from Route Consultant, a premier broker and consultant for FedEx Ground contractors

    • Yamana Gold (AUY) Announces the Discovery of New Mineralized Zones at Wasamac and Provides an Update on Its Growth Projects


  • M&A:

    • Amphenol (APH) acquires Halo Technology for $715 mln, a provider of fiber optic interconnect components

    • BOA Acquisition Corp. (BOAS): Selina and BOA Acquisition Corp. have entered into a definitive business combination agreement that will result in Selina becoming a publicly listed company

    • Columbia Financial (CLBK) announces merger agreement with RSI Bank; financial terms not indicated

    • Comfort Systems (FIX) agrees to acquire Ivey Mechanical Company; financial terms not disclosed

    • HealthStream (HSTM) announces acquisition of Rievent Technologies for approx. $4.0 mln in cash

    • J.M. Smucker (SJM) sells its private label dry pet food business for approx. $33 mln in cash; lowers FY22 revenue guidance and reaffirms FY22 earnings guidance as a result

    • Newpark Res (NR) announces acquisition of Lentzcaping for approx. $14 mln in cash

    • Omeros (OMER) has entered into a definitive agreement for the sale of OMIDRIA to Rayner Surgical Group Limited

    • PAE (PAE) announces expiration of "go-shop" period under terms of merger agreement with Amentum

    • Royal Dutch Shell (RDS.A) commences shareholder distributions from Permian business sale proceeds

    • RR Donnelley & Sons (RRD) determines that unsolicited $10.25/share acquisition proposal from Chatham constitutes a superior proposal

    • SSR Mining (SSRM) and Taiga Gold Corp. (TGGDF) announce merger agreement whereby SSRM will pay C$0.265/Taiga share, implying an equity value of approx. C$27 mln

    • Univar Solutions (UNVR) announces acquisition of Sweetmix; terms not disclosed

    • Worthington (WOR) acquires Tempel Steel Company for approximately $255 mln, adding five manufacturing facilities


  • Syndicate:

    • Apartment Income REIT Corp. (AIRC) files mixed securities shelf offering

    • Immunogen (IMGN) prices offering of 11,636,364 shares of its common stock at $6.60 per share

    • MEI Pharma (MEIP) prices offering of 17.5 mln shares of common stock at $2.60 per share


  • IPOs:

    • Expected to Price:

      • Chicago Atlantic Real Estate Finance (Nasdaq: REFI): The commercial real estate finance company dedicated to making loans to operators and property owners in cannabis industry is expected to price its 6.3 M share IPO between $16-$18.



Gapping Up/Down

  • Gapping up:

    • SNOW +15.3%, FIVE +12.9%, HGEN +8.8%, VIR+8.6%, OKTA +5.7%, IPHA +4.8%, ZUO +4.7%, GBX+4.6%, TRIT +4.3%, RDS.A +4.2%, AI +4%, CRWD+3.7%, WNC +3.6%, SWIR +3.2%, SPLK +3%, CLVT+2.7%, CVX +2%, NR +1.9%, IMGN +1.5%, FLGT+1.3%, LAC +1.3%, TARO +1%, RTX +1%, PWR+0.9%, DIS +0.8%, DSGX +0.8%


  • Gapping down:

    • KPLT -9.6%, VBIV -7.1%, SMTC -6.6%, ESTC -5.1%, VEEV -4.8%, MEIP -3.1%, AAPL -1.9%, DAN -1.7%, NCNO -1.6%, APH -1.2%, COST -0.9%, WE -0.7%, PVH -0.6%


Analyst Research (see Upgrades/Downgradescalendarfor full list):

  • Upgrades

    • AEGON N.V. (AEG) upgraded to Neutral from Sell at UBS

    • Autoliv (ALV) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $125

    • Columbia Financial (CLBK) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $22

    • CubeSmart (CUBE) upgraded to Outperform from Mkt Perform at Raymond James; tgt $60

    • eBay (EBAY) upgraded to Buy from Neutral at UBS; tgt $80

    • Graco (GGG) upgraded to Outperform from Mkt Perform at William Blair


  • Downgrades:

    • Baozun (BZUN) downgraded to Outperform from Buy at CLSA

    • BeyondSpring (BYSI) downgraded to Hold from Buy at Jefferies; tgt lowered to $5

    • BeyondSpring (BYSI) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $5

    • Expeditors Intl (EXPD) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $95

    • Ford Motor (F) downgraded to Peer Perform from Outperform at Wolfe Research; tgt raised to $22


  • Others:

    • Accolade (ACCD) initiated with a Buy at Jefferies; tgt $33

    • Airbnb (ABNB) initiated with a Neutral at UBS; tgt $176

    • Ally Financial (ALLY) initiated with an Outperform at Raymond James; tgt $55

    • Alphabet A (GOOGL) assumed with a Buy at UBS; tgt raised to $3925

    • Amazon (AMZN) assumed with a Buy at UBS; tgt $4700

    • Amwell (AMWL) initiated with a Hold at Jefferies; tgt $6

    • Autohome (ATHM) initiated with a Neutral at UBS; tgt $38

    • Babylon (BBLN) initiated with a Buy at Canaccord Genuity; tgt $14

    • Babylon (BBLN) initiated with a Hold at Jefferies; tgt $9

    • Booking Holdings (BKNG) initiated with a Buy at UBS; tgt $2838

    • Cellebrite DI (CLBT) initiated with a Buy at BofA Securities; tgt $11

    • Cracker Barrel (CBRL) initiated with a Hold at The Benchmark Company

    • Definitive Healthcare (DH) initiated with a Buy at Jefferies; tgt $36

    • Denny's (DENN) initiated with a Buy at The Benchmark Company; tgt $19

    • Dine Brands (DIN) initiated with a Buy at The Benchmark Company; tgt $115

    • Doximity (DOCS) initiated with a Buy at Jefferies; tgt $78

    • Dropbox (DBX) initiated with a Hold at Berenberg; tgt $25

    • Enviva Partners (EVA) resumed with a Neutral at Goldman; tgt $73

    • Etsy (ETSY) initiated with a Sell at UBS; tgt $215

    • Expedia Group (EXPE) initiated with a Neutral at UBS; tgt $173

    • Farfetch (FTCH) assumed with a Buy at UBS; tgt $45

    • GoodRx (GDRX) initiated with a Buy at Jefferies; tgt $47

    • Health Catalyst (HCAT) initiated with a Hold at Jefferies; tgt $48

    • HealthEquity (HQY) initiated with a Buy at Jefferies; tgt $68

    • Hims & Hers Health (HIMS) initiated with a Hold at Jefferies; tgt $7

    • Phreesia (PHR) initiated with a Buy at Jefferies; tgt $70

    • Progyny (PGNY) initiated with a Buy at Jefferies; tgt $60

    • R1 RCM (RCM) initiated with a Buy at Jefferies; tgt $28

    • Tabula Rasa HealthCare (TRHC) initiated with a Hold at Jefferies; tgt $13

    • Talkspace (TALK) initiated with a Hold at Jefferies; tgt $2

    • Teladoc (TDOC) assumed with a Hold at Jefferies; tgt $113

    • Vocera (VCRA) assumed with a Buy at Jefferies; tgt $70


Upcoming Events:

  • Econ Data:

    • 08:30 ET: Continuing Claims for Nov 20 (Briefing.comConsensus NA; Prior 2.049M)

    • 08:30 ET: Initial Claims for Nov 27 (Briefing.comConsensus 255K; Prior 199K)

    • 10:30 ET: EIA Natural Gas Inventories for Nov 27 (Briefing.comConsensus NA; Prior -21.0 bcf)


  • Earnings:

    • Monday (Nov 29)

      • Morning: FRO LI

      • Afternoon: GBDC


  • Tuesday (Nov 30)

    • Morning: BNS BZUN MOMO JKS

    • Afternoon: AMBA BOX HPE NTAP CRM ZS


  • Wednesday (Dec 1)

    • Morning: DCI GIII PDCO RY

    • Afternoon: AI CRWD DSGX ESTC FIVE NCNO OKTA PVH SMTC SNOW SPLK SNPS VEEV ZUO


  • Thursday (Dec 2)

    • Morning: CM DG GMS KR SCWX SIG TD

    • Afternoon: ASAN COO DOCU DOMO GWRE JOAN MRVL OLLI OOMA SMAR SWBI ULTA VRNT ZUMZ


  • Friday (Dec 3)

    • Morning: BMO BIG DOLE GCO HIBB




Asia & Europe detail:

Asia: Nikkei -0.7%, Hang Seng +0.6%, Shanghai Composite -0.1%

Equity indices in the Asia-Pacific region ended Thursday on a mixed note. Chinese property developer Kaisa Group is facing an 11:00 ETdeadline to complete a debt swap aimed at averting a default. The Bank of Korea expects South Korea's CPI to remain above target for a considerable time. Governor Lee is scheduled to hold a press conference on inflation in mid-December. China Banking and Insurance Regulatory Commission is planning to strengthen oversight of major shareholders of banks and insurers.

  • In economic data:

    • Japan's November Household Confidence 39.2 (last 39.2)

    • South Korea's Q3 GDP 0.3% qtr/qtr (last 0.8%); 4.0% yr/yr (last 4.0%). November CPI 0.4% m/m (expected -0.2%; last 0.1%); 3.7% yr/yr (expected 3.1%; last 3.2%)

    • Australia's October trade surplus AUD11.22 bln (expected surplus of AUD11.00 bln; last surplus of AUD12.24 bln). October Home Loans -4.1% m/m (expected 1.0%; last -2.7%) and October Invest Housing Finance 1.1% m/m (last 1.4%)

    • New Zealand's Q3 Terms of Trade Index 0.7% qtr/qtr (expected 2.0%; last 3.3%)


---Equity Markets---

  • Japan's Nikkei: -0.7%

  • Hong Kong's Hang Seng: +0.6%

  • China's Shanghai Composite: -0.1%

  • India's Sensex: +1.4%

  • South Korea's Kospi: +1.6%

  • Australia's ASX All Ordinaries: -0.3%

---FX---

  • USD/JPY: +0.1% to 112.92

  • USD/CNH: +0.1% to 6.3742

  • USD/INR: UNCH at 75.03

Europe: DAX -1.6%, FTSE -0.9%, CAC -1.3%

Major European indices trade in the red. Spain's unemployment decreased for the ninth consecutive month in November, returning employment to a pre-pandemic level. GlaxoSmithKline (GSK) announced positive results from early trials of its antiviral pill against the omicron variant. Ministers from OPEC+ are expected to decide at today's meeting whether to maintain the cartel's plan for increasing output by 400,000 bpd in January. France and Spain sold 10-yr debt to good demand.

  • In economic data:

    • Eurozone's October PPI 5.4% m/m (expected 3.5%; last 2.8%); 21.9% yr/yr (expected 19.0%; last 16.1%). October Unemployment Rate 7.3%, as expected (last 7.4%)

    • Italy's October Unemployment Rate 9.4% (expected 9.1%; last 9.2%)

    • Spain's November Unemployment Change -74,400 (last -700)

    • Swiss October Retail Sales 1.2% yr/yr (last 2.6%)


---Equity Markets---

  • STOXX Europe 600: -1.5%

  • Germany's DAX: -1.6%

  • U.K.'s FTSE 100: -0.9%

  • France's CAC 40: -1.3%

  • Italy's FTSE MIB: -1.3%

  • Spain's IBEX 35: -1.8%

---FX---

  • EUR/USD: +0.2% to 1.1343

  • GBP/USD: +0.4% to 1.3326

  • USD/CHF: -0.2% to 0.9187


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