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Writer's pictureSimon Charles Hooper

14/12/21 Briefing

The S&P 500 futures are down eight points but trade in-line with fair value as the FOMC gets set to begin its two-day policy meeting. The Nasdaq 100 futures underperform and trade 0.5% below fair value after the corresponding index fell 1.5% yesterday.

COVID-19 headlines remain in the mix with California reimposing a mask mandate for indoor settings and China reporting its first case of the Omicron variant amid an outbreak of cases in the manufacturing province of Zhejiang. The good news is Pfizer (PFE 54.80, -0.40, -0.7%) confirmed the robust efficacy of its oral antiviral in reducing the risk of hospitalization or death.

Apple (AAPL 177.33, +1.59, +0.9%), meanwhile, is providing offsetting support for the Nasdaq 100 futures after the stock was upgraded to Buy from Neutral at BofA Securities. AAPL is indicated higher by 0.9% in pre-market action.

On the data front, investors will receive the Producer Price Index for November (Briefing.com consensus 0.5%) at 8:30 a.m. ET. Earlier, the NFIB Small Business Optimism Index increased to 98.4 in November from 98.2 in October.

U.S. Treasury yields have edged higher this morning. The 2-yr yield is up one basis point to 0.65%, and the 10-yr yield is up two basis points to 1.44%. The U.S. Dollar Index is down 0.2% to 96.16. WTI crude futures are up 0.1% to $71.35/bbl.

In U.S. Corporate news:

  • Pfizer (PFE 54.80, -0.40): -0.7% despite confirming the robust efficacy of its COVID-19 oral antiviral treatment in reducing the risk of hospitalization or death. PFE shares did rise 4.6% yesterday.

  • Apple (AAPL 177.33, +1.59): +0.9% after the stock was upgraded to Buy from Neutral at BofA Securities.

  • Adobe (ADBE 646.70, -11.60): -1.8% after the stock was downgraded to Neutral from Overweight at JP Morgan.

  • Neogen (NEOG 44.99, +4.87): +12.1% after announcing it will combine 3M's (MMM 176.40, +1.82, +1.0%) Food Safety business with its existing operations through a "Reverse Morris Trust" structure. The transaction implies an enterprise value for 3M's Food Safety business of approximately $5.3 billion, including new debt.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. Japan's Nikkei: -0.7% Hong Kong's Hang Seng: -1.3% China's Shanghai Composite: -0.5% India's Sensex: -0.3% South Korea's Kospi: -0.5% Australia's ASX All Ordinaries: UNCH.

    • In economic data:

      • Japan's October Industrial Production 1.8% m/m (last 1.1%) and Capacity Utilization 6.2% m/m (last -7.3%)

      • South Korea's November Import Price Index 35.5% yr/yr (last 35.8%) and Export Price Index 25.5% yr/yr (last 25.3%)

      • India's November WPI Inflation 14.23% yr/yr (expected 11.90%; last 12.54%) and WPI Manufacturing Inflation 11.92% yr/yr (last 12.04%)

      • Australia's November NAB Business Confidence 12 (last 21) and NAB Business Survey 12 (last 11)

      • New Zealand's November FPI -0.6% m/m (last -0.9%)


  • In news

    • China Beijing Think Tank opined that more rate cuts will be needed to ensure growth of at least 5.0% next year.

    • The Bank of Japan conducted its second consecutive JPY2 trln repurchase operation.

    • China's National Development and Reform Commission pledged to increase the effective supply of raw materials to support the industrial sector.



  • Major European indices trade just above their flat lines while Spain's IBEX (+0.9%) outperforms. STOXX Europe 600: +0.1% Germany's DAX: +0.1% U.K.'s FTSE 100: +0.5% France's CAC 40: +0.1% Italy's FTSE MIB: +0.5% Spain's IBEX 35: +0.9%.

    • In economic data:

      • Eurozone's October Industrial Production 1.1% m/m (expected 1.2%; last -0.2%); 3.3% yr/yr (expected 3.2%; last 5.1%)

      • U.K.'s October Average Earnings Index + Bonus 4.9% yr/yr (expected 4.6%; last 5.9%). October three-month employment change 149,000 (expected 228,000; last 247,000) and October Unemployment Rate 4.2%, as expected (last 4.3%)

      • Swiss November PPI 0.5% m/m (last 0.6%); 5.8% yr/yr (last 5.1%)


  • In news:

    • Bank of England Governor Bailey cautioned that corporate debt vulnerability increased during the pandemic.

    • More than 70 Conservative MPs are expected to vote against British Prime Minister Johnson's plan to tighten restrictions. However, the plan is expected to pass due to support from the opposition.

    • Germany's ifo Institute raised its domestic growth forecast for 2022 to 5.1% from 3.7%. Q4 growth is expected to contract 0.5%.

    • Italy sold 3-yr debt while Spain sold 3-month debt to good demand.



U.S. equity futures:

  • S&P 500 Futures: -8 @ 4,661

  • DJIA Futures: +1 @ 35,651

  • Nasdaq 100 Futures: -74 @ 16,009

Overseas:

  • Europe: DAX +0.1%, FTSE +0.5%, CAC +0.1%

  • Asia: Nikkei -0.7%, Hang Seng -1.3%, Shanghai Composite -0.5%

Commodities:

  • Crude Oil -0.04 @ 71.25

  • Nat Gas -0.046 @ 3.748

  • Gold -3.70 @ 1784.60

  • Silver -0.200 @ 22.128

  • Copper +0.0182 @ 4.3022

U.S. Summary:

  • Earnings/Guidance (Full Earnings Calendar):

    • Algonquin Power & Utilities (AQN) sees FY21 EPS above consensus

    • Barnes Group (B) sees FY21 revs below consensus; sees FY21 EPS at low end of prior guidance; provides targets for 2025

    • Holly Energy Partners (HEP) expects 2022 consolidated capital and turnaround cash spending guidance of $55-80 mln

    • Perimeter Solutions (PRM) reports Q3 results

    • Planet Labs (PL) reports Q3 results, revs up 16.4% yr/yr

    • Purple Innovation (PRPL) announces Joseph Megibow is stepping down as CEO, to be succeeded by Robert DeMartini; expects rev, adj. EBITDA at low end of previous guidance


  • General News:

    • Senate Majority Leader Chuck Schumer (D-NY) still wants Build Back Better Act passed before Christmas, but Senator Joe Manchin (D-WV) has deep concerns about bill. Mr. Manchin said he had a "productive" conversation with President Biden and will continue talks, according to Politico

    • Senate will vote on bill today to raise debt ceiling enough to get Treasury through the midterm elections, according to Bloomberg

    • Online learning is scheduled to return to Los Angeles public schools as hundreds of employees were fired due to vaccination mandate, according to the Washington Post

    • Omicron variant is likely surging in the state of Washington, according to New York Times

    • China has discovered first case of Omicron amid concerns about supply chains, according to Financial Times

    • Study from South Africa shows that Omicron causes less severe disease and a 29% reduced risk of hospitalization compared to first strain. Two doses of Pfizer vaccine provided 33% protection against infection, but 70% protection against hospitalization, according to the Washington Post

    • Adagio Therapeutics (ADGI) reports reduction in in Vitro neutralizing activity of ADG20 against omicron SARS-CoV-2 variant

    • Adaptive Biotechnologies (ADPT) Announces New Data Demonstrating the Benefit of Serial MRD Testing with the clonoSEQ Assay in Patients with Blood Cancers at the 63rd ASH Annual Meeting

    • Agios (AGIO) Presents Mitapivat Long-term Extension Data Demonstrating Durability of Hemoglobin Response and Transfusion Burden Reduction in Adults with Pyruvate Kinase (PK) Deficiency at 63rd ASH Annual Meeting and Exposition

    • Alcoa (AA) announces closure of aluminum smelting capacity at Wenatchee Works

    • Allison Transmission (ALSN) selected by Israeli Ministry of Defense for infantry fighting vehicle

    • Alnylam Pharma (ALNY) announces the submission of a supplemental New Drug Application to the U.S. Food and Drug Administration and Type II Filing Variation to the European Medicines Agency for lumasiran

    • Amazon (AMZN) will expand grocery delivery services in US and Europe

    • American Fincl (AFG) declares special cash dividend of $2.00/share

    • AssetMark (AMK) reports highlights for November; platform assets increased 25.1% yr/yr

    • atai Life Sciences N.V. (ATAI) announced positive topline data from its Phase 2a study of RL-007 for Cognitive Impairment Associated with Schizophrenia

    • Atara Biotherapeutics (ATRA) Announces Positive Results from Pivotal Phase 3 Trial (ALLELE) of Tab-cel at the 63rd American Society of Hematology (ASH) Annual Meeting

    • BeiGene (BGNE) and Nanjing Leads Biolabs agree to license and collaboration agreement for LBL-007 Anti-LAG-3 Antibody

    • Bio-Techne (TECH) entered into an option agreement with Wilson Wolf Corporation

    • BrightView (BV) announces repurchase of shares from MSD Partners

    • Cabaletta Bio (CABA) reports top-line biologic activity data from two lowest dose cohorts in DesCAARTes trial in patients with mucosal pemphigus vulgaris

    • Callaway Golf (ELY) announces new $50 mln stock repurchase program

    • Camden National Corp. (CAC) appoints Michael Archer as CFO effective Jan. 3, 2022

    • Centene (CNC) announces Chairman and CEO Michael Neidorff's intent to retire in 2022 as CEO; new Board members named

    • Chubb (CB) reaches settlement agreement-in-principle with Boy Scouts of America

    • Cidara Therapeutics (CDTX) announce positive topline results from the global phase 3 pivotal ReSTORE trial of Rezafungin for the treatment of candidemia and invasive candidiasis

    • Clarivate (CLVT) discloses separation agreement with CFO Richard Hanks

    • Coeur d'Alene Mines (CDE) provides an update on its 2021 exploration programs at its Rochester operation in northern Nevada and the Crown exploration project in southern Nevada

    • Disney (DIS) is confident it will renew distribution deal with YouTube (GOOG) ahead of deadline, according to Deadline

    • EQT Corp. (EQT) approves $1 bln share repurchase program, also to reinstate its dividend

    • Faraday Future Intelligent Electric (FFIE) reaches production milestone with start of construction for remaining production areas at Hanford plant

    • Fate Therapeutics (FATE) Showcases Positive Interim Phase 1 Data from FT596 Off-the-shelf, iPSC-derived CAR NK Cell Program for Relapsed / Refractory B-cell Lymphoma at 2021 ASH Annual Meeting

    • Generation Bio (GBIO) provides update on preclinical studies for hemophilia A program; Non-human primates (NHPs) demonstrated up to 2% normal human factor VIII expression, and higher-than-expected variability within and between studies

    • GFL Environmental (GFL) enters JVs for renewable natural gas projects at 2 landfills

    • Harpoon Therapeutics (HARP) Provides Pipeline Update for TriTAC Clinical Programs and T Cell Engager Platforms

    • I-Mab (IMAB) presents interim clinical data of Lemzoparlimab in combination with Rituximab in relapsed and refractory non-Hodgkin lymphoma

    • Immatics N.V. (IMTX) and Bristol Myers Squibb (BMY) enter into global exclusive license for Immatics' TCR Bispecific Program IMA401

    • Immunic (IMUX) publishes positive results from the single and multiple ascending dose parts of its Phase 1 clinical trial of IMU-935, a potentially best-in-class oral IL-17 inhibitor

    • InterActiveCorp (IAC) and Angi Inc. (ANGI) report performance metrics for November 2021

    • KemPharm (KMPH) announces top-line results from its clinical trial exploring the safety and pharmacokinetics of serdexmethylphenidate delivered at doses higher than those studied as part of the AZSTARYS development program

    • Laboratory Corp (LH) entered into $1 bln accelerated share repurchase agreements

    • Leidos (LDOS) awarded contract by U.S. Air Force worth an estimated $82 mln

    • Li-Cycle (LICY), LG Chem and LG Energy Solution enter into Letter of Intent for milestone closed loop commercial arrangement

    • Luminar Technologies (LAZR) announced its authorization and intent to purchase $250 mln or more of its Class A common stock, which is anticipated to commence today after market open

    • Mainz Biomed (MYNZ) expands ColoAlert commercialization with GANZIMMUN Diagnostics in Europe

    • Merck (MRK): FDA places clinical holds on INDs for the oral and implant formulations of islatravir; Gilead and Merck to stop all dosing of participants in a Phase 2 study

    • Mesoblast (MESO) provides update on Novartis (NVS) agreement

    • MindMed (MNMD) appoints Robert Barrow as CEO

    • Moderna (MRNA) COVID-19 Vaccine Manufactured by Samsung Biologics receives Marketing Authorization from Ministry of Food and Drug Safety of Korea

    • Moderna (MRNA) to collaborate with Australian Government to manufacture vaccines

    • Molecular Partners A (MOLN) to collaborate with Novartis (NVS) to develop DARPin-conjugated radioligand therapeutic candidates for oncology

    • Neogen (NEOG) to combine 3M's (MMM) Food Safety business with its existing operations

    • Nkarta (NKTX) presents NKX019 trial in progress poster

    • Northern Oil & Gas (NOG) appoints promotes COO Adam Dirlam to President, effective immediately

    • NRx Pharmaceuticals (NRXP) announces new, favorable safety report for ZYESAMI in NIH sponsored ACTIV-3b critical care study in patients with life-threatening COVID-19

    • OneMain Holdings (OMF) announces that its Board of Directors has increased the Company's share repurchase authorization to $300 million from the previously announced $200 mln

    • ORIC Pharmaceuticals (ORIC) Presents Data Supporting the Therapeutic Potential of ORIC-533 in Multiple Myeloma at the American Society of Hematology (ASH) Annual Meeting

    • Paragon 28 (FNA) received a supplemental approval order from the FDA for the Patient Specific Talus Spacer

    • Pfizer (PFE) announces additional Phase 2/3 study results confirming robust efficacy of novel COVID-19 oral antiviral treatment candidate in reducing risk of hospitalization or death

    • Precigen (PGEN) Announces Positive Interim Phase 1 Data for PRGN-3006 UltraCAR-T in Relapsed or Refractory Acute Myeloid Leukemia

    • Saia (SAIA) announces opening of a new terminal in Georgia as company seeks to add capacity

    • SI-BONE (SIBN) announces update Blue Cross Blue Shield Association Evidence Street opinion

    • Sierra Oncology (SRRA) Reports Baseline Ferritin Differentially Predicts Week 24 Transfusion Independence Response in Myelofibrosis Patients

    • Starbucks (SBUX) employees want to union in Boston area, according to Bloomberg

    • Talaris Therapeutics (TALS) presented a new analysis of HLA mismatching between donors and recipients participating in the Company's Phase 2 trial in living donor kidney transplant

    • Tesla (TSLA) -- Tesla Giga Shanghai could produce 500K vehicles in 2021, citing internal docs, according to Tesmanian.com

    • TG Therapeutics (TGTX) announces that the U.S. Food and Drug Administration has accepted the Biologics License Application for ublituximab

    • TG Therapeutics (TGTX) announces data from the UNITY-CLL Phase 3 trial presented at the 63rd American Society of Hematology Annual Meeting

    • Toyota Motor (TM) announced that the company is going to roll out 30 BEV models and is anticipating sales of 3.5 million BEVs globally by 2030

    • TPI Composites (TPIC) CFO Bryan Schumaker to resign; not related to any disagreement with the co; names Adan Gossar as interim CFO

    • United Airlines (UAL) announces partnership with Virgin Australia Group

    • VICI Properties (VICI) enters into agreements with MGM Resorts (MGM) relating to the Mirage Hotel & Casino in Las Vegas

    • Viracta Therapeutics (VIRX) Presents Preclinical Vecabrutinib Data in Oral and Poster Presentations at ASH 2021

    • Williams Cos (WMB) names John Porter as CFO


  • M&A:

    • Avanos Medical (AVNS) agrees to acquire OrthogenRx for total consideration of $160 mln

    • Bentley Systems' (BSY) Seequent business acquired Advanced Resources and Risk Technology, LLC

    • Brown & Brown (BRO) acquires assets of Dealer Admin. Services; terms not disclosed

    • Chart Industries (GTLS) completed the acquisition of Earthly Labs; expected to add ~ $20 mln of revenue to Chart's 2022 outlook with immediate accretion, including anticipated 2022 earnings per share of $0.12

    • Gambling.com Group Ltd. (GAMB) to acquire RotoWire for $27.5 mln; sees immediate accretion to FY22 earnings

    • ICF International (ICFI) to acquire Creative Systems and Consulting; sees rev, GAAP EPS accretion

    • Landec (LNDC) sells its curation foods' fresh packaged salads and vegetables business for $73.5 mln

    • MagnaChip Semi (MX) and Wise Road Capital mutually terminate acquisition agreement

    • Markel Corp (MKL) agrees to acquire minority interest in Metromont; terms not disclosed

    • New Gold (NGD) agrees to sell Blackwater Project gold stream for upfront cash consideration US$300 mln

    • NIKE (NKE) announces acquisition of RTFKT; terms of the deal not disclosed

    • Reliance Steel (RS) acquires Admiral Metals Servicecenter Company; The terms of the transaction were not disclosed

    • Rocket Lab USA (RKLB) to acquire SolAero Holdings, a supplier of space solar power products, for $80 mln

    • Royal Dutch Shell (RDS.A) New Energies to buy 100% of Savion LLC (Savion), a large utility-scale solar and energy storage developer in the United States, from Macquarie's Green Investment Group

    • Vaccitech plc (VACC) acquires Avidea Technologies for $40 mln

    • Wheaton Precious Metals (WPM) acquires gold and silver streams on Artemis's Blackwater Project


  • Syndicate:

    • Bristol-Myers (BMY) files mixed securities shelf offering

    • Caterpillar (CAT) files mixed securities shelf offering

    • FirstEnergy (FE) files for 25,588,535 share common stock offering by selling shareholder

    • Global Blood Therapeutics (GBT) to offer $250 mln of its Convertible Senior Notes due 2028 in a private offering

    • PNC (PNC) files mixed securities shelf offering

    • Veris Residential (VRE) establishes At-The-Market share offering program of up to $200 mln shares of its common stock

    • Seelos Therapeutics (SEEL) files for 3,212,832 share common stock offering by selling shareholder


  • IPOs:

    • Expected to Price:

      • Samsara (NYSE: IOT): The developer of a connected operations cloud platform that consolidates data from IoT devices is expected to price its 35.0 M share IPO between $20-$23.



Gapping Up/Down

  • Gapping up:

    • GAMB +8.4%, MOLN +8.1%, ATRA +7.3%, SNSE +6.9%, AA +4.1%, FATE +3.1%, AFG +3.1%, FTNT +2.5%, WPM +2.2%, ELY +1.9%, ALSN +1.7%, PGEN +1.4%, NGD +1.4%, LDOS +1.3%, NOG +0.8%, BMY +0.7%


  • Gapping down:

    • APTO -16.4%, PL -11.6%, PRPL -8.2%, MESO -8%, TSVT -6.3%, BLU -3%, FFIE -1.8%, MX -1.5%


Analyst Research (see Upgrades/Downgrades calendar for full list):

  • Upgrades

    • Ametek (AME) upgraded to Outperform from Peer Perform at Wolfe Research; tgt raised to $166

    • Apple (AAPL) upgraded to Buy from Neutral at BofA Securities; tgt raised to $210

    • AppLovin (APP) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $120

    • Avalara (AVLR) upgraded to Overweight from Neutral at JP Morgan; tgt $190

    • Beyond Meat (BYND) upgraded to Neutral from Underweight at Piper Sandler; tgt raised to $64

    • Capri Holdings (CPRI) upgraded to Buy from Neutral at Goldman; tgt raised to $86

    • CrowdStrike (CRWD) upgraded to Overweight from Neutral at JP Morgan; tgt $255

    • Model N (MODN) upgraded to Overweight from Neutral at JP Morgan; tgt $38

    • NOV Inc. (NOV) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $17

    • PROS Holdings (PRO) upgraded to Neutral from Underweight at JP Morgan; tgt $37

    • SS&C Techs (SSNC) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $95


  • Downgrades:

    • Adobe (ADBE) downgraded to Neutral from Overweight at JP Morgan; tgt $680

    • Akamai Tech (AKAM) downgraded to Underweight from Neutral at JP Morgan; tgt $120

    • Amdocs (DOX) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $86

    • Big Lots (BIG) downgraded to Sell from Neutral at Goldman; tgt lowered to $43

    • Blucora (BCOR) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $22

    • BrightSphere Investment Group (BSIG) downgraded to Equal-Weight from Overweight at Morgan Stanley

    • Cadence Design (CDNS) downgraded to Neutral from Overweight at JP Morgan; tgt $185

    • CCC Intelligent Solutions (CCCS) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $12

    • Datadog (DDOG) downgraded to Neutral from Overweight at JP Morgan; tgt $195

    • Doximity (DOCS) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $60

    • PTC (PTC) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $138

    • Ralph Lauren (RL) downgraded to Sell from Buy at Goldman; tgt lowered to $110

    • Sapiens Int'l (SPNS) downgraded to Underweight from Neutral at JP Morgan; tgt $35

    • SolarWinds (SWI) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $16

    • Zscaler (ZS) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $320


  • Others:

    • Alignment Healthcare (ALHC) initiated with a Buy at Goldman; tgt $20

    • Anthem (ANTM) initiated with a Conviction Buy at Goldman; tgt $517

    • Axon (AXON) resumed with a Mkt Outperform at JMP Securities; tgt $195

    • Bath & Body Works (BBWI) initiated with a Buy at Goldman; tgt $93

    • Bright Health Group (BHG) initiated with a Neutral at Goldman; tgt $5

    • Callaway Golf (ELY) initiated with a Neutral at Goldman; tgt $29

    • Centene (CNC) initiated with a Neutral at Goldman; tgt $83

    • Cigna (CI) initiated with a Neutral at Goldman; tgt $233

    • CVS Health (CVS) initiated with a Buy at Goldman; tgt $121

    • Humana (HUM) initiated with a Neutral at Goldman; tgt $472

    • Molina Healthcare (MOH) initiated with a Buy at Goldman; tgt $335

    • Oscar Health (OSCR) initiated with a Sell at Goldman; tgt $6.50

    • UnitedHealth (UNH) initiated with a Buy at Goldman; tgt $535


Upcoming Events:

  • Econ Data:

    • 06:00 ET: NFIB Small Business Optimism for Nov (Briefing.com Consensus NA; Prior 98.2)

    • 08:30 ET: PPI for Nov (Briefing.com Consensus 0.5%; Prior 0.6%)

    • 08:30 ET: Core PPI for Nov (Briefing.com Consensus 0.4%; Prior 0.4%)


  • Earnings:

    • Wednesday (Dec 15)

      • Morning: ABM REVG TTC

      • Afternoon: HEI LEN NDSN TCOM


  • Thursday (Dec 16)

    • Morning: ACN ADBE JBL WOR

    • Afternoon: FDX NX SCS


  • Friday (Dec 17)

    • Morning: DRI WGO




Asia & Europe detail:

Asia: Nikkei -0.7%, Hang Seng -1.3%, Shanghai Composite -0.5%

Equity indices in the Asia-Pacific region ended Tuesday on a mostly lower note. China Beijing Think Tank opined that more rate cuts will be needed to ensure growth of at least 5.0% next year. The Bank of Japan conducted its second consecutive JPY2 trln repurchase operation. China's National Development and Reform Commission pledged to increase the effective supply of raw materials to support the industrial sector.

  • In economic data:

    • Japan's October Industrial Production 1.8% m/m (last 1.1%) and Capacity Utilization 6.2% m/m (last -7.3%)

    • South Korea's November Import Price Index 35.5% yr/yr (last 35.8%) and Export Price Index 25.5% yr/yr (last 25.3%)

    • India's November WPI Inflation 14.23% yr/yr (expected 11.90%; last 12.54%) and WPI Manufacturing Inflation 11.92% yr/yr (last 12.04%)

    • Australia's November NAB Business Confidence 12 (last 21) and NAB Business Survey 12 (last 11)

    • New Zealand's November FPI -0.6% m/m (last -0.9%)


---Equity Markets---

  • Japan's Nikkei: -0.7%

  • Hong Kong's Hang Seng: -1.3%

  • China's Shanghai Composite: -0.5%

  • India's Sensex: -0.3%

  • South Korea's Kospi: -0.5%

  • Australia's ASX All Ordinaries: UNCH

---FX---

  • USD/JPY: UNCH at 113.54

  • USD/CNH: -0.1% to 6.3671

  • USD/INR: +0.1% to 75.88

Europe: DAX +0.1%, FTSE +0.5%, CAC +0.1%

Major European indices trade just above their flat lines while Spain's IBEX (+0.9%) outperforms. Bank of England Governor Bailey cautioned that corporate debt vulnerability increased during the pandemic. More than 70 Conservative MPs are expected to vote against British Prime Minister Johnson's plan to tighten restrictions. However, the plan is expected to pass due to support from the opposition. Germany's ifo Institute raised its domestic growth forecast for 2022 to 5.1% from 3.7%. Q4 growth is expected to contract 0.5%. Italy sold 3-yr debt while Spain sold 3-month debt to good demand.

  • In economic data:

    • Eurozone's October Industrial Production 1.1% m/m (expected 1.2%; last -0.2%); 3.3% yr/yr (expected 3.2%; last 5.1%)

    • U.K.'s October Average Earnings Index + Bonus 4.9% yr/yr (expected 4.6%; last 5.9%). October three-month employment change 149,000 (expected 228,000; last 247,000) and October Unemployment Rate 4.2%, as expected (last 4.3%)

    • Swiss November PPI 0.5% m/m (last 0.6%); 5.8% yr/yr (last 5.1%)


---Equity Markets---

  • STOXX Europe 600: +0.1%

  • Germany's DAX: +0.1%

  • U.K.'s FTSE 100: +0.5%

  • France's CAC 40: +0.1%

  • Italy's FTSE MIB: +0.5%

  • Spain's IBEX 35: +0.9%

---FX---

  • EUR/USD: +0.3% to 1.1317

  • GBP/USD: +0.2% to 1.3244

  • USD/CHF: -0.3% to 0.9196


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