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29/11/23 Briefing

Updated: Dec 1, 2023

The S&P 500 futures are up 22 points and are trading 0.4% above fair value, the Nasdaq 100 futures are up 95 points and are trading 0.5% above fair value, and the Dow Jones Industrial Average futures are up 122 points and are trading 0.3% above fair value.

Stock futures are higher this morning following yesterday's modest gains, supported by a further drop in market rates. Yields have pressed lower on some pleasing inflation data out of Germany, Spain, and Australia, and the notion that the Fed may cut rates in the first half of 2024. Hedge fund manager Bill Ackman is of this mindset, saying he believes the Fed may cut rates as soon as Q1 of 2024, according to Bloomberg.

Other support factors include a positive response to earnings news, a fear of missing out on further gains, and month end trading dynamics.

The 2-yr note yield is down three basis points to 4.71% and the 10-yr note yield is down five basis points to 4.29% but hit 4.25% overnight.

WTI crude oil futures are up 1.8% to $77.76/bbl.

The weekly MBA Mortgage Applications Index increased 0.3% with purchase applications jumping 5.0% while refinance applications dropped 9.0%. Other economic data today includes:

  • 8:30 ET: Q3 GDP -- second estimate (Briefing.com consensus 4.9%; prior 4.9%), Q3 GDP Deflator -- second estimate (Briefing.com consensus 3.8%; prior 3.5%), October advance goods trade balance (prior -$85.8 bln), October advance Retail Inventories (prior 0.9%), and October advance Wholesale Inventories (prior 0.0%)

  • 10:30 ET: Weekly crude oil inventories (prior 8.7 mln)

In corporate news:

  • Apple (AAPL 190.59, +0.19, +0.1%) aiming to exit credit card partnership with Goldman (GS), according to the WSJ

  • General Motors (GM 31.43, +2.54, +8.9%): reinstates guidance; announces $10 bln accelerated share repurchase program and raises dividend by 33%

  • Hewlett Packard Enterprise (HPE 15.51, -0.01, -0.1%): beats by $0.02, reports revs in-line; guides Q1 EPS in-line, revs in-line; guides FY24 EPS in-line; reaffirms FY24 revenue growth in cc; raises dividend

  • Workday (WDAY 256.28, +18.95, +8.0%): beats by $0.12, beats on revs, raises FY24 subscription revenue guidance

  • NetApp (NTAP 86.97, +8.86, +11.3%): beats by $0.19, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY24 EPS above consensus, revs above consensus

  • Intuit (INTU 569.32, +4.25, +0.8%): beats by $0.49, beats on revs; guides JanQ EPS below consensus, revs below consensus; reaffirms FY24 EPS guidance, revs guidance

  • CrowdStrike (CRWD 217.43, +5.08, +2.4%): beats by $0.08, beats on revs; guides Q4 EPS above consensus, revs in-line

  • Dollar Tree (DLTR 113.50, -2.54, -2.2%): misses by $0.04, misses on revs; guides Q4 EPS in-line, revs in-line

  • Foot Locker (FL 26.00, +2.16, +9.1%): beats by $0.09, beats on revs; guides Q4 EPS in-line, revs above consensus; announces entry into India

  • Las Vegas Sands (LVS 45.72, -1.94, -4.1%): announces launch of $2 bln of common stock offering, priced at $44.00 per share, by its by Dr. Miriam Adelson and The Miriam Adelson Trust

  • Hormel Foods (HRL 31.11, -0.84, -2.6%): misses by $0.02, misses on revs; guides FY24 EPS below consensus, revs in-line

  • Okta (OKTA 72.50, -0.11, -0.2%): beats by $0.14, beats on revs; guides Q4 EPS above consensus, revs above consensus; guides FY25 revs below consensus

  • Jabil (JBL 121.60, -9.08, -7.0%): lowers revenue guidance for Q1 and FY24; experiencing softening demand as a result of short-term inventory corrections

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Japan's Nikkei: -0.3%, Hong Kong's Hang Seng: -2.1%, China's Shanghai Composite: -0.6%, India's Sensex: +1.1%, South Korea's Kospi: -0.1%, Australia's ASX All Ordinaries: +0.3%.

    • In economic data:

      • Australia's Q3 Construction Work Done 1.3% qtr/qtr (expected 0.4%; last 0.4%). October CPI Indicator 4.9% yr/yr (expected 5.2%; last 5.6%)


  • In news:

    • Bank of Japan policymaker Adachi said that easing must continue and that recent modifications to yield curve control were not a prelude to raising rates.

    • Japan's Finance Ministry has reportedly raised its assumed rate for debt servicing for the first time in 17 years.

    • Toyota expects that its production between December and February will be up 10% yr/yr.

    • The Reserve Bank of New Zealand left its official cash rate at 5.50%, as expected, though policymakers discussed the possibility for more rate hikes.

    • New Zealand's Prime Minister Luxon is expected to announce steps to narrow the central bank's mandate during his first 100 days in office.



  • Major European indices trade on a mostly higher note while the U.K.'s FTSE (UNCH) underperforms with financials and consumer names contributing to the weakness after Bank of England Governor Bailey said that this is not the time to discuss rate cuts.

    • In economic data:

      • Eurozone's November Business and Consumer Survey 93.8 (expected 93.7; last 93.5)

      • Germany's October Import Price Index 0.3% m/m (expected -0.1%; last 1.6%); -13.0% yr/yr (expected -13.4%; last -14.3%)

      • U.K.'s October Mortgage Approvals 47,380 (expected 45,000; last 43,680), October Mortgage Lending -GBP50 mln (expected -GBP100 mln; last -GBP960 mln), and October net lending to individuals GBP1.2 bln, as expected (last GBP500 mln)

      • France's Q3 nonfarm payrolls 0.1% qtr/qtr (expected -0.1%; last -0.1%)

      • Spain's November CPI -0.4% m/m (expected 0.1%; last 0.3%); 3.2% yr/yr (expected 3.7%; last 3.5%)

      • Italy's November Business Confidence 96.6 (expected 96.0; last 96.1) and Consumer Confidence 103.6 (expected 102.0; last 101.6). October PPI 1.5% m/m (last 0.6%); -9.5% yr/yr (last -14.1%)

      • Swiss November ZEW Expectations -29.6 (last -37.8)


  • In news:

    • Spain reported cooler than expected CPI for November while Germany is also expected to deliver a cooler than expected report at 8:00 ET after regional CPI readings from North Rhine Westphalia, Baden Wuerttemberg, Bavaria, Brandenburg, Hesse, and Saxony came in below expectations.

    • European Central Bank policymaker Stournaras said that hoping for a rate cut in April is too optimistic, but a cut could take place near the middle of 2024.



U.S. equity futures:

  • S&P 500 Futures +18 @ 4,573

  • DJIA Futures: +74 @ 35,491

  • Nasdaq 100 Futures: +85 @ 16,096

Overseas:

  • Europe: DAX +1.0%, FTSE UNCH, CAC +0.5%

  • Asia: Nikkei -0.3%, Hang Seng -2.1%, Shanghai Composite -0.6%

Commodities:

  • Crude Oil +1.36 @ 77.77

  • Nat Gas -0.012 @ 2.825

  • Gold +2.70 @ 2042.70

  • Silver +0.050 @ 24.985

  • Copper +0.0095 @ 3.8490

Earnings/Guidance:

  • AZEK ( AZEK â–´ 5.99% ) beats by $0.07, beats on revs; guides DecQ revs below consensus; guides FY24 revs below consensus

  • Bilibili ( BILI â–¾ 11.13% ) misses by RMB0.22, reports revs in-line; guides FY23 revs in-line

  • CrowdStrike ( CRWD â–´ 10.36% ) beats by $0.08, beats on revs; guides Q4 EPS above consensus, revs in-line

  • Dollar Tree ( DLTR â–´ 4.40% ) misses by $0.04, misses on revs; guides Q4 EPS in-line, revs in-line

  • Donaldson ( DCI â–´ 2.14% ) reports Q1 (Oct) results, misses on revs; reaffirms FY24 revs guidance

  • Enbridge ( ENB â–´ 1.05% ) reaffirms FY23 EBITDA and DCF guidance, issues FY24 guidance, and raises dividend by 3%

  • Farfetch ( FTCH â–¾ 53.74% ) will not announce Q3 results

  • Fluence ( FLNC â–´ 23.58% ) reports Q4 (Sep) results, registers over 52% sales growth yr/yr; guides FY24 revs in-line

  • Foot Locker ( FL â–´ 16.07% ) beats by $0.09, beats on revs; guides Q4 EPS in-line, revs above consensus; announces entry into India

  • General Motors ( GM â–´ 9.38% ) reinstates guidance; announces $10 bln accelerated share repurchase program and raises dividend by 33%

  • Hewlett Packard Enterprise ( HPE â–´ 6.44% ) beats by $0.02, reports revs in-line; guides Q1 EPS in-line, revs in-line; guides FY24 EPS in-line; reaffirms FY24 revenue growth in cc; raises dividend

  • Honda Motor ( HMC â–¾ 1.03% ) reports worldwide production +123% yr/yr to 405,276 units; sales in Japan +136% yr/yr to 57,668 units and is increasing 2030 global annual sales target of electric motorcycles to 4 million units

  • Hormel Foods ( HRL â–¾ 4.63% ) misses by $0.02, misses on revs; guides FY24 EPS below consensus, revs in-line

  • Intuit ( INTU â–´ 2.17% ) beats by $0.49, beats on revs; guides JanQ EPS below consensus, revs below consensus; reaffirms FY24 EPS guidance, revs guidance

  • Jabil ( JBL â–¾ 11.82% ) lowers revenue guidance for Q1 and FY24; experiencing softening demand as a result of short-term inventory corrections

  • Leslie's ( LESL â–¾ 10.14% ) misses by $0.02, beats on revs, comps -11%; guides FY24 EPS below consensus, revs below consensus

  • NetApp ( NTAP â–´ 14.59% ) beats by $0.19, beats on revs; guides Q3 EPS above consensus, revs in-line; guides FY24 EPS above consensus, revs above consensus

  • Okta ( OKTA â–¾ 2.62% ) beats by $0.14, beats on revs; guides Q4 EPS above consensus, revs above consensus; guides FY25 revs below consensus

  • Patterson Companies ( PDCO â–¾ 17.28% ) misses by $0.09, misses on revs; guides FY24 EPS below consensus

  • Petco Health and Wellness ( WOOF â–¾ 28.91% ) misses by $0.07, reports revs in-line; guides FY24 EPS below consensus, revs in-line

  • Splunk ( SPLK â–¾ 0.39% ) beats by $0.38, beats on revs; Cisco (CSCO) agreed to acquire company for $157/share on September 21, 2023

  • Toyota Motor ( TM â–´ 1.26% ) provides sales, production, and export updates for October

  • UnitedHealth ( UNH â–¾ 1.03% ) issues FY24 guidance; projects EPS in-line with consensus, revs above consensus; reiterates its FY23 EPS forecast

  • Vestis ( VSTS â–´ 8.06% ) misses by $0.29, reports revs in-line; guides FY24 revs below consensus

  • Workday ( WDAY â–´ 11.01% ) beats by $0.12, beats on revs, raises FY24 subscription revenue guidance

News:

  • Bill Ackman believes Fed will cut rates as soon as Q1 of 2024, according to Bloomberg

  • OPEC+ talks are continuing, according to Reuters

  • AbCellera Biologics ( ABCL â–´ 0.85% ) discloses a reorganization and associated reduction in its workforce

  • Alphabet ( GOOG â–¾ 1.57% ): Google's YouTube is getting into gaming by way of mini-games, according to Verge

  • Alphabet ( GOOG â–¾ 1.57% ): YouTube receiving new features for Premium subscribers, including AI experiments

  • Alibaba ( BABA â–¾ 2.70% ): Jack Ma wants change at Alibaba, according to Financial Times

  • Alvotech ( ALVO â–¾ 2.14% ) Announces Positive Top-Line Results from a Pharmacokinetic Study for AVT05, a Proposed Biosimilar for Simponi and Simponi Aria

  • Amazon ( AMZN â–¾ 0.51% ) aiming to introduce program designed to lower the time to acquire cyber insurance, according to the Wall Street Journal

  • Amgen ( AMGN â–´ 0.43% ) receives FDA orphan drug approval for treatment of biliary tract cancers

  • Apple ( AAPL â–¾ 0.55% ) aiming to exit credit card partnership with Goldman (GS), according to the Wall Street Journal

  • Arvinas ( ARVN â–´ 2.25% ) and Pfizer Announce Updated Vepdegestrant (ARV-471) Data to be Presented at the 2023 San Antonio Breast Cancer Symposium

  • Ascendis Pharma ( ASND â–´ 7.11% ) enters strategic partnership with Teijin in Japan

  • BioCryst Pharma ( BCRX â–´ 0.74% ) announces that the National Administration of Drugs, Foods, and Medical Devices in Argentina has granted approval for oral, once-daily ORLADEYO for the prophylaxis of hereditary angioedema attacks in adults and pediatric patients 12 years of age or older

  • Boeing ( BA â–´ 0.93% ) awarded $2.3 bln U.S. Air Force contract modification

  • Brookfield Infrastructure ( BIP â–¾ 2.34% ) renewed its normal course issuer bids

  • Chemours ( CC â–´ 2.18% ) announces settlement agreement with State of Ohio

  • Crown Castle ( CCI â–´ 4.36% ): Elliott Investment Management submitted a Section 220 demand and accompanying letter to the Crown Castle Board; letter contends that Board breached fiduciary duties and it should be reconstituted

  • Eagle Pharma ( EGRX â–¾ 30.86% ) announces that President and CEO Scott Tarriff has resigned from his positions, effective immediately

  • Elbit Systems ( ESLT â–¾ 1.26% ) wins ID/IQ contract with a ceiling of $500 mln for the supply of Squad Binocular Night Vision Goggles to the USMC

  • Franco-Nevada ( FNV â–¾ 3.60% ) confirms Cobre Panama mine has suspended commercial production

  • FREYR Battery ( FREY â–´ 7.69% ) provides operations update; achieves important interim milestone by successfully conducting automated cathode casting trials

  • Harrow ( HROW 0.00% ) announces the completion of the transfer to Harrow of the New Drug Application for TRIESENCE 40 mg/mL

  • ICICI Bank ( IBN â–´ 0.90% ) has received two penalty orders from the Income Tax authorities; will be filing an appeal

  • Johnson Controls ( JCI â–´ 0.94% ) files to delay its 10-K citing cybersecurity incident

  • Karuna Therapeutics ( KRTX â–´ 1.81% ) announces FDA accepts new drug application for KarXT for the treatment of schizophrenia

  • Maxeon Solar ( MAXN â–´ 2.30% ) Initiates TOPCon Patent infringement investigation

  • McCormick ( MKC â–¾ 1.12% ) raises quarterly dividend to $0.42 per share from $0.39 per share prior

  • Microsoft ( MSFT â–¾ 0.97% ): OpenAI not anticipated to offer MSFT a board seat on its new board, according to The Information

  • NetApp ( NTAP â–´ 14.59% ) and AWS Deliver a Nine Times Performance Increase for Amazon FSx for NetApp ONTAP

  • New Found Gold Corp. ( NFGC â–¾ 2.83% ) Intercepts Significant High-Grade Intervals at K2, Expands Mineralized Footprint of Zone to 490M X 395M

  • Nomura Holdings to rename retail division as wealth management division; provides cost cut plan in presentation; Run rate cost reduction target of Y50bn by March 2025 with 66% complete as of November 2023

  • Okta ( OKTA â–¾ 2.62% ) discovers that hackers stole information on all users of customer support system, according to Bloomberg

  • REGENXBIO ( RGNX â–¾ 3.23% ) announces dose escalation in AFFINITY DUCHENNE trial

  • Sibanye-Stillwater ( SBSW â–¾ 2.79% ) begins repositioning its US PGM operations for lower cost structure to secure operational sustainability

  • Simmons First National ( SFNC â–´ 1.12% ) announces that Daniell Hobbs will join as CFO and President, effective Dec 4

  • Tesla ( TSLA â–¾ 1.04% ) Announces Details for Cybertruck Delivery Event

  • Textron ( TXT â–¾ 2.40% ) approves restructuring plan; to reduce global workforce by 2%

  • Uber ( UBER â–´ 0.34% ) aiming to open up its platform to London's black cabs in 2024, according to Reuters

  • uniQure ( QURE â–¾ 2.87% ) announces FDA clearance of Investigational New Drug Application for AMT-191 gene therapy for Fabry Disease; enrollment expected to begin in first half of 2024

  • United Therapeutics ( UTHR â–´ 0.72% ) entered into an amendment extending the term of its exclusive license agreement with Eli Lilly (LLY)

  • Unity Software ( U â–´ 3.37% ) to close corporate offices in approximately 14 locations

M&A:

  • KKR ( KKR â–´ 7.73% ) will acquire the remaining 37% stake of leading insurance company Global Atlantic, increasing KKR's ownership to 100%

  • Open Text ( OTEX â–´ 0.82% ) to divest its AMC business to Rocket Software (RKT) for $2.275 bln in cash

  • Rio Tinto ( RIO â–¾ 0.81% ): Star Diamond Corporation to acquire RIO's 75% interest in Fort A La Corne diamond project

Syndicate:

  • Electronic Arts ( EA â–´ 0.69% ) files mixed shelf securities offering

  • Las Vegas Sands ( LVS â–¾ 4.87% ) prices secondary offering of 46,264,168 shares of its common stock at $44.00 per share

  • PG&E ( PCG â–¾ 1.89% ) proposes offering of $1.5 bln convertible senior secured notes due 2027 to repay portion of existing term loan

  • Seelos Therapeutics ( SEEL â–¾ 47.06% ) commences public offering of its common stock; subsequent 15% buyback

  • Southwest Gas ( SWX â–¾ 1.94% ) files mixed shelf securities offering

  • Veeva Systems ( VEEV â–¾ 0.80% ) prices offering of 12.5 mln shares of common stock at $10.00 per share

  • Verve Therapeutics ( VERV â–¾ 6.12% ) announces proposed public offering $35 mln of common stock and to Eli Lilly (LLY) concurrent private placement

IPOs:

  • No IPOs expected to price.

Gapping Up/Down

  • Gapping up:

    • FLNC +19%, NTAP +12.3%, GME +11.9%, WDAY +8.3%, BITF +5.2%, OTEX +4.1%, CRWD +3.1%, TXT +2.2%, U +2.1%, OLMA +2%, HRL +1.4%, TSLA +1.1%, MKC +0.8%, HPE +0.7%, RKT +0.6%, INTU +0.6%, GOOG +0.5%


  • Gapping down:

    • SEEL -33.6%, LESL -14.9%, VERV -11.1%, FTCH -6.7%, JBL -5.9%, LVS -4.9%, BILI -4.5%, FLEX -2.1%, AZEK -1.7%, CLS -1.4%, SBSW -1.1%, SANM -0.7%


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

  • Upgrades

    • AvalonBay (AVB) upgraded to Neutral from Underweight at JP Morgan; tgt lowered to $194

    • BMW Group (BMWYY) upgraded to Overweight from Neutral at JP Morgan

    • Carlsberg A/S (CABGY) upgraded to Neutral from Underweight at JP Morgan

    • Michelin (MGDDY) upgraded to Neutral from Underweight at JP Morgan

    • RBC Bearings (RBC) upgraded to Buy from Underperform at BofA Securities; tgt raised to $280

    • Tuya (TUYA) upgraded to Overweight from Equal-Weight at Morgan Stanley


  • Downgrades:

    • Airbnb (ABNB) downgraded to Hold from Buy at Jefferies; tgt lowered to $140

    • CAE (CAE) downgraded to Underperform from Neutral at BofA Securities

    • Carlyle Group (CG) downgraded to In-line from Outperform at Evercore ISI; tgt $32

    • Constellation Energy (CEG) downgraded to Neutral from Buy at Seaport Research Partners

    • Diageo plc (DEO) downgraded to Neutral from Overweight at JP Morgan

    • Equinor (EQNR) downgraded to Underperform from Hold at Jefferies

    • GOL Linhas Aereas Inteligentes S.A. (GOL) downgraded to Sell from Neutral at Citigroup

    • Hershey Foods (HSY) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $200

    • Kering SA (PPRUY) downgraded to Hold from Buy at Stifel

    • Leslie's (LESL) downgraded to Neutral from Buy at Goldman; tgt lowered to $5

    • NetApp (NTAP) downgraded to Market Perform from Outperform at Northland Capital; tgt $100

    • TotalEnergies SE (TTE) downgraded to Hold from Buy at Jefferies

    • Volkswagen AG (VWAGY) downgraded to Neutral from Overweight at JP Morgan


  • Others:

    • Akebia Therapeutics (AKBA) resumed with a Buy at BTIG Research; tgt $4

    • Albemarle (ALB) resumed with a Neutral at JP Morgan; tgt lowered to $130

    • Alexander & Baldwin (ALEX) initiated with a Mkt Perform at JMP Securities

    • Cabaletta Bio (CABA) initiated with an Outperform at William Blair; tgt $38

    • GitLab (GTLB) initiated with a Mkt Perform at Raymond James

    • Korro Bio (KRRO) initiated with an Outperform at RBC Capital Mkts; tgt $70

    • MaxCyte (MXCT) initiated with a Buy at Craig Hallum; tgt $7

    • Mercury (MRCY) resumed with an Underperform at BofA Securities; tgt $30

    • Microvast (MVST) initiated with an Overweight at Cantor Fitzgerald; tgt $8

    • Moderna (MRNA) initiated with a Hold at Canaccord Genuity; tgt $82

    • OmniAb (OABI) initiated with an Outperform at RBC Capital Mkts; tgt $6

    • SOPHiA GENETICS SA (SOPH) initiated with an Outperform at RBC Capital Mkts; tgt $8

    • Talen Energy Corporation (TLNE) initiated with a Buy at Seaport Research Partners; tgt $71


Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for Nov 25 (Briefing.com Consensus NA; Prior 3.0%)

  • 08:30 ET: GDP - Second Estimate for Q3 (Briefing.com Consensus 4.9%; Prior 4.9%)

  • 08:30 ET: GDP - Deflator - Second Estimate for Q3 (Briefing.com Consensus 3.8%; Prior 3.5%)

  • 08:30 ET: Adv. Intl Trade in Goods for Oct (Briefing.com Consensus NA; Prior -$85.8B)

  • 08:30 ET: Adv. Retail Inventories for Oct (Briefing.com Consensus NA; Prior 0.9%)

  • 08:30 ET: Adv. Wholesale Inventories for Oct (Briefing.com Consensus NA; Prior 0.0%)

  • 10:30 ET: EIA Crude Oil Inventories for Nov 25 (Briefing.com Consensus NA; Prior 8.7M)

  • 14:00 ET: Fed's Beige Book

Earnings:

  • Monday (Nov 27)

    • Morning: CRNC

    • Afternoon: ZS


  • Tuesday (Nov 28)

    • Morning: PDD

    • Afternoon: AZEK CRWD FLNC HPE INTU LESL NTAP SPLK WDAY


  • Wednesday (Nov 29)

    • Morning: BILI DLTR DCI FTCH FL HRL ROAD PDCO VSTS WOOF

    • Afternoon: ARWR CRDO CRM FIVE LZB NCNO NTNX OKTA PSTG PVH SNOW SNPS VSCO ZUO


  • Thursday (Nov 30)

    • Morning: ASO AMWD BIG CBRL FRO KR RY TITN TD

    • Afternoon: AMBA DELL DOMO ESTC PD IOT MRVL PATH ULTA ZUMZ


  • Friday, (Dec 1)

    • Morning: GCO

    • Afternoon: None



Asia & Europe detail:

Asia: Nikkei -0.3%, Hang Seng -2.1%, Shanghai Composite -0.6%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Bank of Japan policymaker Adachi said that easing must continue and that recent modifications to yield curve control were not a prelude to raising rates. Meanwhile, Japan's Finance Ministry has reportedly raised its assumed rate for debt servicing for the first time in 17 years. Toyota expects that its production between December and February will be up 10% yr/yr. The Reserve Bank of New Zealand left its official cash rate at 5.50%, as expected, though policymakers discussed the possibility for more rate hikes. New Zealand's Prime Minister Luxon is expected to announce steps to narrow the central bank's mandate during his first 100 days in office.

  • In economic data:

    • Australia's Q3 Construction Work Done 1.3% qtr/qtr (expected 0.4%; last 0.4%). October CPI Indicator 4.9% yr/yr (expected 5.2%; last 5.6%)


---Equity Markets---

  • Japan's Nikkei: -0.3%

  • Hong Kong's Hang Seng: -2.1%

  • China's Shanghai Composite: -0.6%

  • India's Sensex: +1.1%

  • South Korea's Kospi: -0.1%

  • Australia's ASX All Ordinaries: +0.3%

---FX---

  • USD/JPY: +0.1% to 147.67

  • USD/CNH: +0.1% to 7.1352

  • USD/INR: -0.1% to 83.28

Europe: DAX +1.0%, FTSE UNCH, CAC +0.5%

Major European indices trade on a mostly higher note while the U.K.'s FTSE (UNCH) underperforms with financials and consumer names contributing to the weakness after Bank of England Governor Bailey said that this is not the time to discuss rate cuts. Spain reported cooler than expected CPI for November while Germany is also expected to deliver a cooler than expected report at 8:00 ET after regional CPI readings from North Rhine Westphalia, Baden Wuerttemberg, Bavaria, Brandenburg, Hesse, and Saxony came in below expectations. European Central Bank policymaker Stournaras said that hoping for a rate cut in April is too optimistic, but a cut could take place near the middle of 2024.

  • In economic data:

    • Eurozone's November Business and Consumer Survey 93.8 (expected 93.7; last 93.5)

    • Germany's October Import Price Index 0.3% m/m (expected -0.1%; last 1.6%); -13.0% yr/yr (expected -13.4%; last -14.3%)

    • U.K.'s October Mortgage Approvals 47,380 (expected 45,000; last 43,680), October Mortgage Lending -GBP50 mln (expected -GBP100 mln; last -GBP960 mln), and October net lending to individuals GBP1.2 bln, as expected (last GBP500 mln)

    • France's Q3 nonfarm payrolls 0.1% qtr/qtr (expected -0.1%; last -0.1%)

    • Spain's November CPI -0.4% m/m (expected 0.1%; last 0.3%); 3.2% yr/yr (expected 3.7%; last 3.5%)

    • Italy's November Business Confidence 96.6 (expected 96.0; last 96.1) and Consumer Confidence 103.6 (expected 102.0; last 101.6). October PPI 1.5% m/m (last 0.6%); -9.5% yr/yr (last -14.1%)

    • Swiss November ZEW Expectations -29.6 (last -37.8)


---Equity Markets---

  • STOXX Europe 600: +0.5%

  • Germany's DAX: +1.0%

  • U.K.'s FTSE 100: UNCH

  • France's CAC 40: +0.5%

  • Italy's FTSE MIB: +0.9%

  • Spain's IBEX 35: +0.7%

---FX---

  • EUR/USD: UNCH at 1.0987

  • GBP/USD: UNCH at 1.2693

  • USD/CHF: -0.2% to 0.8760

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