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30/11/22 Briefing

The S&P 500 futures are up 5 points and are trading 0.1% above fair value. The Nasdaq 100 futures are up 34 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures are up 13 points and are trading slightly above fair value.

Although the futures are currently trading higher, there's a mostly wait-and-see disposition in front of Fed Chair Powell's speech today at 1:30 p.m. ET at the Brookings Institution entitled Economic Outlook, Inflation, and the Labor Market.

Market participants are also taking into account some overseas economic data, including a cooler-than-expected CPI reading out of the eurozone for November, and weaker-than-expected Manufacturing PMI and Non-Manufacturing PMI readings out of China that fell further into contraction territory (i.e. sub-50 readings).

The MBA Mortgage Applications Index fell 0.8% compared to last week with purchase applications rising 4% while refinancing applications fell 13%.

Other data releases today include:

  • 8:15 ET: November ADP Employment Change (Briefing.com consensus 200,000; prior 239,000)

  • 8:30 ET: October international goods trade deficit (prior $92.20 bln), October advance Retail Inventories (prior 0.4%), October advance Wholesale Inventories (prior 0.8%), Q3 GDP -- Second Estimate (Briefing.com consensus 2.7%; prior 2.6%), and Q3 GDP Deflator -- Second Estimate (Briefing.com consensus 4.1%; prior 4.1%)

  • 9:45 ET: November Chicago PMI (Briefing.com consensus 47.5; prior 45.2)

  • 10:00 ET: October Pending Home Sales (Briefing.com consensus -5.2%; prior -10.2%); October JOLTS - Job Openings (prior 10.717 million)

  • 10:30 ET: Weekly crude oil inventories (prior -3.69 mln)

  • 14:00 ET: Fed's Beige Book

Treasury yields are mixed this morning. The 2-yr note yield is up one basis point to 4.48% and the 10-yr note yield is down one basis point to 3.73%.

In corporate news:

  • Horizon Therapeutics (HZNP 104.72, +25.96, +33.0%): received takeover interest from (AMGN, JNJ, SNY), according to The Wall Street Journal.

  • CrowdStrike (CRWD 113.28, -24.72, -17.9%): beats by $0.08, beats on revs but says that total net new ARR was below expectations; guides Q4 EPS above consensus, revs below consensus; downgraded to Hold from Buy at Stifel

  • Workday (WDAY 156.67, +13.37, +9.3%): beats by $0.15, reports revs in-line; raises FY23 subscription revenue guidance; approves new share repurchase program for up to $500 mln

  • Hewlett Packard Enterprise (HPE 15.75, +0.29, +1.9%): reports EPS in-line, beats on revs; guides JanQ EPS above consensus, revs above consensus; reaffirms FY22 EPS guidance

  • NetApp (NTAP 64.01, -7.78, -10.8%): beats by $0.15, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs below consensus

  • Hormel Foods (HRL 44.77, -3.42, -7.1%): beats by $0.01, misses on revs; guides FY23 EPS below consensus, revs below consensus

  • Intuit (INTU 378.99, -0.72, -0.2%): beats by $0.46, beats on revs; guides Q2 EPS and revs below consensus; reaffirms FY23 EPS guidance, guides FY23 revs below consensus; Credit Karma experienced continuing deterioration

  • Biogen (BIIB 299.92, +8.51, +2.9%): Eleven experts from leading medical institutions and eight experts from Eisai publish full results of Lecanemab Phase 3 confirmatory clarity ad study for early Alzheimer's disease in the New England Journal of Medicine

  • Micron (MU 54.65, -0.47, -0.9%): during its presentation at Wells Fargo TMT Summit: "Pricing has trended well below what we thought it would be when we had our earnings call [on September 29]"

  • Boeing (BA 177.75, +2.25, +1.3%): Lawmakers close to compromise on Boeing 737 Max certification, according to Bloomberg.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: +2.2%, China's Shanghai Composite: +0.1%, India's Sensex: +0.7%, South Korea's Kospi: +1.6%, Australia's ASX All Ordinaries: +0.5%.

  • In economic data:

  • China's November Manufacturing PMI 48.0 (expected 49.0; last 49.2) and November Non-Manufacturing PMI 46.7 (expected 48.0; last 48.7)

  • Japan's October Industrial Production -2.6% m/m (expected -1.5%; last -1.7%). October Housing Starts -1.8% yr/yr (expected -1.3%; last 1.1%) and Construction Orders 7.9% yr/yr (last 36.6%)

  • South Korea's October Industrial Production -3.5% m/m (expected -1.0%; last -1.9%); -1.1% yr/yr (expected 0.0%; last 0.7%). October Retail Sales -0.2% m/m (last -1.9%)

  • Australia's October CPI 6.9% yr/yr (expected 7.4%; last 7.3%). October Private Sector Credit 0.6% m/m, as expected (last 0.7%), October Building Approvals -6.0% m/m (expected -1.8%; last -8.1%) and Q3 Construction Work Done 2.2% qtr/qtr (expected 1.5%; last -3.8%)

  • New Zealand's October Building Consents -10.7% m/m (last 3.6%). November ANZ Business Confidence -57.1 (last -42.7)


  • In news:

  • China's Manufacturing and Non-Manufacturing PMIs fell deeper into contractionary territory in November.

  • The Japanese government will reportedly pay for its planned increase in defense spending by tapping into a fund designated for FX intervention.

  • South Korea's Industrial Production weakened at its fastest m/m pace since May in the November reading.



  • Major European indices trade in positive territory. STOXX Europe 600: +0.8%, Germany's DAX: +0.4%, U.K.'s FTSE 100: +0.7%, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.2%.

  • In economic data:

  • Eurozone's November CPI -0.1% m/m (expected 0.2%; last 1.5%); 10.0% yr/yr (expected 10.4%; last 10.6%). November Core CPI 0.0% m/m (expected 0.6%; last 0.6%); 5.0% yr/yr, as expected (last 5.0%)

  • Germany's November Unemployment Change 17,000 (expected 13,000; last 9,000) and November Unemployment Rate 5.6% (expected 5.5%; last 5.5%)

  • France's November CPI 0.4% m/m, as expected (last 1.0%); 6.2% yr/yr, as expected (last 6.2%). October PPI -0.1% m/m (last 1.0%) and October Consumer Spending -2.8% m/m (expected -0.6%; last 1.3%). Q3 GDP 0.2% qtr/qtr, as expected (last 0.2%)

  • Italy's November CPI 0.5% m/m (expected 0.2%; last 3.4%); 11.8% yr/yr (expected 11.3%; last 11.8%). Q3 GDP 0.5% qtr/qtr, as expected (last 1.1%); 2.6% yr/yr, as expected (last 4.9%)

  • Spain's October Retail Sales 1.0% yr/yr (last 0.4%). September Current Account surplus EUR360 mln (prior deficit of EUR110 mln)

  • Swiss November ZEW Expectations -57.5 (last -53.1)


  • In news:

  • November CPI and core CPI readings for the eurozone were a bit cooler than expected, fueling speculation about peak inflation being in the rear-view mirror. That said, recessionary concerns remain alive after France reported a drop in consumer spending in October while Germany's unemployment ticked up unexpectedly.

  • Bank of England Chief Economist Pill repeated that inflation is expected to decelerate significantly in the second half of 2023, but also said that more rate hikes are needed.



U.S. equity futures:

  • S&P 500 Futures: +7 @ 3,965

  • DJIA Futures: -17 @ 33,835

  • Nasdaq 100 Futures: +41 @ 11,545

Overseas:

  • Europe: DAX +0.4%, FTSE +0.7%, CAC +0.7%

  • Asia: Nikkei -0.2%, Hang Seng +2.2%, Shanghai Composite +0.1%

Commodities:

  • Crude Oil +1.80 @ 80.00

  • Nat Gas -0.040 @ 7.239

  • Gold +27.25 @ 1775.65

  • Silver +0.358 @ 21.753

  • Copper +0.0900 @ 3.7205

Earnings/Guidance:

  • BRP Inc. ( DOOO 1.62% ) beats by CAD 1.28, beats on revs; raises FY23 guidance

  • Cigna ( CI 0.92% ) reaffirms FY22 EPS guidance ahead of investor meetings

  • Compass Minerals ( CMP 1.74% ) beats by $0.25, beats on revs

  • CrowdStrike ( CRWD 5.37% ) beats by $0.08, beats on revs; guides Q4 EPS above consensus, revs below consensus

  • Donaldson ( DCI 0.23% ) beats by $0.05, beats on revs; reaffirms FY23 EPS guidance, revs guidance

  • Enbridge ( ENB 0.63% ) sees FY23 EPS above consensus; raises quarterly dividend 3.2%; reaffirms FY22 adjusted EBITDA guidance

  • Frontline ( FRO 0.83% ) misses by $0.01, beats on revs

  • Hewlett Packard Enterprise ( HPE 1.13% ) reports EPS in-line, beats on revs; guides JanQ EPS above consensus, revs above consensus; reaffirms FY22 EPS guidance

  • Hormel Foods ( HRL 0.34% ) beats by $0.01, misses on revs; guides FY23 EPS below consensus, revs below consensus

  • Intuit ( INTU 1.88% ) beats by $0.46, beats on revs; guides Q2 EPS and revs below consensus; reaffirms FY23 EPS guidance, guides FY23 revs below consensus; Credit Karma experienced continuing deterioration

  • KE Holdings ( BEKE 1.63% ) beats by $0.66, beats on revs; guides Q4 revs below consensus

  • Leslie's ( LESL 2.53% ) beats by $0.04, beats on revs; guides FY23 EPS below consensus, revs below consensus

  • NetApp ( NTAP 0.64% ) beats by $0.15, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs below consensus

  • Nordic American Tanker ( NAT 1.80% ) reports Q3 EPS of $0.05 vs. $0.04 Capital IQ consensus

  • Petco Health and Wellness ( WOOF 2.94% ) reports EPS in-line, revs in-line; reaffirms FY23 EPS guidance, revs guidance

  • Royal Bank of Canada ( RY 1.10% ) beats by CAD0.06, beats on revs; raises dividend

  • Seadrill Ltd ( SDRL 0.94% ) reports Q3 results; misses on revs

  • Titan Machinery ( TITN 2.82% ) beats by $0.67, beats on revs; guides FY23 EPS above consensus

  • Wayfair ( W 4.07% ) announces strong results for the five-day peak holiday shopping period between Thanksgiving and Cyber Monday, including a low single digit sales increase in the U.S. yr/yr

  • Workday ( WDAY 1.66% ) beats by $0.15, reports revs in-line; raises FY23 subscription revenue guidance

  • XPeng ( XPEV 9.11% ) reports Q3 results

News:

  • China health officials are urging governments to avoid lengthy lockdowns, according to the Wall Street Journal

  • Protests continue in Guangzhou, according to Reuters

  • Senate Minority Whip John Thune (R-SD) wants to leverage debt ceiling (which expires next year) to force spending cuts, according to Bloomberg

  • Senate passes bill to protect same sex marriage. It is expected to pass House, according to the New York Times

  • Airbnb ( ABNB 0.12% ) introduces Airbnb-friendly apartments

  • Alibaba ( BABA 1.42% ): China wants Alibaba and Tencent (TCEHY) to help design semiconductors, according to Financial Times

  • Amazon ( AMZN 0.17% ) to add employees to cloud unit, according to Bloomberg

  • Bausch Health ( BHC 6.33% ) announces the unrestricting of Bausch + Lomb Under Bausch Health debt documents; continues to evaluate potential options to maximize stakeholder value

  • Berry Petroleum ( BRY 0.55% ) provides management succession plan; Fernando Araujo to become CEO

  • Biogen ( BIIB 0.62% ) and Eisai presents full results of Lecanemab Phase 3 confirmatory clarity ad study for early Alzheimer's disease at Clinical Trials on Alzheimer's Disease conference

  • BioNTech ( BNTX 0.76% ) and Ryvu Therapeutics enter into global collaboration to develop and commercialize immuno-modulatory small molecule candidates

  • BioXcel Therapeutics ( BTAI 9.66% ) announced that the first 13 patients have been dosed in Part 1 of the pivotal Phase 3 SERENITY III trial investigating at-home use of BXCL501

  • Bluebirdbio ( BLUE 1.54% ) sells Priority Review Voucher for $102 mln

  • Boeing ( BA 0.83% ) awarded $398 mln U.S. Air Force modification contract

  • Boeing ( BA 0.83% ): Lawmakers close to compromise on Boeing 737 Max certification, according to Bloomberg

  • CBL & Assoc ( CBL 1.13% ) declares special dividend of $2.20/share payable on January 18 to shareholders of record as of December 12

  • CGI Group ( GIB 0.89% ) and VIA Rail Canada entered into a long-term agreement to provide managed services for the Corporation's new online reservation system

  • Codexis ( CDXS 1.28% ) provides update on its corporate strategy; will reduce workforce by approximately 18%, discontinue investment in certain internal development programs, and expand investment in high potential programs; reiterates FY22 guidance

  • Costamare ( CMRE 0.31% ) establishes a new dry bulk operating platform

  • Datadog ( DDOG 2.97% ) announces the general availability of Universal Service Monitoring, which automatically detects all microservices across an organization's environment; also announces integration with Amazon (AMZN) Security Lake

  • Embraer SA ( ERJ 0.75% ) wins order for five E195-E2 aircraft

  • Enbridge ( ENB 0.63% ) and Oxy Low Carbon Ventures, unit of Occidental Petro (OXY) to explore the development of a CO2 pipeline transportation and sequestration hub near Corpus Christi, Texas

  • Enbridge ( ENB 0.63% ) announces Pamela L. Carter as Chair of the Board effective January 1, 2023, coincident with the appointment of current Board Chair, Greg Ebel, as President & CEO on the same date

  • Ericsson ( ERIC 2.51% ) provides update on 5G growth in its Mobility Report

  • Everspin Technologies ( MRAM 0.15% ) announced that Rimac Technology has selected its 256 Kilobit MRAM for use in the innovative all-electric Nevera hypercar, an elite sports vehicle

  • Floor & Decor ( FND 3.06% ) promotes Bryan Langley to CFO, effective today, November 29

  • Foot Locker ( FL 0.10% ) names Elliott Rodgers COO, effective December 1; current CFO Andrew Page to step down following Q4 earnings report

  • Ford Motor ( F 3.17% ) builds 150,000th Mustang Mach-E; available in 37 countries for 2023 with plans to ad

  • fuboTV's ( FUBO 4.12% ) Sports Network launches on Amazon Freevee (AMZN); making the channel available on more than 155 mln devices

  • Inotiv ( NOTV 1.82% ) to close two isolator facilities in Indianapolis, IN, and consolidate them with existing facilities in the U.S.

  • Livent ( LTHM 0.75% ) and Nanyang Technological University, Singapore announce a research collaboration intended to drive advancements in sustainable lithium battery technologies

  • Maxar Technologies ( MAXR 1.78% ) and SiriusXM (SIRI) announce new agreement commissioning Maxar to build and deliver two new geostationary communications satellites for SiriusXM

  • Micron ( MU 1.51% ) during its presentation at Wells Fargo TMT Summit: "Pricing has trended well below what we thought it would be when we had our earnings call [on September 29]"

  • Omnicom's ( OMC 0.35% ) Credera announces support for the AWS For Advertising and Marketing initiative from AWS (AMZN) to accelerate advertising and marketing transformation

  • PBF Energy ( PBF 0.53% ) and PBF Logistics (PBFX) announce that CFO C. Erik Young resigns to pursue other opportunities, effective December 20

  • Pitney Bowes ( PBI 0.92% ) discusses business strategy; shipping expected to be roughly a third of segment revs by 2026

  • Pulmonx ( LUNG 2.16% ) announces that the Japanese Ministry of Health, Labour and Welfare has approved the Zephyr Endobronchial Valve for treating severe COPD/emphysema patients following a positive recommendation by Pharmaceuticals and Medical Devices Agency

  • Raytheon Technologies ( RTX 0.63% ) awarded a not-to-exceed $512 mln modification to a previously awarded U.S. Navy contract

  • Regal Rexnord ( RRX 0.81% ) to explore strategic alternatives for businesses in the Industrial Systems segment

  • Rio Tinto ( RIO 1.75% ) provides update to progress strategy to strengthen, decarbonise and grow

  • Salesforce ( CRM 9.73% ): U.S. online sales rose 9% yr/yr during Cyber week; global online sales grew 2%

  • Solid Power ( SLDP 3.41% ) CEO Douglas Campbell to retire, effective immediately

  • Stantec ( STN 0.22% ) to provide architecture and engineering design services for new control tower at Ted Stevens Anchorage International Airport

  • Stellantis ( STLA 1.34% ) reaches agreement with Santander Brasil to boost value creation

  • Sterling Check Corp. ( STER 1.20% ) announces $700 mln refinancing of credit facility and the authorization of $100 mln share repurchase program

  • Synopsys ( SNPS 5.67% ) appoints Shelagh Glaser as CFO, effective December 2

  • Tesla ( TSLA 0.68% ) CEO Elon Musk tweets "Trend is concerning. Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession"

  • Walt Disney ( DIS 0.08% ) discloses that it anticipates that within the coming months CEO Robert Iger will initiate organizational and operating changes; restructuring and change in business strategy, once determined, could result in impairment charges

  • Weatherford ( WFRD 0.16% ) announces strategic partnership with Adyne, enabling the two companies to deliver customer value by offering a portfolio of Plug & Abandonment and Slot Recovery offerings

  • Workday ( WDAY 1.66% ) approves new share repurchase program for up to $500 mln

  • X4 Pharmaceuticals ( XFOR 9.67% ) Announces Positive Top-Line Results from 4WHIM Global, Pivotal Phase 3 Trial of Once-Daily, Oral Mavorixafor in WHIM Syndrome

M&A:

  • argenx ( ARGX 1.32% ) enters into agreement to acquire Priority Review Voucher

  • Atlas Air Worldwide ( AAWW 0.11% ) shareholders vote to approve pending acquisition by Apollo and others

  • Corteva ( CTVA 0.69% ) signs agreement to acquire Stoller Group for purchase price of $1.2 bln

  • Horizon Pharma ( HZNP 1.71% ) confirms preliminary discussions regarding potential offer to buyout the company from Amgen (AMGN), Janssen Global Services (JNJ), and Sanofi (SNY)

  • Mirion Technologies ( MIR 0.78% ) to sell physical medicine assets of Biodex Medical

  • NextGen Healthcare ( NXGN 0.00% ) has signed a definitive agreement to acquire TSI Healthcare

  • State Street ( STT 1.00% ) mutually agreed with Brown Brothers Harriman & Co. to terminate State Street's proposed acquisition of BBH's Investor Services business

Syndicate:

  • Alto Ingredients ( ALTO 1.15% ) files for 1,282,051 common stock offering by selling stockholders

  • Aspen Aerogels ( ASPN 2.90% ) announces proposed public offering of $200 mln of common stock

  • AST SpaceMobile ( ASTS 1.56% ) announces public offering of $65 mln of common stock

  • Wallbox ( WBX 1.07% ) announces private placement of $43.5 million

IPOs:

  • Expect to Price:

  • No IPOs expected.


Gapping Up/Down

  • Gapping up:

  • HZNP +28.4%, VRDN +15.2%, XPEV +12.8%, W +10.4%, WDAY +10%, BEKE +7.9%, CBL +3.8%, MAXR +3%, BIIB +2.9%, SANA +2.3%, HPE +2.2%, DOOO +2%, PBI +1.6%, BRY +1.6%, FUBO +1.5%, BA +1.1%, STLA +1.1%, ERIC +1%, CMP +1%, SNPS +0.9%, CRM +0.9%, FRO +0.9%, NAT +0.9%, FL +0.6%, RTX +0.6%


  • Gapping down:

  • CRWD -19.6%, NTAP -12.7%, XFOR -11.9%, ASPN -11.8%, ASTS -6%, DCI -2.7%, FND -2.4%, INTU -2.3%, SDRL -2%, ALTO -1.2%, LTHM -1.2%, MU -0.9%, SLDP -0.9%, DDOG -0.8%



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

  • Upgrades

  • SoundHound AI (SOUN) upgraded to Overweight from Neutral at Cantor Fitzgerald


  • Downgrades:

  • ABB Ltd (ABB) downgraded to Underperform from Neutral at Exane BNP Paribas


  • Others:

  • AppLovin (APP) initiated with a Hold at Jefferies; tgt $14


Upcoming Events:

  • Econ Data:

  • 07:00 ET: MBA Mortgage Applications Index for Nov 26 (Briefing.com Consensus NA; Prior 2.2%)

  • 08:15 ET: ADP Employment Change for Nov (Briefing.com Consensus 200K; Prior 239K)

  • 08:30 ET: Adv. Intl. Trade in Goods for Oct (Briefing.com Consensus NA; Prior -$92.2B)

  • 08:30 ET: Adv. Retail Inventories for Oct (Briefing.com Consensus NA; Prior 0.4%)

  • 08:30 ET: Adv. Wholesale Inventories for Oct (Briefing.com Consensus NA; Prior 0.8%)

  • 08:30 ET: GPD - Second Estimate for Q3 (Briefing.com Consensus 2.7%; Prior 2.6%)

  • 08:30 ET: GDP Deflator - Second Estimate for Q3 (Briefing.com Consensus 4.1%; Prior 4.1%)

  • 09:45 ET: Chicago PMI for Nov (Briefing.com Consensus 47.5; Prior 45.2)

  • 10:00 ET: JOLTS - Job Openings for Oct (Briefing.com Consensus NA; Prior 10.717M)

  • 10:00 ET: Pending Home Sales for Oct (Briefing.com Consensus -5.2%; Prior -10.2%)

  • 10:30 ET: EIA Crude Oil Inventories for Nov 26 (Briefing.com Consensus NA; Prior -3.69M)

  • 14:00 ET: Fed's Beige Book


  • Earnings:

  • Monday (Nov 28)

  • Morning: None of note

  • Afternoon: ARWR, AZEK


  • Tuesday (Nov 29)

  • Morning: BNS, BZUN, BILI, CRNC, HIBB, SJR

  • Afternoon: CMP, CRWD, HPE, INTU, NTAP, WDAY


  • Wednesday (Nov 30)

  • Morning: DCI, FRO, HRL, BEKE, LESL, WOOF, RY, SFL, TITN

  • Afternoon: BOX, CRDO, ESTC, FIVE, LZB, NCNO, NTNX, OKTA, PSTG, PVH, CRM, SMTC, SNOW, SPLK, SNPS, VSCO, YEXT


  • Thursday (Dec 01)

  • Morning: BMO, BIG, CM, DBI, DG, KR, PDCO, SCWX, TD

  • Afternoon: AMBA, AOUT, ASAN, CHPT, MRVL, PD, SMAR, PATH, ULTA, VEEV, ZS, ZUMZ


  • Friday (Dec 02)

  • Morning: CBRL, GCO

  • Afternoon: None of note



Asia & Europe detail:

Asia: Nikkei -0.2%, Hang Seng +2.2%, Shanghai Composite +0.1%

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note. China's Manufacturing and Non-Manufacturing PMIs fell deeper into contractionary territory in November. The Japanese government will reportedly pay for its planned increase in defense spending by tapping into a fund designated for FX intervention. South Korea's Industrial Production weakened at its fastest m/m pace since May in the November reading.

  • In economic data:

  • China's November Manufacturing PMI 48.0 (expected 49.0; last 49.2) and November Non-Manufacturing PMI 46.7 (expected 48.0; last 48.7)

  • Japan's October Industrial Production -2.6% m/m (expected -1.5%; last -1.7%). October Housing Starts -1.8% yr/yr (expected -1.3%; last 1.1%) and Construction Orders 7.9% yr/yr (last 36.6%)

  • South Korea's October Industrial Production -3.5% m/m (expected -1.0%; last -1.9%); -1.1% yr/yr (expected 0.0%; last 0.7%). October Retail Sales -0.2% m/m (last -1.9%)

  • Australia's October CPI 6.9% yr/yr (expected 7.4%; last 7.3%). October Private Sector Credit 0.6% m/m, as expected (last 0.7%), October Building Approvals -6.0% m/m (expected -1.8%; last -8.1%) and Q3 Construction Work Done 2.2% qtr/qtr (expected 1.5%; last -3.8%)

  • New Zealand's October Building Consents -10.7% m/m (last 3.6%). November ANZ Business Confidence -57.1 (last -42.7)


---Equity Markets---

  • Japan's Nikkei: -0.2%

  • Hong Kong's Hang Seng: +2.2%

  • China's Shanghai Composite: +0.1%

  • India's Sensex: +0.7%

  • South Korea's Kospi: +1.6%

  • Australia's ASX All Ordinaries: +0.5%

---FX---

  • USD/JPY: +0.2% to 138.79

  • USD/CNH: -0.9% to 7.0715

  • USD/INR: -0.4% to 81.28

Europe: DAX +0.4%, FTSE +0.7%, CAC +0.7%

Major European indices trade in positive territory. November CPI and core CPI readings for the eurozone were a bit cooler than expected, fueling speculation about peak inflation being in the rear-view mirror. That said, recessionary concerns remain alive after France reported a drop in consumer spending in October while Germany's unemployment ticked up unexpectedly. Bank of England Chief Economist Pill repeated that inflation is expected to decelerate significantly in the second half of 2023, but also said that more rate hikes are needed.

  • In economic data:

  • Eurozone's November CPI -0.1% m/m (expected 0.2%; last 1.5%); 10.0% yr/yr (expected 10.4%; last 10.6%). November Core CPI 0.0% m/m (expected 0.6%; last 0.6%); 5.0% yr/yr, as expected (last 5.0%)

  • Germany's November Unemployment Change 17,000 (expected 13,000; last 9,000) and November Unemployment Rate 5.6% (expected 5.5%; last 5.5%)

  • France's November CPI 0.4% m/m, as expected (last 1.0%); 6.2% yr/yr, as expected (last 6.2%). October PPI -0.1% m/m (last 1.0%) and October Consumer Spending -2.8% m/m (expected -0.6%; last 1.3%). Q3 GDP 0.2% qtr/qtr, as expected (last 0.2%)

  • Italy's November CPI 0.5% m/m (expected 0.2%; last 3.4%); 11.8% yr/yr (expected 11.3%; last 11.8%). Q3 GDP 0.5% qtr/qtr, as expected (last 1.1%); 2.6% yr/yr, as expected (last 4.9%)

  • Spain's October Retail Sales 1.0% yr/yr (last 0.4%). September Current Account surplus EUR360 mln (prior deficit of EUR110 mln)

  • Swiss November ZEW Expectations -57.5 (last -53.1)


---Equity Markets---

  • STOXX Europe 600: +0.8%

  • Germany's DAX: +0.4%

  • U.K.'s FTSE 100: +0.7%

  • France's CAC 40: +0.7%

  • Italy's FTSE MIB: +0.2%

  • Spain's IBEX 35: +0.2%

---FX---

  • EUR/USD: +0.3% to 1.0362

  • GBP/USD: +0.5% to 1.2010

  • USD/CHF: -0.4% to 0.9499


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