The S&P 500 futures are up 13 points and are trading 0.3% above fair value, the Nasdaq 100 futures are up 48 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 210 points and are trading 0.6% above fair value.
Pre-open buying activity has been supported in part by favorable responses to earnings news, headlined by Dow component Salesforce (CRM). The tone could shift, though, following the release of the October Personal Income and Spending report at 8:30 a.m. ET, which contains the Fed's preferred inflation gauge (the PCE Price Indexes).
This follows the eurozone's cooler-than-expected flash CPI readings from November. Total CPI was up 2.4% year/year (expected 2.7%; prior 2.9%) and core CPI was up 3.6% year/year (expected 3.9%; prior 4.2%).
China reported weaker-than-expected PMI readings for November. The Manufacturing PMI (actual 49.4; prior 49.5) dipping further into contractionary territory while Non-Manufacturing PMI (actual 50.2; prior 50.6) also declined but remained in expansion.
OPEC+ has a preliminary agreement to cut oil output by an additional 1 million barrels per day, according to Reuters. WTI crude oil futures are up 0.9% to $78.58/bbl.
The 2-yr note yield is down three basis points to 4.63% and the 10-yr note yield is up one basis point to 4.28%.
In corporate news:
Salesforce (CRM 251.42, +21.07, +9.2%): conference call update: observed an 80% jump in deals over $1.0 mln
Snowflake (SNOW 189.00, +13.68, +7.8%): beats by $0.09, beats on revs, product revenue up 34%, well above its guidance, guides for Q4 product revenue growth of 29-30%
Costco (COST 590.06, +2.20, +0.4%): reports November adjusted comparable sales growth of 4.4%
Synopsys (SNPS 568.00, +15.54, +2.8%): beats by $0.13, reports revs in-line; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Five Below (FIVE 188.00, -0.06, -0.03%): beats by $0.03, beats on revs; guides Q4 EPS in-line, revs in-line; authorized $100 mln for repurchases
Pure Storage (PSTG 32.26, -5.67, -15.0%): beats by $0.10, reports revs in-line; guides Q4 revs below consensus
PVH â–´ 6.86% (PVH 87.49, -4.01, -4.4%): beats by $0.16, misses on revs; guides Q4 EPS below consensus, revs below consensus; increases repurchase plan by $150 mln
Discover Financial Services (DFS 91.00, +2.11, +2.4%): exploring the sale of the Discover Student Loans portfolio and the transfer of servicing these loans to a third-party
Occidental Petroleum (OXY 60.75, +0.42, +0.7%): is in discussions to purchase CrownRock for more than $10 bln, according to WSJ
Walt Disney (DIS 92.46, -0.04, -0.04%): appoints James Gorman, CEO of Morgan Stanley, and Sir Jeremy Darroch as new members of Board of Directors
Ford Motor (F 10.71, +0.12, +1.1%): reinstates guidane; sees Adjusted EBIT of $10.0-10.5 bln
Pinterest (PINS 34.35, +1.07, +3.2%): upgraded to Buy from Hold at Jefferies
Tesla (TSLA 246.30, +2.16, +0.9%): will hold CyberTruck delivery event today in Austin, TX
ImmunoGen (IMGN 16.55, +0.49, +3.1%): AbbVie (ABBV) to acquire ImmunoGen for $31.26 per share in cash a 95% premium
Reviewing overnight developments:
Equity indices in the Asia-Pacific region ended Thursday on a higher note. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: +0.3%, China's Shanghai Composite: +0.3%, India's Sensex: +0.1%, South Korea's Kospi: +0.6%, Australia's ASX All Ordinaries: +0.7%.
In economic data:
China's November Manufacturing PMI 49.4 (expected 49.7; last 49.5) and Non-Manufacturing PMI 50.2 (expected 51.1; last 50.6)
Japan's October Industrial Production 1.0% m/m (expected 0.8%; last 0.5%) and October Retail Sales 4.2% yr/yr (expected 5.9%; last 6.2%). October Housing Starts -6.3% yr/yr (expected -6.8%; last -6.8%) and November Household Confidence 36.1 (expected 35.6; last 35.7)
South Korea's October Industrial Production -3.5% m/m (expected 0.5%; last 1.7%); 1.1% yr/yr (expected 5.0%; last 2.9%). October Retail Sales -0.8% m/m (last 0.1%)
Hong Kong's October Retail Sales 5.6% yr/yr (last 13.0%)
India's October Infrastructure Output 12.1% yr/yr (last 8.1%)
New Zealand's October Building Consents 8.7% m/m (last -4.6%). November ANZ Business Confidence 30.8 (last 23.4)
Australia's October Building Approvals 7.5% m/m (expected 1.4%; last -4.0%); -6.1% yr/yr (last -20.9%). Private House Approvals 2.2% m/m (last -4.6%). October Private Sector Credit 0.3% m/m (expected 0.4%; last 0.5%). Q3 Private New Capital Expenditure 0.6% qtr/qtr (expected 1.0%; last 3.4%)
In news:
China's official PMI readings for November weakened with the Manufacturing PMI (actual 49.4; prior 49.5) dipping further into contractionary territory while Non-Manufacturing PMI (actual 50.2; prior 50.6) also weakened but remained in expansion.
China will begin requiring permits for exports of certain graphite products, starting tomorrow.
The Biden administration is expected to publish tax credit rules for electric vehicles tomorrow, which could be a negative for Chinese companies looking to build a presence in the U.S.
Japan sold 2-yr debt at the lowest bid-to-cover ratio in 14 years.
The tax chief of Japan's ruling party said that tax hikes for funding higher defense spending will begin in FY25 or FY26.
The Bank of Korea left its repurchase rate at 3.50%, as expected.
Major European indices trade in the green. STOXX Europe 600: +0.5%, Germany's DAX: +0.5%, U.K.'s FTSE 100: +0.7%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.5%, Spain's IBEX 35: +0.3%.
In economic data:
Eurozone's flash November CPI -0.5% m/m (last 0.1%); 2.4% yr/yr (expected 2.7%; last 2.9%). Flash November Core CPI -0.6% m/m (last 0.2%); 3.6% yr/yr (expected 3.9%; last 4.2%). October Unemployment Rate 6.5%, as expected (last 6.5%)
Germany's November Unemployment Change 22,000, as expected (last 31,000) and Unemployment Rate 5.9% (expected 5.8%; last 5.8%). October Retail Sales 1.1% m/m (expected 0.4%; last -0.8%); -0.1% yr/yr (expected -2.0%; last -4.3%)
France's Q3 GDP -0.1% qtr/qtr (expected 0.1%; last 0.5%); 0.6% yr/yr (expected 0.7%; last 0.9%). Flash November CPI -0.2% m/m (expected 0.1%; last 0.1%); 3.4% yr/yr (last 4.0%). October PPI 0.0% m/m (last 0.7%); -1.2% yr/yr (last -1.5%). October Consumer Spending -0.9% m/m (expected -0.2%; last 0.0%)
Italy's flash November CPI -0.4% m/m (expected -0.2%; last -0.2%); 0.8% yr/yr (last 1.7%). October Unemployment Rate 7.8% (expected 7.5%; last 7.6%)
Spain's September Current Account surplus EUR3.45 bln (last surplus of EUR4.19 bln)
Swiss November KOF Leading Indicators 96.7 (expected 96.6; last 95.1). October Retail Sales -0.1% yr/yr (expected 0.2%; last -1.2%)
In news:
There are growing expectations that the European Central Bank will cut rates as early as April after the release of disappointing employment data in Germany and cooler than expected flash November inflation figures for the eurozone.
Germany's Finance Minister Lindner warned that the country is facing an EUR17 bln budget gap for 2024.
French Finance Minister Le Maire said that inflation is expected to be below 4.0% by the end of this year.
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 +0.5%, FTSE +0.7%, CAC +0.5%
Asia: Nikkei +0.5%, Hang Seng +0.3%, Shanghai Composite +0.3%
Commodities:
Crude Oil +0.69 @ 78.55
Nat Gas +0.040 @ 2.844
Gold -8.10 @ 2039.00
Silver +0.023 @ 25.095
Copper -0.0018 @ 3.8237
Earnings/Guidance:
ABB Ltd ( ABBNY ) provides financial updates at its Capital Markets Day
Allegheny Tech ( ATI â–´ 3.48% ) provides updated financial targets for 2025, provides new targets for 2027, and announces new share repurchase authorization of $150 mln
Apollo Medical ( AMEH 0.00% ) reaffirms FY23 guidance in slide presentation
Arrowhead ( ARWR 0.00% ) misses by $1.31, beats on revs
Big Lots ( BIG â–´ 9.79% ) beats by $0.30, reports revs in-line
BRP Inc ( DOOO 0.00% ) beats by CAD0.02; misses on revs; lowers FY24 outlook
Buckle ( BKE â–¾ 0.87% ) announces that comparable store net sales, for stores open at least one year, for the 4-week period ended November 25, 2023 decreased 10.8% yr/yr
CIBC ( CM â–´ 5.20% ) beats by $0.44, beats on revs
Costco ( COST 0.00% ) reports November adjusted comparable sales growth of 4.4%
Credo Technology Group ( CRDO 0.00% ) beats by $0.01, beats on revs; guides Q3 revs above consensus
Five Below ( FIVE 0.00% ) beats by $0.03, beats on revs; guides Q4 EPS in-line, revs in-line; authorized $100 mln for repurchases
Ford Motor ( F â–¾ 3.12% ) reinstates guidane; sees Adjusted EBIT of $10.0-10.5 bln
Frontline ( FRO â–¾ 6.14% ) misses by $0.25
JOYY ( YY 0.00% ) beats by $0.52; beats on revs; sees Q4 revs below consensus
La-Z-Boy ( LZB â–´ 11.01% ) beats by $0.12, beats on revs; guides Q3 revs in-line; increases its quarterly dividend 10% to $0.20/share; annual yield of 2.5%
nCino ( NCNO 0.00% ) beats by $0.03, beats on revs; guides Q4 EPS in-line, revs below consensus
Nutanix ( NTNX 0.00% ) beats by $0.11, beats on revs; guides Q2 revs above consensus; guides FY24 revs in-line
ONE Gas ( OGS â–¾ 2.11% ) issues downside FY24 EPS guidance
Pure Storage ( PSTG â–¾ 12.18% ) beats by $0.10, reports revs in-line; guides Q4 revs below consensus
PVH ( PVH â–´ 6.86% ) beats by $0.16, misses on revs; guides Q4 EPS below consensus, revs below consensus; increases repurchase plan by $150 mln
Royal Bank of Canada ( RY â–´ 3.52% ) beats by $0.86
Salesforce ( CRM â–´ 9.36% ) beats by $0.06, reports revs in-line; guides Q4 EPS above consensus, revs in-line
Snowflake ( SNOW â–´ 7.05% ) beats by $0.09, beats on revs, product revenue up 34%, well above its guidance, guides for Q4 product revenue growth of 29-30%
Synopsys ( SNPS 0.00% ) beats by $0.13, reports revs in-line; guides Q1 EPS above consensus, revs above consensus; guides FY24 EPS above consensus, revs in-line
Titan Machinery ( TITN 0.00% ) misses by $0.21, misses on revs; reaffirms FY24 EPS guidance
Toronto-Dominion Bank ( TD â–¾ 0.51% ) beats by CAD 0.44, beats on revs
Victoria's Secret ( VSCO â–´ 14.29% ) misses by $0.08, reports revs in-line; guides Q4 EPS in-line, revs in-line; guides FY24 EPS in-line
Zuora ( ZUO â–´ 9.22% ) beats by $0.06, beats on revs; guides Q4 EPS above consensus, revs in-line; guides FY24 EPS above consensus, revs in-line
News:
Israel and Hamas agree to extend pause in fighting for one additional day, according to the New York Times
OPEC+ has prelim agreement to cut oil output by an additional 1 million barrels per day, according to Reuters
EIG Global Energy Partners near deal for liquified natural gas asset, according to the Wall Street Journal
Amazon ( AMZN 0.00% ): NASCAR extending media rights with Fox Sports (FOXA), NBC Sports (CMCSA), adding Amazon and TNT, according to Sportico
ASML ( ASML 0.00% ) intends to appoint Christophe Fouquet as President and CEO
Braze ( BRZE 0.00% ) achieves the new AWS advertising and marketing technology competency
Calliditas ( CALT 0.00% ) initiates clinical study to evaluate setanaxib in Alport Syndrome
CIBC ( CM â–´ 5.20% ) declared a dividend of CAD 0.90 per share on common shares for the quarter ending January 31, 2024 an increase of CAD 0.03 per share from the previous quarter
Compagnie Financiere Richemont ( CFRUY ) reminds its shareholders that it has no financial obligations towards Farfetch and notes that it does not envisage lending or investing into Farfetch (FTCH)
eBay ( EBAY 0.00% ) announces commercial agreement and investment in sports trading card company COMC to accelerate the growth of the trading card hobby
Embraer SA ( ERJ â–´ 6.26% ): Porter Airlines exercises purchase rights to place a firm order for 25 Embraer E195-E2 passenger jets in a deal valued at $2.1 bln
Equitrans Midstream ( ETRN â–´ 2.63% ) updates Mountain Valley Pipeline Construction progress; projects total cost of approximately $7.2 bln; continues to expect completion in 1Q24
Fidelity National ( FNF â–´ 1.01% ) provides cybersecurity incident update
Fresenius Medical ( FMS â–´ 0.20% ) completes change of legal form from a partnership into a German stock corporation
Genpact ( G â–´ 0.56% ) works with AWS and Amazon Business (AMZN) to introduce a transformed approach to property loss replacement and claims management
Geo Group ( GEO â–¾ 4.06% ) announces that Jose Gordo will be departing as CEO and as a Board member on mutually agreeable terms and transitioning to the role of an advisor, effective December 31, 2023
ICICI Bank ( IBN â–¾ 0.94% ) plan to make ICICI Securities a wholly owned subsidiary approved by National Stock Exchange of India Limited and BSE Limited
Iris Energy ( IREN 0.00% ) announced the acquisition of 1.3 EH/s of Bitmain T21 miners to increase self-mining capacity to 8.3 EH/s
Markel Group ( MKL â–´ 1.69% ) approved a new share repurchase program with immediate effect authorizing the repurchase up to $750 million of outstanding common stock
Meta's ( META 0.00% ) Threads aiming to launch in Europe, according to the Wall Street Journal
Mueller Water ( MWA â–´ 0.08% ) files to delay its 10-K citing previously announced cybersecurity incident
Noah Holdings ( NOAH â–¾ 6.42% ) Board of Directors approves New Capital Management and shareholder return policy; and amendments to the dividend policy
Novavax's ( NVAX 0.00% ) updated COVID-19 vaccine receives EUA from the Ministry of Food and Drug Safety in the Republic of Korea
Nu Skin ( NUS â–´ 1.61% ) opens new manufacturing facility in China; $55 million investment increases manufacturing capacity and agility for beauty and wellness company's business in Asia
Orchard Therapeutics ( ORTX 0.00% ) Receives U.S. FDA Fast Track Designation for OTL-203 in MPS-IH
Phillips 66 ( PSX â–´ 5.46% ) Comments on Letter from Elliott Investment Management
Robinhood Markets ( HOOD 0.00% ) launches in the United Kingdom
RTX ( RTX â–´ 0.65% ) awarded $702 mln U.S. Navy contract modification
SilverBow Resources ( SBOW 0.00% ): Riposte Capital calls for new, independent directors at SilverBow Resources
Stellantis ( STLA â–´ 0.42% ) names two executives to key roles supporting the Jeep brand as it prepares for its electric offensive in 2024
Tesla ( TSLA 0.00% ) will hold CyberTruck delivery event today in Austin, TX
VinFast Auto ( VFS 0.00% ) to speak and showcase its latest VF 9 Electric Vehicle (EV) at the annual United Nations summit on climate change, COP28
Walt Disney ( DIS â–´ 0.21% ) appoints James Gorman, CEO of Morgan Stanley, and Sir Jeremy Darroch as new members of Board of Directors
M&A:
AbbVie ( ABBV â–´ 2.81% ) to acquire ImmunoGen (IMGN) for $31.26 per share in cash, a 95% premium
Adobe ( ADBE 0.00% ) working on proposal to address EU concerns regarding Figma deal, according to Bloomberg
Discover Financial Services ( DFS â–´ 4.62% ) exploring the sale of the Discover Student Loans portfolio and the transfer of servicing these loans to a third-party
Occidental Petroleum ( OXY â–¾ 1.96% ) is in discussions to purchase CrownRock for more than $10 bln, according to the Wall Street Journal
SSR Mining ( SSRM 0.00% ) has entered into a definitive agreement to sell its San Luis Project to Highlander Silver Corp. in exchange for total consideration of up to $42.5 mln
Vista Outdoor ( VSTO â–´ 1.15% ) rejects unsolicited proposal from Colt CZ
Whirlpool ( WHR â–¾ 0.67% ) to sell up to 24% of its ownership interest in Whirlpool of India Limited in 2024
Syndicate:
Bowman Consulting Group ( BWMN 0.00% ) files $100 mln mixed shelf securities offering; also files for 340,000 shares of common stock by selling shareholders
Investar ( ISTR 0.00% ) files $150 mln mixed shelf securities offering
Patria Investments ( PAX 0.00% ) files Class A common stock offering
PG&E ( PCG 0.00% ) announces upsize and pricing of $1.9 billion convertible senior secured notes due 2027 to prepay portion of existing term loan
Weibo ( WB 0.00% ) files mixed shelf securities offering; announces proposed offering of $300 million convertible senior notes due 2030
Xenon Pharmaceuticals ( XENE 0.00% ) prices $300.0 mln offering consisting of shares and warrants
IPOs:
No IPOs expected to price.
Gapping Up/Down
Gapping up:
VFS +25.5%, NTNX +9.2%, CRM +9%, SNOW +8.3%, ZUO +6.8%, NUS +4.4%, HOOD +4.1%, BRZE +2.7%, LZB +2.5%, DFS +2.4%, SNPS +2.3%, ERJ +1.4%, FIVE +1%, ABR +0.9%, STLA +0.7%, NVAX +0.7%, YY +0.7%, PSX +0.5%
Gapping down:
LIZI -18.7%, PSTG -16%, WB -5.7%, CRDO -5%, PVH -4.4%, ARWR -2.9%, VSCO -2.4%, BWMN -2.2%, DOOO -2.1%, NOAH -2%, XENE -1.9%, PAX -1.6%, OGS -1.6%, NCNO -1.5%, CALT -1%, IREN -1%
Analyst Research (see Upgrades/Downgrades calendar for full list):
Upgrades
Ally Financial (ALLY) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $39
Duke Energy (DUK) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $103
EverQuote (EVER) upgraded to Buy from Neutral at B. Riley Securities; tgt raised to $14
Hewlett Packard Enterprise (HPE) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $16
Hudson Pacific Properties (HPP) upgraded to Neutral from Sell at Goldman; tgt raised to $6.25
Downgrades:
Acadia Realty Trust (AKR) downgraded to Neutral from Buy at Compass Point; tgt $16
Bilibili (BILI) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $10
Ericsson (ERIC) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $5.90
Farfetch (FTCH) downgraded to Neutral from Buy at BTIG Research; tgt $5.50
Nokia (NOK) downgraded to Neutral from Overweight at JP Morgan
Others:
Advanced Energy (AEIS) initiated with a Neutral at BofA Securities; tgt $105
Ecolab (ECL) initiated with an Outperform at Raymond James; tgt $210
Essential Properties Realty Trust (EPRT) initiated with a Buy at B. Riley Securities; tgt $27.50
Lantheus Holdings (LNTH) initiated with a Buy at Brookline Capital; tgt $100
Lattice Semi (LSCC) initiated with a Buy at Deutsche Bank; tgt $70
Econ Data:
08:30 ET: Personal Income for Oct (Briefing.com Consensus 0.2%; Prior 0.3%)
08:30 ET: Personal Spending for Oct (Briefing.com Consensus 0.2%; Prior 0.7%)
08:30 ET: PCE Prices for Oct (Briefing.com Consensus 0.1%; Prior 0.4%)
08:30 ET: PCE Prices - Core for Oct (Briefing.com Consensus 0.2%; Prior 0.3%)
08:30 ET: Initial Claims for Nov 25 (Briefing.com Consensus 215K; Prior 209K)
08:30 ET: Continuing Claims for Nov 18 (Briefing.com Consensus NA; Prior 1840K)
09:45 ET: Chicago PMI for Nov (Briefing.com Consensus 45.0; Prior 44.0)
10:00 ET: Pending Home Sales for Oct (Briefing.com Consensus -2.3%; Prior 1.1%)
10:30 ET: EIA Natural Gas Inventories for Nov 25 (Briefing.com Consensus NA; Prior -7 bcf)
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 +0.5%, Hang Seng +0.3%, Shanghai Composite +0.3%
Equity indices in the Asia-Pacific region ended Thursday on a higher note. China's official PMI readings for November weakened with the Manufacturing PMI (actual 49.4; prior 49.5) dipping further into contractionary territory while Non-Manufacturing PMI (actual 50.2; prior 50.6) also weakened but remained in expansion. China will begin requiring permits for exports of certain graphite products, starting tomorrow. The Biden administration is expected to publish tax credit rules for electric vehicles tomorrow, which could be a negative for Chinese companies looking to build a presence in the U.S. Japan sold 2-yr debt at the lowest bid-to-cover ratio in 14 years. The tax chief of Japan's ruling party said that tax hikes for funding higher defense spending will begin in FY25 or FY26. The Bank of Korea left its repurchase rate at 3.50%, as expected.
In economic data:
China's November Manufacturing PMI 49.4 (expected 49.7; last 49.5) and Non-Manufacturing PMI 50.2 (expected 51.1; last 50.6)
Japan's October Industrial Production 1.0% m/m (expected 0.8%; last 0.5%) and October Retail Sales 4.2% yr/yr (expected 5.9%; last 6.2%). October Housing Starts -6.3% yr/yr (expected -6.8%; last -6.8%) and November Household Confidence 36.1 (expected 35.6; last 35.7)
South Korea's October Industrial Production -3.5% m/m (expected 0.5%; last 1.7%); 1.1% yr/yr (expected 5.0%; last 2.9%). October Retail Sales -0.8% m/m (last 0.1%)
Hong Kong's October Retail Sales 5.6% yr/yr (last 13.0%)
India's October Infrastructure Output 12.1% yr/yr (last 8.1%)
New Zealand's October Building Consents 8.7% m/m (last -4.6%). November ANZ Business Confidence 30.8 (last 23.4)
Australia's October Building Approvals 7.5% m/m (expected 1.4%; last -4.0%); -6.1% yr/yr (last -20.9%). Private House Approvals 2.2% m/m (last -4.6%). October Private Sector Credit 0.3% m/m (expected 0.4%; last 0.5%). Q3 Private New Capital Expenditure 0.6% qtr/qtr (expected 1.0%; last 3.4%)
---Equity Markets---
Japan's Nikkei: +0.5%
Hong Kong's Hang Seng: +0.3%
China's Shanghai Composite: +0.3%
India's Sensex: +0.1%
South Korea's Kospi: +0.6%
Australia's ASX All Ordinaries: +0.7%
---FX---
USD/JPY: +0.3% to 147.70
USD/CNH: +0.1% to 7.1468
USD/INR: UNCH at 83.32
Europe: DAX +0.5%, FTSE +0.7%, CAC +0.5%
Major European indices trade in the green. There are growing expectations that the European Central Bank will cut rates as early as April after the release of disappointing employment data in Germany and cooler than expected flash November inflation figures for the eurozone. Germany's Finance Minister Lindner warned that the country is facing an EUR17 bln budget gap for 2024. French Finance Minister Le Maire said that inflation is expected to be below 4.0% by the end of this year.
In economic data:
Eurozone's flash November CPI -0.5% m/m (last 0.1%); 2.4% yr/yr (expected 2.7%; last 2.9%). Flash November Core CPI -0.6% m/m (last 0.2%); 3.6% yr/yr (expected 3.9%; last 4.2%). October Unemployment Rate 6.5%, as expected (last 6.5%)
Germany's November Unemployment Change 22,000, as expected (last 31,000) and Unemployment Rate 5.9% (expected 5.8%; last 5.8%). October Retail Sales 1.1% m/m (expected 0.4%; last -0.8%); -0.1% yr/yr (expected -2.0%; last -4.3%)
France's Q3 GDP -0.1% qtr/qtr (expected 0.1%; last 0.5%); 0.6% yr/yr (expected 0.7%; last 0.9%). Flash November CPI -0.2% m/m (expected 0.1%; last 0.1%); 3.4% yr/yr (last 4.0%). October PPI 0.0% m/m (last 0.7%); -1.2% yr/yr (last -1.5%). October Consumer Spending -0.9% m/m (expected -0.2%; last 0.0%)
Italy's flash November CPI -0.4% m/m (expected -0.2%; last -0.2%); 0.8% yr/yr (last 1.7%). October Unemployment Rate 7.8% (expected 7.5%; last 7.6%)
Spain's September Current Account surplus EUR3.45 bln (last surplus of EUR4.19 bln)
Swiss November KOF Leading Indicators 96.7 (expected 96.6; last 95.1). October Retail Sales -0.1% yr/yr (expected 0.2%; last -1.2%)
---Equity Markets---
STOXX Europe 600: +0.5%
Germany's DAX: +0.5%
U.K.'s FTSE 100: +0.7%
France's CAC 40: +0.5%
Italy's FTSE MIB: +0.5%
Spain's IBEX 35: +0.3%
---FX---
EUR/USD: -0.5% to 1.0918
GBP/USD: -0.4% to 1.2642
USD/CHF: +0.2% to 0.8754
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