ASIA:
Japan’s economy contracted much faster than expected in the third quarter as global supply disruptions and fresh COVID-19 cases hit business and consumer spending, raising challenges for the new government’s growth plans. The economy shrank an annualized 3.0% in July-September after a revised 1.5% gain in the first quarter, preliminary gross domestic product (GDP) data showed on Monday, compared with a median market forecast for a 0.8% contraction. Capital expenditure also decreased 3.8% after rising a revised 2.2% in the previous quarter. Domestic demand shaved off 0.9% point to GDP growth. Exports lost 2.1% in July-September from the previous quarter as trade was hit by the chip shortages and supply-chain constraints. Analysts polled by Reuters expect Japan’s economy to expand an annualized 5.1% in the current quarter, as consumer activity and auto output pick up thanks to a drop in COVID-19 cases and easing supply disruptions.
The major Asian stock markets had a mixed day today:
- NIKKEI 225 increased 113.86 points or 0.41% to 27,935.62
- Shanghai increased 13.00 or 0.36% to 3,576.89
- Hang Seng increased 183.66 points or 0.78% to 23,658.92
- ASX 200 decreased 20.10 points or -0.28 to 7,235.90
- Kospi increased 60.71 points or 2.14% to 2,899.72
- SENSEX increased 619.92 points or 1.09% to 57,684.79
- Nifty50 increased 183.70 points or 1.08% to 17,166.90
The major Asian currency markets had a mixed day today:
- AUDUSD increased 0.0006 or 0.08% to 0.71316
- NZDUSD increased 0.00136 or 0.20% to 0.68387
- USDJPY decreased 0.39 or -0.35% to 112.88
- USDCNY increased 0.00142 or 0.02% to 6.36977
Precious Metals:
- Gold increased 8.93 USD/t oz. or 0.50% to 1,782.71
- Silver decreased 0.351 USD/t. oz or -1.54% to 22.448
Some economic news from last night:
China:
Caixin Manufacturing PMI (Nov) decreased from 50.6 to 49.9
Japan:
Capital Spending (YoY) (Q3) decreased from 5.3% to 1.2%
Manufacturing PMI (Nov) increased from 54.2 to 54.5
South Korea:
Exports (YoY) (Nov) increased from 24.1% to 32.1%
Imports (YoY) (Nov) increased from 37.7% to 43.6%
Trade Balance (Nov) increased from 1.78B to 3.09B
Nikkei Manufacturing PMI (Nov) increased from 50.2 to 50.9
Australia:
AIG Manufacturing Index (Nov) increased from 50.4 to 54.8
Manufacturing PMI decreased from 58.5 to 51.7
Manufacturing PMI increased from 58.2 to 59.2
GDP (QoQ) (Q3) decreased from 0.7% to -1.9%
GDP (YoY) (Q3) decreased from 9.5% to 3.9%
GDP Capital Expenditure (Q3) decreased from 3.2% to 0.2%
GDP Chain Price Index (Q3) decreased from 3.3% to 0.5%
GDP Final Consumption (Q3) decreased from 1.2% to -2.4%
New Zealand:
Building Consents (MoM) (Oct) reman the same at -2.0%
Singapore:
Bank Lending increased from 803.8B to 804.0B
Indonesia:
Core Inflation (YoY) (Nov) increased from 1.33% to 1.44%
Inflation (MoM) (Nov) increased from 0.12% to 0.37%
Inflation (YoY) (Nov) increased from 1.66% to 1.75%
Some economic news from today:
India:
Nikkei Markit Manufacturing PMI (Nov) increased from 55.9 to 57.6
M3 Money Supply decreased from 11.0% to 9.5%
Australia:
Commodity Prices (YoY) decreased from 42.8% to 36.2%
EUROPE/EMEA:
The organization overseeing the world’s richest economies hiked its forecasts for the UK economy this year and next year, propelling Britain to the top of the G7 rankings for growth. The UK economy will expand 6.9 percent this year, 0.2 percentage points higher than previously expected, according to the Organization for Economic Development’s (OECD) latest forecasts for the global economy. The OECD revised down their expectations for global economic growth to 5.6 percent, driven by a longer than expected inflation spike prompting central banks to raise rates. Central banks chiefs are already asserting an increasingly hawkish position, suggesting tighter policy is coming soon. US Fed Chair Jerome Powell doubled down today on ending the central bank’s bond purchases a few months earlier than expected.
The major Europe stock markets had a green day:
- CAC 40 increased 160.71 points or 2.39% to 6,881.87
- FTSE 100 increased 109.23 points or 1.55% to 7,168.68
- DAX 30 increased 372.54 points or 2.47% to 15,472.67
The major Europe currency markets had a mixed day today:
- EURUSD decreased 0.00073 or -0.06% to 1.13256
- GBPUSD increased 0.00041 or 0.03% to 1.33068
- USDCHF increased 0.00008 or 0.01% to 0.91934
Some economic news from Europe today:
UK:
Nationwide HPI (YoY) (Nov) increased from 9.9% to 10.0%
Nationwide HPI (MoM) (Nov) increased from 0.7% to 0.9%
Manufacturing PMI (Nov) decreased from 58.2 to 58.1
Germany:
German Retail Sales (MoM) (Oct) increased from -1.9% to -0.3%
German Retail Sales (YoY) (Oct) decreased from -0.6% to -2.9%
German Manufacturing PMI (Nov) decreased from 57.6 to 57.4
Norway:
Manufacturing PMI (Nov) increased from 58.8 to 63.7
Current Account (Q3) increased from 104.4B to 148.3B
Swiss:
CPI (MoM) (Nov) decreased from 0.3% to 0.0%
CPI (YoY) (Nov) increased from 1.2% to 1.5%
procure.ch PMI (Nov) decreased from 65.4 to 62.5
Spain:
Spanish Manufacturing PMI (Nov) decreased from 57.4 to 57.1
Italy:
Italian Manufacturing PMI (Nov) increased from 61.1 to 62.8
France:
French Manufacturing PMI (Nov) increased from 54.6 to 55.9
Euro Zone:
Manufacturing PMI (Nov) decreased from 58.6 to 58.4
US/AMERICAS:
Private payrolls in the US rose by 534,000 in November, according to a report released by the ADP this Wednesday. Surpassing analysts expectations of 506,000, the figure still represents a decline from October’s growth of 570,000 (revised down by 1,000). Hospitality and leisure saw a notable gain of 136,000 hires, while professional and business services gained 110,000, trade transportation gained 78,000, and health and education grew by 55,000. The Bureau of Labor Statistics’ will release their official report on Friday, and analysts anticipate a growth rate of 573,000, bringing the unemployment rate down to 4.5%.
Capital One announced plans to ditch overdraft fees. This is the largest bank in the US to commit to ending overdraft fees which often disproportionally hurt lower income Americans. The bank estimates the move will cost them $150 million annually in lost revenue. Previously, Capital One would charge customers $35 per overdraft, with a max of four overdrafts per day totaling $140.
US Market Closings:
- Dow declined 461.68 points or -1.34% to 34,022.04
- S&P 500 declined 53.96 points or -1.18% 4,513.04
- Nasdaq declined 283.64 points or -1.83% to 15,254.05
- Russell 2000 declined 51.49 points or -2.34% to 2,147.42
Canada Market Closings:
- TSX Composite declined 195.39 points or -0.95% to 20,464.6
- TSX 60 declined 9.23 points or -0.74% to 1,239.33
Brazil Market Closing:
- Bovespa declined 1,140.88 points or -1.12% to 100,774.57
ENERGY:
The oil markets had a mixed day today:
- Crude Oil increased 1.34 USD/BBL or 2.02% to 67.5200
- Brent increased 1.52 USD/BBL or 2.20% to 70.7500
- Natural gas decreased 0.299 USD/MMBtu or -6.55% to 4.2670
- Gasoline increased 0.0306 USD/GAL or 1.58% to 1.9707
- Heating oil increased 0.054 USD/GAL or 2.62% to 2.1143
The above data was collected around 12:05 EST on Wednesday
- Top commodity gainers: Heating Oil (2.62%) and Brent (2.20%), Steel (2.20%), Lumber (5.46%)
- Top commodity losers: Cheese (-2.16%), Oat (-1.49%), Silver (-1.54%), and Natural Gas (-6.55%)
The above data was collected around 12:13 EST on Wednesday
BONDS:
Japan 0.057%(-0.2bp), US 2’s 0.5868% (+0.02%), US 10’s 1.4579%(+0.17bps); US 30’s 1.81% (+0.006%), Bunds -0.345% (-0.2bp), France 0.017% (+0.4bp), Italy 1.015% (+3.3bp), Turkey 20.25% (+5bp), Greece 1.212% (-3.9bp), Portugal 0.368% (+3.6bp); Spain 0.429% (+1.51bp) and UK Gilts 0.814% (+0.5bp).
