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Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note.
—Equity Markets—
Japan’s Nikkei: -0.4%
Hong Kong’s Hang Seng: -1.2%
China’s Shanghai Composite: -0.2%
India’s Sensex: -0.4%
South Korea’s Kospi: -1.4%
Australia’s ASX All Ordinaries: +0.2%Bank of Japan Governor Kuroda repeated that current inflation is the result of cost push factors and that the BoJ will continue supporting the economy with easing. Another BoJ official said that it is too early to talk about tightening policy.
The Japanese government is reportedly considering raising taxes on electric vehicles.
Moody’s commented on China’s property sector, noting that the outlook remains negative since government support will not have an immediate impact.
China’s October FDI 14.4% yr/yr (last 15.6%) o Japan’s October trade deficit JPY2.30 trln (expected deficit of JPY2.23 trln; last deficit of JPY2.04 trln). October Imports 53.5% yr/yr (expected 49.7%; last 45.9%) and Exports 25.3% yr/yr (expected 28.1%; last 28.9%)
Hong Kong’s October Unemployment Rate 3.8% (last 3.9%)
Australia’s October Employment Change 32,200 (expected 15,000; last -3,800) and full employment change 47,100 (last 10,900). October Unemployment Rate 3.4% (expected 3.6%; last 3.5%) and Participation Rate 66.5% (expected 66.6%; last 66.5%)
New Zealand’s Q3 Input PPI 0.8% qtr/qtr (expected 2.6%; last 3.1%) and Output PPI 1.6% qtr/qtr (expected 2.1%; last 2.4%)
Singapore’s October trade surplus $4.07 bln (last surplus of $5.78 bln). October non-oil exports -3.7% m/m (expected -2.3%; last -3.9%); -5.6% yr/yr (expected -0.6%; last 3.1%)
–Major European indices trade in the red.
—Equity Markets—
STOXX Europe 600: -0.8%
Germany’s DAX: -0.5%
U.K.’s FTSE 100: -0.7%
France’s CAC 40: -1.1%
Italy’s FTSE MIB: -1.2%
Spain’s IBEX 35: -1.3%Year-over-year CPI and Core CPI readings for the eurozone accelerated to fresh highs for the year in October.
British Chancellor Hunt is delivering the Autumn Budget Statement today.
Press reports speculated that the European Central Bank may opt for a 50-bps rate hike instead of 75 bps at the December meeting. Bank of France Governor Villeroy de Galhau said that a rate range around 2.00% in December will likely be seen as a normal range. Steelmaker Thyssenkrupp will offer its first dividend in four years, but also warned that sales and profits will face renewed pressure in 2023.
Eurozone’s October CPI 1.5% m/m, as expected (last 1.2%); 10.6% yr/yr (expected 10.7%; last 9.9%). October Core CPI 0.6% m/m, as expected (last 1.0%); 5.0% yr/yr, as expected (last 4.8%). September Construction Output 0.09% m/m (last -0.99%)
Italy’s September trade deficit EUR6.45 bln (last deficit of EUR9.51 bln)
Spain’s September trade deficit EUR6.98 bln (last deficit of EUR7.94 bln)
Swiss October trade surplus CHF4.14 bln (last surplus of CHF4.19 bln)Dow -182.56 at 33374.30, Nasdaq -94.87 at 11028.64, S&P -36.46 at 3922.40
The major averages have lifted off their early session lows in recent trading. The S&P 500 tested, and found support at, the 3,900 level.
The S&P 500 information technology sector (-0.3%) shows the slimmest losses among the 11 sectors. Earnings-driven gains in Cisco (CSCO 46.28, +1.89, +4.2%) and NVIDIA (NVDA 162.40, +3.36, +2.2%) help to limit sector losses.
Other semiconductor components are trading up today in sympathy with NVIDIA. The PHLX Semiconductor Index is up 0.5% versus a 0.9% loss in the S&P 500.
Housing starts totaled 1.425 million in October (Briefing.com consensus 1.420 million) following a revised 1.488 million in September (from 1.439 million). Building permits totaled 1.526 million in October (Briefing.com consensus 1.518 million) following a 1.564 million total in September.
Weekly initial jobless claims came in at 222,000 (exp 222,000) following a revised 226,000 count last week (from 225,000). Continuing claims came in at 1.507 million after last week’s revised total of 1.493 million (from 1.493 million).
The Philadelphia Fed Index for November came in at -19.4 (Briefing.com consensus -5.0) following the -8.7 prior reading.
Equity futures had extended their losses after St. Louis Fed President Bullard (FOMC voter) said the policy rate is not sufficiently restrictive, adding that a fed funds rate of 5-7% may be needed.
Comments from Fed officials this morning piled onto those concerns.
St. Louis Fed President Bullard (FOMC voter) acknowledged that the fed funds rate is not yet sufficiently restrictive and, citing the Taylor Rule, said a 5-7% fed funds rate may be needed.
Kansas City Fed President George (FOMC voter), meanwhile, said a real slowing in labor markets and a contraction in the economy may be needed to reduce inflation, according to CNBC.The Treasury market had a noticeable reaction to those remarks. The 10-yr note yield is up 10 basis points to 3.79% and the 2-yr note yield is up 10 basis points to 4.46%.
Dow 33,546.32 -7.51 -0.02%
S&P 500 3,946.63 -12.16 -0.31%
Nasdaq 11,144.96 -38.70 -0.35%
VIX 24.00 -0.11 -0.46%
Gold 1,763.20 -12.60 -0.71%
Oil 81.91 -3.68 -4.30%
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