Equity markets trade mixed, CN inflation data is due on Fri

General trends

– Follow-up: China to hold press conference on COVID at 3pm (7 GMT) [updates the time] – financial newspaper.

– The Hang Seng rebounded after the previous decline.

– Japanese sales are down.

– Japan reported a current account deficit.

– Energy cos. lag in Australia.

– Taiwan Semi may report monthly sales this week.

– China’s Ministry of Commerce (MOFCOM) holds a weekly briefing on Thursdays.

Economic headlines/data

Australia/New Zealand

ASX 200 opened flat.

– (AU) Reserve Bank of Australia (RBA) Assistant Gov of Financial Systems Jones gave a speech called “The Economics of a Central Bank Digital Currency in Australia”.

– (NZ) New Zealand sells NZ$400M v NZ$400M stated in 2028, 2032 and 2037 bonds.

– (AU) Reserve Bank of Australia (RBA): Information provided for the review of the Reserve Bank of Australia.

– (AU) Australia Oct Trade Balance (A$): 12.2B v 12.1B.

– (AU) Australian Treasurer Chalmers said the RBA review to guide the decision related to the RBA Gov – Australia media.

Japan

Nikkei 225 opened -0.2%.

– (JP) Japan MoF sells ¥2.5T v ¥2.5T stated in 0.005% 5-year JGBs; Average yield: 0.1210% v 0.0600% before, bid: 3.58xv 3.31x before.

– (JP) Japan Nov Tokyo Office average: 6.4% v 6.4% before.

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– (JP) Bank of Japan (BOJ) offers to buy 5-10 year JGB at a fixed rate of 25bps; Open window to buy unlimited 10-year JGBs at 0.25% [as expected].

– (JP) Japanese Investors Buying Foreign Bonds: ¥522.2B v ¥51.2B previously; Foreign net purchases of Japanese stocks: -¥349.3B v ¥442.9B previously.

– (JP) Japan Nov Bank lending Y/Y: 2.7% v 2.7% previously; Bank loan (old loan) Y/Y: 3.0% v 3.0% before.

– (JP) Japan Oct BoP Current Account: -¥64.1B v + ¥621.7Be; Current Account Adj: -¥609.4B v +¥352.7Be.

– (JP) Japan Q3 FINAL GDP Q/Q: -0.2% V -0.3%E; Annual GDP Q/Q: -0.8% V -1.0%E.

Korea

The Kospi opened +0.2%.

– (KR) Bank of Korea (BOK) Dep Gov: To raise repo rate to >KRW6.0T – policy report to parliament.

– (KR) The South Korean government says it has ordered truckers carrying Steel and Petrochemicals back to work. [in line] – Press.

– (KR) The South Korean Govt said it asked the National Pension Service to increase the rate of FX Hedging to 10% – Korean newspaper.

China/Hong Kong

The Hang Seng opened +0.8%; The Shanghai Composite opened -0.1%.

– (CN) China PBOC Open Market Operation (OMO): Sell CNY2.0B in 7 days reverse repos v CNY2.0B forward; Net drains CNY8.0B v previous net drains CNY168B.

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– (CN) China PBOC sets Yuan index rate: 6.9606 v 6.9975 previously.

– (CN) China Nov domestic Excavator sales 14.4K, +2.7% y/y.

– (HK) Hong Kong hopes to reduce isolation time for coronavirus patients to 5 days – Press.

– (CN) China Securities Regulatory Commission (CSRC) Vice Gov Li: Explores Expanding REIT Pilot Program to More Sectors [includes long-term rental and commercial properties].

– (HK) Said it is considering relaxing the rules of coronavirus testing for arrivals in Hong Kong – Press.

North America

– TSLA: Says the bank is considering a new margin loan for Tesla CEO Musk shares to replace the high-interest loan to get Twitter – Press.

-(US) MBA loans w/e Dec 2nd: -1.9% v -0.8% before.

-(United States) Last Q3 non-farm production: 0.8% v 0.6%e; onshore labor cost: 2.4% V 3.1%E (monthly labor cost increase Q/Q to Q4 2021).

-Used car value index Nov Manheim: -0.3% M/M; -14.2% Y/Y; MUVVI (14% y/y) fell below 200.0 for the first time since August 2021.

-(CA) Bank of Canada (BOC) raises interest rate by 50BPS TO 4.25%; as expected; Inflation still too high, CPI expectations remain high.

– (US) DOE crude: -5.2MV -1.5ME; GASOLINE: +5.3MV +1.5ME; DISTILLATE: +6.2MV +1ME.

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– (United States) October customers: $27.1BV $28.0BE.

Europe

– (UK) UK Nov RICS Home balance -25% v -10%e [lowest since May 2020].

– (DE) Chancellor Scholz of Germany says that the danger of Russia using nuclear weapons has decreased, according to international pressure – German newspaper.

-(EU) European Union Commission Pres Von der Leyen: The European Union is confident it will agree to a cap on gas prices by the end of the year.

– PM Spokesperson Sunak (UK): The PM thinks it is appropriate to look at other ways to reduce the impact of the strike.

-(EU) Kazimir (Slovakia) of the ECB: Many reasons to increase the pace in Dec.

-(RU) Russia Pres Putin: The threat of nuclear war is increasing; There is absolutely no point in doing any further campaigning at this point.

Level at 00:20 ET

– Nikkei 225, -0.5%, ASX 200 -0.8%, Hang Seng +2.5%; Shanghai Composite -0.1%; Kospi -0.9%.

– Equity S&P500 futures: -0.2%; Nasdaq100 -0.2%, Dax -0.2%; FTSE100 -0.2%.

– EUR 1.0515-1.0494; JPY 137.24-136.24; AUD 0.6730-0.6698;NZD 0.6372-0.6326.

– Gold -0.2% at $1,794/oz; Crude Oil +0.9% at $72.69/brl; Flat copper at $3.8442/lb.

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