Stocks generally trade higher after US gains, Hong Kong and CN markets trade mixed after PBOC easing

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General trend

– Speculation has now shifted to China’s Prime Lending Rates (LPR) following the RRR cut.

– China’s trade surplus in November missed out on rising imports.

– RBA has apparently downplayed the importance of the omicron.

– US equities FUTs remained higher; Intelligence increases during after-hours trading on Mobileye news.

– Travel stocks are generally trading higher.

– Hang Seng stayed higher; TECH index increases after previous losses; Hong Kong real estate developers continue to announce stock offers [Shimao Property, Logan Property].

– The Shanghai Composite traded slightly higher after the easing of the PBOC, the index then reduced its gains; The real estate index increased by 2%, financials also gained.

– Nikkei 225 extended its lead.

– The S&P ASX 200 also continued to grow; The energy and consumer discretionary indices outperformed.

– The Reserve Bank of India (RBI) is due to hold a political meeting on Wednesday, December 8.

– Businesses that need to report in the NY morning include AutoZone, Conn’s, Designer Brands.

Titles / Economic data

Australia / New Zealand

– ASX 200 open + 0.2%.

– (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES THE CASH RATE TARGET UNCHANGED AT 0.10%; AS EXPECTED; The Omicron strain is another source of uncertainty, but it shouldn’t derail the recovery.

– (AU) AUSTRALIA Q3 HOUSE PRICE INDEX T / T: 5.0% V 5.0% E; Y / Y: 21.7% V 16.8% BEFORE.

– (NZ) Reserve Bank of New Zealand (RBNZ) annual stress test results: Major crisis event could make it difficult for banks to meet higher capital requirements, but shows strengthening the resilience of banks compared to last year.

Japan

– Nikkei 225 opened + 0.8%.

– (JP) Japan Oct. Work Cash Earnings Y / Y: 0.2% vs. 0.4% e; Real cash earnings Y / Y: -0.7% vs. -0.5% previously.

– (JP) Japan Nov FX Reserves 1.41 T $ vs. 1.40 T $ previously.

– 7201.JP COO Gupta: will follow customer demand when choosing regions where to deploy electric vehicles, we are on the right track with profits and electrification – press.

– (JP) Japan Fin Min Suzuki: Primary balance target for fiscal year 25 should be maintained, there is no need to consider a different target at this stage – press.

– (JP) Japan’s MoF sells 900 billion yen against 900 billion yen indicated in JGB at 0.7% at 30 years, average yield: 0.6730% against 0.6830% before, bid-to-cover: 3.21xv 3.45x front.

Korea

– Kospi opened 0.0%.

– (KR) South Korea to load more than 70% of the budget in the first half of 2022 – Yonhap.

– (KR) South Korea, October current account (BOP): 5.6 billion dollars against 10.0 billion dollars previously (18th consecutive surplus); Balance of goods (BOP): $ 7.0 billion compared to $ 9.5 billion previously.

– 005930.KR To replace CEOs and heads of commercial divisions; Appoint a CFO, to merge the mobile and consumer electronics divisions.

China / Hong Kong

– Hang Seng open + 1.5%; Shanghai Composite opened + 0.6%.

– (CN) CHINA NOV TRADE BALANCE (NAMED CNY): 460.7BV 575.0BE.

– (CN) BALANCE OF TRADE CHINA NOV 71.7 BV $ 82.1 BE; Trade balance with the United States: $ 37.0 billion against $ 40.7 billion previously.

– (CN) CHINA PBOC REDUCES THE OVERALL RESERVED REQUIREMENTS RATIO (RRR) BY 50 BPS; effective December 15; cut to release CNY1.2T liquidity in the banking system (end of session yesterday).

– (CN) China’s PBOC to cut reimbursement rate by 25 basis points to support SMEs and rural sector, effective December 7 – China Securities Times.

– (CN) Shanghai Securities News: Real estate prices in China are expected to remain “stable” in 2022.

– Kaisa Group, 1638.HK Said he failed to deliver apartments and pay wages in Guangzhou – China Press.

– (CN) The Chinese PBOC fixes the benchmark rate of the yuan: 6.3738 against 6.3702 previously.

– (CN) China PBOC Open Market Operation (OMO): sells CNY10B in 7-day reverse repurchase agreements against CNY10B previously; Net drain CNY90B v Net drain CNY90B before.

– (HK) Hong Kong Chief Exec Lam: Travel between Hong Kong and China to start with business groups.

– (CN) Chinese government think tank: Expects China’s GDP to reach 5.3% in 2022.

North America

– INTC confirms its intention to make Mobileye public; Will retain majority stake after IPO.

– (United States) Senatorial Minority Leader McConnell (R-KY): Will likely end up supporting Jerome Powell’s re-election as Fed chairman.

– CEO of TSLA Musk: the company does not need federal tax credits; Cybertruck will move volume production until 2023.

Europe

– (UK) US President Biden is considering options for a possible Russian invasion of Ukraine, including cutting Russia off from the SWIFT payments system and restrictions on trading in Russian bonds.

– (United Kingdom) Nov BRC Sales LFL Y / Y: + 1.8% vs. -0.2% previously.

– (HU) Hungary Central Bank Dep Gov Virag: inflation will peak above ~ 7.0% in November, but the decline will be slow from the second half of 2022; Will not increase rates weekly, but when needed. The central bank must act with sufficient force.

Levels from 00:15 ET

– Hang Seng + 1.8%; Shanghai Composite -0.1%; Kospi + 0.5%; Nikkei225 + 2.2%; ASX 200 + 1.0%.

– Equity Futures: S & P500 + 0.3%; Nasdaq100 + 0.3%, Dax + 0.4%; FTSE100 0.0%.

– 1.1293-1.1276 euros; 113.68 to 113.40 JPY; 0.7075-0.7039 AUD; NZD 0.6762-0.6737.

– Commodity Futures: Gold -0.1% at $ 1,777 / oz; Crude oil + 1.0% at $ 70.20 / brl; Copper -0.4% at $ 4.32 / lb.


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