Finance Update – Sliding into Routine

Asia – Alibaba CEO: China’s restrictions justified

Asian indices all continue in the green this morning, save the Hang Seng (-0.03%) and the Nikkei (-0.42%) after Japan’s manufacturing PMI for November shows a preliminary ½ pointThe unit of price change for bonds (1%), futures (0.01%), shares ($1) and mortgage fees (1% of the p... contraction to 48.3. Consumer inflationThe rise in prices for goods and services, resulting in the deterioration of a currency’s purchasi... for October contracted by another 0.4% YoY.

Meanwhile, China’s central bank last week maintained its 3.85% interestThe cost of accessing money not owned. rate, after the outgoing Trump administration announced a draft “list of 117 Chinese and Russian firms with military ties”, according to a Reuters’ exclusive. The resolution will ban access to US goods and technology. Also, Alibaba CEO Daniel Zang this morning said that China’s new anti-monopoly rules are justified, after the company’s $37 bn ANT listing had been postponed.

The Aussies is up a fraction on improving November PMIs – Manufacturing up 2 points to 56.1 and services up 1 to 54.9. The KiwiSlang for the New Zealand Dollar. is also starring after Q3 retail sales showed a remarkable 28% improvement QoQ. On Friday, Australia reported a better-than-expected 1.6% improvement in October retail sales.

Europe – Germany preparing additional aid

European benchmarks all ended up yesterday, Portugal’s PSI leading with a 1.3% gain and the DAX on the verge with 0.09%.

German Finance Minister Olaf Scholz is reportedly planning €190 bn in supportThe price level that traders believe represents the lowest value an asset can reach. At this point, ... funds for the economy, this as the G20, meeting in Dubai endorse extending debt payments by poor countries with a call upon private lenders to assist.

On Thursday, we learned that construction output in the EU contracted by 2.9% MoM in September, while November’s preliminary consumer confidence is showing a not-as-bad-as-expected drop to -17.6. German producer inflation in October improved to 0.7% YoYbut industrial sales in Italy contracted in September by 3.2% MoM.

Data from the UK was markedly better – public sector borrowing down to £21.584 bn and retail sales soaring by 5.8%YoY.

Americas – Biden nominates pro-regulation hi-tech czar

Futures optimistic, indices in the US ended down once again led by the DOW’s 0.75% drop. The Russell managed to squeeze by with a 0.09% gain.

This morning, Reuters reports that incoming President Biden has appointed Bruce Reed as his top technology adviser – a former Biden chief of staff who is strongly in favour of regulating high tech firms.

On Thursday, the Philly FED delivered a 6-point drop in their November manufacturing survey – not as bad as the 22 points expected. Continuing jobless claims continues to drop, but the initial figure missed expectations this past week by 40k – landing at 742K.

And in Canada, retail sales surprised to the upside in September, adding 1.1% MoM, while new home prices added 0.8%, missing expectations by 2 ticks.

Commodities – oil up on vaccine cheer

Oil futures are climbing steadily this morning, currently at $42.49 for a barrel of West Texas Crude, on vaccine optimism and after the Baker Hughes company admitted to a 5-rig reduction in their count – 231 for the past week.

Corporate

Prepare today for earnings from Urban Outfitters, Agilent Technologies and Siemens, while the Apache Corporation pays dividends.

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