Global Markets:
- Asian Stock Markets : Nikkei up 1.57%, Shanghai Composite up 0.82%, Hang Seng down 0.47% ASX up 0.07%
- Commodities : Gold at $2014.5 (0.02%), Silver at $23.13 (0.34%), Brent Oil at $76.56 (2.82%), WTI Oil at $71.77 (0.73%)
- Rates : US 10-year yield at 4.257, UK 10-year yield at 4.054, Germany 10-year yield at 2.259
News & Data:
- (USD) Average Hourly Earnings m/m 0.4% vs 0.3% expected
- (USD) Non-Farm Employment Change 199K vs 184K expected
- (USD) Unemployment Rate 3.7% vs 3.9% expected
Markets Update:
China’s stock market faced a downturn on Monday due to ongoing deflationary pressures within its economy, driven by weakened domestic demand. Conversely, Japan experienced a surge in its stock market amid speculation that the country’s central bank might delay an anticipated interest rate hike.
Recent November data from China revealed a sharper-than-expected decline in consumer prices. The consumer price index dropped by 0.5% year-on-year, exceeding the forecasted 0.1% decline. Additionally, the producer price index (PPI) showed a 3% year-on-year decrease, marking the 14th consecutive month of decline and the quickest fall since August.
At the market’s opening, China’s CSI 300 index declined by 1.28%, while Hong Kong’s Hang Seng index dropped by 0.9%, both lagging behind other markets in the Asia-Pacific region. In contrast, Japan’s Nikkei 225 surged by 1.56%, and the broader Topix index saw a more moderate increase of 1.35%.
The week’s spotlight is on the U.S. Federal Reserve’s upcoming monetary policy decision, widely anticipated to maintain the policy rate within the 5.25% to 5.5% range. Elsewhere, Australia’s S&P/ASX 200 began the week with a 0.21% rise, aiming for a three-month high. South Korea’s Kospi index struggled to gain direction, marking a minimal 0.06% increase, while the small-cap Kosdaq showed a more significant rise of 0.92%. In the U.S., all three major indexes reported gains on Friday, with the S&P 500 hitting a new yearly high, signaling a robust economy and moderated inflation.
Upcoming Events:
- 11:30 PM GMT – AUD Westpac Consumer Sentiment
- 11:50 PM GMT – JPY PPI y/y
