Global Markets:
- Asian Stock Markets : Nikkei up 1.33%, Shanghai Composite up 0.1%, Hang Seng up 0.78% ASX up 1.67%
- Commodities : Gold at $2643.35 (-0.04%), Silver at $30.04 (0.8%), Brent Oil at $72.89 (0.56%), WTI Oil at $69.84 (0.55%)
- Rates : US 10-year yield at 4.530, UK 10-year yield at 4.508, Germany 10-year yield at 2.2865
News & Data:
- (CAD) Core Retail Sales m/m 0.1% vs 0.2% expected
- (CAD) Retail Sales m/m 0.6% vs 0.7% expected
Markets Update:
Asia-Pacific markets began the holiday-shortened Christmas week positively as investors awaited the official announcement of a merger between Japanese automakers Honda and Nissan. The companies aim to finalize their agreement by June 2025 and plan to establish a holding company by summer 2026, led by a Honda executive, according to NHK.
Reports from Kyodo News stated that the presidents of Honda, Nissan, and Mitsubishi informed Japan’s industry ministry of their merger talks. A press conference is anticipated later today, with both Honda and Nissan holding board meetings to discuss formal integration and sign a memorandum of understanding, as per NHK.
On the stock market front, Honda shares gained 2.11%, while Nissan shares dipped 0.74%. Last Wednesday, Nissan shares saw a record surge following speculation about the merger. Broader market optimism was fueled by cooler-than-expected U.S. inflation data released on Friday.
Japan’s Nikkei 225 rose 1.06%, and the Topix gained 0.79%. South Korea’s Kospi advanced 1.25%, with the Kosdaq up 1.51%. Australia’s S&P/ASX 200 climbed 1.03%, while Hong Kong’s Hang Seng added 0.72%. Mainland China’s CSI 300 remained flat.
In the U.S., markets closed higher Friday. The Dow Jones Industrial Average gained 1.18%, the S&P 500 rose 1.09%, and the Nasdaq Composite advanced 1.03%. The personal consumption expenditures price index, a key inflation gauge, increased to 2.4% in November, slightly below the 2.5% estimate. Core PCE, excluding food and energy, rose 2.8% year-over-year, under the 2.9% forecast.
Upcoming Events:
- 01:30 PM GMT – CAD GDP m/m
