The morning market overview, compiled by Dow Jones Newswires:
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+++++ DAILY THEME I +++++
China Evergrande gets more time. A Hong Kong court has given the troubled real estate developer more than a month to come up with a plan to restructure its billions of dollars in debt. Analysts had expected the court to order the company’s liquidation on Monday. The proceedings have now been postponed to January 29th.
+++++ DAILY THEME II +++++
The USA wants to pay $3 billion into the Green Climate Fund (GCF). Vice President Kamala Harris announced this. This is the first US contribution to the fund since 2014. The GCF is one of the most important instruments of international climate finance. The fund is intended to support climate protection and adaptation to climate impacts in developing countries.
In his speech at the UN Climate Change Conference, Chancellor Olaf Scholz called for additional efforts to be made to limit global warming to 1.5 degrees. Specifically, he called for the expansion of renewable energy to be tripled worldwide by 2030 and energy efficiency to be doubled by the end of the decade.
A group of around 20 countries called for the expansion of nuclear power at the UN climate conference in Dubai. The USA, France, Great Britain and the host country United Arab Emirates are among those involved in the joint declaration. The aim is to reduce dependence on fossil fuels, it said.
+++++ COMPANY OUTLOOK ++++++
No important dates announced
+++++ ECONOMIC OUTLOOK +++++
– US
4:00 p.m. Industrial orders received October
FORECAST: -3.5% yoy
previously: +2.8% yoy
+++++ OVERVIEW INDICES +++++
INDEX level +/- %
E-Mini Future S&P 500 4,592.50 -0.2%
E-Mini Future Nasdaq-100 15,972.00 -0.3%
Nikkei-225 33,231.27 -0.6%
Hang Seng Index 16,744.86 -0.5%
Kospi 2,514.95 +0.4%
Shanghai Composite 3,023.85 -0.3%
S&P/ASX 200 7,124.70 +0.7%
+++++ FINANCIAL MARKETS +++++
EAST ASIA (HISTORY)
Inconsistent – Sydeny and Seoul follow the US target from Friday upwards. There, sharply falling market interest rates again caused share prices to rise. Among other things, statements from US Federal Reserve Chairman Jerome Powell were interpreted as dovish. Although Powell described it as too early to speculate about interest rate cuts, he signaled that interest rate hikes are likely to be a thing of the past. According to traders, the Nikkei index in Tokyo is being held in check by the significantly stronger yen, which is making Japanese exports more expensive. In addition, this reduces the companies’ profits generated abroad and repatriated to Japan in yen. Car values are particularly suffering at the moment. Nissan Motor, Mitsubishi Motors and Toyota reduce their prices by up to 3 percent. In Hong Kong, the focus is on China Evergrande. The share rose by a good 13 percent. A court has granted the troubled real estate developer more time to develop a plan to restructure billions of dollars in debt. Wuxi Biologics plunges over 23 percent after the company cut its profit and revenue outlook.
US AFTERMARKET
Uber Technologies rose by over 5 percent. The driver was the official announcement that the share would be included in the highly regarded S&P 500 index. Speculation had already supported the price in the past few weeks. Also included in the index are Jabil Circuits (+3.1%) and Builders Firstsource (+2.6%). Xos were priced 2.4 percent higher at $0.29. The technology company had announced a share split at a ratio of 30:1 in order to ensure the requirement for the continuation of the stock exchange listing. National Storage Affiliates rose 2.7 percent after announcing a share buyback. Citizens Holding fell by 22 percent. The bank holding company had announced that it wanted to stop listing on the Nasdaq.
WALL STREET
INDEX last +/- % absolute +/- % YTD
DJIA 36,245.50 +0.8% 294.61 +9.4%
S&P 500 4,594.63 +0.6% 26.83 +19.7%
Nasdaq Comp. 14,305.03 +0.6% 78.81 +36.7%
Nasdaq-100 15,997.58 +0.3% 49.71 +46.2%
Friday Thursday
Turnover NYSE (stocks) 1,014 million 1,913 million
Winners 2,469 1,786
Losers 421 1,038
unchanged 50 110
Friendly – Weak economic data fueled hopes that interest rates would soon fall in the USA and caused share prices to rise. In keeping with this, the recent rally in bond prices showed no signs of letting up, with market interest rates falling sharply again. US manufacturing activity contracted for the 13th month in a row in November, which was seen by the market as a sign of the effectiveness of interest rate hikes. There were also signals from US Federal Reserve Chairman Jerome Powell that the interest rate hikes were likely over. Pfizer shares fell significantly by over 5 percent. The pharmaceutical giant suffered a setback in the study of a weight loss preparation and ended the study. Tesla fell by 0.5 percent and were unimpressed by the fact that Tesla has now started deliveries four years after introducing the first pick-up model, the Cybertruck. According to market experts, the Cybertruck is more interesting from a marketing perspective than as a profit generator. Uber Technologies rose 1.7 percent. There was speculation here about the stock being included in the S&P 500 index after the passenger transport service provider qualified for inclusion in the index with recent positive quarterly figures. It could be announced after the market closes as part of the index’s quarterly review, it said.
US BONDS
Maturity Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.55 -15.0 4.70 13.1
5 years 4.14 -13.1 4.27 13.9
7 years 4.21 -13.0 4.34 24.5
10 years 4.21 -12.0 4.33 33.1
30 years 4.40 -9.9 4.50 42.6
Market interest rates fell sharply again. The ten-year return is now 4.21 percent, compared to an annual high of just under 5 percent in mid-October. On the interest rate futures market, the probability of the first increased following weak US economic data and statements from US Federal Reserve Chairman Powell Interest rate cut already in March from 41.5 to now 55 percent. A rate cut even in January is priced in with a 10 percent probability, compared to 4 percent the day before.
CURRENCY
last +/-% 00:00 Fri, 8:26% YTD
EUR/USD 1.0875 -0.1% 1.0885 1.0909 +1.6%
EUR/JPY 159.45 -0.1% 159.68 161.59 +13.6%
EUR/GBP 0.8575 +0.1% 0.8566 0.8629 -3.1%
GBP/USD 1.2683 -0.2% 1.2707 1.2643 +4.9%
USD/JPY 146.62 -0.1% 146.70 148.12 +11.8%
USD/KRW 1,304.68 +0.2% 1,302.29 1,305.99 +3.4%
USD/CNY 7.1378 +0.9% 7.0720 7.1449 +3.5%
USD/CNH 7.1409 +0.2% 7.1266 7.1520 +3.1%
USD/HKD 7.8140 -0.0% 7.8142 7.8110 +0.1%
AUD/USD 0.6657 -0.2% 0.6671 0.6604 -2.3%
NZD/USD 0.6191 -0.2% 0.6205 0.6156 -2.5%
Bitcoin
BTC/USD 41,494.24 +3.5% 40,081.95 38,342.54 +150.0%
YTD based on the closing price of the previous day
The dollar, which was on a recovery course, turned around and fell again as market interest rates fell. Ultimately, he left the day little changed regarding the euro.
++++ RAW MATERIALS +++++
OIL / GAS
ROHOEL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 73.46 74.07 -0.8% -0.61 -4.3%
Brent/ICE 78.19 78.88 -0.9% -0.69 -3.7%
YTD based on the closing price of the previous day
The price of oil fell by a good 2 percent. The additional production cuts decided at the OPEC+ meeting had already fizzled out the day before or were acknowledged with falling prices. According to market experts, the market reaction indicates concerns because the announced cuts are voluntary. This is a sign that it is becoming increasingly difficult to agree on group-wide measures and raises doubts that the agreed funding cuts will be implemented by the individual cartel members. “We suspect that OPEC+’s next step will be to increase production and that any announced voluntary cuts will be gradually reversed by the end of 2024,” said Bill Weatherburn, commodities expert at Capital Economics.
(MORE TO FOLLOW) Dow Jones Newswires
December 04, 2023 01:44 ET (06:44 GMT)