Observations + Charts
• European shares are mixed while US futures are pointing lower.
Asian equities lower with tech and semis leading the region lower.
CSI 300 touching its lowest since Feb-2019, Hang Seng hitting 13-month lows and HSTECH approaching May/Oct double bottom.
Sentiment failed to get a boost from PMI data (Services 51.5 vs est. 50.5), investors focused instead on a record fourth month of foreign outflows in Nov and were among most sold by HFs.
China bears see dim prospects for a valuation recovery amid earnings headwinds and weak demand while the bulls see prospects for recovery with MSCI China Index P/E lowest in five years.
Nvidia plans network of chip plants in Japan to meet AI demand.
• European stocks open mixed as caution prevails. Real estate and energy seeing marginal gains.
• British Retail Consortium showed retail sales remained weak into the holiday period. Sales growth in November was 2.7% vs a year earlier despite early Black Friday sales.
• Spain Nov Services PMI 51.0 vs consensus 51.5; France Oct IP (0.3%) m/m vs consensus +0.2%; Italy PMIs beat estimates while France was in line.
• ECB’s Schnabel (hawk) sees further rate hikes as unlikely and cites remarkable fall in inflation.
• DXY is -10bps. Brent is +110bp. US nat gas is +74bp. Bitcoin +15bp while gold +38bp & Silver +41bp.
• US futures are lower w/ESZ3 -9.50, HIWZ3 -40.00, and NQZ3 -65.50.