- US stocks trundled lower throughout the US session with SPX, NDX, and RUT all seeing roughly similar weakness, whilst the latter continued to lag.
- USD was stronger against most peers as US news continued to be thin ahead of US CPI on Wednesday.
- T-notes bear steepened ahead of CPI and supply while NFIB Business Optimism improved, labour cost revisions were soft but productivity revisions were steady.
- Oil prices saw marginal gains, albeit sold off into settlement, despite strength continuing from Monday for a large duration of the session after the Chinese Politburo helped sentiment.
- Looking ahead, highlights include the Australian bond auction.
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SNAPSHOT
US TRADE
- US stocks trundled lower throughout the US session with SPX, NDX, and RUT all seeing roughly similar weakness, whilst the latter continued to lag.
- Sectors were almost exclusively in the red with only Communication Services and Consumer Staples in the green as the former was the distinct gainer and buoyed by gains in Alphabet (GOOGL) (+5.7%). Real Estate and Technology lagged with the latter hit by Nvidia (NVDA) (-2.5%), Micron (MU) (-4.7%), and AMD (AMD) (-2.3%) weakness, albeit with a lack of headline newsflow.
- SPX -0.30% at 6,035, NDX -0.34% at 21,368, DJIA -0.35% at 44,248, RUT -0.42% at 2,383.
- Click here for a detailed summary.
NOTABLE HEADLINES
- Citi (C) CFO bank will be at the high end of guidance for 2024; says global economy is proving to be resilient; China is starting to show stabilisation and a rebound from the bottom; general sentiment is pro growth to 2025
- JPMorgan (JPM) exec says NII outlook has firmed up and expects 2025 NII to be about USD 2bln higher. Systemwide deposits could be neutral to higher next year. Sees Q4 NII and expenses a little bit better than consensus. IB fees will increase about 45% vs. last year in Q4. Markets revenue in Q4 +15% Y/Y.
- Walgreens (WBA) reportedly in talks to sell itself to Sycamore Partners, via WSJ.
DATA RECAP
- US Redbook YY w/e 4.2% (Prev. 7.4%).
- US Productivity Revised (Q3) 2.2% vs. Exp. 2.2% (Prev. 2.2%)
- US Unit Labor Costs Revised (Q3) 0.8% vs. Exp. 1.5% (Prev. 1.9%)
- US NFIB Business Optimism Idx (Nov) 101.7 (Prev. 93.7)
FX
- USD was stronger against most peers as US news continued to be thin ahead of US CPI on Wednesday. The DXY saw a third consecutive session of gains, reaching highs of 106.63, benefitting from EUR, CHF, JPY, and AUD weakness, with higher US yields supporting in the background.
- GBP and CAD were the only G10 currencies to strengthen against the Dollar, as quiet newsflow dominated the space, whereas the remaining constituents weakened, with Antipodes the bottom dwellers.
- NOK failed to capitalise on a hotter-than-expected CPI November release, as the initial downside in EUR/NOK later pared. Note, the monthly figures continued to show disinflation despite beating the forecasts.
FIXED INCOME
- T-notes bear steepened ahead of CPI and supply while NFIB Business Optimism improved, labour cost revisions were soft but productivity revisions were steady.
COMMODITIES
- Oil prices saw marginal gains, albeit sold off into settlement, despite strength continuing from Monday for a large duration of the session after the Chinese Politburo helped sentiment.
- EIA STEO: 2024 world oil demand forecast at 103.03mln BPD (prev. forecast of 102.6mln BPD), 2025 at 104.32mln BPD (prev. 104.7mln BPD).
- Private inventory data (bbls): Crude +0.499mln (exp. -0.9mln), Distillate +2.452mln (exp. +1.4mln), Gasoline +2.852mln (exp. +1.7mln), Cushing -1.517mln (prev. +0.1mln).
GEOPOLITICAL
MIDDLE EAST
- Israel to react strongly if new Syria regime lets Iran back in, according to reports.
OTHER
ASIA-PAC
NOTABLE HEADLINES
- US President Biden plans to formally block the USD 14.1bln sale of United States Steel (X) to Nippon Steel (5401 JT) on national security grounds once the deal is referred back to him later this month, according to Bloomberg citing sources
DATA RECAP
- New Zealand Manufacturing Sales (Q3) -1.2% (Prev. 0.6%).
EU/UK
NOTABLE HEADLINES
- ECB's Villeroy (Bank of France) says regardless of the political situation, France need to put its public finances in order.
