Market Analytics and Considerations
Key Points
ICYMI: US senators ease restrictions on the use of Chinese-made chips by the US government.
China’s President Xi is in Saudi Arabia this week. China YTD (Jan-Nov) trade data show both exports and imports rising (in yuan terms. China’s leaders say they plan to allow home quarantine to ease COVID testing.
European Central Bank speakers on December 7, 2022: Lane, Panetta. BoJ’s Nakamura says the Bank must no indication that the Bank was currently considering a pause.
Australian economic growth data: Q3 Gross domestic product +0.6% q/q (expected +0.7%, earlier +0.9%)
PBOC is supposed to set the USD/CNY reference rate at 6.9941 – Reuters gauge
HK media say that China considers minimizing Coronavirus’ status – could be when today
Review of the Bank of Canada money related approach meeting Wednesday 7 December, +25bp anticipated
Japan information – Reuters Tankan shows further developed feeling for producers and administrations
Goldman Sachs plans spend of multi-a great many $ to purchase or put resources into crypto
ICYMI: ICYMI – Goldman Sachs CEO Solomon sees a 1/3 chance of a US recession in 2023 Oil – private survey of inventory shows headline draw much higher than expected Trade ideas thread – Wednesday, 7 December 2022 S&P/Nasdaq indices can’t keep momentum going below 200 hour MA today Americas FX news wrap: While oil and stocks fall, the US dollar remains strong.
The USD fluctuated in narrow ranges today versus the major foreign exchange currencies. Beginning with a surge to 137.35, USD/JPY then fell back to its initial level. As we updated, it is in the midst of the day’s range. Today’s Bank of Japan speaker essentially reiterated Governor Kuroda’s talking points. The BOJ anticipates inflation to decline in the midpoint of the upcoming fiscal year, which starts on April 1, 2023, sans rising wages taking hold. The BOJ does not anticipate wage growth to be an inflation driver.
The USD lost ground versus other currency pairs as USD/JPY reached its session peak and started to fall backward. Ranges were underwhelming, and the move has largely been retraced, leaving minimal change essentially everywhere.
We had dismal Chinese trade numbers for November on the figures front. However, as I have stated multiple times, with China’s efforts to relax regulations, the economic reports that is currently being released is more outdated than usual. The months ahead should see an increase in China’s economic activity. Despite the fact that there are obstacles along the way, progress must be made.
Data about Australia’s growth in the economy during the third quarter of the year were available. The bullets above contain more information.
We stated in a comment earlier this week that China was likely to make some significant announcements today regarding removing COVID limits. As of now, we have news from a Politburo summit of the Chinese Communist Party that took place on December 6. However, the reports were largely of a generic nature and offered little in the way of specifics. There may be more to come because it is still just about midday in China at the time of this writing (as a sidebar, China only has one official time zone that runs the entire length of the country; yet, unofficially, the far west employs China Standard Time minus two hours).
So far today, stocks in the Asia-Pacific region have moved in a mixed bag. Shanghai is down, HK is up (barely), and the Nikkei in Japan is weaker than expected.
