- US Treasury Secretary Yellen says a US soft landing is "possible"
- ECB speakers coming up on Thursday, 1 December 2022 - Lagarde, Enria, Elderson
- Bank of Japan board member Asahi Noguchi spoke earlier - recap
- HSBC says Fed tightening could remain an important negative for Gold at least into 1Q23
- China November Manufacturing PMI 49.4 (prior 49.2)
- BOJ Noguchi: must maintain monetary easing, hitting 2% inflation target remains uncertain
- China Official Behind Strict Covid Lockdowns Softens Her Stance
- WSJ Fed whisperer: "Powell provided a clear signal" on a 50bp rate hike at the Dec meeting
- PBOC sets USD/ CNY reference rate for today at 7.1225
- Australian private capital expenditure (September quarter 2022) -0.6% (expected +1.5%)
- Japan Manufacturing PMI (November) 49.0 (prior 50.7)
- PBOC is expected to set the USD/CNY reference rate at 7.1231 – Reuters estimate
- South Korea November exports have plunged, -14% y/y (expected -11%)
- Japan data - Q3 business capex +2.4% q/q
- Bitcoin gaining - not bothered by SBF's FTX NYT baloney
- White House weighs future release of emergency heating, crude oil reserves as winter nears
- South Korea exports eked out a tiny 1.1% gain q/q in Q3
- Australia's 2nd Manufacturing PMI for November comes in at 51.3 (prior 52.7)
- Sam Bankman-Fried, founder of collapsed crypto exchange FTX, speaking at NY Times event
- Trade ideas thread - Thursday, 1 December 2022
- Nasdaq CEO says expects to launch institutional crypto custody business in H1 2023
- Forexlive Americas FX news wrap:Fed Powell soothes the market w/ visions of a soft landing
- Australia manufacturing PMI for November 44.7 (prior 49.6)
Stocks in mainland China on the Shanghai and Shenzen exchanges rose again today as signs of a more flexible approach to COVID-19 management in China grew. A strong hint was given by a China top official, outgoing Vice Premier Sun Chunlan, who said, in part:
- “As the omicron variant becomes less pathogenic, more people get vaccinated and our experience in Covid prevention accumulates, our fight against the pandemic is at a new stage and it comes with new tasks”. As far as coded comments from China this one is pretty clear that there is some form of relaxation yet to come.
Further impetus was given to risk assets, of course, from Federal Reserve System Chair Powell on Wednesday (US time) who indicated a 50bp point rate hike, not 75, was likely at the December Federal Open Market Committee (FOMC) meeting. The USD continued its fall during Asia trade. EUR, GBP, AUD and NZD all higher. The yen was a strong outperformer, with USD/JPY falling 150-odd points to lows circa 136.50.
There was further poor data from South Korea today. November exports saw their worst decline in 2-1/2 years.
Speaking of poor data, manufacturing PMIs released for Australia, Japan and China all fell in November. With those aforementioned signs of China easing back on the harsh COVID-19 restriction regime perhaps November will be the nadir. Winter is still to come in China though.
Regional equities:
- Hong Kong’s Hang Seng +1.6%
- Shanghai Composite +1.%
- Shenzhen +1.8%
- Japan’s Nikkei +1.1%
Still to come:
- 0500 GMT Bank of Japan Governor Haruhiko Kuroda speaks at an Asian Development Bank Institute event