Global Market Quick Take: Asia – December 12, 2023 Global Market Quick Take: Asia – December 12, 2023 Global Market Quick Take: Asia – December 12, 2023

Global Market Quick Take: Asia – December 12, 2023

Macro 5 minutes to read
Charu Chanana

Head of FX Strategy

Summary:  Stocks traded cautiously higher as Treasuries were mixed ahead of US CPI today and Fed announcement due tomorrow. Chip stocks except Nvidia gained. Dollar was sideways but JPY plunged as BOJ negative rates seen staying at the December meeting as per latest comments. Gold plunged below $2000 and copper also faced declines as China’s growth target and policy support for next year is awaited.


The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

US Equities: US stocks saw cautious gains on Monday, despite the ‘Magnificent 7’ closing down as Meta slipped 2.2% and Nvidia slid 1.85%. Semiconductors, however, rose led by a ~9% surge in Broadcom and 4.3% gain in Intel which saw NASDAQ 100 outperforming. In the after-hours, Oracle dropped 9% following the announcement of Q2 results that showed a miss on revenues and forecasted Q3 revenue to come in lower than consensus amid an uncertain economy and competition in the cloud computing market. The S&P 500 held above 4,600.

Fixed income: Treasuries traded mixed ahead of key central bank announcements, showing little reaction to NY Fed survey of inflation expectations seeing cooling price pressures. The 3yr and 10yr auctions were poor and the 30yr auction will be in focus today. 2yr yields were down 1.3bps while the 10yr was up 0.8bps.

China/HK Equities: China equities came under pressure earlier on Monday after deflation concerns added to the current headwinds from property sector. However, there was a sharp rebound into the close of the session probably as bargain hunters stepped in. There are reports that China’s key meeting to discuss the GDP target is underway, and market participants may be watching for monetary, fiscal and industrial policy outlooks for next year to remain supportive. CSI 300 closed in gains of ~0.6% while HSI was down 0.8%.

FX: The dollar traded sideways on Monday with the fate of JPY turning steeply. USDJPY rose back to highs of 146.59 after the BOJ said that it sees little need to end negative rate in December after traders had started to pile in to hawkish BOJ bets following last week’s comments that had pushed USDJPY lower to 141.71. Other currencies were mostly on the sidelines ahead of the US CPI today and Fed announcement on Wednesday (Thursday morning in Asia). AUDUSD retreated slightly from 0.6580-levels while EURUSD took a look below 1.0750 before returning to 1.0765 later. Swiss franc strengthened however, with USDCHF down close to 0.8780 and EURCHF at 0.945 after strong gains on Friday.

Commodities: Crude oil prices remained steady with OPEC and IEA monthly oil market reports awaited this week. Gold saw a sharp plunge lower to $1980-levels with eyes on US inflation data and Fed announcement. Meanwhile, Copper declined despite concerns of a supply deficit going into 2024, as China’s deflation and underwhelming fiscal stimulus underpinned and focus turns to growth target and other announcements from Central Economic Work Conference today along with the US CPI.

Macro:

  • NY Fed survey showed cooling inflation expectations, with one seen at 3.4% vs. 3.6% prior, the lowest since April 2021. Three-year ahead was unchanged at 3% and five-year ahead was unchanged at 2.7%.
  • RBA Governor Bullock said this morning that Australia is not falling behind other countries in the fight against inflation, and that the bank will take a cautious approach with policy, keeping data on the radar.

Macro events: UK Employment, EZ & German ZEW, US NFIB, US CPI (tune in to our Macro podcast to know more), Japanese Tankan Index, EIA STEO

Earnings: BHP Group

In the news:

  • Hasbro to lay off 900 more employees amid weak toy sales (Reuters)
  • Xi Makes First Vietnam Visit in Six Years to Counter US Clout (Bloomberg)
  • Taiwan Calls on US Support to Defend Banks Against Cyberattacks (Bloomberg)
  • New COP28 draft text does not mention phase out of fossil fuels (Reuters)
  • Semiconductor giants race to make next generation of cutting-edge chips (FT)

 

For all macro, earnings, and dividend events check Saxo’s calendar.

For a global look at markets – go to Inspiration.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.