Eurozone retail trade, meeting of eurozone finance ministers;
services PMI data for eurozone, Germany, UK, France, Italy; UK
monthly car registration figures, official reserves; trading update
Shares appear poised for slight gains at the start of the week
after China took steps to ease its Covid restrictions. Stock
benchmarks and commodities rose in Asia, while the dollar softened
and Treasury yields gained.
Stock futures point to a slightly higher open on Monday amid
improved sentiment, after local authorities across China pared back
some of their strictest Covid-19 control measures.
European shares closed mixed last Friday following an
unexpectedly strong U.S. jobs report for November.
The resilience of the jobs data prompted investors to price out
the prospect of an imminent sharp slowdown in the Federal Reserve's
interest-rate rise cycle, CMC Markets said.
"Friday's stronger-than-expected jobs report gives the Federal
Reserve more reasons to continue raising interest rates and
maintain tighter monetary policy for longer, at least until the
labor market begins to weaken, which is a signal that the market
does not want to hear right now," said Robert Schein, chief
investment officer at Blanke Schein Wealth Management.
But some market strategists see a silver lining.
"The report is a positive development for the economy and helps
support the case that the Fed may be able to achieve a soft landing
in the economy, an outcome that's contrary to predictions made by
some of the nation's largest banks in recent months," said Peter
Essele, head of portfolio management at Commonwealth Financial
"The labor market remaining hot continues to justify what the
Fed is doing," said Nicole Webb, financial advisor at Wealth
Enhancement Group. "I don't think it changes course from the 50
basis-point expectation in December," she said, "but we've really
started to question how high the terminal rate has to get to, to
have the demand destruction that brings inflation down to 2%."
The dollar weakened on a return of risk appetite amid the easing
of Covid restrictions in China.
However, ANZ has one eye on next week's FOMC meeting, noting the
Fed may lift its terminal rate projection above 5% even if it opts
for a smaller 50bp rise in the fed-funds rate.
"If that occurs, the question we're pondering is: how will the
USD fare?" said ANZ.
"We may be shaping up for an epic battle between the
'recessionists' and the 'rate-watchers', all of which portends USD
Treasury yields rose in Asia, after the policy-sensitive 2-year
Treasury yield advanced Friday but finished the week lower. A
hotter-than-expected U.S. jobs report for November prompted traders
to push up the likelihood of a 5% or higher fed-funds rate by
"While the Fed may slow down its rate increases from the 0.75%
per meeting pace to 0.50% per meeting pace, it may also place
pressure on them to extend those rate increases further into 2023,"
said Jason Pride, chief investment officer of private wealth at
"Such a path to higher rates for longer should put a damper on
both fixed income and equity markets."
Read: Robust U.S. jobs market adds to worry over how much higher
interest rates need to go
Crude oil futures rose early Monday after China loosened some of
its Covid curbs.
However, traders could remain on edge after the European Union
and Group of Seven nations imposed a price cap of $60/bbl on
Russian oil, which is set to take effect this week, ANZ said.
European sanctions on Russian oil also kick in this week, while
OPEC+ has made the decision to keep its output steady, which raises
uncertainty on oil supply and demand in coming months, ANZ
Gold prices rose in Asia, reversing a previous pullback after a
"shockingly hot" nonfarm payroll report, said Oanda.
The unexpectedly strong jobs report spurred the dollar to rise,
and traders began to raise expectations of future hikes from the
Fed, added Oanda. The pullback in gold prices was unwarranted, as
inflation is steadily declining, which should mean the Fed will
slow the pace of its rate hikes.
Copper prices advanced, extending a recent rally amid rising
hopes for the easing of pandemic curbs in China.
ANZ said many investors are betting on expectations of sharply
higher copper demand from the world's second-largest economy.
But ANZ warned of "signs of weakness in the physical market,"
and "ample supply" that has pushed down prices for some copper
contracts and port inventories.
Iron-ore prices should be buoyed by seasonal supply challenges
over the next few months, Jefferies said following recent gains in
the steelmaking commodity.
The benchmark price of iron ore is up by 35% since the start of
November, underpinned by Beijing's plans to stabilize China's
property market and ease some Covid restrictions.
"Seasonal supply constraints should also help over the next 2-3
months," Jefferies said, referring to the severe storms that can
occur in Australia and Brazil around the turn of the year.
Meanwhile, Yongan Futures thinks the upbeat sentiment will
remain strong for some time, as traders seek to position for an
expected demand rebound into the spring of 2023.
But Yongan cautioned that investors should monitor the momentum
for steel production, which has been under pressure due to weak
TODAY'S TOP HEADLINES
OPEC+ Keeps Oil Curbs Despite Russia Price Cap
OPEC+ said Sunday it would lock in current production levels, a
pause that suggests the word's leading oil producers are uncertain
about the direction of crude prices with a price cap on Russia's
petroleum exports set to take effect.
The decision on Sunday allows the Organization of the Petroleum
Exporting Countries and a group of producers led by
Russia-collectively known as OPEC+-to take more time to assess the
market impact of an EU and Group of Seven price cap, which is
intended to crimp Russia's revenue for the Ukraine war. It locks in
a 2 million-barrels-a-day production cut decided in October.
Dow Shines as Higher Rates Squeeze Nasdaq's Tech Stocks
The Dow is beating the broader market to a degree not seen in
nearly a century.
The Dow Jones Industrial Average is down 5.3% this year, which
isn't normally a cause for celebration. But that performance looks
downright golden compared with the broad S&P 500, which is off
15%, and the tech-heavy Nasdaq Composite, which has dropped
China Loosens Covid Restrictions as Public Anger Simmers
HONG KONG-Local authorities across China are paring back some of
their strictest Covid-19 control measures, just days after public
anger spilled over into rare protests against a zero-tolerance
approach that has kept the country largely isolated for three
In recent days, officials in major cities-including Beijing and
other areas where protests broke out a week ago-said they were
lifting some curbs on residents' movements, such as by ending
mandatory Covid testing for people who want to use public transport
or enter parks and other public spaces.
Business-Software Companies Say Customers Are Pulling Back Amid
Business-software companies say customers are being more
cautious with their spending in response to a challenging economy,
adding to the tech industry's list of concerns.
Customers for companies such as Salesforce Inc., Okta Inc. and
CrowdStrike Holdings Inc. are taking longer to sign deals, and in
some cases slowing their hiring plans as they try to protect their
bottom lines, the software providers reported this past week. That
trend has created a cloudy outlook for many in the once-booming
business-software sector, which benefited from years of demand as
customers looked to use the products to trim costs and maintain
their businesses during the pandemic.
Economists Think They Can See Recession Coming-for a Change
If the economy shrinks next year, no one should be surprised.
We're facing the most widely forecast recession in history-and
investors don't seem to care.
Recession in Europe and the U.K. is already the average of
economic predictions, while the U.S. average forecast for next year
is growth of a miserly 0.2%, according to Consensus Economics, the
third lowest since 1989.
Must Inflation Be Brought Down All the Way to 2%?
"Why must inflation be around 2%?" is a question that obsessed
central bankers back when inflation was stubbornly below their
favorite target. It makes more sense to ask it now.
This past week, a string of data has suggested that inflation is
finally on a downward trend. The U.S. personal-consumption
expenditures price index excluding food and energy-the Federal
Reserve's preferred measure of inflation-recorded its
second-smallest monthly increase for the year, even as consumer
spending jumped and job growth continued. Meanwhile, eurozone
inflation receded to 10% in November, suggesting that October's
10.6% was the peak.
Why You Can't Find Wegovy, the Weight-Loss Drug
Novo Nordisk A/S flubbed the launch of its buzzy new weight-loss
drug Wegovy, missing out on hundreds of millions of dollars in
sales and squandering a head start before a rival could begin
selling a competing product.
Wegovy is among a new class of drugs that health regulators have
approved to cut the weight of people who are obese, a goal long
sought by doctors and patients. Their weight-dropping potential
became a viral sensation on social media. Elon Musk tweeted about
Wegovy in October. And a related drug for diabetes, Ozempic, is a
hot topic in Hollywood among celebrities seeking to stay thin,
according to doctors.
Iran Disbands Morality Police, Considers Changing Hijab Laws,
Iran's attorney general said the country had disbanded its
so-called morality police and is considering altering the
requirement that women cover their heads in public, a move that
analysts said was aimed at peeling away support for antigovernment
Mohammad-Jafar Montazeri outlined the steps Saturday, saying the
law requiring veils, known as hijabs, was under review by Iran's
Parliament and judiciary, and that the morality police had been
abolished, according to government-run news agencies.
Ukraine Says Oil-Price Cap Won't Dent Russia's Ability to Fund
KYIV, Ukraine-Ukraine denounced a price cap on Russian oil
agreed to by the U.S. and its allies as a weak measure that would
fail to deprive Russia's military machine of funds, as Moscow said
it could stop supplying consumers in response.
The Group of Seven agreed Friday to cap the price of Russian oil
at $60 a barrel, moving forward with an unprecedented sanction
against one of the world's largest producers following its invasion
Russia Will Rely on 'Shadow' Tanker Fleet to Keep Oil
Shipping companies have snapped up dozens of secondhand oil
tankers this year, paying record prices for ice-class ships that
can navigate frozen seas around Russia's Baltic ports in
A driving force behind the purchases, say people familiar with
the deals: To get Russian oil to market after the harshest
sanctions to date strike Russia's energy industry next week.
British Police Raid London Home of Russian Oligarch, Seizing
Cash and Devices
British police arrested a wealthy Russian businessman at his
upscale London home, officials said Saturday, amid stepped-up
pressure by the U.K. on Russian émigrés who are suspected of aiding
the rule of President Vladimir Putin.
The U.K.'s National Crime Agency said more than 50 of its
officers took part in the raid, seizing cash and digital devices.
Police also arrested a man employed at the residence after he was
seen leaving the building with a bag containing thousands of pounds
Credit Suisse's Investment Bank Spinoff Attracts Saudi Crown
Saudi Arabia's crown prince and a U.S. private-equity firm run
by Barclays PLC's former chief executive are among investors
preparing to invest $1 billion or more into Credit Suisse's new
investment bank, people familiar with the matter said.
Crown Prince Mohammed bin Salman is considering an investment of
around $500 million to back the new unit, CS First Boston, and its
CEO-designate, Michael Klein, some of the people said. Additional
financial backing could come from U.S. investors including veteran
banker Bob Diamond's Atlas Merchant Capital, people familiar with
that potential investment said. Credit Suisse previously said it
had $500 million committed from an additional investor it hasn't
New Zealand plans law to force Google, Meta to pay news
publishers for content
New Zealand intends to require large tech companies like Google
and Meta to compensate local media companies for content they use
and share on their platforms.
Willie Jackson, New Zealand's minister of broadcasting,
announced Sunday that legislation is being drawn up that will be
based on a similar law in Australia, as well as pending legislation
in Canada and measures in the U.K. and the EU.
Apple Makes Plans to Move Production Out of China
In recent weeks, Apple Inc. has accelerated plans to shift some
of its production outside China, long the dominant country in the
supply chain that built the world's most valuable company, say
people involved in the discussions. It is telling suppliers to plan
more actively for assembling Apple products elsewhere in Asia,
particularly India and Vietnam, they say, and looking to reduce
dependence on Taiwanese assemblers led by Foxconn Technology
Turmoil at a place called iPhone City helped propel Apple's
shift. At the giant city-within-a-city in Zhengzhou, China, as many
as 300,000 workers work at a factory run by Foxconn to make iPhones
and other Apple products. At one point, it alone made about 85% of
the Pro lineup of iPhones, according to market-research firm
Write to firstname.lastname@example.org
Expected Major Events for Monday
00:01/UK: CBI Economic Forecast
01:01/IRL: Nov Ireland Services PMI
07:00/TUR: Nov PPI
07:00/TUR: Nov CPI
07:00/SWE: 3Q Balance of Payments
08:00/AUT: 3Q GDP
08:00/HUN: Oct Retail Sales
08:00/SVK: Oct Internal trade, incl Wholesale & Retail
08:00/CZE: 3Q Wages
08:15/SPN: Nov Spain Services PMI
08:45/ITA: Nov Italy Services PMI
08:50/FRA: Nov France Services PMI
08:55/GER: Nov Germany Services PMI
09:00/EU: Nov Eurozone Services PMI
09:00/UK: Nov UK monthly car registrations figures
09:30/UK: Nov S&P Global / CIPS UK Services PMI
09:30/UK: Nov UK Official Reserves
10:00/CYP: Nov Registered Unemployed
10:00/EU: Oct Retail trade
16:59/SWI: 2Q Locational & Consolidated banking
16:59/SWI: 3Q International debt securities statistics
16:59/SWI: 2Q Domestic debt securities statistics
16:59/SWI: 3Q Exchange-traded derivatives statistics
17:59/UK: 3Q Household Finance Review expected around now
All times in GMT. Powered by Onclusive and Dow Jones.
Write to us at email@example.com
We offer an enhanced version of this briefing that is optimized
for viewing on mobile devices and sent directly to your email
inbox. If you would like to sign up, please go to
This article is a text version of a Wall Street Journal
newsletter published earlier today.
(END) Dow Jones Newswires
December 05, 2022 00:22 ET (05:22 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Grafico Indice FTSE 100
Da Dic 2022 a Gen 2023
Grafico Indice FTSE 100
Da Gen 2022 a Gen 2023