Macro Scenes:
- Wall Street had a relatively muted session following Moody’s downgrade of the US credit rating, and the tech rally took a breather ahead of the US October inflation data. Consensus calls for a sharp decline to 3.3% year-on-year from 3.7% in September for the headline CPI. But the core CPI may stay elevated, which could keep the Fed on its hawkish tone on the interest rate.
- The US dollar was slightly lower against most of the other major G-10 currencies due to a retreat in the US bond yields. The US faces a deadline for the debt ceiling negotiation, which risks a government shutdown at the end of the week.
- Crude oil extended gains for the second straight trading day, but both Brent and WTI futures were below key resistance of the 50-day moving average.
- The Japanese Yen spiked against the USD on bets for the BOJ’s intervention on the exchange rate. This caused a brief plunge of USD/JPY to 151.20 before bouncing back to about 151.70.
- Chinese stock markets rebounded amid APEC summit optimism. Asian stock markets are set to open higher. ASX 200 futures were up 0.99%, and Hang Seng Index futures rose 0.72%.
Chart of the Day:
Tesla, daily
Company News:
- Boeing (NYSE: BA) jumped 4.5% after United Emirates Airline announced an order of 55 additional 777X wide-body jets, worth of US$52 billion aircraft. The Chinese government is also considering ending its freeze on Boeing’s 737 jetliners, which is expected to unveil the decision at the APEC Summit in San Francisco.
- Tesla (NDX: TSLA) rose nearly 4% after it updated the terms of its cybertruck order agreement that buyers cannot sell the vehicle within the first year of purchase without Tesla’s permission.
- Nvidia (NDX: NVDA) rose slightly, inches from an all-time high on the nes the chipmaker unveiled the H200, an upgrade of the H100, which is used by OpenAi to train its ChatGPT-4.
- Exxon Mobil (NYSE: XOM) was up 1% after the oil and gas giant unveiled a plan to become “a leading producer of lithium” through a drilling operation in Arkansas, branded as Mobil Lithium. The company’s first lithium production is targeted for 2027.
ASX Corporate Actions:
- NAB is on Dividend Ex-Date. Div: A$0.84. Pay Date: 15/12/23
Today’s Agenda:
- New Zealand FPI for October
- Australia’s NAB Business Confidence
- UE Flash GDP
- US CPI for October
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